Nvidia’s revenue soars 122% as OpenAI stares down a $100B valuation

Top News

• Nvidia reports 122% revenue growth: All eyes were on Nvidia today as the chip giant reported its calendar second-quarter performance. Nvidia turned in revenue of $30.0 billion, up 122% from the year-ago quarter and 15% from the first quarter of the year. The company’s rise is not just top-line, however; Nvidia also dropped earnings per share of $0.67, up 12% from the sequentially-preceding quarter and 168% from its year-ago result. Every Nvidia segment posted growth, but the big story is its surging data center business — which dropped $26.3 billion in total revenue, up 154% on a year-over-year basis. The company beat expectations but lost around 7% of its value in after-hours trading.

• OpenAI in talks for a big funding round: Speaking of big dollar sums the AI market continues to post, large language model giant OpenAI is reportedly staring down another few billion dollars in external capital led by Thrive Capital, this time at a valuation of more than $100 billion, according to the Wall Street Journal. That’s at least $14 billion more than the price at which some of its existing shareholders were allowed to cash out a portion of their equity last year. OpenAI has risen to international prominence in recent years — and multi-billion revenues. Investors — and corporate backers alike — think there’s more to come from the Sam Altman-led concern.

• Plaud is launching another AI wearable: Do you want to wear a pill-shaped electronic around your neck that records what you say and takes notes for you? Plaud is betting that you do. There are competitors, of course — Alex pre-ordered a Friend, for example. And other AI forward gadgets like the Hume pin have already come to market. Thus far, the fusion of AI and consumer hardware has proved a tough nut to crack, but Plaud’s NotePin thinks that it has the goods. And so can you, for $169.

New TWiST500 Interviews Coming

Exciting updates for TWiST500 fans. We’ve got two upcoming interviews with TWiST500 founders: Circle, the community platform that’s raised 30 million to date, and Udio, the AI music creation app founded by former Google DeepMind researchers. Stay tuned for these interviews in the next few weeks. In fact, as I head out next week on parental leave, we’ll have a bundle of TWiST500 interviews queued up for you. Get ready for lots more deep dives into the most interesting startups out there.

If there are any TWiST500 companies you’d love to see on the pod, email me at [email protected]. (Or, if you have one next week, [email protected]!)

— Alex

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This Week in Startups

E1998: Jason and Alex kick off the show with the arrest of Pavel Durov, discussing the legal implications and national security concerns, and perspectives from the French president. Other topics include global debates on encryption, privacy, the power of tech platforms, and U.S. law enforcement's approach to encrypted services and social media censorship. They wrap it up with a lightning round on G Squared's new fund and IBM's activities in China, followed by audience questions.

E1997: Sunny and Jason dive into AI demos, exploring AI market trends, consumer adoption, and AI's role in career trajectories. They also discuss the future of AI applications, including ChatGPT's efficiency, AI in operating systems, and the potential misuse of AI in elections.

Startup Legal Basics: In the latest episode of Startup Legal Basics, Wilson Sonsini Partner Becki DeGraw and Jason discuss the importance of early legal counsel, common legal oversights such as cap tables and IP assignments, and the risks associated with DIY legal documents. They also dig into the financial and legal implications of mismanagement and the intricacies of pro forma cap tables and employee stock option plans (ESOPs).

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