New Tech Fund for Buzzy Startups, Plus Intel and Google Unveil New Chips 4/9/24

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Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.5 • 66 Ratings

🗓️ 9 April 2024

⏱️ 15 minutes

🔗️ Recording | iTunes | RSS

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Summary

There's a new fund that now allows retail investors to get in on the hottest tech startups, including Stripe, OpenAI and SpaceX. But it comes with some risk. The Destiny Tech100 fund has soared more than 500% since its launch two weeks ago but is tanking 40% today. We break down the risks and the rewards. Plus, Intel and Google both announced new and more powerful chips. Intel is introducing its Gaudi 3, which they say is better at inferencing and power efficiency than Nvidia’s H100 chip -- the main choice among companies building AI system. And Google’s Axion is the megacap’s latest expansion into custom chips, which the company says is capable of a range of tasks from powering Google’s search engine to AI-related work.

Transcript

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0:00.0	A new fund now allows retail investors to get in on some of the hottest tech startups including Stripe,
0:05.2	open AI and SpaceX, but of course it comes with some risk. Kate Rooney digs into that for today's
0:10.7	Tech check. Hi Kate, Kake, tell us more about this. this. Hey Cory, yeah, so this is pretty rare. Typically
0:14.8	investing in private startups is reserved for high net worth individuals, but a new fund that
0:19.1	launched two weeks ago is shaking that up. There is certainly demand for it. Destiny Tech 100 as it's called is up 500% since it debuted but
0:28.7	tanking about 40% today which could be related to reports that the CEO has sold nearly five million
0:34.1	dollars worth of shares. It is a unique structure, not a stock, not an ETF. This is a
0:38.6	closed-end fund. It holds a portfolio of 23 pre-IPO private companies with an annual fee of 2.5% so more akin to
0:47.0	a mutual fund. This fund comprises some of the most valuable private
0:50.6	companies out there. You got Elon Musk SpaceX, one of the largest
0:54.1	holdings followed by Axiom Space, Epic Games, Open AI, and Stripe. One dynamic at play here,
1:00.3	Silicon Valley companies are staying private for longer.
1:02.9	Striped, for instance, has been private and privately held for 14 years now,
1:06.8	SpaceX more than 20 years.
1:08.6	These early startup employees, though, those that work at these companies.
1:11.4	They might be wealthy on paper.
1:13.0	Reality is though without an IPO,
1:14.6	it can be hard to cash out, pay for things like a mortgage,
1:17.5	or buy a car, for example.
1:19.2	As a result, these companies are increasingly
1:20.9	turning to tender offers, which let employees sell those shares
1:24.3	to others in the private markets. It's one way that this Destiny Fund was able to get in. The
	...

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