Good Morning! Private equity returns are plummeting to the lowest levels in over fifteen years. Meanwhile, newer hedge funds are struggling while the old guard is hiking their fees to record highs. Microsoft’s AI growth is giving Amazon’s cloud dominance a run for its money, and Bitcoin hit $50k for the first time in two years. Plus the best Super Bowl commercials of 2024, and how to spend money in a way that will maximize happiness.

If you are interested in getting in front of a smart, young audience of business leaders, bankers, investment professionals, policy influencers of over 600,000 people, then fill out this form, we’ll be in touch.

_{SQUEEZ OF THE DAY}

Altman Fundraising in the 31st Century

Sam Altman is fundraising in the 31st century. He’s looking to raise up to $7 trillion dollars for his latest venture - reshaping the business of chips and AI.

He wants to inject trillions into the global semiconductor industry - and he wants to tap record fundraising to do so. He’s reportedly courting deep pockets like the U.A.E. government to amass trillions of dollars.

But according to Altman, this isn't just a cash grab; it’s a necessity to supercharge the planet's chip production capabilities. OpenAI's growth is hitting speed bumps due to a crunch in the high-octane GPUs needed to train AI systems.

Altman's envisioned investment would blast the semiconductor industry's current market size into a new dimension. With global chip sales at $527 billion last year and forecasted to hit a trillion by 2030, Altman could turbocharge chip production.

Companies like Nvidia outsource their chip production to just three companies - Taiwan Semiconductor Manufacturing Co., Samsung, and Intel. Altman wants to join the chip makers and build new factories - but each factory costs around $10 billion to build.

Takeaway: There’s no doubt - scaling chip production is going to require a lot of capital. And we wouldn’t necessarily bet against Altman’s ability to raise a fresh trillion or two. But don’t think throwing money at the issue is necessarily the silver bullet to developing next-level AI - China has thrown over $150 billion at their own semiconductor industry, and it hasn’t worked. And with the most significant bottleneck issue being packaging, not producing chips, raising money might be the easy part of Altman’s plan.

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_HEADLINES

Top Reads

• How an unremarkable deal became a big threat to a small investment bank (WSJ)

• Private equity returns plunge to Global Financial Crisis level (YF)

• Bitcoin jumps to $50k for the first time in two years (CNBC)

• New hedge funds struggle while established players raise fees to record highs (YF)

• EQT hires Morgan Stanley to explore a sale of Idealista (Reuters)

• Microsoft’s AI growth is helping its cloud business weaken Amazon’s lead (CNBC)

• Stalled IPO market leaves startup employees eager to unload shares (WSJ)

• Investment banks brace for more Asia job cuts (Reuters)

• JetBlue resets with new CEO in push towards profitability (CNBC)

• Elon Musk isn’t the only billionaire fighting Delaware’s grip on U.S. businesses (WSJ)

_{CAPITAL PULSE}

Markets Rundown

Stocks closed slightly lower after Friday’s S&P 500 record close.

Movers & Shakers

• (+) VF Corp ($VFC) +14% because the clothing company’s management supports activist investor Engaged Capital.

• (+) Rocket Lab ($RKLB) +9% after Citi initiated coverage on the space company with a buy.

• (–) Big Lots ($BIG) -28% after the retailer was downgraded by Loop Capital.

Private Dealmaking

• Diamondback bought Endeavor in a $26 billion oil mega deal

• Gilead bought liver drug biotech CymaBay for $4.3 billion

• Bugcrowd, a bug bounty platform, raised $102 million

• Nasdaq Private Market, a provider of liquidity solutions to private companies, raised $62.4 million

• Xensam, an asset management provider, raised $40 million

• Owner.com, a platform for independent restaurant owners, raised $33 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The War Below

A new economic war for critical minerals has begun, and The War Below is an urgent dispatch from its front lines. To build electric vehicles, solar panels, cell phones, and millions of other devices means the world must dig more mines to extract lithium, copper, and other vital building blocks.

But mines are deeply unpopular, even as they have a role to play in fighting climate change and powering crucial technologies. These tensions have sparked a worldwide reckoning over the sourcing of necessary materials, and no one understands the complexities of these issues better than Ernest Scheyder, whose exclusive access to sites around the globe has allowed him to gain unparalleled insights into a future without fossil fuels.

The War Below reveals the explosive brawl among industry titans, conservationists, community groups, policymakers, and many others over whether some places are too special to mine or whether the habitats of rare plants, sensitive ecosystems, Indigenous holy sites, and other places should be dug up for their riches.

With vivid and engaging writing, Scheyder shows the human toll of this war and explains why recycling and other newer technologies have struggled to gain widespread use. He also expertly chronicles Washington’s attempts to wean itself off supplies from China, the global leader in mineral production and processing.

The War Below paints a powerfully honest and nuanced picture of what is at stake in this new fight for energy independence, revealing how America and the rest of the world’s hunt for the “new oil” directly affects us all.

“An unprecedented look inside the global battle to power our lives from acclaimed Reuters reporter Ernest Scheyder.”

_{DAILY VISUAL}

China Number of Births at the Lowest Level in Decades

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_{DAILY ACUMEN}

Fighting

Navigating the turbulent waters of partnership disputes often hinges not on delineating right from wrong, but on a mutual desire for understanding and empathy. The core of many arguments lies less in the factual accuracy of one's stance and more in the subjective experiences and perspectives that shape our beliefs.

Recognizing that each conflict is an amalgamation of two distinct worldviews can shift the focus from winning the argument to appreciating the complexity of our partner's emotions and needs. This understanding is pivotal in transforming conflict from a battleground of egos into a bridge towards deeper connection. 

Adopting a stance of curiosity about our partner's needs and feelings can illuminate the underlying concerns driving their behavior, fostering a climate of empathy rather than contention.

By questioning our automatic assumption of being right, we open ourselves to the possibility that our perspective is just one part of a larger, more nuanced story. Such an approach not only mitigates the friction of conflict but also enriches the relationship with a shared acknowledgment of each other's humanity and complexity.

Ultimately, the journey of partnership is not about evading disagreements but embracing the growth and understanding that can emerge from navigating life's shared challenges with compassion and openness.

_{ENLIGHTENMENT}

Short Squeez Picks

• The best Super Bowl commercials for 2024

• How increasing your leadership gravitas leads to more impact, less work

• How to become a more authentic leader

• How to spend your money to maximize happiness

• The problem with your manager

_{MEME-A-PALOOZA}

Memes of the Day