Artificial Intelligence: Top 5 Deals in the US in 2023

November 21, 2023

Intel

On February 7th, 2023, California-based Intel disclosed its decision to price seven series of its senior unsecured notes, cumulatively amounting to a principal value of $11 billion. The company intends to allocate the net proceeds from this offering towards various general corporate activities. These include but are not limited to, refinancing existing debts, supplementing working capital, and funding capital expenditures.

As a leading player in the global semiconductor chip manufacturing industry, particularly recognized for its development of the x86 instruction sets widely used in personal computers, Intel is taking significant strides in AI investment. In a statement made during Intel’s Q2 2023 earnings call, CEO Pat Gelsinger emphasised the company’s strategy to incorporate AI across all its products, signalling a strong commitment to advancing in this technology sector.

Anthropic

Anthropic, a San Francisco startup specialising in artificial intelligence, has confirmed an agreement to secure a $2 billion funding round from Google, after having already received $500 million from the tech giant, with a further $1.5 billion to be invested over time. This development follows Amazon’s significant $4 billion investment in the two-year-old company. Anthropic is known for its chatbot, Claude, which competes with OpenAI’s ChatGPT, backed by Microsoft. This investment represents the latest significant investment in a company developing foundational models that utilise large amounts of data and act as the core for various AI applications.

Claude, stemming from Anthropic’s advanced AI system training research, is available in both the U.S. and U.K. In July, Anthropic introduced Claude 2, featuring improved features like longer responses, better API integration, and a revamped, user-friendly website. Designed for versatility, Claude excels in complex dialogues, creative content generation, thorough analysis, and accurate advice, consistently delivering reliable performance.

Metropolis

On October 5th, 2023, LA-based Metropolis successfully completed a $1.7 billion Series C venture funding round, involving both equity and debt financing. Leading the equity financing, which totalled $1.05 billion, were 3L Capital and EldridgeBDT, with additional funding from organisations like MSD Partners, Slow Ventures, Assembly Ventures, Vista Credit Partners, and Temasek Holdings. This was supplemented by $650 million in debt financing. The funds are designated for Metropolis’ acquisition of SP Plus.

Metropolis, a startup specialising in AI and computer vision, is on a mission to transform parking and propel the future of mobility. Their innovative system which enables checkout-free payment for drivers, benefits real estate owners by increasing profitability and reducing operational costs. It not only helps maximise revenue but also provides property owners with advanced parking solutions and diverse transportation options.

Sumo Logic

On May 12th 2023, Redwood City-based Sumo Logic publicly disclosed the completion of their acquisition by Francisco Partners for approximately $1.7 billion. This follows the definitive agreement announced on February 9th 2023, which involved Francisco Partners acquiring all outstanding shares of Sumo Logic at $12.05 per share in cash, valuing the company’s total equity at about $1.7 billion. As a result of this acquisition, trading of Sumo Logic’s shares has ceased, and they have been removed from the NASDAQ stock exchange.

Sumo Logic specialises in a SaaS analytics platform that supports reliable and secure cloud-native applications. Their Continuous Intelligence Platform™ plays a crucial role in safeguarding against security risks and delivering insights into cloud infrastructures.

SurveyMonkey

Momentive Global, the holding company of SurveyMonkey, announced on March 13th 2023, that it had been acquired by a consortium led by private equity firm Symphony Technology Group, finalising the deal on May 31st. This all-cash acquisition values the company at around $1.5 billion. Following the announcement, shares of the San Mateo, California-based company climbed 18.5% to $9.15 in after-hours trading.

SurveyMonkey is a widely-used cloud-based survey platform that enables users to create, distribute, and analyse surveys. It offers multiple sharing options, including email, website embedding, and social media, to improve response rates.

Talent Insight

“As we reflect on the landmark AI deals of 2023 in the U.S., it’s evident that the sectors involved – from chip manufacturing and AI chatbots to cloud-based analytics and survey platforms – are poised for a surge in talent demand. The investments in companies like Intel, Anthropic, and Sumo Logic underscore a significant shift towards integrating AI across diverse industries. This trend will likely catalyse a heightened demand for AI professionals, particularly in areas such as semiconductor technology, cloud computing, and AI-driven customer engagement solutions.”

“Regions hosting these companies, including Silicon Valley for Intel and San Francisco for Anthropic, are expected to become hotspots for AI talent recruitment. The future landscape will favour professionals who not only excel in AI and data science but also possess industry-specific expertise to drive innovation and strategic implementation of AI technologies in these blooming sectors.”

– Tyler Huskins, Advanced Technology Executive Search Specialist

Published on 21-11-2023