Equity Equity Monday: Generative AI's Magic Leap
7 snips
Jan 9, 2023 Big Tech is buzzing with Vista Equity Partners' massive $2.6 billion acquisition of Duck Creek Technologies, showcasing their dominance in enterprise deals. The discussion unfolds around generative AI, questioning whether it's teetering on the brink of a bubble. Magic Leap makes a strategic pivot from consumer tech to enterprise applications, particularly targeting the medical industry. The conversation wraps up with insights into the evolving VR landscape and highlights funding disparities faced by Black founders, noting some encouraging trends in recent fundraising.
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Vista's Acquisitions
- Vista Equity Partners acquired Duck Creek Technologies for $2.6 billion, after Duck Creek's valuation dropped from $7 billion to $2 billion.
- Vista also acquired Citrix for $16.5 billion and Avalara for $8.4 billion, showcasing large enterprise deal valuations.
Generative AI Bubble
- Generative AI's popularity, fueled by tools like ChatGPT, DALL-E, and Lensa AI, has captured widespread attention, beyond just the tech community.
- Nearly half of investors surveyed in a recent piece predict generative AI as the next bubble.
Tech Hype Cycle
- Tech's focus on hype sectors and buzzwords, like Web3 or generative AI, leads to lack of due diligence and big losses.
- However, this excitement also brings awareness to tech, incentivizing investors and founders to talk about it.