E67: How to play the AI investment opportunity, Zuckerberg will change the world with augmented reality, Recent IPOs a success | Pre-IPO Stock Podcast – Oct 2, 2023 | Clint Sorenson, Nick Fusco, Aaron Dillon

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00:29 | Zuckerberg will change the world with augmented reality 
- Mark Zuckerberg, CEO of Meta, was interviewed by podcaster Lex Fridman using Meta-driven photorealistic avatars in the metaverse
- Fridman, an MIT professor, was deeply moved by the experience predicting photorealistic avatars could “change the world”
- Zuckerberg highlighted that very soon Meta will have augmented reality solutions to hologram people into real-world settings for business or personal use
- Photorealistic avatars have potential to disrupt the airline, hotel, and office real estate sectors

10:58 | Recent IPOs were a success
- Instacart, Klaviyo, and Arm all went IPO in the last 2-3 weeks.
…Arm: IPOed at $51/share, now at $53.92 (+5.7%), market cap $55b
…Instacart: IPOed at $30/share, now at $29.70 (-1%), market cap $8.2b
…Klaviyo: IPOed at $30/share, now at $35 (+17%), market cap $8.7b
- IPOs were a success as IPO price held and investors now have liquidity
- Stripe, Databricks, Reddit, others may look to IPO now
- Pre-IPO stocks need to give investors and employees liquidity options

22:19 | How to play the AI investment opportunity 
- OpenAI announced a valuation of $90b, up from a previous $29b
- Anthropic announced Amazon is taking a minority stake at an undisclosed valuation (north $10b?)
- AWS will be the cloud and chip provider for Anthropic and will also sell Anthropic AI through AWS, similar to OpenAI's partnership with Microsoft.
- Companies are getting valuations based on a 30x revenue multiple on projected “forward revenue”
- OpenAI previously announced $1b of revenue for the year, justifying its $29 billion valuation … predictions for next year's of “a few billion” revenue could justify the $90b valuation
- Winners could be those AI companies that partner with major cloud providers: Cohere with Oracle, Anthropic with Amazon, OpenAI with Microsoft, and Google's own AI for Google Cloud.
- Picks and shovels play are also interesting; Databricks, Hugging Face, Cerebras, Scale AI