AI and the IPO market: Demand is there but product is lacking

  • 📰 CNBC
  • ⏱ Reading Time:
  • 24 sec. here
  • 9 min. at publisher
  • 📊 Quality Score:
  • News: 37%
  • Publisher: 72%

Markets News

Stock Markets,Investment Strategy,Astera Labs Inc

AI companies are able to raise ample amounts of capital in the private market, and many are fearful of valuation haircuts if they go public.

This week, Tempus AI , a healthcare diagnostics company that uses AI to interpret diagnostic testing to help physicians provide more accurate treatment for their patients, is slated to go public on the Nasdaq. It's one of the few AI-themed IPOs to emerge in 2024, although investors are eager for more.

A big problem: many AI firms are having no trouble raising money in the private markets. "The most in-demand companies still have no problem raising money privately," Matt Kennedy from Renaissance Capital told me. Take oft-mentioned IPO candidate DataBricks , a cloud-based platform that unifies and simplifies data systems. It raised $684 million in its latest funding round last November, and has a current valuation of $43 billion, according to Pitchbook.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines