AI Funding Frenzy Continues with Cursor, Thinking Machines
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This is Bloomberg Tech coming up. Tech stocks whipsaw as skepticism grows about the Fed being able to cut interest rates in December. Plus, Thinking Machines, the AI startup founded by former OpenAI exec Mira Marati, is in talks to raise funding at $50 billion valuation. And we sit down with the CEO of Cursor after it raised $2.3 billion in funding, valuing the company $29.3 billion, Caro. Massive private sector funding valuations. But let's get to the public sector because we are being whipsawed on the daily. We are flat. If you're looking at a five-day stretch, the NASDAQ is currently flat as a pancake, as we might say over in the UK. But at the moment, we are still seeing this questioning, questioning of valuations, questioning of sustainability of capex spend for the big AI players, questioning of what the Federal Reserve does next.
So we dig into key assets that have seen volatility this week. But I'm looking at crypto has been in the eye of the storm. We're off by 7%, let's call it, on Bitcoin more broadly. We're seeing a lot of pullback in terms of the ETF buying. We've seen another more than $800 million washed out in terms of outflows from those ETF products, Ed. The mood music of the market has changed this Friday in the context of technology. Best laid plans, I was going to tell you that Tesla and Nvidia were two of the biggest decliners, actually both now in positive territory. But over the course of the week, probably Nvidia more than any other has had volatility, starting the week with a really big jump, then declining on news flow.
Actually, in aggregate over the course of the week, it's basically flat. But then there's the Super Bowl next week with its earnings. Are we really talking about the Fed or are we really talking about an AI bubble and valuations? Probably both at this point, Cara. Yeah, and let's get to both of those key elements we want to dissect. Bloomberg TV Markets correspondent Nora Melinda is here to really break down what felt like the start of the day of a risk-off rally. The risk-off is still there in crypto, but we're really getting whipsawed in the stock market.
We're seeing a lot of whipsawing in the market and a lot of conversation here about a potential AI bubble. But when you think about valuations from the S&P 500 more broadly, we haven't even seen a 5% decline in the S&P 500 since April. So we do have folks over at Truist Securities really talking about the fact that maybe this is time for a correction because this is a longer period than we've seen opposed to normal here as we haven't seen a correction here for the broader market.
Nora, I'm going to let you and the audience in on a secret. I was going to take a vacation next week. Okay. I checked my calendar. Super Bowl Wednesday, NVIDIA earnings. We've got to talk about it. And one of the reasons it's great to have you on the program, let's talk about it through the lens of the options market and what that's telling us about how they've looked at their calendars and how they're preparing for that print.
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