Good Morning! Nvidia beat earnings but shares tumbled after a disappointing forecast and Blackwell chip snags. Fellow tech giant Apple is facing some adversity too, announcing rare job cuts. Meanwhile, Hindenburg Research has set its sights on a new target—Super Micro Computer, which saw its stock plummet 19% after the short-seller's report. Telegram CEO Pavel Durov was formally charged, and OpenAI is nearing a funding round that could value the company at over $100 billion. Plus why Gen Z is turning down high-paying jobs for workplaces with perks.

Hebbia AI makes deal diligence 10x faster and more accurate making it the perfect AI for investment professionals.

_{SQUEEZ OF THE DAY}

Buffett’s Early Birthday Present

There’s a new member in the $1 trillion club, and it’s not who you’d expect. On Tuesday, Berkshire Hathaway briefly crossed the trillion-dollar mark, becoming the first non-tech company to join this elite group. While the usual suspects—Apple, Nvidia, and Microsoft—are still ruling the roost at or above the $3 trillion threshold, Berkshire’s rise is a testament to old-school investing.

Berkshire Hathaway’s journey began in 1839 as a humble textile manufacturer, but in 1965, Warren Buffett took the reins and transformed it into a sprawling empire covering insurance, railroads, retail, manufacturing, and energy.

Now, Buffett is turning 94 on Friday. In his annual letter, he told investors that expecting Berkshire to continue outperforming with “eye-popping” results is wishful thinking. Yet, Berkshire's stock is up 28% year-to-date outperforming the S&P 500′s 18% gain.

Lately, Berkshire has been on a bit of a selling spree. Buffett halved his Apple stake last quarter, and Tuesday saw him offloading 25 million shares of Bank of America for nearly $1 billion. But, he’s not just cashing out — Berkshire has also made fresh bets, buying up shares in beauty retailer Ulta Beauty and aircraft parts manufacturer Heico. 

Berkshire has always been loyal to a few of their top holdings: 21.3% of American Express, 9.3% of Coca-Cola, and 6.5% of Chevron as of June 30th. They also have full ownership of Geico, BNSF Railway, Dairy Queen, and a host of other businesses.

Takeaway: Although Berkshire Hathaway didn’t close above $1 trillion, it’s on the brink and continues to flirt with this legendary milestone. Buffett’s achievement is a testament to his steadfast focus on ‘old economy’ businesses, even as flashier competitors have come and gone. Buffett may be turning 94, but he’s still schooling Wall Street—one ‘boring’ investment at a time.

_{PRESENTED BY HEBBIA}

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Why? 

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• Drafts one-pagers based on your team’s investment philosophy

Book a quick demo to see Hebbia in action.

_HEADLINES

Top Reads

• Nvidia’s earnings report shows the problem of being priced for perfection (CNBC)

• Nvidia reports 122% revenue growth on surging demand for data center chips (CNBC)

• Apple makes 'rare' job cuts (YF)

• Super Micro shares fall 19% on filing delay, Hindenburg report (CNBC)

• Telegram boss Pavel Durov charged, banned from leaving France (ST)

• OpenAI in funding talks, valued at over $100 billion (CNBC)

• Google, Meta employees jealous of their wealthy Nvidia peers (YF)

• Bolt's big deal comes under new scrutiny (Axios)

• Gen Z turning down high-paying jobs for workplaces with perks (NYP)

• US 30-year mortgage rate falls to lowest since April 2023 (YF)

• AI demand could strain electrical grid in coming decade (CNBC)

• Treasury will define U.S. crypto policy — eventually (Axios)

• Park Avenue’s Park is coming back (Curbed)

• Why Kamala Harris's approach to capital gains is generating so much controversy (YF)

_{CAPITAL PULSE}

Markets Rundown

Stocks tumbled before Nvidia reported earnings.

Movers & Shakers

• (+) Chewy ($CHWY) +11% after the pet retailer reported Q2 earnings.

• (–) Abercrombie & Fitch ($ANF) -17% after the retailer posted slowing growth.

• (–) Super Micro Computer ($SMCI) -19% after the company delayed its annual filing; short seller accused the company of accounting irregularities.

Private Dealmaking

• Cribl, a San Francisco-based data infrastructure startup, raised $319 million

• OpusClip, an AI video clip editing tool, raised $30 million

• Finture, a Singaporean digital bank, raised nearly $30 million

• Eppo, an SF-based AI experimentation platform, raised $28 million

• Spineology, a spinal fusion startup, raised $25 million

• Quaise Energy, a geothermal startup, raised $21 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

The Mind’s Mirror

Imagine a technology capable of discovering new drugs in days instead of years, helping scientists map distant galaxies and decode the language of whales, and aiding the rest of us in mundane daily tasks, from drafting email responses to preparing dinner. Now consider that this same technology poses risks to our jobs and society as a whole. Artificial Intelligence is no longer science fiction; it is upending our world today.

As advances in AI spark fear and confusion, The Mind’s Mirror reminds us that in spite of the very real and pressing challenges, AI is a force with enormous potential to improve human life. Computer scientist and AI researcher Daniela Rus, along with science writer Gregory Mone, offers an expert perspective as a leader in the field who has witnessed many technological hype cycles. Rus and Mone illustrate the ways in which AI can help us become more productive, knowledgeable, creative, insightful, and even empathetic, along with the many risks associated with misuse.

The Mind’s Mirror shows readers how AI works and explores what we, as individuals and as a society, must do to mitigate dangerous outcomes and ensure a positive impact for as many people as possible. The result is an accessible and lively exploration of the underlying technology and its limitations and possibilities―a book that illuminates our possible futures in the hopes of forging the best path forward.

“An exciting introduction to the true potential of AI from the director of MIT’s Computer Science and Artificial Intelligence Laboratory.”

_{DAILY VISUAL}

Capex Spending on AI

Capex spending on AI continues to be a significant tailwind to the economic outlook

_{PRESENTED BY DOLLAR FLIGHT CLUB}

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• Round trip to Paris from $293

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• Orlando from $38 (no joke)

Don’t wait, try for $1 now.

_{DAILY ACUMEN}

Good Questions

The quality of your life is determined by the quality of your questions.

Insightful questions can unlock new perspectives, solve problems, and deepen relationships.

What questions are you asking?

Socrates changed the course of Western philosophy not by providing answers, but by asking probing questions.

Cultivate curiosity.

Ask open-ended questions.

Listen deeply to the answers. Remember, a wise man doesn't give the right answers, he poses the right questions.

_{ENLIGHTENMENT}

Short Squeez Picks

• How Citadel’s Ken Griffin recruits his C-suite

• Why some people are micromanagers

• Warren Buffett on the fragility of reputation

• 4 phrases smart people use to succeed at work

• Does personality or life challenges cause anxiety?

_{MEME-A-PALOOZA}

Memes of the Day