Musk’s Companies’ Valuation Growth and Big Moves in Tech
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Musk’s companies’ valuation growth
SpaceX is reportedly exploring a secondary offering at a staggering $350 billion valuation, marking a sharp increase from the $255 billion reported by Bloomberg and other outlets just last month—a remarkable 40% jump in valuation, or over 1% per day.
At the same time, Elon Musk’s AI venture, xAI , has filed with the SEC to raise up to $1 billion in equity. The filing reveals that the company has already secured nearly $135 million from four investors since Nov. 29 and has a “binding and enforceable agreement” for the purchase of the remaining shares.
On a year-over-year basis, xAI leads Musk’s private companies in implied valuation growth with a phenomenal 350% increase, followed by FalconX at 91%.
OpenAI Enters Defense with Anduril Partnership
OpenAI and defense technology firm Anduril Industries announced a groundbreaking collaboration to develop AI solutions for U.S. anti-drone systems. This partnership, OpenAI's first with a defense contractor, represents a pivotal shift in its approach to military applications.
Previously committed to avoiding military uses, OpenAI updated its terms of service earlier this year, paving the way for this collaboration. The partnership will integrate OpenAI’s advanced AI models with Anduril’s counter-unmanned aircraft systems (CUAS), enhancing the U.S. military's ability to detect and neutralize aerial threats through faster and more precise analysis of critical data.
OpenAI’s Revenue Gets a Double Boost
Two major developments last week are set to impact OpenAI’s revenue:
ChatGPT Surpasses 300M Weekly Active Users OpenAI’s flagship chatbot, ChatGPT, reached 300 million weekly active users, reflecting its surging popularity and expanding user base.
Launch of $200/Month Subscription Tier OpenAI rolled out a premium $200-per-month subscription offering access to “Pro mode,” which leverages advanced models for more compute-intensive tasks.
These milestones highlight OpenAI’s strategy to grow its audience and revenue streams. CNBC reports the company aims for $11.6 billion in revenue by 2025, bolstered by its expanding user base and higher-value pricing options.
At Launchnay, we’ve also analyzed the growth of private tech companies traded on the secondary market in our 2024 Revenue Growth Ranking. OpenAI holds the 20th spot, showcasing its impressive momentum.
📊 Check out the full ranking and see who’s leading the charge!
Databricks’ Ambitions and Revenue Momentum
Databricks isn’t just competing with $60 billion Snowflake anymore—it’s setting its sights on giants like $300 billion Salesforce. As Jon Victor’s recent profile outlines, the company is emerging as a major contender in shaping how businesses handle and analyze data, positioning its vision against Salesforce’s Data Cloud.
This recognition as a top-tier software player comes just a few years after Databricks surpassed $1 billion in annual sales. Now, the company is updating investors with impressive numbers as it raises funds for what could become the largest private financing round ever, at a valuation exceeding $60 billion.
Key figures fueling investor confidence:
Revenue forecast for FY ending January 2025: $2.6 billion, reflecting 57% YoY growth, slightly ahead of earlier projections.
Future growth outlook: Databricks expects sales to grow over 40% annually for the next two fiscal years, targeting $5.4 billion by January 2027.
If these targets are hit, Databricks would be valued at 11.5x its projected 2027 revenue—about a point higher than Snowflake’s current multiple.
Databricks’ rapid ascent also lands it a high spot in Launchnay’s 2024 Revenue Growth Ranking for private tech companies traded on the secondary market.
📊 Dive into the full ranking to see where Databricks and other top companies stand!
ServiceTitan Sets Sights on $5.2 Billion Valuation with Upcoming IPO
ServiceTitan has released its IPO road-show video, outlining plans to offer up to 8.8 million shares at a price of $57 per share, potentially valuing the company at $5.2 billion. The company is aiming for a highly anticipated IPO, expected to take place later this week.
Primary rounds
Several primary funding rounds have recently raised substantial capital, which we believe will drive secondary market interest.
Tenstorrent , the AI chipmaker, raised $700 million in its Series D funding round, securing a $2.6 billion valuation. On the secondary market, Tenstorrent's implied valuation was previously $1.75 billion.
Public, the social investing platform, raised $135 million in its Series D round, bringing its valuation to $585 million. The implied secondary market valuation of Public stood at $600 million in early December.
Zopa Bank , the UK-based neobank offering loans, credit cards, and savings accounts to over 1.3 million customers, raised €82 million at a $1 billion valuation. Zopa's implied secondary market valuation was $970 million in December.
In these cases, secondary market prices reflect a strong alignment with the primary funding rounds, offering an accurate picture of company valuations.
Veeam's $2 Billion Secondary Share Sale
Veeam Software , the data resiliency company, completed a secondary share sale worth $2 billion, bringing its valuation to $15 billion. This places Veeam among the highest-valued tech private companies.
Veeam reported $2,27B revenue for 2024 with 51% yoy growth.