☕️ OpenAI’s record

Good morning.

Sam Altman’s OpenAI just wrapped its US$6.6 billion ($9.6 billion) raise in the largest VC deal ever, pushing its valuation to US$157 billion—nearly double its value from less than a year ago and five times its April 2023 figure.

Thrive Capital, led by Joshua Kushner (yes, former Victoria’s Secret model Karlie Kloss' husband), reportedly spearheaded the round with a US$1.2 billion investment, including an option to invest a further US$1 billion at the same valuation next year.

OpenAI not only required minimum checks of US$250 million, but according to the FT, the ChatGPT creator also expected investors to steer clear of backing rivals like Anthropic and Elon Musk's xAI.

Other investors in the round, either directly or through special purpose vehicles, included Nvidia, Microsoft, SoftBank, Tiger Global, CalPERS, Khosla Ventures, Altimeter Capital, Fidelity and MGX, according to various media reports.

The FT doesn’t quite say they all agreed to the exclusivity terms—we shall see..

🏆 LOI Subscriber #TBD

Market movers

Sigma Healthcare led the ASX 200 on Wednesday, adding to double-digit gains the previous day after the ACCC invited feedback on Sigma’s proposed remedy to ease concerns over its deal to acquire Chemist Warehouse.

Just a reminder, ACCC chair Gina Cass-Gottlieb was clear on Tuesday when she said the consultation “should not be interpreted to mean that this or any other form of undertaking will ultimately be accepted by the ACCC".

The quick sync

• Boutique funds Samuel Terry and Harvest Lane cashed in on ASX's fiercest cotton bidding war. (Capital Brief)

• Bitcoin again facing turbulence despite crypto buzz over the start of the Fed's rate cutting cycle. (Capital Brief)

• Mounting waste drives construction industry to test circular design and demolition methods. (Capital Brief)

• Duxton slashes jobs, offloads properties as Ed Peter’s empire faces tough times. (AFR)

Trading floor

M&A

• Macquarie Capital and Goldman Sachs topped Australia’s M&A league tables after advising on AirTrunk’s $24bn sale, benefiting from the year's biggest deal. (AFR)

• Genesis Energy is acquiring a 65% stake in ChargeNet for NZ$64m, causing a dip in its ASX shares. (Capital Brief)

• LDC secures control of Namoi Cotton after rival Olam Agri pulls out, gaining over 50% voting power. (Capital Brief)

• SPC, a century-old agribusiness, is returning to the ASX through a reverse takeover of Original Juice Co and a dairy business acquisition. (AFR)

• Accent Group becomes the exclusive distributor for Lacoste and Dickies in Australia and New Zealand, enhancing distribution through direct and wholesale channels. (Capital Brief)

• TPG Capital and Pacific Equity Partners, after missing out on Healius’s Lumus Imaging, are now pursuing a $3 bn acquisition of I-MED Radiology. (The Australian)

• Santos secures a mid-term LNG supply deal with TotalEnergies, building on recent partnerships with Hokkaido Gas and Glencore. (Capital Brief)

• UniSuper is set to co-invest with Macquarie and Aware in a $6bn acquisition of TPG Telecom's fibre assets, which may make it an indirect minority owner of Vocus. (AFR)

• MFF Capital acquires Montaka Global to boost research and portfolio management for long-term unitholder gains. (Capital Brief)

• Quadrant and Partners Group are pausing the sale of their childcare businesses, Affinity Education and Guardian Early Learning, until 2024, hoping for higher long-term returns. (The Australian)

• Morningstar cuts REA Group's fair value estimate after it abandons Rightmove takeover bid. (Capital Brief)

• Morgan Stanley and Bank of America are managing a $271m block trade in Pilbara Minerals, linked to a secondary share sale for China’s Gangfeng, as the company's share price begins to recover. (AFR)

• Les Szekely will sell most of his 5.5% stake in SiteMinder and retire from the board in December to focus on tech startups while remaining a supportive shareholder. (Capital Brief)

• Bain Capital's deal with Qatar Airways for 25% of Virgin Australia is valued at about $750m, supporting a $3bn valuation and potentially affecting the airline's IPO pricing next year. (The Australian)

• Character.ai will no longer develop its own AI models after a $2.7bn deal with Google, opting to concentrate on its chatbot platform. (Capital Brief)

• Canada has launched a national security review of Paladin Energy's $1.5bn acquisition of Fission Uranium, citing concerns over Chinese investor influence, which may delay the deal further. (AFR)

Capital Markets

• Macquarie cuts Star Entertainment's valuation, expecting a significant earnings decline in FY25 due to mandatory carded play and other challenges. (Capital Brief)

• Navis Capital's Device Technologies has gained lender approval to raise $150m in debt for M&A, positioning itself to pursue attractive takeover targets. (AFR)

• Sigma Healthcare's stock rose after the ACCC sought feedback on its proposed remedy for competition concerns related to its acquisition of Chemist Warehouse. (Capital Brief)

• The ASX canceled over $800,000 in trades for Namoi Cotton after failing to publish a new $150m takeover offer from Louis Dreyfus before trading began, affecting one million shares within six minutes. (AFR)

• Nike shares dropped 8.3% after the company withdrew its annual revenue target, raising concerns about its turnaround. (Capital Brief)

VC

• OpenAI has completed a US$6.6bn funding round, the largest VC deal ever, more than doubling its valuation and placing it among the top three venture-backed startups. (Capital Brief)

• Brisbane startup Zeligate raised $5.5m in seed funding to launch its AI platform, Zelis, which provides multi-tasking capabilities beyond current options like ChatGPT. (BNA)

• Cartherics has raised $15m to start trials for its ovarian cancer cell therapy, following prior funding of $26m. (Startup Daily)

People moves

• KMD Brands appointed Brent Scrimshaw as its new CEO after Michael Daly's resignation, with Daly staying on as interim CEO until Scrimshaw's start date. (Capital Brief)

• The former head of trading at Regal Funds Management in New York is starting a hedge fund and has recruited a talented team, including ex-Morgan Stanley Australia CEO Steve Harker on his advisory board. (AFR)

• Commonwealth Bank is revamping its leadership team, promoting Andrew Hinchliff to chief risk officer and appointing new executives in preparation for key retirements. (Capital Brief)

• Barrenjoey Capital has recruited Amy Mallace from CLSA to enhance its global sales team led by Mark Malouf. (AFR)

• JB Hi-Fi promotes CFO Nick Wells to COO role to assist in growth and expansion after acquiring e&s Trading and The Good Guys. (Capital Brief)

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The watercooler