Alternative Investing Report - January 24, 2025

*as of 1/23; Sources: S&P, BTC, FTSE, DJRE, CL50

AI startup Anthropic just received a fresh $1 billion investment from Google, which already owns 10% of the company from its earlier investments of $2 billion. Anthropic has also received considerable funding from Amazon, which invested $4 billion last November. The new investment from Google comes on the heels of reports that Anthropic is raising a $2 billion funding round at a $60 billion valuation and that its annualized revenue has increased 10x in the past year.

➨ TAKEAWAY: Building AI models is incredibly capital-extensive, and Anthropic is trying to keep up with its rivals OpenAI and xAI, who both raised mega-rounds in 2024. There is considerable upside for investors backing whichever company ends up being the dominant player in the industry. Next Monday at 11 AM ET, we will be be holding our next pre-IPO briefing on Anthropic - register here to join our discussion and learn more.

Monday January 27 at 11 AM ET - join a briefing covering the $60 billion AI startup Anthropic. Vincent’s Slava Rubin and Sacra’s Jan-Erik Asplund will discuss the company’s growth, strengths, challenges, IPO prospects, and much more.

The typical asking rent for U.S. single-family rentals is up 4.4% year-over-year and 40.6% over the past five years. This SFR figure beats out multifamily rents, which grew a more modest 2.4% year-over-year and 26.2% over the past five. The market that has seen the highest annual rent growth is Hartford, followed by Cleveland. On the other hand, Denver, San Antonio, and Austin are the only major metro areas where rents have fallen year-over-year.

➨ TAKEAWAY: As would-be homebuyers face affordability issues due to high mortgage rates and limited new construction, many are forced to rent rather than buy, which has pushed up demand for single-family rentals. Apartment rental growth has slowed in comparison, though it is projected to see a resurgence in 2025, particularly in the Midwest and Northeast. The Sun Belt is expected to see slower growth, as supply has caught up to demand in many of those markets.

🤖 Musk rips Stargate: Even though he is an ally of the Trump administration, Elon Musk is not a fan of the recently announced Stargate AI infrastructure joint venture between OpenAI, Oracle and SoftBank. Musk claimed that SoftBank does not have the capital it has pledged to the project, and he has long been critical of OpenAI and its CEO Sam Altman.

🏈 Jason Kelce forgeries: Three people were arrested and charged with selling forged memorabilia supposedly signed by the former Eagles star. Most worryingly, one of those charged was an independent contractor for Beckett Collectibles who used her credentials to falsely verify the items as legitimate.

🎨 Auction houses wooing crypto: As crypto has come back strong, auction houses are once again pursuing newly rich crypto holders in hopes of convincing them to spend money on art. Sotheby’s is accepting Bitcoin or Ethereum as payment for its auction in Saudi Arabia next month - the first time it has done so for a live auction of physical items.

🏢 Data centers: Two PwC partners called data centers the “hottest piece of real estate” in the current market, thanks to rising demand from the emergence of AI.

💵 Thoma Bravo raises credit fund: The private equity firm closed a $3.6 billion fund, its third, as private credit continues its strong fundraising cycle.

🪙 Trump pardons Ross Ulbricht: Fulfilling a campaign promise, President Trump issued a full pardon to the founder of the early crypto-based marketplace Silk Road, a haven for illicit drugs. Ulbricht had been serving a life sentence for drug trafficking and accused of a murder-for-hire plot.

Monday: 🪙 Trumpcoin
Tuesday: 🚀 Setter 30, 🎵 Bob Dylan auction
Wednesday: 🤖 Stargate Project, 🏡 Housing Executive order
Thursday: 🚀 VC and PE strategies, 🎸 Jeff Beck auction

Have a great weekend!