ServiceNow's acquisitions, like the $7.75B deal for Armus, are not meant to prop up growth. They are strategic accelerants for existing, organically-grown billion-dollar business units, enhancing capabilities rather than simply buying revenue.
Nvidia retreated from building its own cloud service due to the difficulty and unreliability of its 'cloud of clouds' model, which leased competitor infrastructure. It has now pivoted to a less complex marketplace model, connecting customers to smaller cloud providers instead.
The future IPO of Anduril, a private defense tech firm, is viewed as a critical test for the entire sector. Its performance will signal Wall Street's appetite for a new class of defense startups that have been heavily funded by venture capital with speculative, low-revenue profiles.
Nvidia is helping customers finance its expensive AI chips through unconventional methods like creating special purpose vehicles for debt or exchanging chips for equity. This indicates that the high cost of its hardware is a significant sales hurdle requiring innovative solutions.
ServiceNow has identified data analytics as its next major growth engine, with the goal of making it the company's sixth billion-dollar business line. This strategy leverages its unique position as an 'enterprise OS' with deep, end-to-end visibility into core business processes.
Contrary to speculation, SpaceX's IPO narrative around space-based data centers is not a marketing ploy to cover slowing growth. The company believes it's the cheapest long-term compute solution and requires public capital to fund the massive, capital-intensive vision.
The current IPO market is bifurcated. Investors are unenthusiastic about solid, VC-backed companies in the $5-$15B valuation range, leading to poor post-IPO performance. However, there is immense pent-up demand for a handful of mega-private companies like SpaceX and OpenAI.