GM and BRRR.

This morning’s inflation report is in, and the numbers are good:

CPI 3.0% Y/Y vs Exp. 3.1%
CPI Core 4.8% Y/Y vs Exp. 5.0%

Markets are rallying on the news of inflation cooling, with the Nasdaq up about 1.2%.

Despite the good report, the market does not expect it will change the Fed’s plan to raise interest rates later this month. The odds of a 0.25% rate hike are essentially unchanged since the new inflation data was released.

The Fed is still walking gingerly on the high-wire balancing inflation against a looming commercial real estate and banking crisis, but today’s data makes the act just a little bit easier going forward.

Today’s email is brought to you by AI Tool Report. It’s an amazing free resource to help you boost productivity with AI.

Please consider subscribing and opening their emails - it’ll support us at The BRRR. 👇

AI: The Money Robots

Nvidia Invests $50M Into AI Drug Discovery Company Recursion

Nvidia has invested $50 million into biotech firm Recursion to accelerate the training of AI models for drug discovery. Recursion, whose shares soared by 167% following the announcement, will use Nvidia's cloud platform to train these AI models using their vast biological and chemical datasets. The deal could potentially enable Nvidia to license out the AI models to other biotech firms via BioNeMo, a cloud service platform for drug discovery that Nvidia introduced earlier this year.

• Expediting Progress: Nvidia's $50 million investment will expedite the training of AI models on Recursion's extensive biological and chemical datasets. The biotech firm plans to leverage Nvidia's software to aid its own drug development pipeline as well as support its existing and future partners.

• Nvidia Diversifying: Nvidia could profit further from this partnership by licensing these AI models to other biotech firms through BioNeMo, its AI-based drug discovery cloud service. This move represents a strategic diversification of Nvidia's business model into the pharmaceutical sector.

• Recursion Collaborations: Recursion, a public company since 2021, is currently undertaking human trials for five of its drugs and utilizes AI for drug discovery. The firm collaborates with renowned drug manufacturers like Bayer and Roche, and its investors include Abu Dhabi's sovereign investor Mubadala and UK-based investment firm Baillie Gifford & Co. The company recently acquired two AI-driven drug discovery companies for $87.5 million, indicating its commitment to pioneering AI integration in drug discovery.

  Read more

Mergers & Acquisitions

Court Approves Microsoft’s Acquisition of Gaming Giant Activision Blizzard, Smacking FTC

Activision Blizzard's stock has hit a new 52-week high following a federal court ruling allowing Microsoft to proceed with its planned acquisition. The court dismissed the Federal Trade Commission's claim that the merger might reduce competition, suggesting instead that it could expand consumer access to Activision's premiere IP including Call of Duty and World of Warcraft.

• Court Ruling Impact: The federal court ruling has significant implications for the proposed Microsoft-Activision Blizzard deal. It not only allowed the acquisition to move forward but also indicated that the merger could increase consumer access to Activision Blizzard's content. This ruling directly contradicts the Federal Trade Commission's claim that the merger might lessen competition.

• Share Performance: Following the positive news, Activision Blizzard's shares surged by 10%, reaching the highest level in over a year at just above $90. For Microsoft, which is less impacted by the deal due to its diverse business lines, the share price also rose slightly. If the deal closes, Activision Blizzard's current shareholders could potentially receive a cash payment of $95 per share, resulting in an approximated 4% premium from the current trading price.

• Acquisition Risks and Considerations: The remaining risk of the acquisition falling through still exists, and if it does, Activision Blizzard's shares could see a significant drop. Hence, some investors might consider selling their Activision Blizzard shares to lock in gains. Despite positive developments in the United States and the United Kingdom, the acquisition is still not guaranteed to close, which could be a downside risk for investors.

  Read More

AI Art of The Day

The BRRR’s Portfolio Update

We sold half of our COIN yesterday after its recent surge so we’re sitting on nearly $7k in cash.

On Watchlist:
$AMD: NVDA’s strongest competitor
$ASML: They make the machines that make AI machines
$ISRG: Robot Surgeons
$OPRA: Growing web-browsing solution

Got feedback? Follow the writer on Twitter @frank_locascio and send a message.

Join our Facebook group to connect with the community.

The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.