Goldman Sachs’ AI Pre IPO

Goldman Sachs is making a big bet on a new AI company.

AlphaSense (private) recently raised $150 million from Goldman, BOND Capital, and Alphabet’s (NASDAQ: GOOG) venture firm.

Wall Street’s firms are investing in Artificial Intelligence to enhance research and trading activities.

AlphaSense was founded in 2011 by two Wharton grads.

It’s creating a robust research search engine powered by AI.

This tool accesses SEC filings, Wall Street research, industry publications, patents, news and conference call transcripts.

AlphaSense has built its own AI models that allow users to access vast amounts of data. It’s also using Anthropic’s Claude, Llama, and Mistral to power the application.

The incredibly powerful AI tool is used by hedge funds and Wall Street banks to analyze opportunities.

Plus, 80% of the companies in the S&P 100 subscribe to AlphaSense.

Access for one user typically costs $10,000 – $20,000 per year. That makes it cost prohibitive for most people.

AlphaSense revenues hit a run rate of $200 million last year.

The latest round of financing valued the company at $2.5 billion.

An Initial Public Offering in in the early planning stages.

However, AlphaSense plans to wait for the IPO market to improve. There have been a very limited number of IPOs in 2024 – with Reddit (NASDAQ: RDDT) being the big exception.

This is one Pre-IPO that’s worth watching.

Right now, Wall Street firms are investing billions in new AI technologies.

They’re building their own AI tools. And investing directly in private Pre-IPOs like AlphaSense.

Ian