M&A Round Up and Headlines From Louis Lehot

Good Morning from Silicon Valley! As we kick of the week, I wanted to share how the intersection of tech, finance, and policy is constantly developing. Here’s a roundup of the latest headlines making waves: Let me know your thoughts!

A Record Energy Pact for AI
Crusoe, the startup behind part of OpenAI’s Stargate project, has clinched a groundbreaking energy deal. Securing 4.5 gigawatts over the next two years, this pact is set to power data centers capable of running millions of advanced AI chips. As demand for AI capacity soars, this move signals a significant milestone in building robust, future-proof infrastructure.

Baidu Steps Up Its AI Game
To rival emerging competitors like DeepSeek, Baidu has unveiled its latest AI models — Ernie 4.5 and the new reasoning model Ernie X1. Baidu is sharpening its competitive edge by promising performance comparable to leading alternatives but at nearly half the cost. The company is also integrating these models into its search and mapping services, offering cost-effective API options to developers.

Klarna’s Strategic Turnaround
Klarna is preparing for its IPO on the New York Stock Exchange after reporting a slim profit last year. Revenue jumped 24% to $2.8 billion, thanks partly to a significant operational pivot. Nearly all employees now leverage #generativeAI to streamline tasks. Although there are still obstacles to overcome, AI technologies are already assisting in cost reduction and efficiency improvements.

PepsiCo Eyes a Bold Acquisition
On the consumer brands front, PepsiCo is reportedly in advanced talks to acquire the startup beverage brand Poppi for over $1.5 billion. With Poppi surpassing $500 million in sales this year and demonstrating strong profitability, this potential deal underscores a broader trend: established companies acquiring vibrant, next-generation brands to revitalize growth.

Crypto Conflicts Resolved
In the crypto space, David Sacks — the former crypto czar for the Trump administration — and his venture firm have divested more than $200 million in digital asset investments. This decisive move, including shedding significant stakes in major cryptocurrencies and related ventures, is intended to eliminate any conflicts of interest as he advises on emerging crypto policies.

What impact do you foresee from these trends on the broader market? Share your thoughts below.

Come check out my Substack for a deeper dive into these trends and headlines: https://substack.com/@louislehot1