Aug 22, 2025

I recently read about the macro impact of AI on GDP, highlighting the significant capital spending in this sector. Major companies like Amazon, Google, and Microsoft are investing heavily in AI, contributing to about 10% of the total increase in the dollar value of U.S. GDP over the past two years. The report suggested that U.S. GDP could be even higher if these investments were fully incorporated into official data.

Another news article caught my attention, discussing how stock-market investors might be overlooking a potential bond crisis. Despite rising long bond yields, investors seem to be more focused on bullish metrics. Concerns were raised about a possible crisis in confidence in equities due to rising long-term rates and the impact on equity valuations.

In the financial world, there is a waiting game as U.S. and European officials outline details of a trade deal. Private equity is closely monitoring the situation, especially with Jay Powell set to give his annual speech from Jackson Hole. The report highlighted potential risks for private equity from a “MAGA-fied” Fed and stressed the importance of Fed independence.

In terms of funding news, several ventures secured significant investments. Companies like Definite, Cascade Health, Agenda Hero, Molecular You, and Wallround raised millions in seed funding or series A rounds. Additionally, SugaROx, a U.K.-based crop biostimulant developer, raised €1.1 million in seed funding, and Quantinuum, a quantum computing group, is in talks for new funding at a $10 billion valuation.

Private equity deals included Carlyle’s acquisition of Intelliflo and Blackstone’s purchase of Shermco. International Paper sold its global cellulosic fibers unit, while JMI Equity and Frazier-backed Vatica Health bid for Cozeva. Other acquisitions included CentralReach acquiring SpectrumAi, Digi International buying Jolt Software, and Grundfos acquiring Newterra. Quadria Capital is also in talks to sell a minority stake in Encube Ethicals, and Harman agreed to sell its digital transformation solutions unit to Wipro.

Stay Well!