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Big Idea:

This past year, new decentralized RPC (Remote Procedure Call) networks have emerged, indicating a growing interest in the value of decentralized web3 networks. DePIN (Decentralized Physical Infrastructure) utilizes blockchain technology and token incentives to create decentralized physical infrastructure networks, offering an alternative to traditional models like AWS or Google Cloud. 

‍Why It Matters:

Grove is the first and largest RPC provider on a permissionless network (Pocket Network). Independent companies and RPC providers are opting to run gateways on Pocket or leverage Grove's services instead of managing all their nodes independently.

‍The Intrigue:

Grove has raised $7.9 million from Avon Ventures, Placeholder Capital, and Druid Ventures. The funding will be used to establish new partnerships, aiming to propel DePIN into mainstream adoption within the blockchain ecosystem. Their web3 infrastructure, powered by its POKT network, supports over 40 different chains with its native token (POKT). POKT has a market cap of over $150 million.

“Only a decentralized RPC protocol can handle the rapidly expanding universe of blockchains as we head deeper into a multichain world.” Said Joel Monegro of Placeholder VC. “The POKT team has delivered this key piece of infrastructure and we’re excited to see Grove make it even easier for companies and developers to use the network for their applications.”

‍Key Details:

• Grove aims to simplify the decentralization process for gateway providers and projects to build on top of Pocket Network, allowing partners to focus on core features.
• Grove processes tens of thousands of relays per second, passing customer performance tests, and offering competitive and transparent pricing.
• The company has established partnerships with notable entities like Aave, APY.vision, Infura, and others, showcasing the viability of building a successful business on top of a decentralized protocol.

‍What’s Next:

The trend is clear that web3 infrastructure will be decentralized to support a multichain world.

Big Idea:

Semiconductor leaders MediaTek and Nvidia have collaborated to innovate the next generation of AI-powered vehicles, focusing on in-car experiences and setting a new standard for smart vehicles.

Why It Matters:

The popularity of EVs is sparking the demand for smarter automobiles. The partnership promises to enhance road safety and efficiency through advanced AI and machine learning capabilities. 

Key Details:

• The partnership is set to deliver new user experiences, enhanced safety, and connected services across all vehicle segments.
• MediaTek's suite of innovative automotive solutions and system-on-chip (SoC) technology, including Dimensity Auto Cockpit and Dimensity Auto Drive, alongside Nvidia's AI and deep learning capabilities, aims to create AI-integrated autonomous driving systems and intelligent cockpits.

What's Next:

Beyond autonomous driving, the partnership involves advanced infotainment systems, natural language processing for voice commands, and personalized driver-assistance features. The AI technology will enable the system to learn and adapt to individual driver preferences.

Dive Deeper:

This partnership is part of a larger trend where other companies like Qualcomm and SoundHound AI are pushing the boundaries of automotive AI. This wave of innovation is setting new safety standards and making cars more efficient and high tech. 

Big Idea:

The U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) has committed $890 million to three carbon capture and storage projects, targeting two natural gas power plants and one coal facility.

Why It Matters:

The three selected projects in California, North Dakota, and Texas support President Biden's 2050 net-zero emissions goal. They have the potential to collectively reduce emissions by 7.75 million metric tons annually from the power plants. The goal is to demonstrate carbon capture, transport, and storage technologies to reduce emissions from natural gas and coal-fired power plants.

Key Details:

• 7.75 million metric tons of CO2 is equivalent to the annual CO2 emissions of 1.7 million gasoline-powered cars.
• The Baytown CCS Project, with $270 million in funding, aims to capture up to 2 million metric tons of CO2 annually.
• Project Tundra, with $350 million in funding, has the goal of capturing 4 million metric tons of carbon per year.
• The Sutter Decarbonization Project, with $270 million in funding, is aimed at capturing up to 1.75 million metric tons of CO2 annually.

"The DOE estimates that reaching President Biden’s ambitious plan for a net-zero emissions economy will require capturing and storing between 400 million and 1.8 billion metric tons of CO2 annually from emissions sources by 2050. Selected projects, once completed, will help reduce emissions from the power sector, which accounts for more than a quarter of U.S. carbon emissions,” according to a statement from the OCED.

Dive Deeper:

The Carbon Capture Demonstration Projects Program was launched in 2022 with a budget of $2.5 billion. The program aims to develop infrastructure that can be replicated and implemented not just for fossil fuels but in other industries like cement, pulp and paper, iron, and steel production.

Big Idea:

The North American lithium-ion battery industry is growing rapidly, fueled by advancements in technology and increasing demand for electric vehicles and energy storage systems.

Why It Matters:

The lithium-ion battery market in North America, currently valued at $15.7 billion, is expected to reach $40.83 billion by 2028, fueled by a shift towards electrification and sustainable energy solutions. These changes in battery technology and production could transform energy consumption patterns and hasten the shift to low-carbon economies.

Key Details:

• Tesla's 4680 battery cell provides 6X the power and 5X the energy capacity, enhancing EV range by 16%.
• LFP battery (lithium ferrophosphate) is gaining popularity, offering a less CO2-intensive alternative.
• The Inflation Reduction Act and the Li-Bridge initiative's focus on domestic battery production highlight the strategic shift towards energy independence and industrial policy.
• Key players include Tesla, CATL, Ford, Volkswagen, and startups like Sila and Natron.

What’s Next:

The sector is expected to witness innovative breakthroughs, including advancements in solid-state and silicon anode technologies, and expanded battery recycling capabilities.

Dive Deeper:

While the dominant view holds Asia, particularly China, as the leader in the battery market, North America's growth and technological innovations might challenge this narrative and offer new investment opportunities.

Big Idea:

Polychain Capital and Tribe Capital lead a $3.5 million seed round for Wynd Network, the developer behind Grass, a decentralized web scraping network powering AI models.

Why It Matters:

Wynd Network's approach addresses challenges faced by web scrapers, presenting a solution for industries relying on legitimate and unbiased data. Grass is a browser extension that utilizes individuals' unused internet bandwidth for web scraping, rewarding users with Grass Points. Wynd sells the scraped datasets to companies, particularly AI developers, showcasing a unique application of blockchain technology in AI development.

‍Key Details:

• Other participants in the seed round include Bitscale, Big Brain, Advisors Anonymous, Typhon V, and Mozaik. 
• By using individual-operated browsers, Grass aims to bypass data center IP blocks, emphasizing user data privacy as Wynd does not have access to user data.
• Wynd employs blockchain to verify the legitimacy of scraped data, addressing concerns of bias in off-chain models.

"Grass showcases the power of blockchain in enhancing AI development, unlocking new possibilities for training models with legitimate data," says Chris Nguyen, CTO of Wynd Network.

‍What's Next:

Wynd Network aims to collaborate with open source-focused AI companies, exploring broader applications beyond AI, with potential discussions about a future token.

‍The Intrigue:

Despite challenges in the web scraping landscape, Grass's model showcases resilience and adaptability, raising questions about the future role of individuals in data-driven technologies.

‍Breaking the Narrative:

Wynd's innovative approach challenges assumptions about the limitations of blockchain in handling massive AI datasets, demonstrating the potential for efficient cryptographic solutions.

Big Idea:

knownwell, a weight-inclusive primary care and metabolic health company, has successfully raised $20 million in a Series A funding round led by a16z, with participation from existing investors including Flare Capital Partners. The funding is to expand its unique, weight-inclusive care model for teens and destigmatize obesity treatment.

Why It Matters:

The global obesity therapeutic market is projected to reach $100 billion by 2030, with U.S. obesity-related healthcare costs nearing $173 billion annually. knownwell's model provides a cost-effective, AI-powered solution, aiming to address the issue of obesity among the 14 million children and teens living in the U.S.

Key Details:

• Knownwell's recent funding raises their total capital to $24.5 million.
• Launching “knownwell teens”, a comprehensive approach to adolescent metabolic health, leveraging AI-powered tools and clinical expertise.
• The initiative could drastically reduce obesity prevalence among U.S. teens, currently at 22.2% for 12- to 19-year-olds, and mitigate long-term health and economic impacts.

“Patients with overweight and obesity know how hard it is to find comprehensive, insurance-based, non-stigmatizing and clinically-based healthcare. knownwell exists to be a healthcare home to patients who have been stigmatized for too long by the healthcare system because of their size,” said Brooke Boyarsky-Pratt, CEO and Co-Founder of knownwell.

What's Next:

With the new funding, knownwell aims to expand its enterprise solution to collaborate with health systems, payors, and employers. The company plans to enhance its telehealth services and brick-and-mortar clinics, enabling wider access to weight-inclusive care. Product development, including the incorporation of AI-powered patient stratification, asynchronous communication, and provider workflow tools, is a key focus. 

State of Play:

knownwell is partnering with major pharmaceutical companies to conduct and participate in clinical trials. The company emphasizes evidence-based and high-value obesity medicine to address the significant healthcare challenges posed by obesity from both clinical and cost perspectives.

Flashback:

Founded by Brooke Boyarsky Pratt, who has experienced lifelong obesity, and Dr. Angela Fitch, the President of the Obesity Medicine Association, knownwell focuses on a long-term, holistic approach that challenges the industry's reliance on quick-fix treatments like GLP-1 drugs.

Big Idea:

The NFT trading volume experienced a significant increase of $99 million in October compared to the previous month, breaking a yearlong downward trend. 

Why It Matters:

The resurgence in NFT trading volume coincides with Bitcoin's price bouncing above $35,000, reaching its highest in 16 months. Ethereum also experienced a 50% jump in NFT trading volume, maintaining its leadership position across all networks.

State of Play:

• Animoca Brands, a blockchain company, has raised $11.9 million in its second tranche of funding for its Mocaverse project, a new Web3 platform focused on advancing digital property rights in gaming and the open metaverse. 
• Animoca Brands' recent investment of over $31 million shows the increasing value of digital property in the large video game market and the metaverse, set to reach $829 billion by 2028.
• Line Next, a NFT division of Line Corporation, has secured a $140 million investment in a funding round led by the Peter Thiel-sponsored Crescendo Equity Partners. This is one of the largest funding rounds in the Asian blockchain Web3 industry in 2023.
• The capital raised will be used to support plans for the launch of Line’s NFT platform DOSI in January 2024, integrating it with Line's Japan NFT marketplace and offering DOSI as a mobile app globally.

Key Details:

• OpenSea, the largest NFT marketplace for a significant period, was surpassed by Blur.io in 2023. Blur.io achieved this by introducing a new fee structure offering 0% transaction fees and 0.5% enforceable royalties, making it faster, cheaper, and more authentic for NFT collectors.
• The recent resurgence in the NFT market is attributed to the rise of utility-based NFTs. Companies like Nike are investing in Web3 integrations and building ecosystems, emphasizing the importance of utility over speculative trading in the NFT space.

Flashback:

At its peak, the NFT market transacted over $40 billion on digital assets and artwork on Ethereum, followed by a significant crash in 2022, causing a 97% drop in the overall NFT market volume.

Big Idea:

Worldcoin, led by Sam Altman, is pioneering a new type of digital identification by integrating World ID with top platforms, offering a new approach to identity verification. The technology makes it easier to distinguish between bots and "verified humans" online, providing developers with a more streamlined way to build integrations.

Why It Matters:

Worldcoin combines blockchain technology with practical applications across platforms like Minecraft, Reddit, Telegram, Shopify, and Mercado Libre.

Key Details:

• Nearly 5 million global users have a World ID, with 2.6 million using the iris-scanning Orb hardware. 
• Worldcoin has expanded onboarding in Mexico and Singapore, with plans to bring the platform to more countries in Asia. 
• World ID 2.0 offers three levels of authentication, including iris and facial recognition, enhancing user verification processes.
• Worldcoin’s valuation reached $3 billion, with its Series C funding round bringing in $115 million.
• Key players include co-founders Sam Altman, Max Novendstern, and Alex Blania, as well as investors like Blockchain Capital, a16z, and Bain Capital Crypto.

Yes, But:

The company has faced criticism, including a ban in Kenya over concerns about data security and privacy measures. Critics have also alleged that Worldcoin targets developing countries, offering participants outside the U.S. and some other countries 25 WLD tokens (worth approximately $60.5) for signing up. However, Worldcoin remains focused on global expansion and improving its platform.

Dive Deeper:

The deployment of Worldcoin's technology in developing countries highlights blockchain's potential to provide solutions in varied economic landscapes while also raising concerns about 'crypto-colonialism' and exploitation in less-regulated markets.

Big Idea:

OneGold, a joint venture by APMEX and Sprott, is modernizing precious metal investments with its digital platform, offering a modernized approach to gold, silver, and platinum investments.

Why It Matters:

OneGold allows investors to convert their digital assets back into physical gold or silver, bridging the gap between virtual and real investments and offering a full-circle investment experience. The platform offers real-time market data, diverse product options, secure storage, and various payment methods. 

Key Details:

• In 2023, gold prices rose above $2,000, while platinum prices surpassed $1,100.
• OneGold introduces a digital platform specializing in gold, silver, and platinum, backed by physical assets, with features like 24/7 trading and AutoInvest.
• The platform makes precious metals investing more accessible and appealing to a broader range of investors.

Dive Deeper:

OneGold's appeal isn't just in digital convenience; it's the combining tangible security of physical metals with the efficiency of digital transactions. This dual advantage positions OneGold in the market, especially when compared to traditional physical holdings or metal ETFs.

By the Numbers:

• Storage Fees: Gold at 0.12% and silver/platinum at 0.30% per annum.
• Minimum Investment: $100, higher than some competitors.
• Premiums: 0.80% over gold, 1.00% over silver, and 3.70% over platinum spot prices.

Big Idea:

Balaji Srinivasan, the former CTO of Coinbase, has unveiled the Balaji Fund, an investment venture targeting startup societies and 'Network States'. This fund focuses on emerging sectors such as crypto/Web3, AR/VR, and genomics, and is supported by Silicon Valley billionaires, including Brian Armstrong.

Why It Matters:

Balaji has proved to be ahead of the curve on several defining technology trends including Bitcoin so he’s worth paying attention to. He’s digging in on the intersection of crypto and real world organization. It will be fascinating to see his thesis on 'Network States' and the emergence of the “Grey Tribe” and how they find a way to politically connect in the real world connected with technology. Balaji opening up a fund and democratizing access in and of itself is a signal and represents a daring expansion of the tech investment narrative beyond conventional boundaries.

Key Details:

• Crypto market cap increased by 98.61% in 2023, reaching $1.6 trillion; AR/VR industry projected to generate $32.1 billion in revenue in 2023.
• The fund is supported by notable figures such as Brian Armstrong, Naval Ravikant, and Fred Wilson, highlighting its strong ties to the tech and cryptocurrency industries.
• The fund's emphasis on Bitcoin and decentralized structures could radically alter the trajectory of digital governance and societal organization.

What’s Next:

The Balaji Fund may catalyze a new era of decentralized, tech-driven societies, potentially revolutionizing how communities and governance function. The fund's unique focus on Bitcoin-driven 'Network States' challenges conventional tech investment paradigms, proposing a novel approach to societal organization and governance.

Dive Deeper:

Srinivasan's decade-long work with the concept of 'Network States', rooted in decentralization and powered by Bitcoin, challenges traditional notions of governance, advocating for decentralized, tech-driven societies.

Big Idea:

The Multidisciplinary Association for Psychedelic Studies (MAPS) has submitted its application to the FDA for the approval of MDMA-assisted therapy for patients with PTSD.

Why It Matters:

This marks a significant moment in psychedelic research for therapeutic use following 30 years of clinical research. The anticipation of MDMA's regulatory approval reflects a growing understanding of its therapeutic benefits, challenging long-held stigmas associated with psychedelic drugs.

Key Details:

• The application is based on two phase 3 studies demonstrating the efficacy of MDMA in reducing PTSD symptoms.
• Treated patients showed a significant drop in severity scores compared to the placebo group, with nearly half of treated patients meeting criteria for remission after the third dose.
• If the FDA approves the application, MAPS aims to work with regulators to reclassify MDMA from a Schedule 1 drug (no medical use, high risk of abuse). 

What's Next:

MAPS’ MDMA application could see FDA approval by August with priority review. The organization’s goal is to explore the therapeutic potential of MDMA in areas where effective treatments are currently limited, with a particular emphasis on disorders that disproportionately affect women.

By the Numbers:

• 88% of participants in the first Phase 3 trial showed a significant reduction in PTSD symptoms.
• Nearly half of the treated patients reached remission criteria after the third MDMA dose, versus 21.4% in the placebo group.
• Durable improvements in symptom severity observed at least six months post-treatment.

Flashback:

Founded in 1986, MAPS initiated its first clinical trial involving MDMA for PTSD in 2004. The MAPS Public Benefit Organization, focused on FDA approval, was launched in 2014. 

Big Idea:

The European Union announced an additional €3 billion fund to add to their plan to rapidly accelerate its battery manufacturing capabilities, positioning itself as a key player in the global EV revolution and advancing towards energy independence and sustainability.

Why It Matters:

• Europe's aggressive shift towards electric mobility, driven by the need to reduce GHGs, has sparked a significant increase in demand for lithium batteries.
• The EU, aiming to secure a competitive edge in the global battery market, is poised to become the world's second-largest battery market by 2030, with an anticipated demand of 443 GWh.
• However, challenges such as dependency on imports for critical materials, technological hurdles, and stiff competition from Asian giants like China, Japan, and South Korea, which currently dominate the global battery industry, pose significant risks.
  

Key Details:

• This initiative is a response to global challenges, including the pandemic and geopolitical tensions, underscoring the EU's commitment to the European Green Deal's industrial goals.
• Data Point: EU battery production is projected to reach 238 GWh by 2025 and potentially 1,395 GWh by 2030.
• The shift towards local production and sustainable practices in battery manufacturing is expected to significantly strengthen the EU's energy independence and economic resilience.
• Stakeholders: Key players like Northvolt, Freyr, ACC, CATL, and Volkswagen Group and fund support tends to be a high signal to the startup ecosystem that this industry will grow and support new business. 

What's Next:

Europe's battery industry was on a trajectory to not only meet but exceed its current demand, with projections suggesting self-sufficiency by 2027. But the pandemic and Russian invasion of Ukraine added friction to the plan. This new $3 billion investment hopes to put things back on track. 

The Bottom Line:

This funding and the surge in gigafactory projects represent Europe's strategic pivot towards reducing dependency on imports for critical battery materials, aiming to fortify its economic and technological sovereignty. The EU’s strategic investments and industrial strategy includes over 50 gigafactory projects, reshaping global trade and power structures.

Big Idea: 

After recently merging with US Bitcoin Corp, Hut 8 is accelerating its growth by acquiring four Ontario natural gas power plants and a bitcoin mining site in North Bay from Validus Power Corp through their subsidiary, BidCo. The power plants combined have a capacity of 310 megawatts.

Why It Matters:

In 2023, the global Bitcoin mining industry doubled its capacity to a hashrate of 480 EH/s, consuming 95.58 terawatt-hours annually. This surge underscores the necessity for more high-performance computing. Hut 8's CEO, Jaime Leverton, emphasized that the acquisition aligns with the company's vision to scale rapidly and cost-effectively. The purchase of the Ontario sites through a stalking horse bid offers opportunities to utilize idle infrastructure, machinery, and enhance energy pricing certainty.

Key Details:

• Hut 8's post-merger operational capacity now boasts about 825 MW across six sites, including a significant self-mining capacity of 7.5 EH/s.
• The acquisition of four natural gas power plants in Ontario enhances sustainable energy use in Bitcoin mining and AI applications.

• 40 MW facility in Kapuskasing
• 110 MW facility in Kingston
• 120 MW facility in Iroquois Falls
• 40 MW facility and Bitcoin mine in North Bay

• This expansion enables Hut 8 to harness more sustainable energy resources for Bitcoin mining, potentially reducing the environmental impact.

State of Play:

Hut 8's acquisition strategy extends beyond cryptocurrency mining. The company aims to leverage its capabilities in data center infrastructure and software to tap into emerging markets, particularly AI infrastructure and computing.

Big Idea:

ATHA Energy has finalized two all-stock deals to acquire Latitude Uranium and 92 Energy, creating a leading Canadian uranium exploration company and positioning itself as a key player in the global nuclear energy market.

Why It Matters:

With control over extensive uranium assets in Canada's prime regions, the Athabasca and Thelon basins, ATHA Energy is set to capitalize on worldwide demand for nuclear power. Despite Canada no longer being the top exporter for uranium, ATHA Energy could revitalize the country’s position in the market.

Key Details:

• ATHA now controls over 6.1 million acres across key uranium regions, with a market valuation of C$267 million and C$55 million in cash.
• ATHA's expansive holdings in Athabasca and Thelon merge with Latitude's high-grade deposits in Nunavut and Labrador, and 92 Energy's Athabasca-based Gemini discovery.

“We are thrilled for ATHA to have such an incredible opportunity to create Canada’s premier exploration company during a period where the world’s increasing adoption of nuclear energy is calling for new supplies of uranium,” said Troy Boisjoli, ATHA Chief Executive.

What's Next:

ATHA Energy is set to accelerate exploration and development activities in 2024. The focus will likely be on the Gemini discovery and other high-potential sites within its extensive portfolio.

Big Idea:

Babylon, a project focused on creating a Bitcoin-secured decentralized world, has raised $18 million in a funding round. Polychain Capital and Hack VC co-led the round, with participation from several other venture capital firms.

Why It Matters:

The funds raised will be utilized to further develop Babylon's Bitcoin staking protocol. This protocol aims to convert the existing 21 million Bitcoins into a decentralized staking asset for the proof-of-stake (PoS) economy in a trustless manner. 

Babylon addresses the historical challenge in PoS chains where security is often tied to their native assets. Emerging chains face difficulties in attracting staking due to limited resources, resulting in high inflation to incentivize staking. This leads to a fragmented ecosystem where networks compete for staked capital.

Key Details:

• The DeFi market, a crucial component of blockchain technology, is currently valued at $77 billion, highlighting the vast potential impact of Babylon's technology.
• Babylon's protocol, the first to introduce Bitcoin staking in PoS chains, could dramatically increase the security and economic health of these networks without the need for high inflationary rewards.

Dive Deeper:

Babylon introduced the concept of Bitcoin Staking, allowing Bitcoin holders to contribute crypto-economic security to PoS systems and earn PoS yields by staking their Bitcoin. This development is aligned with the original spirit of Bitcoin and does not require any soft or hard fork of the Bitcoin chain. The recent Glassnode report highlighting a significant portion of dormant Bitcoins supports the need for such development, suggesting untapped potential to boost the economic security of PoS chains and decentralized applications.

"Babylon's introduction of a Bitcoin staking protocol not only unlocks Bitcoin’s potential but also paves the way for innovative Bitcoin-backed services and native blockchain advancements. We eagerly anticipate the ripple effects Babylon will create, positively influencing new chains and enhancing security across the entire blockchain landscape." - Luke Pearson, General Partner, Polychain Capital.

What’s Next:

The immediate focus is on further developing Babylon's technology, with plans for a second testnet and a mainnet launch later in the year.

Big Idea:

Groq Health introduces an AI-powered precision medicine app for personal health management. Created by Dr. Florence Comite, the app uses a personalized precision medicine approach to interpret users' genomic, metabolic, phenotypic, and digital health data. It aims to provide personalized action plans to improve healthspan and potentially prevent disorders such as obesity, diabetes, heart disease, cancer, and dementia.

Why It Matters:

The US projects there will be 80.8 million residents aged 65 and older by 2040. Groq Health's app uses AI, machine learning, and precision medicine to offer tailored solutions that tackle elderly care challenges and provide data-driven healthcare. The goal is to look at people's health prospectively, predicting and preventing age-related diseases before symptoms emerge.

Key Details:

• Dr. Comite, a precision medicine practitioner, combines her expertise with 20 years of longitudinal clinical outcome data to help individuals enhance their healthspan and longevity. 
• The app's focus on predicting and managing age-related disorders could significantly alter health outcomes for the aging population.

“From just a handful of biomarkers, we can tell what’s brewing and why – we can tell you the risks you have today, and we have the data to back it up,” said Dr Florence Comite, CEO & Founder of Groq Health.

What’s Next:

The Groq Health app is currently in pilot testing with businesses as a corporate health benefit, with positive early results reported. Users have shown improvements in sleep quality, energy levels, weight loss, and muscle gain. The app is expected to launch for consumers next year, and Groq Health has raised approximately $7 million from individual investors, including notable figures in the medical and investment fields.

Big Idea:

Rwanda is set to obtain a portion of carbon credits instead of a portion of profits derived from Article 6 of the Paris Agreement. These credits will be applied to offset the country's National Determined Contributions (NDC) climate commitments. This initiative will contribute to advancing the industry, enabling Rwanda to diminish its climate footprint by facilitating access to cleaner technology through reduced emissions.

Why It Matters:

Rwanda’s decision to prioritize carbon credits over short-term gains sets an example for other nations. Emphasizing the importance of transparency and quality in its carbon market framework, Rwanda ensures that purchased credits meet international standards. The country  aims to offer high-quality carbon credits that provide climate benefits, empower communities, and protect biodiversity, underlining integrity in the voluntary market.

Key Details:

• This strategy could stabilize Rwanda's GDP, heavily reliant on climate-sensitive sectors, and bolster its ambition of carbon-neutral by 2050.
• Carbon pricing mechanisms cover a quarter of GHG emissions, generating $95 billion revenue from carbon taxes and Emissions Trading Systems (ETS) according to the World Bank.
• Rwanda plans to reduce GHGs by 38% by 2030.

Dive Deeper:

Rwanda's ambitious Green Growth and Climate Resilience Strategy requires an estimated $11 billion investment, a significant challenge considering the current inflows of aid and investment.

Big Idea:

Chinese EV makers and battery manufacturers are targeting overseas production, particularly in Southeast Asia, to tap into growing markets and meet local demands.

Key Details:

• NV Gotion, a JV between China's Volkswagen-backed Gotion and Thailand's state-owned PTT, has produced the first Thai manufactured battery pack for EVs. NV Gotion has received a supply nomination letter from Hozon’s Neta Auto and is expected to start in the first quarter of 2024.
• Hozon, a Chinese EV startup, plans to produce their Neta line of vehicles in Indonesia starting from 2024. The company partnered with PT Handal Indonesia Motor and aims to assemble complete cars from the second quarter of 2024. 
• China's largest carmaker SAIC is building a new energy industrial park in Thailand, focusing on localized production of key auto parts for its new EVs. The park is expected to be completed in 2025. 
• BYD, another major Chinese NEV maker, plans to produce vehicles in Thailand from 2024, using its wholly-owned plant with an annual capacity of 150,000 vehicles. 
• EVE Energy, a Chinese lithium battery manufacturer, has also initiated the construction of a manufacturing facility in Malaysia with a $422 million investment, focusing on cylindrical lithium-ion batteries for power tools and electric two-wheelers in Southeast Asia. 

Why It Matters:

There is increasing demand for EVs in Southeast Asia driven by government policies such as Malaysia's National Automotive Policy 2020 and commitment to achieving net-zero GHGs by 2050; and the Thai government’s target for 50% of vehicle output to be battery-powered by 2030. 

It also helps that Neta is incredibly popular in Thailand, with the brand being the best-selling EV in the country this year. 

What’s Next:

The anticipated mass delivery of SE Asia-produced EVs and batteries in 2024 will likely catalyze further Chinese investments. Analysts have noted that establishing local production capabilities allows companies to expedite product launches and develop offerings more attuned to local market needs.

By the Numbers:

• EV Registrations (2020): Europe - 1.4 million; China - 1.2 million; USA - 295,000.
• Available Electric Car Models Worldwide (2020): Approximately 370, with the largest variety in China and Europe.

Big Idea:

AstraZeneca inks a $247 million deal with AI biotech firm Absci to develop innovative cancer-fighting antibodies, aiming to transform oncology treatment and patient outcomes.

Why It Matters:

The role of AI in drug discovery, particularly in oncology, is reshaping timelines and methodologies, promising more rapid and precise development of cancer treatments. The AstraZeneca and Absci collaboration could greatly improve cancer treatment success, particularly in lung cancer where early detection increases 5-year survival rates from 10% up to 92%.

Key Details:

• Absci's zero-shot generative AI model diverges from traditional antibody library modifications, enabling in silico design of protein drug candidates.
• This is not AstraZeneca's first move into AI-driven oncology, following partnerships with firms like Qure.ai, and Verge Genomics.

“AI is enabling us to not only increase the success and speed of our biologics discovery process, but also enhance the diversity of the biologics we discover,” said AstraZeneca Senior Vice President Puja Sapra.

What's Next:

The partnership's future hinges on the successful integration of Absci's AI in AstraZeneca's oncology pipeline.

By the Numbers:

• Over 30%: Increase in Absci's stock price post-deal announcement.
• 92% vs. 10%: 5-year survival rate in early vs. late-stage lung cancer, highlighting the importance of early detection and effective treatment.
• $5.2 billion: Investment in AI-enabled drug discovery by 2021, signifying the sector's rapid growth.

Big Idea:

South Korea’s leading battery materials producer, EcoPro BM, has signed a $44 trillion won ($34 billion) contract with Samsung SDI to supply lithium nickel-cobalt-aluminum oxide (NCA) cathodes for electric vehicle (EV) batteries over a five-year period from 2024 to 2028. EcoPro BM's stock rose by 2.2% following the announcement.

Why It Matters:

With EV battery demand expected to surge by 30% by 2030,  the long-term nature of this cathode supply contract reflects both companies' confidence in the sustained growth of the EV market.

Zoom In:

Samsung SDI, although controlling the smallest market share among South Korea's top three battery providers (including LG Energy Solution Ltd. and SK On Co.), supplies EV batteries to major carmakers such as BMW, General Motors, and Hyundai Motor Co. 

Zoom Out:

EcoPro BM and Samsung SDI have a history of collaboration, with EcoPro BM supplying cathodes to Samsung SDI since 2011. In 2020, they established a joint venture, EcoPro EM Co., to supply NCA cathodes to Samsung SDI's offshore battery plants. This long-standing partnership is viewed as a foundation for EcoPro group's future growth.

Key Details:

• The first batch will be produced at EcoPro BM’s plant in Pohang, South Korea, with production expanding to a new facility in Hungary from 2025.
• The facility's expected annual output is 108,000 tons, enough for about 1.35 million EVs.
• NCA cathodes are known for their high energy density and efficiency but require careful cycling to minimize efficiency loss due to microcracking.

“EcoPro and Samsung SDI’s trust-based partnership is playing a crucial role in strengthening Korea’s battery industry,” said EcoPro BM CEO Joo Jae-hwan in a statement. “This long-term supply deal provides another opportunity to consolidate our relations.”

Big Idea:

Toyota and its affiliated suppliers plan to reduce their shareholdings in electric parts maker Denso Corp., with Toyota intending to lower its stake from 24% to 20%. This move is aimed at generating approximately USD$1.9 billion to fund the companies' shift to electric vehicles. Denso will conduct a share buyback of up to $1.3 billion worth of its own shares.

Why It Matters:

Toyota is freeing up funds to support their transition to electric vehicles, as the company aims to roll out 10 new battery-powered EVs and sell 1.5 million units annually by 2026. This move is part of Toyota's broader strategy to compete in the ever-increasing EV market.

Key Details:

• Introduction of next-generation batteries and sonic technology, aiming for a 1,000 km range, and adopting modular car body structures.
• Collaborations with companies like FAW Group, GAC, and BYD indicate Toyota's global approach to the EV market.

What's Next:

Toyota’s revised strategy and technological advancements makes them a formidable contender against EV competitors like Tesla, Volkswagen, and General Motors. This aligns with their $13.9 billion EV Battery factory investment in North Carolina.

By the Numbers:

• Expected production of 1.7 million EV batteries from Toyota’s BEV Factory by 2030.
• Target of a 37% cost reduction in next-generation hydrogen fuel cell systems.

Zoom Out:

Japanese companies, including Toyota, have been facing pressure to reduce or eliminate cross shareholdings. Toyota previously announced the sale of some of its stake in telecommunications company KDDI Corp. for $2.3 billion.

Big Idea:

Extropic, a hardware startup founded by former Alphabet quantum research team members, has secured $14.1 million in seed funding. Extropic is reportedly developing a chip optimized for running LLMs. The technology is described as a "novel full-stack paradigm of physics-based computing" that incorporates concepts from non-equilibrium thermodynamics, hinting at a unique approach to chip design.

Why It Matters:

Traditional computing models are constrained by physical and complexity limitations. Extropic's breakthrough aims to build a system where computing errors or noise, which has been a significant challenge in quantum computing, are considered an asset rather than a liability. The company has not disclosed detailed technical information but indicated a goal to reduce the electricity required for running AI models and automate certain coding tasks, potentially allowing the computer to self-program for learning representations of the world.

Key Details:

• Founded in 2022 by CEO Guillaume Verdon and CTO Trevor McCourt, both of whom had previously led a quantum computing team at Alphabet's X research unit. They were involved in developing a TensorFlow library for running AI models on quantum computing chips.
• Funding round led by Kindred Ventures, with participation from HOF Capital, Julian Capital, Marque VC, OSS Capital, Valor Equity Partners, Weekend Fund, and executives from Adobe Inc., Shopify Inc., and other AI startups.

What's Next:

Extropic is advancing the development of their physics-based computing model, which could automate coding tasks and enhance processing of LLMs, potentially leading to major improvements in AI applications.

Dive Deeper:

Contrary to its founders' background in quantum computing, Extropic's product is not a quantum computing chip. The decision is attributed to the scalability challenges of quantum physics-based computers and the company's pursuit of a different path to practical physics-based computing.

Zoom Out:

This development challenges Nvidia's dominance in AI hardware, especially with its H200 data center processor. Extropic's approach, utilizing physics-based computing, offers a compelling alternative in the competitive AI chip industry.

Big Idea:

Pika, a startup specializing in AI-powered video editing and generation, has secured $55 million in a funding round led by Lightspeed Venture Partners. This funding comes six months after Pika emerged from stealth mode and coincides with the launch of "Pika 1.0," a suite of videography tools introducing a generative AI model capable of editing videos in various styles.

Why It Matters:

Pika's rapid growth reflects the strong demand for generative AI. IDC projects a significant increase in generative AI investments from $16 billion in 2023 to $143 billion in 2027. The company claims to have onboarded over 500,000 users in half a year, generating millions of videos each week. Their goal is to make video creation accessible and empowering for the masses.

Yes, But: 

Challenges persist for enterprise customers, including concerns about unexpected outcomes, security, safety, fairness, bias, privacy, and the difficulty of finding suitable business use cases. Ongoing hurdles may impede the broader deployment of generative AI in corporate settings.

Key Details:

• Pika 1.0 features  a new generative model capable of creating professional-grade videos in various categories such as 3D animation, anime, and cinematic styles. Users can describe a video concept in text, and Pika's AI handles scene rendering, character posing, prop selection, color correction, and editing transitions.
• There is also a music video generation feature, enabling users to animate themselves dancing to popular song hits. 
• Pika was co-founded by former PhD students from Stanford's Artificial Intelligence Lab, Demi Guo, and Chenlin Meng. Guo previously worked as an engineer at Meta's AI research division, while Meng co-authored AI research papers, including those related to generative AI.

“We know firsthand that making high-quality content is difficult and expensive, and we built Pika to give everyone, from home users to film professionals, the tools to bring high-quality video to life,” said Demi Guo, Pika co-founder and CEO. “Our vision is to enable anyone to be the director of their stories and to bring out the creator in all of us.”

Zoom out:

Pika faces competition from other generative AI video tools like Runway and Stability AI. Pika aims to differentiate itself through innovative features, and despite competition from tech giants like Google and Meta, Lightspeed Venture Partners expresses confidence in Pika's potential impact on democratizing professional-quality video creation.

Big Idea:

Societe Generale, the third-largest bank in France, has issued the first digital green bond utilizing a security token registered directly by SG-FORGE on the Ethereum blockchain. This involves a €10 million senior preferred unsecured bond with a 3-year maturity. This is a major step in employing blockchain technology to increase transparency and traceability of ESG data for investors and issuers.

Why It Matters:

Green bonds are key for financing a low-carbon economy. The net proceeds from this bond will be used for funding eligible green activities approved by Societe Generale. The green bond market reached the cumulative $1 trillion mark in 2020 since the making of the first green bond in 2007.  

Key Details:

• The bond features real-time carbon footprint tracking available 24/7 and accessible within the smart contract.
• This initiative could encourage the adoption of blockchain technology in the green  bond market.

What’s Next:

The green bond market, with blockchain integration, is expected to grow, attracting more investments towards sustainable projects. The technological innovation demonstrated by Societe Generale could inspire other financial institutions to follow suit.

Dive Deeper:

Societe Generale's transaction serves as a fresh example of how institutions can venture into the realm of digital instruments. It exemplifies their capabilities in debt capital markets, aligning with the growing demand from corporate and institutional clients for digital assets in the sustainable bond market.

Big Idea:

Estonian nanotechnology firm, UP Catalyst, raised €4 million to scale their unique technology that converts CO2 into graphite, a crucial component in batteries due to its energy density. The pilot reactor is expected to process 100 tons of CO2 annually, making UP Catalyst the largest provider of green graphite globally.

Why It Matters:

Graphite, a key component for battery production and a resource largely dominated by China with over 60% of global reserves valued at $19 billion, faces hurdles from new European import restrictions. UP Catalyst can provide a sustainable alternative, advancing Europe's battery industry while also tackling environmental concerns of CO2 emissions.

Key Details:

• UP's Molten Salt Carbon Capture and Electrochemical Transformation technology efficiently converts CO2 emissions into high-quality graphite.
• Traditional graphite production emits roughly 9 tons of CO2 per ton of graphite, while UP Catalyst's approach only emits 3.7 tons of CO2 per ton of graphite, making it a carbon-negative process.
• This could reduce Europe's dependence on imported graphite, bolster the continent's battery industry, and make strides in carbon capture and utilization.

“We are thrilled to have secured this funding, bringing us one step closer to empowering 4 million car batteries with graphite sourced from CO2 emissions by 2030. This carbon supply can cover approximately 20% of the EV battery market’s yearly carbon need in Europe,” said Gary Urb, CEO of UP Catalyst.

Dive Deeper:

UP Catalyst's technology roadmap highlights the integration of carbon capture with material production, a novel approach compared to traditional carbon capture methods. This not only addresses environmental concerns but also creates economic value from CO2, a significant leap in the carbon capture and utilization field.