Joby to Buy Blade's Helicopter Ride-Share Business | Bloomberg Tech 8/4/2025

Key Concepts

• Tesla Stock Award: $30 billion stock award to Elon Musk conditioned on him remaining CEO for two years and holding the stock for five.
• AI Competition: Concerns about Elon Musk's focus on Tesla due to his involvement with xAI and the risk of him prioritizing it over Tesla.
• BMW's EV Push: BMW's effort to regain market share in the EV market with advanced technology and high-performance computers.
• Tech IPO Market: The reopening of the tech IPO window for quality companies with strong fundamentals.
• Retail Investor Demand: The increasing influence of retail investors in IPOs and the need to quantify this demand.
• Cybersecurity ARR: Cybersecurity startups reaching significant annual recurring revenue (ARR) and the potential for IPOs in the cybersecurity sector.
• AI-Based Search: Apple's development of an AI-based search experience to catch up to competitors like ChatGPT.
• LLM Market Share: The distribution of market share in the Large Language Model (LLM) market, with Anthropic leading in enterprise adoption.
• Closed Source vs. Open Source: The debate between closed source and open source LLMs and their respective advantages for enterprises.
• Joby/Blade Acquisition: Joby Aviation's acquisition of Blade's helicopter ride-sharing business to accelerate commercialization of electric vertical takeoff and landing (eVTOL) aircraft.
• Palantir Stock Surge: Palantir's surge in stocks due to retail investor interest and the focus on the company's software and AI.

Tesla Stock Award to Elon Musk

• Tesla approves a $30 billion stock award to Elon Musk, with the board emphasizing that "a deal is a deal."
• The conditions: Musk must remain CEO for two years and hold the stock for five years.
• The exercise price is $23.34, the same as the 2018 package that was voided by a Delaware court.
• Max Chafkin notes that Musk has given Tesla shareholders reasons to worry about his focus, citing his ventures in Washington, D.C., and involvement with xAI.
• There is a risk that Musk could shift his focus to xAI if frustrated, making the stock package a way to keep him interested in Tesla.
• The board acknowledged Musk's attention across multiple companies but argued he is key to retaining talent.
• The debate: Is writing a $30 billion check justified, given the low strike price and short required tenure?

BMW's Challenge to Tesla in the EV Market

• BMW is launching 14 updated models with slick software and high-performance computers to compete with Tesla.
• The first variant is the iX3.
• BMW lost many drivers to Tesla when the Model 3 came out.
• The new SUV will have a range that tops Tesla's longest range.
• BMW engineers developed enhanced computing power to maintain the brand's driving performance in EVs.
• The new computing power speeds up calculations for driving suspension, aiming for a unique driving feel.

The Return of Tech IPOs

• The tech IPO window is opening for quality companies due to increased certainty in the geopolitical landscape and market trajectory.
• FIGMA's debut on the stock exchange signaled renewed public demand.
• Coindesk plans to raise over $600 million on the New York Stock Exchange.
• Figma was a strong case example of the types of companies that do well in the public market, with strong fundamentals, year-over-year growth, and a strong brand.
• The demand spike for some IPOs indicates that the typical roadshow process doesn't factor in retail demand.
• There is huge demand for access to innovating tech companies, but a 250% gain on the first day is excessive.
• Market exuberance can lead to irrational behavior, where investors don't fully examine the S-1 filing.
• Buying in on the IPO day carries the risk of losing out when the stock normalizes.
• The tech IPO window is open for quality companies that have been preparing for a long time and have fundamental pieces in place.
• Crypto is becoming a popular sector for IPOs, supported by a crypto-friendly administration and validation from financial institutions.
• Potential crypto IPOs include Gemini and Grayscale.

Cybersecurity Startup Eyes IPO

• A cybersecurity startup is eyeing a 2026 IPO after reaching $300 million in annual recurring revenue (ARR).
• The jump in ARR reflects massive demand due to geopolitical tensions and attacks on critical infrastructure.
• Continued demand and AI are contributing to more demand in cyber.
• Customers want fewer platforms to protect critical environments.
• The focus is on integrating acquired companies and looking to build, buy, and partner.
• The company is completing a seven-product "superpowered platform" to protect the largest organizations and federal agencies.
• Competition is increasing, with companies like Microsoft and Palantir acquiring aggressively.
• The IPO is seen as a milestone in building a generational business.

Apple's AI Strategy

• Apple is preparing for AI-based search and has formed a new team called Answers Knowledge and Information (AKI).
• The goal is to create a ChatGPT-like search experience, as Apple lags behind in AI features.
• ChatGPT has become a popular search engine, even for tasks typically done on Google.
• Apple is looking into ways to build search across Apple that can tap into the open web.

Tariffs and Apple's Supply Chain

• President Trump is considering raising tariffs on India, which could affect Apple.
• Tim Cook's expertise in supply chain management is crucial for navigating these tariffs.
• The current tariff exemption for smartphones and other products may change.
• Apple could take a $1.1 billion hit this quarter if tariffs are imposed.

Palantir's Earnings and Valuation

• Palantir's stock surge is spurred by retail investor interest.
• Investors will look for sustainable and accelerating growth, especially in the United States.
• The breakdown between U.S. and the rest of the world is important.
• Palantir provides AI-powered data software that uses large language models against data within a company or agency.
• There is growing demand for Palantir's intelligence software, and it has combined 57 contracts into one large one for the Army.
• Palantir's CEO, Alex Karp, is expected to highlight Palantir's importance in backing defense efforts.
• Palantir's market cap is larger than Lockheed Martin and many other defense contractors.

AMD's Competition in the Chip Market

• AMD is facing mounting pressure despite being the best-performing chip stock this year.
• Expectations for AMD's earnings are very high.
• AMD has been winning out against Intel.
• The forecast quarter should be good for AMD because it has more competitive AI accelerator chips.
• Some restrictions on shipments to China have been lifted, benefiting AMD and NVIDIA.
• AMD's business has a $30 billion run rate, but it is not $120 billion like NVIDIA.

AI Talent and Reverse Acquihires

• The AI boom has spurred tech giants to acquire AI talent, sometimes leaving behind fledgling AI businesses and workers.
• Some employees of acquired companies have experienced emotional distress.
• The unwritten contract between CEOs and employees in AI businesses is changing.
• Employees are wondering if founders will stick with them or leave them behind.

LLM Market Update

• Anthropic leads in enterprise market share for LLMs, followed by OpenAI.
• Closed source models are dominating enterprise usage.
• Anthropic has pulled ahead in terms of enterprise spread, with approximately 32% of spread.
• OpenAI wins in the consumer space.
• Enterprises need manageability of LLMs, requiring services and software around the models.
• Spending on LLMs is increasing dramatically, with recent spend at $8.4 billion, more than double in the last six months.
• The CEO of Anthropic believes that the worst margins in the company will be respectable and increase over time due to efficiency gains and token caching.

Joby Aviation Acquires Blade's Ride-Sharing Business

• Joby Aviation will purchase Blade's helicopter ride-sharing business.
• The acquisition encompasses all of Blade's passenger business, including U.S. operations.
• The rationale is to leverage Blade's established network and customer service in vertical aviation.
• Regulatory support for electric vertical takeoff and landing (eVTOL) aircraft is increasing.
• The acquisition is expected to accelerate the market timeline for Joby.
• The goal is to turn the helicopter ride-sharing business into a much bigger business.
• The deal is valued at $125 million in stock or cash.
• Joby has multiple aircraft going down the manufacturing lane and expects flight testing to begin early next year.

Conclusion

The news covers a range of topics from Elon Musk's compensation package and its implications for Tesla's focus, to the evolving landscape of the EV market with BMW's challenge, the resurgence of tech IPOs, and the burgeoning AI sector with Apple's strategic moves and the competitive dynamics in the LLM market. The acquisition of Blade by Joby Aviation highlights the emerging eVTOL industry. These segments underscore the fast-paced nature of the technology industry, the increasing significance of AI, and the competitive pressures driving innovation and strategic decision-making.