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Nextdoor’s decision to go public through a special purpose acquisition company was largely the result of favorable pricing compared with a traditional IPO, said Bill Gurley, a partner at Benchmark and an early investor in the neighborhood social network.

Gurley has been among the most vocal supporters of direct listings, another IPO alternative in which companies go public without selling shares at a steep discount to new investors. He said the average IPO in 2020 came with a 57% cost of capital.

“SPACs are remarkably cheap compared to mispriced IPOs,” Gurley told CNBC’s “TechCheck” on Friday.

Nextdoor announced plans earlier this week to pursue a SPAC sponsored by an affiliate of Khosla Ventures, Vinod Khosla’s investment firm. In a SPAC, a so-called blank check company raises capital through a public offering and then shops around for a potential target, which becomes the operating entity after the transaction closes.

The pace of new SPACs slowed earlier this year after smashing a record in 2020 and setting a new high in the first quarter of this year. The pullback came after the SEC issued accounting guidance that would classify SPAC warrants as liabilities instead of equity instruments.

However, activity has resumed. In addition to Nextdoor, fintech company Circle, space companies Planet Labs and Satellogic and solar power firm Heliogen all announced deals this week. Still, the proprietary CNBC SPAC Post Deal Index, which is composed of the largest SPACs that have announced a target or those that have already completed a SPAC merger within the last two years, is down 3.8% in 2021, after tumbling in February and March.

Nextdoor’s transaction will bring in $686 million and value the company at $4.3 billion. Benchmark first invested in 2011 at a post-money valuation of just over $30 million, according to PitchBook.

The company says its site is now used in more than 275,000 neighborhoods around the world and in nearly 1-in-3 U.S. households. It allows users to organize events, sell or give away items and alert neighbors to danger. Earlier this year, Nextdoor debuted an anti-racism notification after long facing criticism for racist comments on its platform.

In 2018, Nextdoor hired Sarah Friar, who was finance chief at Square, as its new CEO, replacing the company’s founder, Nirav Tolia. Before that, Friar spent over a decade at Goldman Sachs.

Gurley said Friar ran all the numbers and closely considered an IPO before making the ultimate decision.

“Sarah Friar is an extremely experienced CEO with tons of Wall Street experience, both having worked at an investment bank and as CFO of a public company,” Gurley said. “She dual-tracked it, was looking at the IPO and just said I have more control and get better economics by going the SPAC route.”

Investing to fix the labor shortage

Gurley appeared on “TechCheck” alongside Sumir Meghani, the co-founder and CEO of Instawork, an online jobs marketplace. Instawork on Thursday announced it raised $60 million in a financing round led by Craft Ventures.

The start-up connects workers in the restaurant, hospitality and retail industries with hourly jobs at companies in need of labor. The transaction comes a week after Suzanne Clark, CEO of the U.S. Chamber of Commerce, told CNBC that the biggest problem facing American businesses is hiring enough qualified workers. She pointed to a lack of skilled labor, Covid-era jobless benefits, insufficient access to child care, and work visa restrictions.

“Our professionals make nearly double minimum wage,” Meghani said. “Our best professionals can make even more than that. They can get paid instantly when they clock out of a shift. We’re rewarding quality on Instawork with faster pay, higher pay but most of all flexibility.”

Gurley, who was one of the earliest backers of Uber, said Benchmark is focusing heavily on the category and has made about eight investments in “these types of marketplaces.”

— CNBC’s Pia Singh contributed to this report.

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Apple iPhone Air’s China release delayed

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Apple iPhone Air's China release delayed

Participants at the presentation of new iPhone models from Apple try out the new thinner iPhone Air.

Andrej Sokolow | Picture Alliance | Getty Images

Apple has postponed the launch of its new iPhone Air model in China due to regulatory issues surrounding its eSIM design, the company said.

Wireless carriers in China need a special license from the government before they can sell a new device with an eSIM, and the carriers haven’t secured that approval yet, Apple said. The company added that it’s working to make the device available in China as soon as possible.

Apple announced the iPhone Air at its annual event on Tuesday. The device, which is 5.6 millimeters thick, marks the first major new iPhone design since the iPhone X was introduced in 2017. The iPhone Air doesn’t support a physical SIM card, and instead features an eSIM built into the device.

CEO Tim Cook told CNBC’s Jim Cramer on Friday that the eSIM is what allows the device to still have “great” battery life.

“It’s eSIM only, and so we were able to take the battery and extend the battery to areas that previously had the physical cell,” Cook said.

Read more CNBC tech news

The company previously said the iPhone Air would become available for pre-order in the region on Friday at 2 a.m. EST before it goes on sale September 19.

As of Friday morning, the iPhone Air product page on Apple’s China website stated, “Release information will be updated later.”

The website notes that China Mobile, China Telecom and China Unicom will offer eSIM support for the iPhone Air, “with specific timing subject to regulatory approval.”

— CNBC’s Steve Kovach contributed to this report.

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Nvidia and OpenAI to back major investment in UK AI infrastructure

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Nvidia and OpenAI to back major investment in UK AI infrastructure

Jensen Huang, co-founder and chief executive officer of Nvidia, at the London Tech Week exposition in London, UK, on Monday, June 9, 2025.

Bloomberg | Bloomberg | Getty Images

Nvidia and OpenAI are in discussions about backing a major investment in Britain focused on boosting artificial intelligence infrastructure in the country.

The two tech firms are discussing a sizable deal to support data center development in the country which could ultimately be worth billions of dollars, a person familiar with the matter told CNBC, confirming earlier reporting from the Financial Times.

The companies are still working through various processes at the moment with Nvidia and cloud computing firm Nscale, said the person, who did not want to be named due to the sensitivity of the issue.

They added that an investment agreement has not yet been finalized. It is expected to be unveiled next week during U.S. President Donald Trump’s state visit to the U.K.

Nvidia and Nscale did did not immediately respond to CNBC’s request for comment. OpenAI declined to comment on the discussions.

Countries around the world have been courting major U.S. AI players in a bid to boost their own national infrastructure and technological ambitions.

The topic of so-called “sovereign” AI — the idea of onshoring the data processing infrastructure behind advanced artificial intelligence systems — has been top of mind for officials as governments look to reduce their dependency on foreign countries for critical technologies.

The U.K. government declined to comment when asked by CNBC about the investment discussions with OpenAI, Nvidia and Nscale. Nvidia CEO Jensen Huang is set to join Trump on his state visit to Britain next week.

Earlier this year, the Nvidia boss called the U.K. an “incredible place to invest” and said his multitrillion-dollar chipmaker would boost investment in the country. “The U.K. is in a Goldilocks circumstance,” Huang said at the time in a panel discussion with British Prime Minister Keir Starmer.

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Apple, Google and Meta are trying to perfect a science-fiction gadget: The universal translator

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Apple, Google and Meta are trying to perfect a science-fiction gadget: The universal translator

Apple AirPods Pro 3 models are displayed during Apple’s “Awe-Dropping” event at the Steve Jobs Theater on the Apple Park campus in Cupertino, California, on Sept. 9, 2025.

Nic Coury | AFP | Getty Images

For decades, shows like “Star Trek” and novels like “The Hitchhikers Guide to the Galaxy” have showcased fictional universal translators, capable of seamlessly converting any language into English and vice versa.

Now, those gadgets once limited to works of science fiction are inching close to reality.

During its iPhone unveiling event on Tuesday, Apple included a video of many travelers’ dream scenario. It showed an English-speaking tourist buying flowers in an unnamed Spanish-speaking country. The florist addressed the tourist in Spanish, but what the tourist heard was in clear, coherent English.

“Today all the red carnations are 50% off,” the tourist heard in English in her headphones, at essentially the same time that the clerk was speaking.

The video was marketing material for Apple’s latest AirPods Pro 3, but the feature is one of many of its kind coming from tech companies that also include Google parent Alphabet and Meta, which makes Facebook and Instagram.

Apple introduces live translation to airpods.

Courtesy: Apple

Technological advancements spurred by the arrival of OpenAI’s ChatGPT in late 2022 have ushered in an era of generative artificial intelligence. Almost three years later, those advancements are resulting in real-time language translators.

For Apple, Live Translation is a key selling point for the AirPods Pro 3, which the company unveiled on Tuesday. The new $250 earbuds go on sale next week, and with Live Translation, users will be able to immediately hear French, German, Portuguese and Spanish translated to English. Live Translation will also arrive as an update to AirPods 4 and AirPods Pro 2 on Monday.

And when two people are speaking to each other wearing AirPods, the conversation can be translated both ways simultaneously inside each user’s headphones. In Apple’s video demo, it looked like two people talking to each other in different languages.

Analysts are excited that the feature could mark a step forward for Apple’s AI strategy. The translation feature needs to be paired with a new-enough iPhone to run Apple Intelligence, Apple’s AI software suite.

“If we can actually use the AirPods for live translations, that’s a feature that would actually get people to upgrade,” DA Davidson analyst Gil Luria told CNBC on Wednesday.

Translation is emerging as a key battleground in the technology industry as AI gets good enough to translate languages as quickly as people speak.

But Apple is not alone.

Host Jimmy Fallon holds Pixel 10 Pro Fold mobile phone during the ‘Made by Google’ event, organised to introduce the latest additions to Google’s Pixel portfolio of devices, in Brooklyn, New York, U.S., August 20, 2025.

Brendan McDermid | Reuters

A crowded market

In the past year, Google and Meta have also released hardware products featuring real-time translation capabilities.

Google’s Pixel 10 phone has a capability that can translate what a speaker is saying to the listener’s language during phone calls. That feature, called Voice Translate is designed to also preserve the speaker’s voice inflections. Voice Translate will start showing up on people’s phones through a software update on Monday.

In Google’s live demo in August, Voice Translate was able to translate a sentence from entertainer Jimmy Fallon into Spanish, and it actually sounded like the comedian. Apple’s feature does not try to imitate the user’s voice.

Meanwhile, Meta in May announced that its Ray-Ban Meta glasses would be able to translate what a person is saying in another language using the device’s speakers, and the other party in the conversations would be able to see translated responses transcribed on the user’s phone.

Meta will hold its own product keynote on Wednesday, where the company is expected to announce the next generation of its smart glasses, which will feature a small display in one of the lenses, CNBC reported in August. It’s unclear if Meta will announce more translation features.

Meta employee Sara Nicholson poses with the Ray-Ban sunglasses at the Meta Connect annual event at the company’s headquarters in Menlo Park, California, U.S., September 24, 2024. 

Manuel Orbegozo | Reuters

And OpenAI in June showcased an intelligent voice assistant mode for ChatGPT that has fluid translation built-in as one of many features. ChatGPT is integrated with Apple’s Siri, but not in voice mode. OpenAI is planning to release new hardware products with Apple’s former design guru Jony Ive in the coming years.

The rise of live translation could also reshape entire industries. Translators and interpreters are the number one type of job threatened by AI, and 98% of translators’ work activities overlap with what AI can do, a Microsoft Research study published in August found.

Purpose built translators

In the past several years, a number of purpose-built translation gadgets have entered the market, taking advantage of global high-speed cellular service and improving online translation services to produce puck-like devices or headphones with translation built-in for a couple hundred dollars.

“What I love about what Apple is doing is it really just illuminates the fact that how pressing of an issue this is,” said Joe Miller, U.S. general manager of Japan-based Pocketalk, which makes a $299 translation device that goes between two people conversing in different languages and translates their conversation in audio and text.

Given Apple’s massive scale and the fact that the Apple shipped about 18 million sets of wireless headphones in the first quarter alone, according to Canalys, the company’s entry into the market will expose a wider subset of customers to improvements translation tech has made in recent years.

Despite Apple’s entry into the market, makers of purpose-built devices say their focus on accuracy and knowledge of linguistics will provide better translations than what’s available for free with a new phone.

“We actually hired linguists,” said Aleksander Alski, head of U.S. and Canada for Poland-based Vasco Electronics, which is releasing translation headphones that can imitate the user’s voice, like Google’s feature. “We combined the AI with with human input, and thanks to that, we were able to secure much higher accuracy throughout all the languages we offer.”

There’s also home-field advantage. Vasco Electronics’ largest market is Europe, and Apple’s Live Translation isn’t available for EU users, Apple said on its website.

Some of the products being introduced by tech companies are less than universal, and are limited to a small number of languages for now. Apple’s feature is only available in 5 languages, versus Pocketalk’s 95.

Pocketalk’s Miller believes that the potential of the technology goes far beyond a tourist ordering a glass of wine in France. He says that it’s most powerful when its used in workplaces like schools and hospitals, which require privacy and security features that go beyond what Apple and Google provide.

“This isn’t about luxury tourism and travel,” Miller said. “This is about the intersection of language and friction, when a discussion needs to be had.”

Apple didn’t respond to a request for comment.

WATCH: If the AirPods live translation features work, it’s a breakthrough in AI, says DA Davidson’s Luria

If the AirPods live translation features work, it's a breakthrough in AI, says DA Davidson's Luria

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