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The New York Stock Exchange welcomes Reddit, Inc. (NYSE: RDDT) to celebrate its initial public offering. To honor the occasion, Snoo, rings the Opening Bell®.

NYSE

Wall Street’s tech IPO bankers may finally have a reason to break out the champagne after an extended drought was broken up this week with the market debuts of Reddit and Astera Labs.

While occupying very different corners of the technology market, Reddit and Astera were the first notable venture-backed tech companies to go public in the U.S. since Instacart and Klaviyo in September. Before that, there hadn’t been a significant deal since late 2021.

Morgan Stanley was the big winner among banks, having captured the coveted lead left spot on both IPOs. Goldman Sachs led last year’s only two big venture-backed offerings, meaning it had been a long dry spell for Morgan Stanley. The bank was lead left on IPOs for HashiCorp and Samsara in December 2021.

In the past two years, there have only been 15 tech IPOs total, according to research provided by University of Florida finance professor Jay Ritter. That came after a booming market in 2021, when 121 tech companies went public, the most since the dot-com bubble in 2000. Goldman Sachs and Morgan Stanley cut thousands of jobs last year in part due to the downturn in initial public offerings.

“The capital markets have been relatively quiet the past couple of years,” said Eric Juergens, a partner at law firm Debevoise and Plimpton who focuses on capital markets and private equity. Investment banks have “certainly been active in pitching clients on IPOs and other transactions and positioning themselves to be there when companies are finally ready,” he said.

Some market experts see the past week’s action as a sign of what’s to come. New York Stock Exchange President Lynn Martin told CNBC on Thursday, at the opening of Reddit trading, that a lot of companies are working toward going out in the second quarter.

NYSE President Lynn Martin: Reddit IPO was a 'big test' for other companies

That would be welcome news for Morgan Stanley. The bank collected around $37 million in total fees as the lead underwriter for the Astera and Reddit IPOs. It’s a drop in the bucket for the bank, which reported $12.9 billion in net revenue last quarter, largely from wealth management. But it could be a sign of life in the investment banking unit, which saw revenue drop by 46% over a two-year stretch from the fourth quarter of 2021 to the final three months of last year.

The 12 underwriters on Astera’s IPO this week collected $39.2 million in fees, with Morgan Stanley taking one-third of the total, or around $12.9 million. The overallotment, or greenshoe option, which allows underwriters to purchase an additional 15% of shares for clients, would add $5.9 million to the fees paid out.

Astera sells data center connectivity chips to cloud and artificial intelligence infrastructure companies. The stock soared 72% in its Nasdaq debut on Wednesday and continued rallying, gaining another 13% over the next two days, benefiting from investors’ seemingly insatiable appetite for all things AI.

‘Everyone was watching’

Reddit’s long-awaited IPO came Wednesday night, with shares hitting the open market Thursday. Morgan Stanley made $13 million in fees in the deal and stood to make up to $5.6 million from fees on the greenshoe option.

Shares of the 19-year-old social media company popped 48% in their first day of trading on the NYSE, before dropping 8.8% on Friday.

Lise Buyer, founder of IPO consultancy Class V Group, said the market is showing signs of thawing.

“A warm reception in the market for these IPOs surely will help open the floodgates,” Buyer said. “Everyone was watching these. Investors, boards of directors and management were encouraged by them.”

She added that the bankers who have been waiting for action, “have to be delighted by this.”

Goldman Sachs, Morgan Stanley’s biggest rival, had the No. 2 position on the Reddit IPO, capturing about 19% of the fee payout. The firm scored wins last year as the lead on the Instacart and Klaviyo IPOs, which brought in combined fee revenue of around $35 million. When SoftBank took semiconductor design company Arm Holdings public last year, Barclays led the deal, with participation from Goldman Sachs, and JP Morgan.

Arm Holdings CEO Rene Haas poses for a photo with members of leadership outside of the Nasdaq MarketSite on September 14, 2023 in New York City. 

Michael M. Santiago | Getty Images

For Investment banks, the IPO is often viewed as just the beginning of the relationship with a company. The future could bring follow-on offerings, debt raises and acquisitions, which are all specialties of the top Wall Street firms.

Morgan Stanley is finding another way to bring in additional potential business. In both the Reddit and Astera IPOs, a portion of the equity was set aside for so-called directed-share programs (DSPs), giving high-valued customers, business partners or company insiders a chance to participate.

The model was previously employed by Airbnb, Rivian and Doximity, bringing power users or early customers into their IPOs. For Morgan Stanley, the DSPs have the potential to lure new individual customers into the bank for wealth management and other services.

In Reddit’s case, the company said tens of thousands of Redditors participated in its DSP.

“The goal is just to get them in the deal,” Reddit CEO Steve Huffman told CNBC in an interview on Thursday. “Just like any professional investor.”

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Nvidia’s Huang says programming AI is now like training a person

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Nvidia’s Huang says programming AI is now like training a person

Nvidia CEO Jensen Huang says artificial intelligence is the “great equalizer” because it lets anyone program using everyday language.

Speaking at London Tech Week on Monday, Huang said that, historically, computing was hard and not available to everyone. “We had to learn programming languages. We had to architect it. We had to design these computers that are very complicated,” he said on stage alongside U.K. Prime Minister Kier Starmer.

“Now, all of a sudden … there’s a new programming language. This new programming language is called ‘human.'”

Conversational AI models were thrown into the spotlight in 2022 when OpenAI‘s ChatGPT exploded onto the scene. In February, the San Francisco-based tech company said it had 400 million weekly active users.

Users can ask chatbots, such as ChatGPT, Google’s Gemini or Microsoft’s Copilot, questions and they respond in a conversational way that feels more like talking to another human than an AI system.

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

CEO Huang, whose company engineers some of the world’s most advanced semiconductors and AI chips, highlighted that this technology can now be used in programming. He highlighted that very few people know how to use programming languages like C++ or Python, but “everybody … knows ‘human’.”

“The way you program a computer today, to ask the computer to do something for you, even write a program, generate images, write a poem — just ask it nicely,” he said. “And the thing that’s really, really quite amazing is the way you program an AI is like the way you program a person.”

He gave the example of simply asking a computer to write a poem to describe the keynote speech at the London Tech Week event.

“You say: You are an incredible poet … And I would like you to write a poem to describe today’s keynote. And without very much effort, this AI would help you generate such a wonderful poem,” he said.

“And when it answers … you could say: I feel like you could do even better. And it would go off and think about it, and it’ll come back and say, in fact, I I can do better, and it does do a better job.”

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025.

Nvidia CEO says the UK is in a ‘Goldilocks’ moment: ‘I’m going to invest here’

Huang’s comments come as a growing number of companies — such as Shopify, Duolingo and Fiverr — encourage their employees to incorporate AI into their work. Indeed, last week OpenAI announced that it has 3 million paying business users.

Huang regularly touts AI’s ability to help workers do their jobs more efficiently and has encouraged workers to embrace the technology as they look to make themselves valuable employees — especially given the horror stories around AI’s potential to replace jobs. 

“This way of interacting with computers, I think, is something that almost anybody can do, and I would just encourage everybody to engage it,” Huang added on Monday. “Children are already doing that themselves naturally, and this is going to be transformative.

— CNBC’s Cheyenne DeVon and Ashton Jackson contributed to this report.

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Nvidia CEO says the UK is in a ‘Goldilocks’ moment: ‘I’m going to invest here’

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Nvidia CEO says the UK is in a 'Goldilocks' moment: 'I'm going to invest here'

Jensen Huang, co-founder and CEO of Nvidia Corp., speaks during a news conference in Taipei on May 21, 2025.

I-hwa Cheng | Afp | Getty Images

LONDON — Nvidia CEO Jensen Huang poured praise on the U.K. on Monday, promising to boost investment in the country’s artificial intelligence sector with his multitrillion-dollar semiconductor company.

“The U.K. is in a Goldilocks circumstance,” Huang said, speaking on a panel with British Prime Minister Keir Starmer and Investment Minister Poppy Gustafsson. “You can’t do machine learning without a machine — and so the ability to build these AI supercomputers here in the U.K. will naturally attract more startups.”

The Nvidia boss went on to say, “I think it’s just such an incredible, incredible place to invest. I’m going to invest here.”

Huang also stressed that Britain “has one of the richest AI communities anywhere on the planet,” along with “amazing startups” such as DeepMind, Wayve, and Synthesia, ElevenLabs.

“The ecosystem is really perfect for take-off — it’s just missing one thing,” he said, referring to a lack of homegrown, sovereign U.K. AI infrastructure.

Earlier on Monday, Nvidia announced a new U.K. sovereign AI industry forum, as well as commitments from cloud vendors Nscale and Nebius to deploy new facilities in the country with thousands of the semiconductor giant’s Blackwell GPU chips.

The U.K. has been touting its potential as a global AI player in recent months, amid Keir Starmer’s efforts to lead his Labour government with a growth-focused agenda.

In January, Starmer unveiled a bold plan to boost the domestic U.K. AI sector, promising to relax planning rules around new data center developments and increase British computing power by twenty-fold by 2030.

This is a breaking news story. Please check back for updates.

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UK finance watchdog teams up with Nvidia to let banks experiment with AI

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UK finance watchdog teams up with Nvidia to let banks experiment with AI

Jakub Porzycki | Nurphoto | Getty Images

LONDON — Britain’s financial services watchdog on Monday announced a new tie-up with U.S. chipmaker Nvidia to let banks safely experiment with artificial intelligence.

The Financial Conduct Authority said it will launch a so-called Supercharged Sandbox that will “give firms access to better data, technical expertise and regulatory support to speed up innovation.”

Starting from October, financial services institutions in the U.K. will be allowed to experiment with AI using Nvidia’s accelerated computing and AI Enterprise Software products, the watchdog said in a press release.

The initiative is designed for firms in the “discovery and experiment phase” with AI, the FCA noted, adding that a separate live testing service exists for firms further along in AI development.

“This collaboration will help those that want to test AI ideas but who lack the capabilities to do so,” Jessica Rusu, the FCA’s chief data, intelligence and information officer, said in a statement. “We’ll help firms harness AI to benefit our markets and consumers, while supporting economic growth.”

The FCA’s new sandbox addresses a key issue for banks, which have faced challenges shipping advanced new AI tools to their customers amid concerns over risks around privacy and fraud.

Large language models from the likes of OpenAI and Google send data back to overseas facilities — and privacy regulators have raised the alarm over how this information is stored and processed. There have meanwhile been several instances of malicious actors using generative AI to scam people.

Nvidia is behind the graphics processing units, or GPUs, used to train and run powerful AI models. The company’s CEO, Jensen Huang, is expected to give a keynote talk at a tech conference in London on Monday morning.

Last year, HSBC’s generative AI lead, Edward Achtner, told a London tech conference he sees “a lot of success theater” in finance when it comes to artificial intelligence — hinting that some financial services firms are touting advances in AI without tangible product innovations to show for it.

He added that, while banks like HSBC have used AI for many years, new generative AI tools like OpenAI’s ChatGPT come with their own unique compliance risks.

Zopa CEO: Fintechs face challenges when it comes to scaling in the UK

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