Connect with us

Published

on

Avi Meir, CEO and co-founder of corporate travel management startup TravelPerk.

TravelPerk

LONDON — TravelPerk, a European corporate travel booking platform, told CNBC on Tuesday it has acquired Chicago-based startup AmTrav to help further its expansion in the U.S.

AmTrav, which operates in the same space as TravelPerk, will continue to operate under the same brand and its entire team will continue with the business.

To help fund the deal and TravelPerk’s broader expansion efforts, the company also raised $135 million in debt financing from private equity firms Blackstone and Blue Owl.

Avi Meir, TravelPerk’s CEO and co-founder, told CNBC the deal would allow the company to turbocharge its growth in the United States. He expects the deal to double TravelPerk’s U.S. revenues and make the country its biggest revenue-generating region by 2026.

“Currently, the U.K. is our biggest market,” Meir said in an interview with CNBC, pointing to the firm’s 2021 purchase of British corporate travel startup of Click Travel as the catalyst for its growth in Britain.

Going forward, Meir said, TravelPerk’s takeover of AmTrav will help support a “deep localization strategy” in the U.S., and enable it to offer customers “better rates and inventory options through deeper relationships with suppliers.”

AmTrav has long had data exchange arrangements in place with airline giants American Airlines and Southwest, he added.

TravelPerk now has over 200 employees based in the U.S. and plans to grow its headcount there by a further 35% by the end of 2024. The company employs more than 1,200 people globally. Last year, the firm saw its U.S. revenues grow 65% year-over-year.

The Global Business Travel Association estimated that the US corporate travel sector was worth $329 billion in 2023.

TravelPerk said its U.S. office footprint would expand to include AmTrav’s offices in Boston, Chicago, Los Angeles and Miami. The financial terms of the transaction were not disclosed by TravelPerk.

2 years of M&A talks

Jeff Klee, CEO of AmTrav, told CNBC that the company had been in talks with TravelPerk since 2021, adding he was reluctant to sell the firm he founded without the assurance that his firm’s operations would continue unimpacted by the takeover.

AmTrav was founded in 1989 by co-founders Klee and Fitchtelberg. The pair met as dorm-mates at the University of Michigan. AmTrav offers localized, digital travel management for small to mid-sized firms.

AI’s impact on corporate travel

TravelPerk said that its business and AmTrav would seek to capitalize on proprietary technology and develop new artificial intelligence capabilities.

Meir said he sees AI driving more in-person interactions, pointing to research from the company which found 38% of CEOs think AI will increase the need for in-person meetings facilitated by business travel.

The findings were based on a survey of business travel decision makers, travellers, and managers,

“For TravelPerk, AI is about making humans more efficient, rather than replacing them,” Meir told CNBC. “I believe in human connection. This is why we exist as a company.”

Zilch CEO: We will list in the UK if favorable policies are adopted

“We’ve always focused on a human-first approach to implementing AI at TravelPerk, automating back-end tasks so our people have more time to interact with colleagues, customers and partners.”

TravelPerk’s customers include the likes of Betterment, Adyen, Wise and Red Bull. AmTrav counts more than 1,000 businesses as customers.

TravelPerk’s platform allows users to book business flights, hotels, trains and cars across the US, Canada, the UK Germany, France, the Netherlands, Spain, Italy, Portugal, India, Singapore, Mexico, Dubai and Israel.

Existing investors in TravelPerk include SoftBank, General Catalyst, Kinnevik, Greyhound Capital, Felix Capital, Target Global, LocalGlobe, Spark Capital and Heartcore.

Continue Reading

Technology

Inside one of the first all-female hacker houses in San Francisco

Published

on

By

Inside one of the first all-female hacker houses in San Francisco

For Molly Cantillon, living in a hacker house wasn’t just a dream, but a necessity.

“I had lived in a few hacker houses before and wanted to replicate that energy,” said Cantillon, 20, co-founder of HackHer House and founder of the startup NOX. “A place where really energetic, hardcore people came together to solve problems. But every house I lived in was mostly male. It was obvious to me that I wanted to do the inverse and build an all-female hacker house that created the same dynamic but with women.”

Cantillon, who has lived in several hacker houses over the years, saw a need for a space dedicated exclusively to women. That’s why she co-founded HackHer House, the first all-female hacker house in the San Francisco Bay Area.

“A hacker house is a shared living space where builders and innovators come together to work on their own projects while collaborating with others,” said Jennifer Li, General Partner at Andreessen Horowitz and sponsor of the HackHer House. “It’s a community that thrives on creativity and resource sharing, making it a cost-effective solution for those in high-rent areas like Silicon Valley, where talented founders and engineers can easily connect and support each other.”

Founded by Cantillon, Zoya Garg, Anna Monaco and Anne Brandes, this house was designed to empower women in a tech world traditionally dominated by men. 

“We’re trying to break stereotypes here,” said Garg, 21, a rising senior at Stanford University. “This house isn’t just about living together; it’s about creating a community where women can thrive in tech.”

Located in North Beach, HackHer House was home this summer to seven women, all of whom share the goal of launching successful ventures in tech. 

Venture capital played a key role in making HackHer House possible. With financial backing, the house offered subsidized rent, allowing the women to focus on their projects instead of struggling with the Bay Area’s notoriously high living costs.

“New grad students face daunting living expenses, with campus costs reaching the high hundreds to over a thousand dollars a month,” said Li. “In the Bay Area, finding a comfortable room typically starts at $2,000, and while prices may have eased slightly, they remain significantly higher than the rest of the U.S. This reality forces many, including founders, to share rooms or crash on friends’ couches just to make ends meet.” 

Hacker houses aren’t new to the Bay Area or cities like New York and London. These live-in incubators serve as homes and workspaces, offering a collaborative environment where tech founders and innovators can share ideas and resources. In a city renowned for tech advancements, hacker houses are viewed as critical for driving the next wave of innovation. By providing affordable housing and a vibrant community, these spaces enable entrepreneurs to thrive in an otherwise cutthroat and expensive market.

Watch this video to see how Hacker House is shaping the future of women in tech.

Continue Reading

Technology

Elon Musk’s X will be allowed back online in Brazil after paying one more fine

Published

on

By

Elon Musk's X will be allowed back online in Brazil after paying one more fine

The Federal Supreme Court (STF) in Brazil suspends Elon Musk’s social network after it fails to comply with orders from Minister Alexandre de Moraes to block accounts of those being investigated by the Brazilian justice system. 

Cris Faga | Nurphoto | Getty Images

X has to pay one last fine before the social network owned by Elon Musk is allowed back online in Brazil, according to a decision out Friday from the country’s top justice, Alexandre de Moraes.

The platform was suspended nationwide at the end of August, a decision upheld by a panel of judges on Sept. 2. Earlier this month, X filed paperwork informing Brazil’s supreme court that it is now in compliance with orders, which it previously defied.

As Brazil’s G1 Globo reported, X must now pay a new fine of 10 million reals (about $2 million) for two additional days of non-compliance with the court’s orders. X’s legal representative in Brazil, Rachel de Oliveira, is also required to pay a fine of 300,000 reals.

The case dates back to April, when de Moraes, the minister of Brazil’s supreme court, known as Supremo Tribunal Federal (STF), initiated a probe into Musk and X over alleged obstruction of justice.

Musk had vowed to defy the court’s orders to take down certain accounts in Brazil. He called the court’s actions “censorship,” and railed online against de Moraes, describing the judge as a “criminal” and encouraging the U.S. to end foreign aid to Brazil.

In mid-August, Musk closed down X offices in Brazil. That left his company without a legal representative in the country, a federal requirement for all tech platforms to do business there.

By Aug. 28, de Moraes’ court threatened a ban and fines if X didn’t appoint a legal representative within 24 hours, and if it didn’t comply with takedown requests for accounts the court said had engaged in plots to dox or harm federal agents, among other things.

Earlier this month, the STF froze the business assets of Musk companies, including both X and satellite internet business Starlink, operating in Brazil. The STF said in court filings that it viewed Starlink parent SpaceX and X as companies that worked together as related parties.

Musk wrote in a post on X at that time that, “Unless the Brazilian government returns the illegally seized property of and SpaceX, we will seek reciprocal seizure of government assets too.”

On August 29, 2024, in Brazil, the Minister of the Supreme Court, STF Minister Alexandre de Moraes, orders the blocking of the accounts of another company, Starlink, of Elon Musk, to guarantee the payment of fines imposed by the STF due to the lack of representatives of X in Brazil. 

Ton Molina | Nurphoto | Getty Images

As head of the STF, de Moraes has long supported federal regulations to rein in hate speech and misinformation online. His views have garnered pushback from tech companies and far-right officials in the country, along with former President Jair Bolsonaro and his supporters.

Bolsonaro is under investigation, suspected of orchestrating a coup in Brazil after losing the 2022 presidential election to current President Luiz Inacio Lula da Silva.

While Musk has called for retribution against de Moraes and Lula, he has worked with and praised Bolsonaro for years. The former president of Brazil authorized SpaceX to deliver satellite internet services commercially in Brazil in 2022.

Musk bills himself as a free speech defender, but his track record suggests otherwise. Under his management, X removed content critical of ruling parties in Turkey and India at the government’s insistence. X agreed to more than 80% of government take-down requests in 2023 over a comparable period the prior year, according to analysis by the tech news site Rest of World.

X faces increased competition in Brazil from social apps like Meta-owned Threads, and Bluesky, which have attracted users during its suspension.

Starlink also faces competition in Brazil from eSpace, a French-American firm that gained permission this year from the National Telecommunications Agency (Anatel) to deliver satellite internet services in the country.

Lukas Darien, an attorney and law professor at Brazil’s Facex University Center, told CNBC that the STF’s enforcement actions against X are likely to change the way large technology companies will view the court.

“There is no change to the law here,” Darien wrote in a message. “But specifically, big tech companies are now aware that the laws will be applied regardless of the size of a business and the magnitude of its reach in the country.”

Musk and representatives for X didn’t immediately respond to a request for comment on Friday.

Late Thursday, X Global Government Affairs posted the following statement:

“X is committed to protecting free speech within the boundaries of the law and we recognize and respect the sovereignty of the countries in which we operate. We believe that the people of Brazil having access to X is essential for a thriving democracy, and we will continue to defend freedom of expression and due process of law through legal processes.”

WATCH: X is a financial ‘disaster’

Elon Musk's X is a financial 'disaster,' co-authors of new book 'Character Limit' say

Continue Reading

Technology

OpenAI sees roughly $5 billion loss this year on $3.7 billion in revenue

Published

on

By

OpenAI sees roughly  billion loss this year on .7 billion in revenue

Sam Altman, CEO of OpenAI, at the Hope Global Forums annual meeting in Atlanta on Dec. 11, 2023.

Dustin Chambers | Bloomberg | Getty Images

OpenAI, the creator of ChatGPT, expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC has confirmed.

The company generated $300 million in revenue last month, up 1,700% since the beginning of last year, and expects to bring in $11.6 billion in sales next year, according to a person close to OpenAI who asked not to be named because the numbers are confidential.

The New York Times was first to report on OpenAI’s financials earlier on Friday after viewing company documents. CNBC hasn’t seen the financials.

OpenAI, which is backed by Microsoft, is currently pursuing a funding round that would value the company at more than $150 billion, people familiar with the matter have told CNBC. Thrive Capital is leading the round and plans to invest $1 billion, with Tiger Global planning to join as well.

OpenAI CFO Sarah Friar told investors in an email Thursday that the funding round is oversubscribed and will close by next week. Her note followed a number of key departures, most notably technology chief Mira Murati, who announced the previous day that she was leaving OpenAI after six and a half years.

Also this week, news surfaced that OpenAI’s board is considering plans to restructure the firm to a for-profit business. The company will retain its nonprofit segment as a separate entity, a person familiar with the matter told CNBC. The structure would be more straightforward for investors and make it easier for OpenAI employees to realize liquidity, the source said.

OpenAI’s services have exploded in popularity since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licenses its GPT family of large language models, which are powering much of the generative AI boom. Running those models requires a massive investment in Nvidia’s graphics processing units.

The Times, citing an analysis by a financial professional who reviewed OpenAI’s documents, reported that the roughly $5 billion in loses this year are tied to costs for running its services as well as employee salaries and office rent. The costs don’t include equity-based compensation, “among several large expenses not fully explained in the documents,” the paper said.

WATCH: OpenAI has a lot of challengers, says Madrona’s Matt McIlwain

OpenAI has a lot of challengers, says Madrona's Matt McIlwain

Continue Reading

Trending