In this photo illustration, the Astera Labs logo appears on smartphone and computer screens.
Pavlo Gonchar | Sopa Images | Light Rocket | Getty Images
Amazon Chief Executive Andy Jassy likes to talk about how much his company has benefited from the artificial intelligence boom. On Wednesday, Amazon pushed for artificial intelligence in a different way.
shares Astra LabsThe company, which sells data center connectivity chips to cloud and artificial intelligence infrastructure companies, surged 72% in its Nasdaq debut to close at $62.03. That gives Astera a market capitalization of nearly $9.5 billion.
Astera’s IPO satisfies Wall Street’s thirst for artificial intelligence.Founded in 2017 by predecessor Texas Instruments Senior Executive, Astera Counts Nvidia, AMDand Intel among its customers. It also sells heavily to Amazon.
Company receives major vote of confidence 2022, when it struck a deal with Amazon to give the tech giant warrants allowing it to purchase up to 1.5 million Astera shares at $20.34 per share. The following year, the agreement was amended to give Amazon warrants to purchase more than 830,000 additional shares. According to statistics, as of the end of last year, Amazon controlled 232,608 shares. Securities filing.
Based on Wednesday’s closing price, Amazon’s stock and warrants are worth a total of nearly $144 million.
But under the agreement, in order for Amazon to cash in its remaining stake and fully benefit from price increases, it must purchase up to $650 million worth of Astera products over the next few years. That’s a big deal for Astera, which had total sales of $115.8 million last year, up from $79.9 million in 2022.
According to Astera’s IPO prospectus, the three categories of products Amazon agreed to purchase are all aimed at solving “critical bottlenecks in artificial intelligence infrastructure.”
Astera is joining the public markets as investors eagerly await social media company Reddit’s planned debut on the New York Stock Exchange on Thursday. The tech IPO market has been largely dormant since late 2021, Arm Holdings, Instant shopping cart and Clavijo One of the very few who held a dedication event during this time.
watch: Reddit is about to IPO
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