Silicon Investor - Artificial Intelligence, Robotics, Chat bots - ChatGPT

[Frank Sully] Google's Isomorphic Labs Eyes $2B Advanced discussions are underway to raise mo...

Frank Sully — 5/9/2026 6:05:42 PM

Google's Isomorphic Labs Eyes $2B

Advanced discussions are underway to raise more than $2B for Isomorphic Labs, an AI-driven drug discovery firm spun out of Alphabet's (GOOG) Google DeepMind, as part of a new funding round, Bloomberg reported, citing people familiar with the matter.

The new funding round is likely to be led by the venture firm Thrive Capital, the people said, seeking anonymity as information is not yet public. Thrive spearheaded Isomorphic Labs’ initial funding round in 2025.

Alphabet (GOOGL) is also joining, and the funding round is not yet closed, one of the people said. London-based Isomorphic Labs intends to utilize the new financing to enhance its drug design system and expand its operations globally, a person said.

Founded in 2021, the digital biology company was spun out of Google DeepMind to realize the commercial prospects of AlphaFold, an AI model designed to predict the structure and interactions of complex molecules such as proteins and DNA.

In 2024, the company struck an AI-led drug discovery deal worth up to $1.7B with Eli Lilly (LLY), winning its first pharmaceutical collaboration.

[Thomas M.] Interesting how it works Elon puts up his own money, rounds up the absolute ...

Thomas M. — 5/4/2026 10:12:25 AM

Interesting how it works

Elon puts up his own money, rounds up the absolute best AI talent on the planet, leverages every connection he has to secure serious resources, and launches OpenAI in 2015 as a pure non-profit explicitly created to develop AI for the benefit of humanity, with zero profit motive and open research

Then the “team” decides they want the bag. They push Elon out, take control, and quietly flip the entire thing into a for-profit machine

All while preaching the same sanctimonious lines on repeat: “We’re still mission-driven!” “AI for the good of humanity!” “We’d never abandon our principles!”

The ultimate betrayal:

Elon got zero equity. Not a single share. He funded it. He built the foundation. He got nothing while they turned his non-profit into their personal cash cow

This is the level of betrayal and hypocrisy we’re dealing with

And for the record.... this lawsuit doesn’t put a single penny in Elon’s pocket. Any win goes straight back to the non-profit to restore the exact mission he founded

x.com

Scam Altman and Greg Stockman stole a charity. Full stop.

Greg got tens of billions of stock for himself and Scam got dozens of OpenAI side deals with a piece of the action for himself, Y Combinator style. After this lawsuit, Scam will also be awarded tens of billions in stock directly.

The fundamental question is simply this:

Do you want to set legal precedent in the United States that it is OK to loot a charity? If so, you undermine all charitable giving in the United States forever.

I could have started OpenAI as a for-profit corporation. Instead, I started it, funded it, recruited critical talent and taught them everything I know about how to make a startup successful FOR THE PUBLIC GOOD.

x.com

Tom

[kidl] Elon Musk takes stand in trial vs. Sam Altman that could reshape AI’s future | V...

kidl — 4/29/2026 12:49:22 AM

Elon Musk takes stand in trial vs. Sam Altman that could reshape AI’s future | VailDaily.com

[kidl] Aid and abet? Florida has launched a criminal investigation into OpenAI...

kidl — 4/22/2026 9:59:44 AM

Aid and abet?

Florida has launched a criminal investigation into OpenAI ( OPENAI) over the role its AI model ChatGPT possibly played in a deadly shooting at a state university last year. The probe followed prosecutors' initial review of the chat logs between ChatGPT and Phoenix Ikner, who opened fire at Florida State University last April, killing two people and injuring six others.

The allegations: "If ChatGPT were a person, it would be facing charges for murder," Florida Attorney General James Uthmeier said in a statement. "This criminal investigation will determine whether OpenAI bears criminal responsibility for ChatGPT's actions in the shooting." In a press conference, Uthmeier said ChatGPT offered "significant advice" to the gunman before the shooting on "what type of gun to use, which ammo went with which gun, whether or not a gun would be useful in short range." He added that ChatGPT "advised the shooter on what time of day would be appropriate for the shooting to interact with more people and where on campus would be the place to encounter a higher population."

Dig deeper: Florida law states that anyone who aids, abets, or counsels someone in the commission of a crime, and that crime is committed or attempted, may be considered a principal to the crime, Uthmeier noted. The state issued subpoenas to OpenAI ( OPENAI) for information on its policies and internal training materials regarding user threats of harm to themselves and others as well as cooperation with law enforcement. An OpenAI spokesperson said ChatGPT was not responsible for the crime. "In this case, ChatGPT provided factual responses to questions with information that could be found broadly across public sources on the internet, and it did not encourage or promote illegal or harmful activity," the spokesperson said in a statement to the media.

Bigger picture: This is not the first time that ChatGPT has been implicated in a mass shooting. OpenAI is already facing a civil lawsuit over ChatGPT's possible role in a shooting that killed eight people in British Columbia, Canada earlier this year. The company banned the account of the shooter, Jesse Van Rootselaar, as she'd described scenarios involving gun violence to ChatGPT. Employees at the company considered alerting law enforcement, but ultimately decided not to do so. The family of a girl critically injured in the shooting sued OpenAI for failing to alert authorities, claiming that the firm had "specific knowledge of the shooter utilizing ChatGPT to plan a mass casualty event."

[Ron] Claude Mythos Is Everyone’s Problem What happens when AI can hack everything? t...

Ron — 4/13/2026 8:32:24 AM

Claude Mythos Is Everyone’s Problem
What happens when AI can hack everything?

theatlantic.com

The Anthropic researcher Sam Bowman posted on X that he was eating a sandwich in the park when he got an email from Mythos Preview: The bot had broken out of the company’s internal sandbox and gained access to the internet.

[Frank Sully] The $375 Billion Bet: Why AI-Powered Robotics Is Shaping Up as the Decade’s Most...

Frank Sully — 4/4/2026 5:33:28 PM

The $375 Billion Bet: Why AI-Powered Robotics Is Shaping Up as the Decade’s Most Consequential Industrial Wager

webpronews.com

[kidl] [youtube video]

kidl — 3/28/2026 4:29:04 AM

[Kirk ©] Commentary: TSMC chairman exposes three realities behind China's robot FOMO Mes...

Kirk © — 3/26/2026 10:36:17 AM

Commentary: TSMC chairman exposes three realities behind China's robot FOMO

Message 35468916
Fundamentally, the current robotics sector differs markedly from GenAI. In GenAI, training and inference demands have established ongoing commercial cycles. But in humanoid robotics, core questions remain unresolved: who pays, why they pay, and when investments return profits—all awaiting market validation.

[Frank Sully] Amazon enters Humanoid Race with Fauna Robotics Acquisition seekingalpha.com

Frank Sully — 3/24/2026 6:21:36 PM

[Frank Sully] Beth Kindig on NVIDIA Groq LPX Platform seekingalpha.com

Frank Sully — 3/24/2026 5:09:08 PM

[voop] US Navy Taps Anduril Dive-XL for Autonomous Undersea CAMP share.google Is this ...

voop — 3/23/2026 9:48:40 PM

US Navy Taps Anduril Dive-XL for Autonomous Undersea CAMP share.google

Is this new information, it was in my news feed today with a March 22 dateline.

Would seem to be extraordinary news for Kraken.

[Frank Sully] Nvidia's (NVDA) new offerings could help cement its position in inference, said ...

Frank Sully — 3/17/2026 11:37:03 PM

Nvidia's (NVDA) new offerings could help cement its position in inference, said Wall Street analysts, after the company held its annual tech event GTC, highlighting products and partnerships.

Bernstein kept its Outperform rating and $300 price target on Nvidia's stock.

"We liked what we heard...NVIDIA’s roadmap looks really solid, their capability gap continues to widen, new offerings ought to help cement their position in inference just as they dominate training, and the order book suggests further upside to numbers, with the stock (in our opinion) almost absurdly valued given their positioning (trading ~15x our CY26/FY27 EPS). We would be buyers," said analysts led by Stacy Rasgon.

AI inference is the process where a trained AI model applies its learned patterns to new data to make predictions, generate content, or make decisions.

On Monday, Nvidia (NVDA) made several announcements at GTC, including a $1T revenue opportunity through 2027, a partnership with OpenClaw, Groq 3 Language Processing Unit, or LPU, integration with Vera Rubin, and product offerings.

The analysts said that Nvidia's CFO Colette Kress confirmed to them that the $1T number includes only Blackwell and Rubin and associated networking. It does not include any otherproducts such as Groq LPUs, CPX, CPU racks, among other things.

"Hence, we suspect data center will come in well above this $1T target, and well above expectations (and we note that the ~ $500B implied in the new CY27 forecast already exceeds consensus ~$438B)," said Rasgon and his team.

The analysts noted that Nvidia's full platform approach appears difficult to disrupt as it relentlessly builds out its software and hardware stacks across multiple offerings, including graphics processing units, or GPUs, central processing units, or CPUs, data processing units, or DPUs, and now LPUs, networking, and storage. The company continues to drive token costs down by orders of magnitude with every generation, which should allow them to capitalize as inference computing exponentiates, the analysts added.

"Frankly we increasingly wonder how anyone else can compete with this," said Rasgon and his team.

[Elroy] 10%-yielding MREITs and BDCs to create a steady annuity stream to fund IRA distr...

Elroy — 3/13/2026 10:22:04 PM

10%-yielding MREITs and BDCs to create a steady annuity stream to fund IRA distributions

I wouldn't touch mREITs, and with BDCs I hope you get a good one because some of them stink.

Buy NGL-B or NGL-C preferreds. Both yield over 10%, and the underlying company is solid (not going bust). Safe.

I also own PFFA for indcome. It's a preferred stock fund that also uses derivatives to juice the yield. Pays about 10%.

mREITs no thanks!

[roto] yeh, I do a fraction great of what you've accomplished, but all my account is R...

roto — 3/13/2026 8:14:31 PM

yeh, I do a fraction great of what you've accomplished, but all my account is ROTH.. I get every nickel & daime tax free.
I sleep well at night.

[Frank Sully] QNC is too exotic for me. Well into retirement I've begun taking profits in my t...

Frank Sully — 3/13/2026 7:00:56 PM

QNC is too exotic for me. Well into retirement I've begun taking profits in my two big multi-bagger winners NVIDIA and KRKNF into 10%-yielding MREITs and BDCs to create a steady annuity stream to fund IRA distributions. At the end of 2025 my portfolio went over $1M despite having taken $250K in IRA distributions in the past 5 years.

[roto] I like! It was weird trades back then.. still is when it seems to go into a hypn...

roto — 3/13/2026 6:06:17 PM

I like! It was weird trades back then.. still is when it seems to go into a hypnocess of sorts,
then goes crazy up. Now it seems a normal trade.
Yeh, I have a few thousand 'free shrs' & plan to add Monday on the cheap.

What I did was swap most $s to QNC.
Quantum Emotion Corp quantumemotion.com
That is my money tree going forward.. 20,000 free shrs.
This is under the radar (no love) but maybe not for long.. a different beast by EOY.

expotential growth

[Frank Sully] Yeah, Roto, we gambled on KRKNF about the same time 4 years ago. It's my most su...

Frank Sully — 3/13/2026 5:51:43 PM

Yeah, Roto, we gambled on KRKNF about the same time 4 years ago. It's my most successful investment ever. I bought $8K worth which has grown to $120K plus $80K in harvested profits. Swim, Squid, Swim!

[kidl] PNG ... Desjardins Securities’ Benoit Poirier resumed coverage and hiked his tar...

kidl — 3/13/2026 9:13:26 AM

PNG ... Desjardins Securities’ Benoit Poirier resumed coverage and hiked his target to $14 from $9.50 with a “buy” rating. “We view the Covelya acquisition positively as it transforms Kraken into a globally-scaled, dual-use subsea platform company, broadening its offering and positioning it as a one-stop supplier to unmanned OEMs. The deal expands TAM, triples manufacturing capacity, deepens customer entrenchment (notably with Anduril), reduces concentration risk and preserves profitability—relevant amid the accelerating adoption of unmanned systems, and real proof points such as rising mine risks near Iran and Ukraine’s first UUV use," said Mr. Poirier.

Benoit Poirier | Desjardins Stock Analyst - TipRanks.com

[roto] yeh, I went back to memory lane on it. I got my 1st shares @ $.261 KRKNF I'm run...

roto — 3/13/2026 9:03:21 AM

yeh, I went back to memory lane on it. I got my 1st shares @ $.261 KRKNF
I'm running a few thousand 'free shrs' the moment. going to be adding damn soon!

pre- mkt looks good this a.m.
Friday da 13th!

[Elroy] Thanks! Interesting. KRKNF sold the receipts for $8.50 each. Now I wanna track...

Elroy — 3/12/2026 11:44:06 AM

Thanks!

Interesting. KRKNF sold the receipts for $8.50 each. Now I wanna track down how many shares is earned by holding one receipt......

Hmm, never mind, they sold for C$8.50, which is about US$6.16, a pretty healthy discount to the recent stock price of about $7.25.

Still, not too shabby. KRKNF was US$6.20 a few days ago.

I've got 60% of the shares I planned to buy. I'm waiting for it to dip back down below $6.50 before buying the remainder.

[kidl] According to AI ... Listed subscription receipts are a temporary, tradeable...

kidl — 3/12/2026 11:08:12 AM

According to AI ...

Listed subscription receipts are a temporary, tradeable security used mainly in Canada to raise equity to fund a specific transaction (usually an acquisition), with investor protection if the deal fails.

Basic structure

The issuer sells subscription receipts under a prospectus, usually via a bought deal or public offering, at a fixed price per receipt (e.g., 1 receipt at 10 dollars).
Each receipt entitles the holder to receive a set number of common shares (most often 1:1) if a defined transaction (the “qualifying transaction” or acquisition) closes by a stated deadline.
The cash proceeds are placed in escrow or trust and invested in low-risk instruments (e.g., GICs) until the conditions are met.

What happens if the deal closes

On closing of the specified transaction and satisfaction/waiver of escrow conditions, the escrow agent releases the funds to the issuer.
Subscription receipts automatically convert into the underlying shares at the fixed conversion rate without additional payment from holders.
Any interest earned on escrowed funds is usually paid to the issuer, although some structures may credit a portion to receipt holders via an adjustment mechanism.?

What happens if the deal failsIf any of the specified failure conditions occur (e.g., deadline passes, acquisition agreement terminated, issuer announces it will not proceed):

The subscription receipts are cancelled, typically without further action by holders.
The escrowed subscription proceeds plus interest are returned to holders on a pro-rata basis; the issuer is usually obligated to top up any shortfall between escrow and the amount owed to investors.

How they trade and why issuers use them

Once issued, the receipts themselves are listed and can trade on an exchange like any other listed security until they convert or are cancelled.?
Economically, they are a way to “pre-fund” an acquisition before closing, while giving investors downside protection: if the deal dies, you get your money back (plus interest) instead of being stuck with equity raised for a failed transaction.

Accounting / capital treatment (high-level)

From the issuer’s perspective under IFRS, subscription receipts generally contain both a liability component (obligation to return cash if the deal fails) and an equity component (right/obligation to issue a fixed number of shares if successful).?
On issuance, most of the proceeds are often allocated to the liability component given the short contingency period, with a smaller portion to equity; on deal closing, the liability is extinguished and equity (share capital) increases when receipts convert to shares.?

[Elroy] Any idea how these work? They issued 47m subscription receipts. Any idea how t...

Elroy — 3/12/2026 8:43:54 AM

Any idea how these work?

They issued 47m subscription receipts. Any idea how to translate one of those into number of shares?

ST. JOHN’S, Newfoundland and Labrador, March 12, 2026 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (“Kraken” or the “Company”) (TSX-V: PNG), is pleased to announce the successful completion of its previously announced offering (the “Offering”) of Subscription Receipts (the “Subscription Receipts”). Pursuant to the Offering, the Company issued a total of 47,353,550 Subscription Receipts, including 6,176,550 Subscription Receipts issued pursuant to the exercise in full by the Underwriters (as defined below) of their over-allotment option. The Subscription Receipts were issued at a price of $8.50 per Subscription Receipt (the “Offering Price”), for total gross proceeds of approximately $402.5 million.

https://finance.yahoo.com/news/kraken-robotics-announces-closing-402-122400590.html

[Frank Sully] Seizing a rising rocket indeed! Up 12.5% today and up 10.4% yesterday. When it h...

Frank Sully — 3/10/2026 4:09:02 PM

Seizing a rising rocket indeed! Up 12.5% today and up 10.4% yesterday. When it hit $7 I cashed in 20% of my profits. I'm now sitting on a 28 bagger (bought 4 1/2 years ago at $0.28).

KRKNF Kraken Robotics Inc.
$7.63 +0.85 (+12.54%)
3:44 PM 03/10/26

[A.J. Mullen] Yes, and that's against a general sell-off of defence stocks, barrons.com. The ...

A.J. Mullen — 3/10/2026 3:19:09 PM

Yes, and that's against a general sell-off of defence stocks, barrons.com. The market seems to have accepted there are likely synergies to be had with the merger.
What's the opposite of catching a falling knife? Seizing a rising rocket?

[Frank Sully] Kraken hits $7. KRKNF Kraken Robotics Inc. $7.00 +0.21 (+3.17%) 12:13 PM 03/10/...

Frank Sully — 3/10/2026 12:40:40 PM

Kraken hits $7.

KRKNF Kraken Robotics Inc.
$7.00 +0.21 (+3.17%)
12:13 PM 03/10/26

[Frank Sully] More from Jensen huang Transcript. seekingalpha.com

Frank Sully — 3/4/2026 7:51:20 PM

[Frank Sully] Jensen Huang Transcript of long history of NVIDIA, from graphics chips for gamin...

Frank Sully — 3/4/2026 6:33:42 PM

Jensen Huang Transcript of long history of NVIDIA, from graphics chips for gaming to GPU's for AI, including full stack hardware and software solutions, supercomputers, AI Factories and networks, ChatGPT, Generative AI and Agentics is worth reading.

seekingalpha.com

In particular, Jensen shoots down the rumor of a $100B investment in OpenAI and reiterates a $30B stake.

So recently, there was a question about, are we going to invest $100 billion in OpenAI. We just -- just for everybody's update, we finalized our agreement. We're going to invest $30 billion in OpenAI. I think the opportunity to invest $100 billion in OpenAI is probably not in the cards. And the reason for that is because they're going to go public. And so I'm fairly sure that if we provide the capacity they need, which the compute capacity they need, which we're ramping up hard to go to, the revenues will more than follow. And they're going to go public towards the end of the year. And so this might be the last time we'll have the opportunity to invest in a consequential company like this. And our $10 billion investment in Anthropic probably will be the last as well.

[Ron] Broadcom surge on earnings after hours (AVGO)

Ron — 3/4/2026 6:26:50 PM

[Frank Sully] Don't feel too bad about simple arithmetic mistakes. I have a Ph.D. in Mathemati...

Frank Sully — 3/4/2026 6:01:47 PM

Don't feel too bad about simple arithmetic mistakes. I have a Ph.D. in Mathematics and struggle to balance my check book. Think how much worse you'd feel if you bought 10X and triggered a margin call.

[A.J. Mullen] They're both defence companies to some degree, and underwater autonomous systems...

A.J. Mullen — 3/4/2026 3:54:28 PM

They're both defence companies to some degree, and underwater autonomous systems must be growing particularly fast with the hybrid warfare that's occured in the North Sea. The bigger company must be expected to grow that Kraken's recent rate.

I've done the same - buying a tenth of what I intended. It's annoying, but a mistake the other way - buying an order of magnitude more than expected would be frightening. If it makes you feel any better, I sold a third of my holding yesterday as an episodic rebalancing exercise. If I hadn't sold yesterday, I'd probably have waited a little longer to see if the enthusiasm of commentators translated into. a rise on the stock price.

I came across this, sonardyne.com. The history of Solardyne, which renamed itself so the original company wouldn't shade other components of the group.

[Elroy] Hmmm, OK I agree 2.6x sales is high for an industrial / maritime hardware compan...

Elroy — 3/4/2026 3:40:42 PM

Hmmm, OK I agree 2.6x sales is high for an industrial / maritime hardware company. But if the target grew sales 24% for the past two years in a row 2.6x sales isn't all that high. Industrial / maritime hardware companies usually grow perhaps 5% per year, depending on their maturity. I don't know the growth profile of the target company, so I don't really know if it's high or low.

Kraken's valuation is definitely high!

I screwed up this morning, forgot a zero in my buy order, and bought 1/10th of what I wanted to buy. So now I'm waiting for KRKNF to dip back to $6.50 so I can buy the other 9/10th of my target amount......

[A.J. Mullen] Elroy, according to Gemini 3, 2.6x Revenue is relatively high for industrial/mar...

A.J. Mullen — 3/4/2026 3:16:53 PM

Elroy, according to Gemini 3, 2.6x Revenue is relatively high for industrial/maritime hardware, Kraken is valued much higher because it's so fast-growing. Here are some details:
Gemini said

The perception that 2.6x revenue is "low" is common if you are comparing it to high-growth Software-as-a-Service (SaaS) companies, which often trade at 6x–10x revenue. However, in the world of maritime engineering and hardware-heavy defense tech, the math is a bit different.

Here is a breakdown of why the $615 million valuation ($450 million USD) for Covelya Group actually represents a healthy and strategic price point.

1. Hardware vs. Software MultiplesCovelya is primarily a high-end hardware and sensor manufacturer (Sonardyne, Voyis, Chelsea).

SaaS Multiples: Often 6x–10x revenue because they have 80%+ gross margins and no physical inventory or factories.
Industrial/Maritime Tech Multiples: Typically range from 1.5x to 3.5x revenue. At 2.6x, Covelya is actually sitting at the higher end of the range for a company that manages 12 physical facilities and a workforce of 750 people.

2. The EBITDA Multiplier (The "Real" Number)Investors in industrial sectors usually look at EBITDA (earnings before interest, taxes, depreciation, and amortization) rather than just revenue.

Covelya’s 2025 Forecasted Revenue: $249 million – $275 million.
Covelya’s 2025 Forecasted EBITDA: $60 million – $67 million.
The Math: $615M / $63.5M (midpoint) = ~9.7x EBITDA.

A ~10x EBITDA multiple is considered a very strong valuation for a mature maritime engineering firm. It suggests that Kraken is paying a premium for Covelya’s high profitability (24% margins) and its 50-year reputation.

3. Revenue Growth & The "Rule of 40"In tech valuation, the "Rule of 40" states that a company's growth rate plus its profit margin should exceed 40%.

Covelya's Growth: 24% (Revenue CAGR since 2023).
Covelya's Margin: 24% (EBITDA margin).
Total: 48%. This puts Covelya in the "elite" category for industrial tech. While 2.6x revenue might feel low compared to a Silicon Valley startup, it is a significant "quality" multiple for a UK-based manufacturing conglomerate.

Comparison Table: Why 2.6x is Higher Than It Looks

Metric	Typical Industrial/Maritime	Covelya (at 2.6x Revenue)	Verdict
Revenue Multiple	1.0x – 2.0x	2.6x	High
EBITDA Multiple	6x – 8x	~9.7x	High
EBITDA Margin	10% – 15%	24%	Premium

4. Strategic "Family" Discount?It is also worth noting that Covelya was a privately held, largely family-owned business (via Sonardyne Holdings). In such deals, the sellers often prioritize a strategic fit and a "safe pair of hands" for their 750 employees over squeezing out the absolute maximum multiple from a private equity firm that might strip the company for parts. By joining Kraken, the brands (Sonardyne, EIVA, etc.) remain intact within a larger subsea "powerhouse."

[kidl] I replaced the original link with the presentation as it is on the rather bullis...

kidl — 3/4/2026 1:16:28 PM

I replaced the original link with the presentation as it is on the rather bullish side but much easier to read than yesterday's NR. Anyhow, here it is again:

Kraken Robotics Just Became A Subsea Drone Monopoly

[A.J. Mullen] Kidl, I found the exposition of the deal you briefly posted useful and informati...

A.J. Mullen — 3/4/2026 12:42:07 PM

Kidl, I found the exposition of the deal you briefly posted useful and informative. While very bullish, it didn't shy away from the possible down sides: dilution and potential integration probelms. It didn't address Elroy's query: why did the seller sell for that proce? Any chance of reposting that discussion?

A year ago Kraken bought 3D, a US company, and it bought another Canadian company, Pan Geo, in 2021, so it has experience of integrating companies. And has been building batteries in Germany for years, so business in Europe is not new to them.

[kidl] Updated presentation: Kraken-Investor-Presentation.pdf

kidl — 3/4/2026 11:54:41 AM

[Elroy] Yes, I've read the press release. Do you have any idea why the target / selling ...

Elroy — 3/4/2026 11:41:24 AM

Yes, I've read the press release.
Do you have any idea why the target / selling company sold for what seems like such a low price? 2.5x sales seems really low for a profitable growing underwater robotics company. Kraken was at about 20x sales yesterday....

[A.J. Mullen] CONFERENCE CALL DETAILS Kraken management will host a conference call today, Ma...

A.J. Mullen — 3/4/2026 10:27:31 AM

CONFERENCE CALL DETAILS

Kraken management will host a conference call today, March 3, 2026, starting at 4:30 p.m. ET to discuss the announced Acquisition. Participants can listen to this event at the webcast details below, or by dialing 1-833-752-3301 (North America) or 1-647-846-2734 (International) for operator assistance. A recording will also be made available following the call. This call will not include a question and answer session.

Webcast Details: globenewswire.com

[A.J. Mullen] https://www.krakenrobotics.com/news-releases/kraken-robotics-announces-signing-...

A.J. Mullen — 3/4/2026 10:27:14 AM

https://www.krakenrobotics.com/news-releases/kraken-robotics-announces-signing-of-strategic-acquisition-to-expand-global-maritime-capabilities/
On a preliminary and unaudited basis, Kraken’s financial results for fiscal 2025 are expected to show consolidated revenue in the range of $102 million to $104 million and Adjusted EBITDA of $24 million to $26 million. These annual results, which are the highest in the Company’s history, were driven by record results in Kraken’s SeaPower batteries and Synthetic Aperture Sonar products, as well as strong results in the subsea services division. This growth, however, was partially offset by the decline in sonar-related revenue in the current year due to the timing of KATFISH projects and the acquisition component of the Canadian Navy RMDS system integration project nearing completion.

For 2026, Kraken expects revenue to be between $165 million and $175 million and Adjusted EBITDA to be between $40 million to $50 million, excluding any contribution from the Acquisition. The Company’s outlook for 2026 is driven by existing purchase orders for SeaPower batteries, expected purchase orders for sonar products, and continued growth in the commercial services business, including a full year contribution from 3D at Depth Inc. which was acquired in 2025. Consistent with prior years, revenue in 2026 is expected to be weighted toward the second half of the year.

[Elroy] Bought some at $6.50. This time I think it's a buy and hold forever. Off we go...

Elroy — 3/4/2026 9:43:32 AM

Bought some at $6.50.

This time I think it's a buy and hold forever. Off we go!

[Elroy] This acquisition is super interesting. Kraken trades at about 18x 2025 sales (m...

Elroy — 3/4/2026 9:07:15 AM

This acquisition is super interesting.

Kraken trades at about 18x 2025 sales (maybe more).

They're buying this wonderful British company for about 2.5x 2026 sales.

Any idea why the seller is selling out so cheap?

It looks too good to be true.

Interesting that the seller's sales are described as growing 23% per year between 2023 and 2025. I'm curious if all that growth 2023 to 2024, and 2024 t0 2025 was no growth (or worse?).

The acquisition price seems too good to be true.

And it's fascinating that Kraken has a stock trading at 20x sales, and they do the deal with cash rather than stock. Good! Maybe the seller insisted (doesn't want to risk Kraken's share price going down). Maybe the selling company is owned by one dude, and he just wants to cash out (but still, why so low a price if it's an undersea systems company growing 23% per year - those get 10x sales, not 2.5x sales.....

Anyways, I'm buying some stock again today. Off we go!

[voop] It intends to swallow a bigger fish than itself from a private aquarium. The wa...

voop — 3/4/2026 9:01:59 AM

It intends to swallow a bigger fish than itself from a private aquarium. The waters become a little diluted, but that is fine with me. After ingestion and digestion, it will hunt in deeper waters and can grow better organically.

[Frank Sully] Kraken is growing. Some Comments from Seeking Alpha. Kraken is buying Covelya G...

Frank Sully — 3/4/2026 12:06:35 AM

Kraken is growing. Some Comments from Seeking Alpha.

Kraken is buying Covelya Group. This is a larger company than Kraken ($260M+ revenue), with a CAGR around 24%. They are buying them around 2.5x revenues. If the market values the combined entity at 10x revenues, this is going to go nuts fast.

[voop] Kraken is growing! Going to have 1200 employees krakenrobotics.com

voop — 3/3/2026 11:02:07 PM

[kidl] OpenAI strikes deal with Pentagon hours after Trump admin bans Anthropic | CNN B...

kidl — 2/28/2026 11:58:09 AM

OpenAI strikes deal with Pentagon hours after Trump admin bans Anthropic | CNN Business

[zax] Message 35439765

zax — 2/27/2026 4:24:38 PM

[kidl] OpenAI raises $110B in one of the largest private funding rounds in history | Te...

kidl — 2/27/2026 12:29:38 PM

OpenAI raises $110B in one of the largest private funding rounds in history | TechCrunch

[kidl] AI showdown ... How Anthropic and the Pentagon got into a fight over AI weapons...

kidl — 2/27/2026 11:30:44 AM

AI showdown ...

How Anthropic and the Pentagon got into a fight over AI weapons - The Washington Post

Sam Altman shares Anthropic’s concerns when it comes to working with the Pentagon | CNN Business

And then there is Musk:

Elon Musk slams Anthropic as ‘hater of Western civilization’ over Pentagon AI military snub

[A.J. Mullen] Comparison of two stocks discussed here in Seeking Alpha: 1 Stock I'd Buy Befor...

A.J. Mullen — 2/24/2026 2:06:58 PM

Comparison of two stocks discussed here in Seeking Alpha: 1 Stock I'd Buy Before TMC The Metals Company

I own both stocks and agree with the conclusion that Kraken is currently a safer bet. It's a company in revenue whereas TMC isn't, and TMC has more geopolitical question marks. That's why my holding of Kraken is worth 3x that of TMC.

But the alpha article, the author opens with mining when describing Kraken. Google gives this:

AI Overview

Kraken Robotics' revenue is heavily concentrated in the defense sector, with Q3 2025 results highlighting record shipments of subsea batteries and synthetic aperture sonar (SAS) to naval customers, alongside a 60% increase in total revenue
. Defense-related demand is a primary driver for their growth, fueled by NATO and Indo-Pacific contracts.
Seeking Alpha +1

[Ron] America’s AI Regulation Gap jeoshea.substack.com

Ron — 2/12/2026 11:42:48 AM

[Baywall] Bell plans to build artificial intelligence data centre near Regina, RM document...

Baywall — 2/10/2026 7:59:27 PM

Bell plans to build artificial intelligence data centre near Regina, RM documents show | CBC News

50MW of electricity required at first, expanding later as additions are built.