
-
Stokes's injury cloud a worry for England in Lord's clash with India
-
Lions call up Ireland's Osborne as injury cover for Kinghorn
-
Booker inks extension with Suns worth reported $145 mn over 2 years
-
Slovakia festival hosting Kanye West cancelled after 'Heil Hitler' furore
-
Moulin Rouge windmill twirls again 14 months after accident
-
Argentine ex-president Fernandez ordered to stand trial for graft
-
Global stocks mostly rise, shrugging off US tariff threats
-
Solar becomes Europe's main energy source in June: consultants
-
Last-gasp Xhemaili fires Swiss into Euro 2025 quarters
-
NBA champion Thunder agree contract extension with Jalen Williams
-
Gaza civil defence says Israeli strike kills children at clinic
-
Swiatek surprised by surge to Wimbledon final
-
Lyles back, ready to 'run fast', as Tebogo lurks
-
Anisimova proves doubters wrong with run to Wimbledon final
-
Spurs set to sign £60m Gibbs-White - reports
-
Booker agrees to record $145 mn extension with Suns: reports
-
Sabalenka criticises Anisimova behaviour after shock Wimbledon exit
-
Russia and US hold 'frank' talks on Ukraine war
-
Swiatek swats Bencic aside to reach Wimbledon final against Anisimova
-
Root's 99 not out keeps India at bay in third Test
-
Delta offers upbeat outlook on travel demand, lifting shares
-
Sara Netanyahu: the ever-present wife of Israel's prime minister
-
Italy can hurt rampant Spain, says coach Soncin
-
Djokovic faces Sinner in Wimbledon blockbuster as Alcaraz meets Fritz
-
Rebooted and 'vulnerable': Superman is back on screens
-
Sri Lanka steamroll Bangladesh to win first T20
-
Swiatek routs Bencic to reach first Wimbledon final
-
Anisimova shocks Sabalenka to reach Wimbledon final, Swiatek in action
-
Europe court says S.African Semenya's gender eligibility trial wasn't fair
-
Ten rescued after deadly Huthi ship sinking off Yemen
-
Scrutiny over Texas flood response mounts as death toll hits 120
-
Rami Al Ali becomes first Syrian in Paris fashion programme
-
London stocks hit record high on tariff optimism
-
Ireland's Healy pulls off solo win at Tour de France
-
French appeals court clears two over first lady gender rumours
-
French appeals court court clears two over first lady gender rumours
-
Barry Callebaut cuts outlook as chocolate sales volumes melt away
-
The $10 mn bag: Original Birkin smashes records at Paris auction
-
Anisimova stuns Sabalenka to reach Wimbledon final
-
Root leads England revival after Reddy's double strike for India
-
Snap, crackle and pay: Ferrero to buy WK Kellogg for $3.1 bn
-
Shein faces 150-mn-euro fine in France
-
Rubio says Asia might get 'better' tariffs than others
-
India wicketkeeper Pant leaves field injured in third Test
-
Russia says holds 'frank exchange' with US on Ukraine war
-
Tendulkar says 'life has come full circle' with Lord's portrait
-
Wall Street stocks stall, London hits record high
-
Duplantis unfazed by late world champs in Tokyo
-
Europe court says S.African athlete's gender eligibility trial wasn't fair
-
Dzeko, 39, returns to Serie A with Fiorentina

What next for OpenAI after $157 billion bonanza?
ChatGPT-maker OpenAI has become an AI powerhouse after securing Silicon Valley's largest-ever funding round. The company now faces the challenge of delivering on its promise to become the next Apple or Google.
- The funding -
OpenAI raised $6.6 billion in cash and secured a $4 billion credit line, catapulting the company to a staggering $157 billion valuation.
There is no question that the investment round spearheaded by CEO Sam Altman and his newly hired CFO Sarah Friar made for a rude awakening for OpenAI rivals Google, Meta, xAI and Amazon-partnered Anthropic.
Despite controversy, investors put down unheard of numbers with only a foggy sense of when they will get a return from a company that was unknown to the general public two years ago.
Close partner Microsoft is again in on the deal, after its investment of $13 billion in 2023. New investors include Tokyo-based conglomerate SoftBank and AI chip maker Nvidia.
Others include MGX, a United Arab Emirates state-backed fund created to invest in AI.
- Burn rate -
OpenAI needs the money to pay for the immense running costs of building generative AI from the bottom up.
Delivering the powers of ChatGPT requires industrial-level computing power, and hefty pay packages for the world’s most sought after researchers.
OpenAI’s cash-burn rate is already enormous. According to US media, this year the company is on track to lose $5 billion on revenue of $3.7 billion. It is projecting revenue will grow to $11.6 billion in 2025 and exponentially from there.
"What drives this technology? It's compute first, and it's not cheap. It's great talent second,” OpenAI CFO Friar told CNBC on Thursday.
"We're going to have to really be careful and smart about how we raise money."
- Bad governance? -
OpenAI is a strange company by any normal business standards.
The company was founded in 2015 by Elon Musk, Altman and others mainly out of fear that Google would get too far ahead in the nascent field, which they felt endangered humanity.
To show their altruism, the anti-Google technologists launched OpenAI as a non-profit. Musk, who left the project in 2018, got things off the ground with a $50 million donation.
As advances were made, Altman persevered and switched the company to a "capped profit" status that allowed for a limited level of money making.
But OpenAI was still controlled by a board made up largely of AI researchers and academics that believed they were saving the world from the dangers of AI.
Meanwhile at the company, pushed by Altman, staff raced to develop the world's most powerful generative AI and getting it to users.
- Crisis -
The schizophrenic set-up imploded spectacularly last November, when the board fired Altman out-of-the-blue.
Within hours, OpenAI staff rebelled and, with Microsoft working in the background, Altman was reinstated.
Those involved in Altman’s ouster, including almost all of the company's original founders, have since left the company.
Alarmed by the chaos, the new investors have demanded that OpenAI become a more classic "for-profit" outfit within two years.
Admitting the change, CFO Friar said "we want to be a more traditional company. Why make things complicated that don't need to be complicated."
- Altman: multi-billionaire? -
Since the release of ChatGPT, Altman has been celebrated as the next Steve Jobs or Bill Gates, visionary tech leaders who were ruthless in business.
The star-power drew the investors who want to reward Altman with equity in OpenAI and guarantee his commitment to the company's future.
A share of just a few percentage points would turn Altman into a multi-billionaire, but also rankle critics who have questioned his incentives.
Friar said that talks were ongoing on how to give Altman skin in the game, but insisted that "nothing has been set in stone right now."
O.Karlsson--AMWN