Stock Markets
OpenAI closes $6.6 billion funding haul with investment from Microsoft and Nvidia
By Krystal Hu
(Reuters) -OpenAI, the company behind ChatGPT, has raised $6.6 billion from investors, which could value the company at $157 billion and cement its position as one of the most valuable private companies in the world.
The funding has attracted returning venture capital investors including Thrive Capital and Khosla Ventures, as well as OpenAI’s biggest corporate backer Microsoft (NASDAQ:), and new participation from Nvidia (NASDAQ:).
The closing of the funds coincides with the company’s ongoing restructuring efforts and executive changes, including the abrupt departure of its longtime Chief Technology Officer, Mira Murati, last week.
Altimeter Capital, Fidelity, SoftBank (TYO:), and Abu Dhabi’s state-backed investment firm MGX also participated in the round.
OpenAI Chief Financial Officer Sarah Friar told employees on Wednesday that the company will be able to provide liquidity for them through a tender offer to buy back their shares in the company following the funding, although no details and timing have been decided, according to a source. Earlier this year, the company allowed some employees to cash out their shares at a valuation of $86 billion.
Thrive Capital, which committed about $1.2 billion from a combination of its own fund and a special purpose vehicle for smaller investors, negotiated the option to invest another $1 billion next year at the same valuation if the AI firm hits a revenue goal, sources added.
Apple (NASDAQ:), which was in talks to invest in OpenAI, did not end up joining the funding, sources said, who requested anonymity to discuss private matters. Apple did not immediately respond to a request for comment.
The funding came in the form of convertible notes, and the conversion to equity hinges on a successful structural change into a for-profit that would no longer be controlled by the non-profit board and the removal of cap on returns for investors.
The personnel changes haven’t deterred enthusiasm from most investors, who are anticipating significant growth based on the projections by OpenAI CEO Sam Altman.
The company is on pace to generate $3.6 billion in revenue this year on mounting losses of over $5 billion. It projects major revenue jump next year to $11.6 billion, according to sources familiar with the figures.
Investors have also secured some protections as OpenAI undergoes the complex corporate restructuring that would grant Altman equity. The talks are still ongoing, and no timeline has been determined yet.
Investors have negotiated terms that would allow them to claw back their capital or renegotiate the valuation if the changes are not implemented within two years, sources said.
OpenAI’s meteoric rise in terms of product popularity and valuation has captured the world’s imagination. Since the launch of ChatGPT, it has attracted 250 million weekly active users. The company’s valuation has also risen from $14 billion in 2021 to $157 billion as it grew revenue from zero to $3.6 billion, far exceeding Altman’s own projections at the time.
The company has told investors it is still actively pursuing artificial general intelligence (AGI), meaning developing AI systems that surpass human intelligence, as it ramps up commercialization and tries to be profitable.
Stock Markets
Trump’s Middle East envoy meets Netanyahu on Saturday amid ceasefire push
By Maayan Lubell and Nidal al-Mughrabi
JERUSALEM/CAIRO (Reuters) -U.S. President-elect Donald Trump’s Middle East envoy Steve Witkoff met Israeli Prime Minister Benjamin Netanyahu on Saturday amid a push to secure a ceasefire in Gaza, Netanyahu’s office said.
After the meeting, Netanyahu dispatched a high-level delegation which included the head of the Israeli Mossad intelligence agency to Qatar in order to “advance” talks to return hostages being held by Hamas in Gaza, a statement from Netanyahu’s office said.
Earlier on Saturday, an Israeli official said some progress had been made in the indirect talks between Israel and Palestinian militant group Hamas, mediated by Egypt, Qatar and the United States, to reach a deal in Gaza.
The mediators are making renewed efforts to reach a deal to halt the fighting in the enclave and free the remaining Israeli hostages held there before Trump takes office on Jan. 20. A deal would also involve the release of some Palestinian prisoners held in Israeli jails.
Families of Israeli hostages welcomed Netanyahu’s decision to dispatch the officials, with the Hostages and Missing Families Forum Headquarters describing it as a “historic opportunity.”
Witkoff arrived in Doha on Friday and met the Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Qatar’s foreign ministry said.
Egyptian and Qatari mediators received reassurances from Witkoff that the U.S. would continue to work towards a fair deal to end the war soon, Egyptian security sources said, though he did not give any details.
Israel launched its assault on Gaza after Hamas fighters stormed across its borders in October 2023, killing 1,200 people and taking more than 250 hostages, according to Israeli tallies.
Since then, more than 46,000 people have been killed in Gaza, according to Palestinian health officials, with much of the enclave laid to waste and gripped by a humanitarian crisis, with most of its population displaced.
On Saturday, the Palestinian civil emergency service said eight people were killed, including two women and two children, in an Israeli airstrike on a former school sheltering displaced families in Jabalia, in the northern Gaza Strip.
The Israeli military said the strike had targeted Hamas militants who were operating at the school and that it had taken measures to reduce the risk of harm to civilians.
Later on Saturday, the Gaza Civil Emergency Service said five people were killed and several others were wounded in two Israeli strikes. One of the two strikes killed three people in a house near the Daraj neighborhood in Gaza City.
The Israeli military said it struck a Hamas militant “in that area” at that approximate time.
Stock Markets
Trump’s Ukraine envoy says world must reinstate ‘maximum pressure’ on Iran
By John Irish
PARIS (Reuters) -The world must return to a policy of “maximum pressure” against Iran to turn it into a more democratic country, U.S. President-elect Donald Trump’s incoming Ukraine envoy Keith Kellogg (NYSE:) told an Iranian opposition event in Paris on Saturday.
Trump has vowed to return to the policy he pursued in his previous term that sought to wreck Iran’s economy to force the country to negotiate a deal on its nuclear programme, ballistic missile programme and regional activities.
“These pressures are not just kinetic, just not military force, but they must be economic and diplomatic as well”, Retired Lieutenant-General Kellogg, who is set to serve as Trump’s special envoy for Ukraine and Russia, told the audience at Paris-based Iranian opposition group National Council of Resistance of Iran (NCRI).
He said there was an opportunity “to change Iran for the better” but that this opportunity would not last forever.
“We must exploit the weakness we now see. The hope is there, so must too be the action.”
He has previously spoken at NCRI events, most recently in November, but his presence in Paris, even if in a personal capacity, suggests the group has the ear of the new U.S. administration.
Kellogg postponed a trip to European capitals earlier this month until after Trump’s inauguration on Jan. 20.
It was unclear whether he would use his trip top Paris to meet French officials to discuss Ukraine. The French presidency, foreign ministry, Trump’s transition team did not immediately respond for comment.
Incoming U.S. Secretary of State Marco Rubio has also spoken at NCRI events in the past. The group has repeatedly called for the fall of the existing Iranian authorities, although it is unclear how much support it has within Iran.
Speaking at the start of the event at Auvers-sur-Oise, the group’s headquarters on the outskirts of Paris, NCRI President-elect Maryam Rajavi said the regional balance of power had shifted against Iran’s leadership with the all of Syria’s President Bashar al-Assad and the “crushing blow” suffered by its most important ally Hezbollah is its war with Israel.
“It is time for Western governments to abandon past policies and stand with the Iranian people this time,” she said.
The NCRI, the political arm of the People’s Mujahideen Organisation of Iran (PMOI), has held frequent rallies in the France, often attended by high profile former U.S., European and Arab officials critical of the Islamic Republic.
Stock Markets
Jeju Air black box data missing from crucial minutes before crash, South Korea ministry says
By Hyunjoo Jin and Jack Kim
SEOUL (Reuters) -The two black boxes on the Boeing (NYSE:) jet involved in the worst aviation disaster on South Korean soil stopped recording about four minutes before the accident, the transport ministry said on Saturday.
South Korean investigators previously said the flight data and cockpit voice recorders were key to finding out the cause of last month’s crash that killed 179 people.
It happened about four minutes after the pilot of the airliner operated by Jeju Air reported a bird strike.
Authorities investigating the crash plan to analyse what caused the black boxes to stop recording, the ministry said in a statement.
The voice recorder was initially analysed in South Korea, and, when data was found to be missing, sent to a U.S. National Transportation Safety Board laboratory, the ministry said.
Black box recorders collect data on communications involving pilots in the cockpit as well as how the aircraft systems perform in-flight.
Jeju Air 7C2216, which departed the Thai capital Bangkok for Muan in southwestern South Korea, belly-landed and overshot the regional airport’s runway on Dec. 29, exploding into flames after hitting an embankment. Only two people survived – crew members who were sitting in the tail section.
Two minutes before the pilots declared a Mayday emergency call, air traffic control gave caution for “bird activity”.
Sim Jai-dong, a former transport ministry accident investigator, said the discovery of the missing data from the budget airline’s Boeing 737-800 jet’s crucial final minutes was surprising and suggests all power, including backup, may have been cut, which is rare.
The transport ministry said other data available would be used in the investigation and that it would ensure the probe is transparent and that information is shared with the victims’ families.
Some members of the victims’ families have said the transport ministry should not be taking the lead in the investigation and that it should involve independent experts, including those recommended by the families.
The investigation has also focused on the embankment the plane crashed into, which was designed to prop up a “localiser” system used to assist aircraft landing, including why it was built with such rigid material and so close to the end of the runway.
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