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OpenAI to raise funds at $150 billion valuation

ChatGPT-maker OpenAI is reportedly in talks to raise funds at a valuation of $150 billion. Media reports shared that the AI firm could be raising $6.5 billion from investors according to sources and another $5 billion in debt from banks in the form of a revolving credit facility. This would peg OpenAI’s valuation at 74% higher than the initial $86 billion that it had fetched in a tender offer earlier this year and turn it into one of the biggest startups of the world. 

A marketplace for private securities Forge Global Securities said that OpenAI had been added to its list of ‘Private Magnificent Seven’ startups that included Microsoft, Apple, Google-parent Alphabet and Tesla among others. The funding could mean that OpenAI will stay away from an IPO longer and save on the regulatory costs that come with going public.

Ex-Google exec said goal was to ‘crush’ competition

Evidence from prosecutors at the Google antitrust trial showed that a former Google exec had told colleagues that the company’s goal was the online ad business in 2009 was to “crush” competitors. The narrative lines up with the allegations made by the U.S. Department of Justice that Google was trying to monopolise markets for publisher ad servers and advertiser ad networks while also dominating the ad exchanges market. 

Google has denied these claims saying that there is fierce competition from rival digital ad companies in its defense. The company also said that they weren’t the only Big Tech company to offer integrated suite of products for advertisers and publishers and Microsoft, Amazon and Meta had very similar offerings. 

Samsung plans job cuts

Samsung Electronics is planning to cut up to 30% of its overseas staff in some divisions according to sources. The South Korean manufacturer has asked subsidiaries globally to reduce sales and marketing staff by around 15% and the administrative staff by up to 30%, they added. Jobs across the Americas, Europe, Asia and Africa would all be impacted but its not yet confirmed which business units or countries would be most affected.

The company called these layoffs routine adjustments to streamline operations. The report also revealed that the total employees laid off from the India unit could be around 1,000 people. Samsung employs 25,000 people in India.