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📣 OpenAI's valuation could jump $64B with latest raise

📣 OpenAI's valuation could jump $64B with latest raise

Inflation hits 3-year low at 2.5% in August

Techonomy Barista
September 12, 2024

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Let’s dive into today’s news:

OpenAI valuation could jump $64B to $150B.
AMD going after Nvidia in the chip industry.
Inflation at 2.5% in August, interest rate cuts next week.
China losing appeal in the eyes of foreign investors.
Taylor Swift endorses Harris for president.

We’re excited to announce we have launched a podcast for our top stories because we heard some of you like to listen on the move, so please give this a try and let us know what you think! 🙂

Markets

Economic Calendar

Economic calendar showing the most important events in the top five economies.
All times are US EST.

1. OpenAI eyes $150 billion valuation in new funding round 🚀

Source: Crunchbase, Yahoo, Techonomy Barista analysis.

Key Takeaways:

OpenAI is in talks to raise $6.5 billion from investors at a $150 billion valuation, significantly higher than the $86 billion from earlier this year.
The company is also discussing a $5 billion revolving credit facility with banks like Meta, Uber and DoorDash did in the past.
Thrive Capital is expected to lead the funding round, with Microsoft participating along with interest from Apple and Nvidia.
It plans to allow employees to sell some shares in a tender offer later this year.

Bottom Line:

With OpenAI's skyrocketing valuation, expect an avalanche of "Why I left my six-figure job to become an AI prompt engineer" LinkedIn posts. 📝

2. Oracle cloud exec: AMD chips challenge Nvidia's AI dominance. 🏋️‍♂️

Credit: The Information.

Key Takeaways:

Oracle reports customers turning to AMD chips for AI inference tasks as it doubles GPU size from 64,000 to 128,000.
Oracle's cloud business grew 45% to $2.4 billion in the August quarter and is designing a data center with over one gigawatt capacity.
Company faced setback when Elon Musk's xAI chose to build its own GPU cluster.
Bottom line: Oracle's support for AMD chips in AI workloads signals growing competition in the AI hardware market. This could lead to reduced costs for AI infrastructure, potentially making AI development and deployment more accessible for businesses of all sizes.

3. Inflation hits 3-year low at 2.5%, Fed rate cut decision next week. 📉

Credit: WSJ.

Key Takeaways:

CPI rose 2.5% year-over-year in August, down from 2.9% in July.
Core inflation held steady at 3.2%.
Fed likely to cut interest rates by 0.25% at next week's meeting.
S&P 500 closed with a 1.1% gain after initial volatility.
Labor market cooling raises concerns about broader economic slowdown.

How It Impacts You:

Your dollar might stretch a bit further as price increases slow down.
Mortgage rates could drop soon, making homeownership more affordable. Time to start house hunting? 🏠
Job market's cooling off - might be wise to polish that resume and network. 💼
Your savings account might finally start earning more than pocket change. 🫰

4. Why doing business in China is losing its appeal for western firms 🇨🇳📉

Credit: WSJ

Key Takeaways:

Foreign investment in China fell 8% last year in yuan terms.
Only 15% of EU businesses now rank China as top investment priority.
20% of U.S. companies plan to cut investment in China this year.
Focus shifting to India, Vietnam, and Indonesia.

Bottom Line: With news this year that China’s economy has been on a downward keel, countries are reducing reliance on the Red Dragon. Changes in product sourcing and potentially higher prices could shift job markets to other Asian countries. The global economic landscape is evolving; stay informed and adaptable.

5. Swift's endorsement drives 337,826 to Vote.gov. 🗳️

Source: Techonomy Barista analysis (CNBC.)

Key Takeaways:

Taylor Swift endorsed VP Kamala Harris on Instagram.
Her post directed 337,826 visitors to Vote.gov.
Swift encouraged followers to research and register early.
Trump campaign criticized Swift's endorsement.
Swift's action partly response to fake AI endorsements of Trump.

Bottom Line: Increased awareness of voter registration resources, a potential shift in young voter engagement, and turnout highlight the influence of celebrities on political processes. This underscores the importance of fact-checking in an era of AI-generated content and demonstrates the power of social media in shaping political discourse.