Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
South Korea Remains MSCI Emerging Market Despite Reform Progress 
Australia Jobs Growth Strengthens Rate Hike Outlook 
Asian Markets Rally as Micron and Qualcomm AI Outlook Lifts Global Tech Stocks 
U.S. Dollar Reaches One-Year High as Tech Sell-Off and Fed Rate Hike Expectations Support Demand 
South Korea’s KOSPI Rebounds as Samsung and SK Hynix Lead Tech Stock Recovery 
Asian Stocks Slide as AI Rally Pauses, South Korean Chipmakers Lead Regional Decline 
Australia Inflation Cools in May, But Core CPI Keeps RBA Rate Hike Risks Alive 
Yen Near 40-Year Low as USD/JPY Approaches Key 162 Level, Raising Intervention Concerns 
South Korea’s KOSPI Jumps Over 5% as Samsung, SK Hynix Rally on Micron Earnings Boost 
Oil Prices Drop as Strait of Hormuz Shipping Recovers 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
New Zealand Fast-Tracks Gold Mining as Industry Revival Gains Momentum 
Wall Street Ends Mixed as Tech Stocks Struggle Ahead of Micron Earnings 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
BOJ Hawk Signals Faster Interest Rate Hikes Amid Inflation Risks 
Australian Household Spending Rebounds Strongly in May as Travel and Dining Drive Consumer Growth 
Thrive Capital is set to invest more than $1 billion in OpenAI’s ongoing $6.5 billion fundraising round, sources familiar with the matter said Friday. Thrive also has a unique opportunity that other investors in the round lack: the potential to invest an additional $1 billion next year at the same valuation, provided OpenAI meets a specific revenue target, the sources added.
OpenAI's Projected Revenue Surge and Losses
OpenAI projects its revenue to surge to $11.6 billion in 2025\ from an estimated $3.7 billion in 2024, according to those familiar with the company's financials. However, the AI firm is expected to face losses of up to $5 billion this year, primarily due to extensive spending on computing power, one source noted. This spending is variable and may shift based on the company’s operational needs.
Funding Round Details and Valuation
The current funding, structured as convertible debt, is anticipated to close by the end of next week. It could value OpenAI at $150 billion, positioning the AI leader as one of the world’s most valuable private companies. This valuation hinges on a complex restructuring plan, previously reported by Reuters, aimed at reducing the control of OpenAI’s non-profit board and lifting the cap on investment returns. There is no set timeline for when this conversion will occur.
Thrive Capital Leads, While Others Follow
Thrive Capital, which led OpenAI's previous funding round, plans to contribute $1.2 billion in the latest round through a combination of its primary fund and a special-purpose vehicle designed for smaller investors. Other participants in the round include tech giants Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Khosla Ventures. However, only Thrive has the option for further investment at the current valuation, giving it a potential advantage if OpenAI’s valuation continues to rise.
The revenue goal associated with Thrive’s option has not been disclosed. Thrive, founded by Joshua Kushner, and OpenAI both declined to comment on the deal.
OpenAI's Revenue Exceeds Expectations
OpenAI’s financial projections exceed earlier estimates provided by CEO Sam Altman, who previously forecasted $1 billion in revenue for this year. The bulk of OpenAI’s revenue is expected to come from corporate sales and subscriptions to its artificial intelligence services. Its flagship product, ChatGPT, is on track to generate $2.7 billion in revenue in 2024, up from $700 million in 2023. The chatbot service charges a $20 monthly fee and boasts around 10 million paying users.
The financial details and Thrive Capital’s additional investment option were first reported by the *New York Times* on Friday.
