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OpenAI Eyes $100 Billion Valuation Amid Expansion into AI-Generated Media
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Kristoffer Lindström
August 29, 2024
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TECH BRIEF
OpenAI, is reportedly negotiating a funding round that could value it at over $100 billion, representing a significant increase from its previous valuation of $80 billion. Thrive Capital is set to lead the round with an investment of $1 billion. The launch and expansion of products such as ChatGPT chatbot and new AI-generated visuals have fueled OpenAI's growth. The firm now also plans to debut a prototype of its search engine, SearchGPT, potentially challenging the dominance of Google's search engine by providing innovative ways for users to seek information online.
Nvidia (NVDA) exceeded Q2 earnings estimates with an EPS of $0.68 on $26.3 billion revenue, a significant surge from last year's figures. The company also surpassed next-quarter revenue predictions, despite a 6% share dip post-announcement. Much of the revenue was generated from Nvidia's data center business, a key player in the AI chip design and software market with control over 80-95%. Even as AMD gears up to enhance its AI system servers, Nvidia's dominance remains unchallenged.
Following a landmark antitrust ruling on Google, Yelp has filed a lawsuit against the search giant, alleging it used its market dominance to gain an unfair advantage in local search services. Yelp accuses Google of prioritizing its results on local businesses search over Yelp's, thereby suppressing content. Yelp also claims that Google's strategy starves competitors of traffic and revenues, hindering competition. The suit seeks unspecified damages and requests Google to cease its perceived anti-competitive practices.
Salesforce's Q2 earnings and revenue have surpassed estimates, with the company's stock rising in response. CFO Amy Weaver announced her decision to step down as earnings rose by 21% to $2.56 per share. Operating margins exceeded projections at 33.7%, and revenue increased by 8% to $9.33 billion. However, the company's revenue guidance for the current quarter remains below expectations. Despite this, CRM stock rose over 3% in extended trading.
Gemini is releasing Gems and Imagen 3. Gems are customizable versions of Gemini that offer instructions and detailed structural format across various purposes, including learning, brainstorming, and career guidance, for Advanced subscribers. Imagen 3, on the other hand, is Google's latest image generation model with superior user experience on generating images of people. Initially, it will be available to Gemini's Advanced, Business and Enterprise users.
Affirm shares soared by 16% after the company reported a better-than-expected fiscal Q4 performance and strong future guidance. The payment solutions firm saw its revenue climb 48% YoY while its net loss decreased drastically. Its Gross Merchandise Volume (GMV) increased by 31% to $7.2 billion. Affirm CEO Max Levchin has set a new objective for the company to achieve GAAP-based operating profitability by fiscal Q4 2025.
Super Micro Computer Inc. has announced a delay in filing its annual financial disclosures as it needs more time to assess its internal controls over financial reporting. This news follows a report by Hindenburg Research alleging accounting irregularities and undisclosed transactions, leading to a 10% drop in Super Micro's shares in pre-market trading.
Cybersecurity firm CrowdStrike has reduced its annual revenue forecast; signaling potential decreased demand for its products in the aftermath of a Windows global outage resulting from their faulty update. This development insinuates potential market share gains for rivals SentinelOne and Palo Alto Networks, both of which have raised annual revenue forecasts this month.
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