Key Takeaways
- OpenAI is in talks to sell approximately $6 billion in stock, potentially valuing the AI giant at $500 billion, a significant increase from its previous $300 billion valuation.
- Meta Platforms (META) is undertaking its fourth restructuring of AI efforts in six months, aiming to streamline its Meta Superintelligence Labs into four distinct groups amidst intense competition.
- Former U.S. President Donald Trump indicated he may impose tariffs on buyers of Russian oil, including China, within three weeks, signaling potential new trade tensions.
- FBI Director Kash Patel and his foundation won a $250,000 defamation lawsuit against a blogger who accused him of being a "Kremlin asset."
The artificial intelligence sector continues to be a hotbed of activity, with OpenAI reportedly in discussions to sell around $6 billion in stock, a move that could propel its valuation to an astonishing $500 billion. This potential transaction would allow current and former employees to cash out shares and marks a substantial leap from its earlier $300 billion valuation. Investors such as Thrive Capital, SoftBank Group Corp., and Dragoneer Investment Group are expected to participate in this pre-IPO share sale, underscoring the escalating interest in the AI powerhouse. OpenAI, backed by Microsoft (MSFT), has seen its revenue double in the first seven months of the year, reaching an annualized run rate of $12 billion and is projected to hit $20 billion by year-end, fueled by its flagship product ChatGPT which boasts approximately 700 million weekly active users.
Meanwhile, Meta Platforms (META) is reportedly planning its fourth restructuring of AI efforts in just six months, according to The Information. This significant overhaul aims to reorganize its Meta Superintelligence Labs into four specialized groups: a new "TBD Lab," a team focused on products like the Meta AI assistant, an infrastructure team, and the Fundamental AI Research (FAIR) lab dedicated to long-term research. The frequent reorganizations highlight CEO Mark Zuckerberg's aggressive push to refine Meta's AI strategy amidst a turbulent period and intense competition from rivals like Google (GOOGL), OpenAI, and Anthropic. The company has been investing billions and aggressively recruiting top talent, including former Scale AI CEO Alexandr Wang and former GitHub CEO Nat Friedman, to lead its superintelligence initiatives.
On the geopolitical front, former U.S. President Donald Trump has indicated a potential move to impose tariffs on buyers of Russian oil within the next three weeks. This statement suggests a renewed focus on trade as a tool for foreign policy, particularly targeting countries like China that continue to purchase Russian oil. Trump previously imposed a 25% tariff on Indian goods, citing similar reasons. He also hinted at revisiting the issue of additional tariffs on China, though he stated such action was not immediately necessary following a summit with Russian President Vladimir Putin.
In legal news, FBI Director Kash Patel and his foundation have successfully won a defamation lawsuit against blogger Jim Stewartson, who had accused Patel of being a "Kremlin asset" and of involvement in the January 6 Capitol attack. The court awarded Patel $250,000 in damages. The ruling by Judge Andrew Gordon emphasized that while factual criticism of public figures is protected speech, defamatory statements made with actual malice are not.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.