Expect significant new tariffs on Chinese imports and moderate levies on goods from other nations , as President-elect Donald Trump rolls out his protectionist agenda. However, with his preference for chaotic policymaking and sudden shifts , there’s uncertainty on how soon these import taxes will actually hit. Dubbed “ Tariff Man ,” Trump aims to use tariffs both strategically and tactically . He’s mentioned taxing all Chinese goods up to 60% and potentially setting 10%-20% tariffs on imports globally , but details on these plans remain vague . Key players within Trump’s team are divided: Robert Lighthizer , a staunch tariff advocate, sees permanent duties as crucial to balance US trade , while others, like billionaires John Paulson and Scott Bessent , view tariffs as temporary leverage. Trump’s previous administration had mixed feelings, especially on national security-related trade limits , which he sometimes dismissed, favoring an “open for business” approach. High-profile busin
OpenAI Projects Explosive Revenue Growth Amid Major Funding Boost, Apple Backs Out of Investment Talks
Thrive Capital is investing over US$1 billion in OpenAI's current US$6.5 billion fundraising round, with an exclusive option to invest another US$1 billion next year at the same valuation if the AI company meets a specific revenue goal, according to sources familiar with the matter.
OpenAI's revenue is projected to surge to US$11.6 billion in 2025, up from an estimated US$3.7 billion this year, marking a significant leap in the company's financial trajectory. Despite this optimism, the company is facing potential losses of up to US$5 billion this year, largely due to the heavy costs associated with computing power, a source added.
The current funding round, structured as convertible debt, is expected to wrap up by the end of next week and could value OpenAI at US$150 billion, placing it among the world's most valuable private companies. This valuation hinges on completing a complex restructuring to shift control from its non-profit board and remove the cap on investor returns.
Thrive Capital, led by Joshua Kushner, is also offering US$1.2 billion through a combination of its own fund and a special purpose vehicle. Key players in the round include Microsoft, Nvidia, and Khosla Ventures, but only Thrive received the option to invest at a future discounted price, should OpenAI continue its rapid growth.
OpenAI's CEO Sam Altman had earlier forecasted US$1 billion in revenue for 2024, but expectations have now soared. The company's flagship product, ChatGPT, is anticipated to generate US$2.7 billion in revenue this year, a substantial increase from US$700 million in 2023. ChatGPT currently boasts about 10 million paying users, each paying a monthly subscription fee of US$20.
Apple Exits Investment Talks
In a surprising turn, Apple has reportedly withdrawn from negotiations to join the US$6.5 billion funding round. The Wall Street Journal reported that Apple recently exited talks, citing a source familiar with the situation. Microsoft, meanwhile, is expected to invest US$1 billion in the round, adding to its prior US$13 billion investment in OpenAI.
The high valuation of over US$100 billion for OpenAI is a reflection of the AI arms race ignited by the launch of ChatGPT in late 2022, prompting companies across various industries to invest billions in AI to stay competitive.
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