OpenAI staff looking to sell $6 billion in stock: Report
The potential deal would value the company at $500 billion, up from $300 billion currently, underscoring both OpenAI's rapid gains in users and revenue, as well as the intense competition among artificial intelligence firms for talent.
SoftBank, Thrive and Dragoneer Investment Group did not immediately respond to requests for comment. All three investment firms are existing OpenAI investors.
Bloomberg News, which had earlier reported the development, said discussions are in early stages and the size of the sale could change.
The secondary share sale investment adds to SoftBank's role in leading OpenAI's $40 billion primary funding round.
Bolstered by its flagship product ChatGPT, OpenAI doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion, and is on track to reach $20 billion by the end of the year, Reuters reported earlier in August.
Microsoft-backed OpenAI has about 700 million weekly active users for its ChatGPT products, a surge from about 400 million in February.
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Arab News
2 hours ago
- Arab News
Saudi Arabia taps AI and immersive tech to drive tourism growth
Saudi Arabia is ramping up the adoption of smart technologies such as artificial intelligence, augmented reality, and virtual reality across its tourism sector, aiming to redefine the visitor experience and support its broader economic diversification agenda. Experts say the integration of these technologies across flagship projects like Neom and the Red Sea Project is positioning the Kingdom as a global tourism hub at a time when the industry is recovering from the pandemic and projected to reach $11.7 trillion in economic contribution by 2025. As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent. Speaking to Arab News, Nicholas Nahas, partner and tourism & hospitality global competence center lead at Arthur D. Little, said Saudi Arabia is intelligently integrating smart technologies into its tourist destinations, helping the Kingdom emerge as one of the most sought-after tourism hubs. 'In Saudi Arabia, smart tourism, while not always explicitly referenced or promoted as such across its portfolio of tourism developments, is subtly being integrated as a strategic enabler of the country's broader economic shift to diversifying its economy,' said Nahas. He added: 'It includes artificial intelligence for personalized trip planning, biometric systems to streamline travel and immigration, IoT-enabled controls in accommodations, and AR/VR to create immersive storytelling at cultural and entertainment sites.' Nahas further said that smart technologies are being planned as enablers to manage growth, enhance quality, and differentiate the visitor experience. Smart tourism refers to the use of advanced digital technologies across the tourism value chain to enhance visitor experiences, improve operations, and support sustainable destination management. The concept also aligns with the idea of a Smart Destination — a location that leverages technology and innovation to create more immersive and sustainable experiences. Julio De Salvo, Globant's chief solution officer for the Middle East and North Africa and the Asia Pacific region, echoed similar views. He said Saudi Arabia is well-positioned to become a global tourism hub, and this journey could be further accelerated by adopting smart technologies across the sector. Salvo added that some of the key drivers of smart tourism in the Kingdom include massive investments in smart infrastructure — such as AI-enhanced airports and digital visa platforms — a young, tech-savvy population, and a strong commitment to sustainability through regenerative models that prioritize environmental and cultural preservation. The Globant executive also commented on the global post-pandemic recovery of the tourism sector and said the industry is accelerating toward a projected $11.7 trillion in economic contribution by the end of 2025. 'Saudi Arabia isn't riding the wave of global tourism recovery; it's creating its own momentum, using smart tourism as a catalyst for economic diversification, innovation leadership, and long-term global relevance,' said Salvo. Creating personalized experience Salvo told Arab News that the tourism industry is witnessing a rapid shift, where digital tourism is slowly giving way to cognitive tourism — with advanced technologies used to deliver personalized services to travelers. 'In Saudi Arabia, it's no longer just about online bookings or mobile apps — it's about intelligent systems that understand, anticipate, and adapt to travelers' behavior in real-time,' said Salvo. A recent study by global consumer insights provider Toluna echoed this trend, noting that Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations. As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent. The report further found that 46 percent of Saudi travelers use AI assistants to discover activities, while 31 percent rely on these tools to optimize their itineraries. Nahas said destinations powered by smart technologies are delivering more personalized, seamless, and immersive experiences — supporting higher satisfaction levels and encouraging repeat visitation. The Arthur D. Little official added that these technologies will also enable more sustainable operations, from energy use in hotels to mobility and waste systems in major destinations. 'Importantly, the Kingdom's flagship tourism projects — such as Neom, the Red Sea Project, Diriyah, Qiddiya, and New Murabba — are integrating smart systems as a core component of how tourism experiences are crafted, delivered, and continuously improved,' said Nahas. Neom aims to elevate the visitor experience through AI-led personalization and immersive digital engagement. The Red Sea Project similarly integrates smart infrastructure to enable seamless and sustainable guest experiences. The destination is deploying IoT sensors to monitor environmental indicators, utilities, and operational systems across its resorts and natural assets. Diriyah, while rooted in heritage, is incorporating digital heritage documentation and exploring interactive technologies to enhance cultural storytelling — aligning with broader trends in cultural tourism that use immersive tools to enrich historical engagement and visitor education. Nahas added: 'These systems could be equally used to monitor visitor needs, respond to requests, and elevate the visitor experience.' 'Plans also include autonomous electric vehicles, smart utility management, and a centralized digital platform that will allow guests to access accommodation, transportation, and experience bookings.' Salvo also emphasized the transformative role of data and AI. 'By integrating real-time data — from IoT sensors to traveler preferences and even biometric signals — we can deliver experiences that are not just personalized, but truly responsive,' said the Globant official. He added: 'This is how data becomes experience — and how destinations become intelligent, dynamic environments that adapt in real time. It's a win-win: travelers feel seen, and operators gain the insight and agility to manage resources, reduce friction, and elevate every journey.' Nahas said AI is also becoming increasingly prominent in trip planning and customer service, with chatbots offering timely support and tools generating personalized itineraries. According to the Arthur D. Little executive, service robots using AI could be deployed in budget accommodations to handle routine tasks such as cleaning and food delivery, boosting both efficiency and consistency. 'On the infrastructure side, IoT, cloud, and AI systems are being integrated into facilities to monitor and control environmental conditions in real time. This supports sustainability goals by optimizing resource use and maintaining comfort standards, particularly in large-scale developments,' said Nahas. Potential challenges Amid these promising developments, experts also highlighted challenges facing Saudi Arabia in implementing advanced technologies in its tourism sector — including localization gaps. 'Many of the most advanced solutions in areas such as AI, AR/VR, and IoT are currently developed outside the Kingdom. As Saudi Arabia integrates these tools into its tourism offering, collaboration with international partners will be important, alongside efforts to build local capabilities over time,' said Nahas. Highlighting the importance of regulation, the Arthur D. Little executive added that clear guidelines around data governance, cybersecurity, and system standards will be essential to support consistent implementation and long-term alignment with national priorities. Salvo shared similar concerns, emphasizing the need for talent development to support the growing smart tourism ecosystem. He said this requires upskilling programs and international partnerships to close expertise gaps. 'Major tech infrastructure, including nationwide 5G networks, smart airports, and cloud systems, is still rolling out, with delays in full deployment potentially hindering real-time applications like personalized AI tours and immersive experiences in mega-projects like The Red Sea and Neom,' added the Globant official. Despite these challenges, experts told Arab News that smart tourism can grow into a well-integrated part of Saudi Arabia's tourism strategy — provided there is the right coordination and policy framework. 'The pieces are steadily coming into place — with emerging tech adoption readiness jumping to nearly 75 percent in 2025 — and paint a bright future where smart tourism not only overcomes these obstacles but propels Saudi Arabia to lead in innovative, regenerative travel,' concluded Salvo.
Arab News
4 hours ago
- Arab News
Tech leaders should focus on job creation, not displacement
When ChatGPT stormed onto the scene in late 2022, the alarm bells rang loud. Philosophers and futurists demanded new rules to prevent humanity from sliding into chaos, wars and disorder. Since then, a string of large language models and apps — Gemini, Grok, Perplexity, Meta AI — have caused fresh anxieties. Two years on, true artificial general intelligence is still a distant goal but the mixed results of widespread adoption of AI are already plain to see. Change that was happening gradually is now happening swiftly. As veteran Wall Street Journal commentator Peggy Noonan wrote in a recent column, 'The story is no longer 'AI in coming decades will take a lot of jobs' or 'AI will take jobs sooner than we think.' It is 'AI is here and a quiet havoc has begun.' Yet, for America's AI titans, the motivation today seems less about building tools that create new jobs and more about accelerating human displacement while envisioning a vast social safety net as compensation. A recent article in the Wall Street Journal titled 'What Musk, Altman and Others Say About AI-Funded 'Universal Basic Income'' stated: 'Suddenly, an idea once seen as a socialist policy that would reward idleness is one of the AI boom's hottest acronyms.' According to the article, the consensus in Silicon Valley is that automation driven by AI is going to replace a lot of factory jobs and white-collar roles while generating billions in profits for AI companies. What tech leaders and gurus seem divided over is whether AI-funded universal basic income is the answer to the challenge of mass unemployment. Of course, as the popular 1956 Doris Day song 'Que Sera, Sera (Whatever Will Be, Will Be)' reminds us: 'The future's not ours to see … what will be, will be.' Perhaps there is no need to worry excessively, as many a bleak prophecy in the past (for example, 'The Population Bomb,' a book by Paul R. Ehrlich about the looming danger of overpopulation) failed to come to pass. High-quality jobs give young people a reason to get up in the morning, a sense of fulfillment and a feeling of progress in their lives. We risk losing the essence of this in an idle society with universal basic income. Arnab Neil Sengupta Perhaps the 'quiet havoc' of which Noonan spoke is a temporary phenomenon and US employment numbers will pick up, similar to the way in which the development of mainframe computers in the 1950s created entirely new occupations. In any case, AI tycoons such as Elon Musk, Sam Altman and Marc Benioff ought to be thinking of ways in which AI can be used to create plentiful, professionally rewarding jobs instead of touting the introduction of universal basic income as inevitable. Not only would such income for Americans made redundant by AI be of little use to the rest of the world, it could be a recipe for trouble in the long term. Jobs do not just pay wages, as the Silicon Valley titans surely know. Jobs circulate money throughout the economy, creating demand for goods and services, generating tax revenues and nurturing communities. A purely passive income scheme will not generate the same level of productive economic activity. For many people, especially young adults, meaningful work is a core part of their identity. For young people in the Arab world, it is not an exaggeration to say a job equals purpose, self-worth and hope. Employment in challenging roles builds skills, creativity and problem-solving capacities that are essential for adapting to future changes. High-quality jobs in particular give educated young people a sense of fulfillment and progress in their lives. This satisfaction would be at risk of being lost in an idle society. The workplace is a powerful training ground. Before the advent of remote working, conversation and competition made busy offices incubators of great ideas. In his memoir 'City Room,' Arthur Gelb, the late American journalist, described the New York Times newsroom of the 1940s this way: 'There was an overwhelming sense of purpose, fire and life: the clacking rhythm of typewriters, the throbbing of great machines in the composing room on the floor above, reporters shouting for copy boys to pick up their stories.' Employment creates networks, encourages teamwork and accountability, and strengthens civic engagement. On the other hand, large-scale joblessness, especially among young people, produces social drift, weakens bonds, increases division, feeds unrest and erodes hope. AI tycoons such as Elon Musk, Sam Altman and Marc Benioff ought to be thinking of ways in which AI can be used to generate plentiful, professionally rewarding jobs instead of touting the introduction of universal basic income as inevitable. Arnab Neil Sengupta No matter what term tech tycoons choose to apply to it — 'universal extreme wealth,' 'universal high income' or 'universal basic income' — the dangers of financially rewarding idleness can scarcely be overstated. In addition to the erosion of motivation and the work ethic, a guaranteed income without the expectation of contribution might lead to disconnection from skills-building and long-term planning. There is also the risk of social fragmentation and alienation. Without shared daily activities like work, people living off AI profits could become more isolated, lose touch with community norms, and fall into destructive habits or radicalized echo chambers. None of this is an argument for a Luddite agenda resisting the adoption of a technology whose time has come. Even California socialists do not advocate turning back the clock — although, ultimately, robots rather than American workers might end up doing the heavy lifting of President Trump's planned manufacturing renaissance. If the technological displacement of human workers proves unstoppable, the pace and scale of AI-driven automation will undoubtedly make job creation in some sectors unviable. A universal basic income could at least ensure that people's basic needs are met in a fully automated economy. A guaranteed supplemental income could also reduce some of the economic insecurity and stress. It could provide a safety net that allows people to take entrepreneurial risks, retrain or transition to new industries without fear of destitution, potentially prompting innovation from the ground up. In theory, the recipients of universal basic income would have the freedom to pursue non-market value creation. Thus, with their basic needs covered, people could focus on care-giving, volunteering, education, the creative arts or environmental projects that existing markets do not adequately reward, even though the wider society still benefits from them. If the pros and cons of an AI-funded 'universal high income' make it sound like a quixotic experiment in wealth generation — lowering costs for companies and then handing out part of the profits in a post-work future — that is because it indeed would be if tried. Job-loss fears are real, but the remedy should not be worse than the disease. Ultimately, the responsibility of tech leaders is not to make mass idleness the new normal, but to harness AI in ways that expand human opportunity. • Arnab Neil Sengupta is a senior editor at Arab News.
Al Arabiya
9 hours ago
- Al Arabiya
OpenAI staff looking to sell $6 billion in stock: Report
Current and former employees of OpenAI are looking to sell nearly $6 billion worth of the ChatGPT maker's shares to investors including SoftBank Group and Thrive Capital, a source familiar with the matter told Reuters on Friday. The potential deal would value the company at $500 billion, up from $300 billion currently, underscoring both OpenAI's rapid gains in users and revenue, as well as the intense competition among artificial intelligence firms for talent. SoftBank, Thrive and Dragoneer Investment Group did not immediately respond to requests for comment. All three investment firms are existing OpenAI investors. Bloomberg News, which had earlier reported the development, said discussions are in early stages and the size of the sale could change. The secondary share sale investment adds to SoftBank's role in leading OpenAI's $40 billion primary funding round. Bolstered by its flagship product ChatGPT, OpenAI doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion, and is on track to reach $20 billion by the end of the year, Reuters reported earlier in August. Microsoft-backed OpenAI has about 700 million weekly active users for its ChatGPT products, a surge from about 400 million in February.
