Latest news with #SoftBank
&w=3840&q=100)
Business Standard
2 hours ago
- Business
- Business Standard
OpenAI revenue doubles to $12 bn, clocks in 700 mn weekly ChatGPT users
OpenAI has doubled its revenue in the first seven months of 2025, reaching an annualised run rate of $12 billion, The Information reported Wednesday, citing a person familiar with the company's financials. The surge is driven by rising demand for both its consumer-facing ChatGPT products and an aggressive expansion into enterprise-grade artificial intelligence (AI) services. The Microsoft-backed firm is now generating roughly $1 billion per month and boasts around 700 million weekly active users globally, including both individuals and business clients. Capital and talent moves To support its growth, OpenAI has increased its projected cash burn for 2025 to approximately $8 billion, up from a previous forecast of $7 billion. This rise comes amid intensified R&D investment and expansion of its enterprise service arm. The company is also progressing with the second phase of a $30 billion funding round. Existing shareholders Sequoia Capital and Tiger Global Management are reportedly investing hundreds of millions of dollars, while total investor commitments—excluding Japan's SoftBank—are close to $7.5 billion. SoftBank, which first invested in OpenAI in late 2024, has committed a total of $32 billion to date. $10 million+ custom AI services Earlier this month, reports emerged that OpenAI was offering customised AI solutions starting at $10 million. These include tailored deployments of its flagship GPT-4o model for enterprise and government clients. Early adopters reportedly included the US Department of Defence and tech platform Grab. AI talent on demand OpenAI's growth story comes at a time when it faces mounting pressure in retaining top AI talent. Rival Meta has reportedly poached at least eight OpenAI employees this year and is actively recruiting for its own 'Superintelligence' lab with highly competitive compensation packages. OpenAI has responded by making internal efforts to reward existing teams, stating that the company has retained its 'best' people despite the external interest.
Yahoo
4 hours ago
- Business
- Yahoo
OpenAI hits $12 billion in annualized revenue, The Information reports
(Reuters) -ChatGPT-maker OpenAI roughly doubled its revenue in the first seven months of the year, reaching $12 billion in annualized revenue, the Information reported on Wednesday citing a source. Reuters could not immediately confirm the report. OpenAI declined to comment. The figure implies that OpenAI is generating $1 billion a month, the report said, adding that the company has around 700 million weekly active users for its ChatGPT products used by both consumers and business customers. The Microsoft-backed company has increased its cash burn projection to roughly $8 billion in 2025, up $1 billion from the cash burn it projected earlier in the year, the Information said. The firm has been lining up investors for the second $30 billion portion of its funding round, the report said, adding that shareholders Sequoia Capital and Tiger Global Management are investing hundreds of millions of dollars in the round. Investors, besides Japan's SoftBank , are close to finalizing $7.5 billion in commitments to that second portion of funding, the report said. The Japanese conglomerate's total agreed investment in OpenAI stood at $32 billion since first investing in Autumn 2024.
Time of India
2 days ago
- Business
- Time of India
Lenskart's Rs 8,000 crore IPO; Layoff clouds over IT
Next Lenskart's Rs 8,000 crore IPO; Layoff clouds over IT Want this newsletter delivered to your inbox? Also in the letter: Lenskart files for Rs 8,000 crore IPO; founder Peyush Bansal boosts stake IPO snapshot: Fresh issue: Rs 2,150 crore. Rs 2,150 crore. Offer for sale: 132.2 million shares from existing investors, including SoftBank, Temasek, Kedaara Capital and Alpha Wave Global. 132.2 million shares from existing investors, including SoftBank, Temasek, Kedaara Capital and Alpha Wave Global. Cofounders Peyush Bansal, Neha Bansal, Amit Chaudhary and Sumeet Kapahi are together selling 31.8 million shares. Founder move: Founder move: He will also offload 20.5 million shares in the IPO, potentially netting Rs 700–750 crore. Founder stake top-ups ahead of IPOs have become a familiar trend in India's startup ecosystem, from Zomato to Swiggy and Freshworks. By the numbers: FY25 revenue: Rs 6,625 crore, up 22% year-on-year Net profit: Rs 297 crore vs. Rs 10 crore loss in FY24 International revenue: Rs 2,638 crore, over 40% of total Store footprint: 2,700+ globally Between the lines: Its omnichannel model now spans Asia and the Middle East, with the 2022 acquisition of Japan's OwnDays powering its international surge. FY25 was the first year the deal's full impact reflected in the books. The company is also expanding in Europe, with its Singapore arm set to acquire 80% of Spanish brand Meller for Rs 407 crore, a move aimed at Gen Z consumers. What to watch: Also Read: Nasscom flags deeper churn in IT; upskilling won't prevent more layoffs The context: Artificial intelligence is not the only culprit, but it is speeding the shake-up. Clients now demand agility and value, not bloated benches or traditional waterfall teams. Over 1.5 million professionals have been trained in AI and GenAI as of Q4 FY25. Around 95,000 employees in large IT firms now hold certifications in applied AI, embedded intelligence, and AI-native cloud. What's next: Also Read: TCS layoffs trigger flood of resumes; hiring remains sluggish Who's on the move: Veterans with 15–20 years in digital transformation, Salesforce, Java, AI/ML and cloud. Candidates eyeing global capability centres, IT product firms and tech startups. Compensation bands running from Rs 60 lakh to over Rs 1 crore, recruiters said. But the market's not ready: BluSmart heads into insolvency after creditor default Driving the news: The backstory: BluSmart had raised Rs 15 crore in 2023 via non-convertible debentures (NCDs), but missed repayments due in March and April this year. Catalyst, which sold the bonds to retail investors, approached NCLT after repeated payment notices went unanswered. Also Read: What's next: Why it matters: NBFC Elcid picks up tiny stake in Zepto amid fundraising What it signals: Why it matters: Zepto wants to boost Indian ownership ahead of its IPO plans. Cofounders Aadit Palicha, Kaivalya Vohra and the employee stock ownership (Esop) pool together hold about 28%, sources told us. The company is targeting an additional 8-10% local shareholding before filing. Also Read: For India's AI startups, it's pivot or perish The speed paradox: Startups are burning out faster than ever. Unlike older tech cycles, there's little room to iterate toward product-market fit slowly. Execution is the edge: Tell me more: Lenskart has filed its draft papers for an Rs 8,000 crore public offering. This and more in today's ETtech Top 5.■ BluSmart bankruptcy■ Zepto's equity fundraise■ AI startups' dilemmaEyewear retailer Lenskart has kicked off one of the year's most anticipated new-age listings, filing its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) of up to Rs 8,000 Bansal recently bought a 2.5% stake in the company for Rs 222 crore from early investors at a $1 billion valuation, even as Lenskart now eyes a listing at Rs 70,000–75,000 ($8–9 billion) is pitching as more than just a homegrown retail eyes will now be on how public markets price a profitable, global-facing Indian startup betting on vision, both literally and IT sector is bracing for a fresh wave of job cuts. Nasscom, the industry's apex body, warns that the shift towards product-led delivery, cloud-native models, and automation is triggering a structural overhaul in how services are built and who builds has already fired the starting gun, announcing plans to shed 12,000 mid- and senior-level roles in FY26, roughly 2% of its may soften the blow, but it won't stop it. Nasscom says:Yet legacy roles are still on the chopping block as firms relocate talent and trim middle management. The message is blunt: workforce strategy will follow business needs, not HR cuts have unleashed a flood of resumés. Recruiters at CIEL HR, Transearch, and Michael Page say inboxes are overflowing as mid- and senior-level staff make a dash for the exits . Some executives started networking before the news broke, sensing the axe was market is tight, and senior roles are scarce. New-age skills are in demand, but lateral positions at similar pay grades are few and far between. Recruitment experts report a 25% spike in TCS-linked profiles, and the full ripple effect is yet to Mobility, once pitched as India's homegrown answer to Uber, has slipped into insolvency after defaulting on payments to Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted a petition by Catalyst Trusteeship, which said the EV ride-hailing startup failed to repay Rs 1.28 Insolvency Professionals will now manage BluSmart's assets as the interim resolution professional. The company had already suspended operations, while its electric fleet, owned by promoter Gensol Engineering, had been leased in Delhi-NCR and collapse highlights the perils of debt-fuelled, capex-heavy mobility ventures. With Gensol also facing insolvency, retail bondholders and fintech platforms that pushed these bonds are staring at potential Palicha, CEO, ZeptoMumbai-based non-banking financial company Elcid Investments has bought Rs 7.5 crore worth of shares in Zepto, the 10-minute delivery unicorn, according to a stock exchange filing. The purchase values Zepto at $5 billion, matching its November 2024 round The stake is minuscule at 0.039%, but the timing matters. Zepto is in the final stages of a larger $500 million fundraise combining primary and secondary deals led by General Catalyst and Avenir get there, Zepto is lining up a $250 million secondary share sale through Motilal Oswal Financial Services, and its founders are negotiating Rs 1,500 crore in structured debt to provide Indian investors with a larger share, as we reported on April AI startup scene is facing a brutal shakeout . In recent weeks, at least four ventures—YC-backed Wuri and CodeParrot, along with and shut down. Their exits highlight the harsh reality for founders: raising capital, scaling fast, and staying relevant in a market moving at breakneck pace of AI innovation is unforgiving. Investors call it a 'speed paradox':'Founders now realise it's better to shut down and restart rather than bleed cash,' said a Bengaluru-based investor. Tune AI cofounder Naman Maheshwari put it simply: 'AI makes it easy to build but hard to win.''Speed is the moat,' said Blume Ventures' Sanjay Nath, warning that slower, polished products often lose to faster-moving, nimble India's Preeti Lobana adds that true winners will solve big problems – in healthcare, climate and sustainability – not just wrap AI around someone else's model. To quote another investor, 'If your idea doesn't stand without AI, it won't last with it either.'
CNA
2 days ago
- Business
- CNA
Microsoft's AI edge under scrutiny as OpenAI turns to rivals for cloud services
Microsoft investors head into Wednesday's earnings with one big question: is the company's artificial intelligence edge at risk as partner OpenAI turns to rivals Google, Oracle and CoreWeave for cloud services? Exclusive licensing deals and access to OpenAI's cutting-edge models have made Microsoft one of the biggest winners of the generative AI boom, fueling growth in its Azure cloud business and pushing its market value toward $4 trillion. In the April-June quarter, the tie-up is expected to have driven a 34.8 per cent increase in Azure revenue, in line with the company's forecast and higher than the 33 per cent rise in the previous three months, according to data from Visible Alpha. But that deal is being renegotiated as OpenAI eyes a public listing, with media reports suggesting a deadlock over how much access Microsoft will retain to ChatGPT maker's technology and its stake if OpenAI converts into a public-benefit corporation. The conversion cannot proceed without Microsoft's sign-off and is crucial for a $40 billion funding round led by Japanese conglomerate SoftBank Group, $20 billion of which is contingent on the restructuring being completed by the end of the year. OpenAI, which recently deepened its Oracle tie-up with a planned 4.5 gigawatts data center capacity, has also added Google Cloud among its suppliers for computing capacity. UBS analysts said investor views on the Microsoft–OpenAI partnership are divided, though the software giant holds an upper hand. "Microsoft's leadership earned enough credibility … such that the company will end up negotiating terms that will be in the interest of its shareholders," the analysts said. Some of that confidence is reflected in the company's stock price, which has risen by more than a fifth so far this year. In the April-June period, Microsoft's fiscal fourth quarter, the company likely benefited from a weaker dollar, stronger non-AI Azure demand and PC makers pulling forward orders for its Windows products ahead of possible U.S. tariffs. Revenue is expected to have risen 14 per cent to $73.81 billion, according to data compiled by LSEG, its best growth in three quarters. Profit is estimated to have increased 14.2 per cent to $25.16 billion, slightly slower than the previous quarter as operating costs rose. Capital spending will also be in focus after rival Alphabet raised its annual outlay by $10 billion last week. Microsoft has repeatedly said it remains capacity constrained on AI, and in April signaled continued growth in capex after planned spending of over $80 billion last fiscal year, though at a slower pace and on shorter-lived assets such as AI chips. Dan Morgan, senior portfolio manager at Synovus Trust who owns Microsoft shares, said the spending has been paying off.
Reuters
2 days ago
- Business
- Reuters
Microsoft's AI edge under scrutiny as OpenAI turns to rivals for cloud services
July 29 (Reuters) - Microsoft (MSFT.O), opens new tab investors head into Wednesday's earnings with one big question: is the company's artificial intelligence edge at risk as partner OpenAI turns to rivals Google, Oracle and CoreWeave (CRWV.O), opens new tab for cloud services? Exclusive licensing deals and access to OpenAI's cutting-edge models have made Microsoft one of the biggest winners of the generative AI boom, fueling growth in its Azure cloud business and pushing its market value toward $4 trillion. In the April-June quarter, the tie-up is expected to have driven a 34.8% increase in Azure revenue, in line with the company's forecast and higher than the 33% rise in the previous three months, according to data from Visible Alpha. But that deal is being renegotiated as OpenAI eyes a public listing, with media reports suggesting a deadlock over how much access Microsoft will retain to ChatGPT maker's technology and its stake if OpenAI converts into a public-benefit corporation. The conversion cannot proceed without Microsoft's sign-off and is crucial for a $40 billion funding round led by Japanese conglomerate SoftBank Group, $20 billion of which is contingent on the restructuring being completed by the end of the year. OpenAI, which recently deepened its Oracle tie-up with a planned 4.5 gigawatts data center capacity, has also added Google Cloud among its suppliers for computing capacity. UBS analysts said investor views on the Microsoft–OpenAI partnership are divided, though the software giant holds an upper hand. "Microsoft's leadership earned enough credibility … such that the company will end up negotiating terms that will be in the interest of its shareholders," the analysts said. Some of that confidence is reflected in the company's stock price, which has risen by more than a fifth so far this year. In the April-June period, Microsoft's fiscal fourth quarter, the company likely benefited from a weaker dollar, stronger non-AI Azure demand and PC makers pulling forward orders for its Windows products ahead of possible U.S. tariffs. Revenue is expected to have risen 14% to $73.81 billion, according to data compiled by LSEG, its best growth in three quarters. Profit is estimated to have increased 14.2% to $25.16 billion, slightly slower than the previous quarter as operating costs rose. Capital spending will also be in focus after rival Alphabet (GOOGL.O), opens new tab raised its annual outlay by $10 billion last week. Microsoft has repeatedly said it remains capacity constrained on AI, and in April signaled continued growth in capex after planned spending of over $80 billion last fiscal year, though at a slower pace and on shorter-lived assets such as AI chips. Dan Morgan, senior portfolio manager at Synovus Trust who owns Microsoft shares, said the spending has been paying off. "Investors may still be underestimating the potential for Microsoft's AI business to drive durable consumption growth in the agentic AI era."
