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OpenAI boosted its revenue and cash burn forecasts, The Information reports

According to a new report from The Information, OpenAI is boosting both how much cash is expected to come in the door and how much they’ll be sending out of it.

The ChatGPT maker increased its revenue projection for the next five years by 27% while also forecasting $112 billion in additional cash burn (or more than twice as much as previously expected), per the report. New revenue streams like advertisements are likely contributing to this improved top-line outlook.

More cash outflows, of course, necessitates that the firm be given more money to spend. OpenAI is in the midst of nailing down a $100 billion funding round in which Nvidia, Amazon, and SoftBank are expected to be major contributors. It’s expected to be valued at $730 billion, per various media reports, as ChatGPT remains the most heavily-used chatbot.

CNBC, citing sources, also reports that “OpenAI is telling investors that it’s now targeting roughly $600 billion in total compute spend by 2030, months after CEO Sam Altman touted $1.4 trillion in infrastructure commitments.”

However, it’s unclear whether this represents scaled-down ambitions or more of a timing mismatch, as Altman tweeted, “We are looking at commitments of about $1.4 trillion over the next 8 years” in November.

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Futures fall after President Trump announces new global tariff rate boosted to 15%

10% global tariffs will be 15% global tariffs.

In a Truth Social post on Saturday, President Donald Trump said he was boosting new levies slated to go into effect after the Supreme Court ruled against his reciprocal tariff regime.

US equity futures were lower on Sunday evening as traders digested the news, with S&P 500 futures and Nasdaq 100 futures off 0.5% and 0.7%, respectively, as of 7:26 p.m. ET.

Section 122 of the Trade Act of 1974 sets a ceiling of 15% on the tariff rate that can be imposed “to deal with large and serious United States balance-of-payments-deficits,” which was cited as part of the rationale for this measure.

This tax on imports can stay in place for 150 days; afterwards congressional approval would be required. It will not apply to a variety of different products, including energy, critical minerals, certain electronics, passenger vehicles, and goods that fall under the USMCA.

In press interviews on the weekend, Treasury Secretary Scott Bessent described this global tariff as a “five-month bridge” during which time the administration to go through the process of enacting tariffs using alternative authorities.

JPMorgan estimates that the effective US tariff rate will fall modestly as a result of the end of IEEPA tariffs and utilization of Section 122.

“The macro impact of these developments shouldn’t be huge,” writes JPMorgan chief US economist Michael Feroli. “This isn’t to say there won’t be headaches for importers juggling different tariff schedules, but the difference in the aggregate fiscal burden of the tariffs on domestic purchasers is not enough to have a big effect on our outlook.”

That being said, US effective tariff rate has risen meaningfully during each of President Trump’s terms in office. Trump Always Raises Tariffs (TART).

“President Trump really believes that tariffs work and that trade deficits are bad,” writes Libby Cantrill, head of public policy at PIMCO. “Given the tools he has, we should expect tariff and trade policy uncertainty to last as long as Trump is in the White House.”

However, the smaller set of tools the president is being forced to work with have “substantially greater process constraints in place, meaning that the planning uncertainty for firms is reduced even if the administration is committed to reinstating some of the tariffs,” writes Peter Williams, economist at 22V Research. “The whimsical nature of the process over the past year is gone and with it much of the day-to-day uncertainty.”

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Section 122 of the Trade Act of 1974 sets a ceiling of 15% on the tariff rate that can be imposed “to deal with large and serious United States balance-of-payments-deficits,” which was cited as part of the rationale for this measure.

This tax on imports can stay in place for 150 days; afterwards congressional approval would be required. It will not apply to a variety of different products, including energy, critical minerals, certain electronics, passenger vehicles, and goods that fall under the USMCA.

In press interviews on the weekend, Treasury Secretary Scott Bessent described this global tariff as a “five-month bridge” during which time the administration to go through the process of enacting tariffs using alternative authorities.

JPMorgan estimates that the effective US tariff rate will fall modestly as a result of the end of IEEPA tariffs and utilization of Section 122.

“The macro impact of these developments shouldn’t be huge,” writes JPMorgan chief US economist Michael Feroli. “This isn’t to say there won’t be headaches for importers juggling different tariff schedules, but the difference in the aggregate fiscal burden of the tariffs on domestic purchasers is not enough to have a big effect on our outlook.”

That being said, US effective tariff rate has risen meaningfully during each of President Trump’s terms in office. Trump Always Raises Tariffs (TART).

“President Trump really believes that tariffs work and that trade deficits are bad,” writes Libby Cantrill, head of public policy at PIMCO. “Given the tools he has, we should expect tariff and trade policy uncertainty to last as long as Trump is in the White House.”

However, the smaller set of tools the president is being forced to work with have “substantially greater process constraints in place, meaning that the planning uncertainty for firms is reduced even if the administration is committed to reinstating some of the tariffs,” writes Peter Williams, economist at 22V Research. “The whimsical nature of the process over the past year is gone and with it much of the day-to-day uncertainty.”

Luke Kawa, Tasha Matsumoto

Stocks rise as the Supreme Court strikes down Trump’s tariffs

In response, Trump said he was imposing a 10% global tariff effective immediately under Section 122 of the 1974 Trade Act.

Chicago Bulls Mascot Benny the Bull dunks the ball during the halftime show of the Missouri Valley Conference college basketball game between the Loyola-Chicago Ramblers and the Illinois State Redbirds on February 2, 2019.

markets

Max Knoblauch2/20/26

Lucid cuts 12% of its US workforce in a profitability push

EV maker Lucid announced on Friday it is laying off 12% of its US workforce as part of its efforts to improve profitability.

This is Lucid’s third round of layoffs since March 2023. At the end of 2024, the company said it had 6,800 employees globally.

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

Lucid Motors slashes 12% of its workforce as it seeks profitability | TechCrunch

Lucid Motors slashes 12% of its workforce as it seeks profitability | TechCrunch

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

markets

Max Knoblauch2/20/26

The Supreme Court’s tariff ruling isn’t sweeping relief for automakers, but it isn’t nothing either

The Supreme Court on Friday struck down a significant chunk of President Trump’s tariffs, but the decision isn’t a cause for automakers to fully exhale.

Friday’s ruling relates to tariffs imposed under the International Emergency Economic Powers Act and not Section 232. The 25% tariffs on automobiles and auto parts were imposed under Section 232, so those tariffs remain in place.

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Supreme Court strikes down Trump’s reciprocal tariffs; Trump responds with 10% global tariff

The president said he has “great alternatives” and can charge even more than he was charging.

President Trump Holds "Make America Wealthy Again Event" In White House Rose Garden

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