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OpenAI poaches Instacart CEO Fidji Simo to lead apps

OpenAI is growing fast. It’s building a $500 billion “Stargate” AI data center campus, and ChatGPT is breaking traffic records, even though it is too sycophantic.

It sounds like CEO Sam Altman is spread a little thin. He’s overseeing AI research, new infrastructure tools, and some very popular consumer apps.

To help shore up the app part of the business, OpenAI is poaching Instacart’s CEO, Fidji Simo, to be its “CEO of Applications.” Simo, who spent years as a high-profile exec at Facebook before moving to Instacart, has been an OpenAI board member for more than a year.

In a note to employees, Altman wrote:

“To strengthen our execution, I’m excited to announce Fidji Simo is joining as our CEO of Applications, reporting directly to me. I remain the CEO of OpenAI and will continue to directly oversee success across all pillars of OpenAI — Research, Compute, and Applications — ensuring we stay aligned and integrated across all areas. I will work closely with our board on making sure our non-profit has maximum positive impact.”

Simo will be transitioning to the new role over the next few months. She wrote:

“Joining OpenAI at this critical moment is an incredible privilege and responsibility. This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good.”

Instacart shares were down about 3% in early trading.

To help shore up the app part of the business, OpenAI is poaching Instacart’s CEO, Fidji Simo, to be its “CEO of Applications.” Simo, who spent years as a high-profile exec at Facebook before moving to Instacart, has been an OpenAI board member for more than a year.

In a note to employees, Altman wrote:

“To strengthen our execution, I’m excited to announce Fidji Simo is joining as our CEO of Applications, reporting directly to me. I remain the CEO of OpenAI and will continue to directly oversee success across all pillars of OpenAI — Research, Compute, and Applications — ensuring we stay aligned and integrated across all areas. I will work closely with our board on making sure our non-profit has maximum positive impact.”

Simo will be transitioning to the new role over the next few months. She wrote:

“Joining OpenAI at this critical moment is an incredible privilege and responsibility. This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good.”

Instacart shares were down about 3% in early trading.

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OpenAI’s reported fundraising valuation keeps jumping by hundreds of billions of dollars

OpenAI is reportedly in talks to raise as much as $100 billion, with a valuation of....$500 billion...$750 billion $830 billion?

This is getting ridiculous. This week we have read multiple reports that OpenAI is in early discussions with potential investors about a significant fundraising round of up to $100 billion, to help cover its cloud computing costs.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

  • On Tuesday, The Information reported a major $10 billion investment from Amazon in OpenAI, with a valuation higher than $500 billion

  • On Wednesday, The Information reported that the $100 billion round would give OpenAI a valuation of $750 billion

  • Today, the Wall Street Journal is reporting that the $100 billion round would give OpenAI a valuation of as much as $830 billion

The spread from $500 billion to $830 billion is pretty wild, and we are wondering what it might be by next week.

tech
Jon Keegan

Report: OpenAI in early talks for new fundraising round with $750 billion valuation

Just yesterday, we were reading about how Amazon was in talks to invest as much as $10 billion in OpenAI, with an eye-popping valuation of more than $500 billion. But those numbers might already be old.

A new report by The Information says that OpenAI is in early talks to raise as much as $100 billion, with a $750 billion valuation.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

tech
Rani Molla

Trump Media surges after announcing it is merging with fusion energy company TAE Technologies

Perhaps a strong late candidate for weirdest merger of the year, Trump Media — owner of Truth Social — is combining with fusion energy company TAE Technologies in a $6 billion all-stock deal.

As part of the deal, Trump Media will provide up to $200 million of cash to TAE at signing, with an additional $100 million available once the initial filing of the Form-S4 is completed (form for registering new securities).

The deal will create “one of the world’s first publicly traded fusion companies,” per the press release revealing the combination, which also states:

In 2026, the combined company plans to site and begin construction on the world’s first utility-scale fusion power plant (50 MWe), subject to required approvals. Additional fusion power plants are planned and expected to be 350 – 500 MWe.

The announcement sent Trump Media shares up as much as 30% in premarket trading on Thursday, though it’s since shed some of that bump, holding above a 20% gain as of 7:30 a.m. ET.

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