October 5-14 KC
| OpenAI’s Record-Breaking Fundraiser Leading off, we’ve got a seismic shift in the AI landscape. OpenAI just closed the largest VC round of all time, raking in a staggering $6.6 billion. This mammoth fundraiser values the ChatGPT-maker at $157 billion, catapulting it into the elite club of the top three biggest venture-backed startups alongside SpaceX and ByteDance.The cash infusion comes at a crucial time for OpenAI, as it plans to ditch its nonprofit oversight structure and needs massive funds to fuel its ambitious AI goals. With $3.7 billion in expected revenue this year but $5 billion in anticipated losses, it’s clear that the race for AI dominance is costly. OpenAI’s not just filling its coffers – it’s also reportedly asking investors for exclusivity to keep competitors from accessing the same cash pile. |
Tesla’s Robotaxi Fail
In a significant pivot, Elon Musk is finally delivering on his long-promised autonomous vehicle future. At a splashy event on the Warner Bros. lot, Tesla unveiled its futuristic “Cybercab” robotaxi and a surprise “Robovan” for larger groups. The steering wheel-free Cybercab will hit the roads in 2026 with a price tag under $30,000. This move comes as Tesla faces increasing pressure in the EV market, with its US market share dipping below 50% this year. Musk has staked the company’s future on self-driving tech and AI, telling investors, “If somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company.” While Tesla is late in the robotaxi game compared to Waymo and others, its vast trove of real-world driving data could give it a crucial edge. That wasn’t enough to please investors, as Tesla stock dipped over 7% following the event.
TD Bank’s Criminal Convenience
Turbulence is brewing at TD Bank after it pleaded guilty to conspiracy to commit money laundering, agreeing to pay a whopping $3 billion penalty. The bank admitted to failing to monitor at least 90% of transactions between January 2018 and April 2024, inadvertently helping criminal networks launder $670 million, mostly from drug sales. The fallout doesn’t stop at the financial hit. TD Bank faces the dreaded “asset cap,” barring growth until the Fed sees its problems fixed. With internal messages revealing employees were “100 percent” aware of aiding money laundering and one branch manager quipping, “You guys really need to shut this down LOL,” TD has a long road ahead to regain trust and regulatory compliance.
Google’s Potential Breakup
Betting big on antitrust action, the Department of Justice revealed it’s considering recommending a breakup of Alphabet’s Google. This bombshell comes two months after a federal court found Google acted as an illegal monopoly in the search engine market. While a complete breakup remains an extreme outcome, other potential remedies include forcing Google to end exclusivity agreements with phone makers and sharing its search data with competitors.
The stakes couldn’t be higher for the tech giant, with Judge Amit Mehta set to rule by August 2025. As Google prepares for a likely years-long legal battle, the outcome could reshape the tech landscape and set precedents for handling digital monopolies in the AI age.
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