Plus, Nvidia delivers strong quarterly growth and robust outlook. And CrowdStrike cuts its guidance in the wake of one of the worst cyber outages. Zoe Thomas hosts.
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[00:00:16] [SPEAKER_00]: Here's your TNB Tech Minute for Wednesday, August 28th.
[00:00:20] [SPEAKER_00]: I'm Zoe Thomas for the Wall Street Journal.
[00:00:23] [SPEAKER_00]: We're exclusively reporting that OpenAI is in talks to raise several billion dollars.
[00:00:30] [SPEAKER_00]: The new funding round would value the maker of ChatGPT above 100 billion dollars.
[00:00:35] [SPEAKER_00]: It was last valued at 86 billion dollars late last year.
[00:00:39] [SPEAKER_00]: This funding round is being led by venture capital firm Thrive Capital, which will
[00:00:44] [SPEAKER_00]: invest about 1 billion dollars.
[00:00:46] [SPEAKER_00]: That's according to people familiar with the matter.
[00:00:48] [SPEAKER_00]: Thrive has already put several hundred million dollars into the startup.
[00:00:54] [SPEAKER_00]: Microsoft, which currently has a 49 percent share of OpenAI's profit, is also expected
[00:00:59] [SPEAKER_00]: to put money in the new funding round.
[00:01:01] [SPEAKER_00]: It couldn't be determined what other investors are participating.
[00:01:04] [SPEAKER_00]: News Corp, owner of the Wall Street Journal, has a content licensing partnership with OpenAI.
[00:01:10] [SPEAKER_00]: NVIDIA reported strong quarterly revenue growth and a robust financial outlook.
[00:01:15] [SPEAKER_00]: Sales in the second quarter more than doubled from a year earlier to 30 billion dollars.
[00:01:21] [SPEAKER_00]: NVIDIA's profit also more than doubled to over 16 and a half billion dollars.
[00:01:27] [SPEAKER_00]: The chip maker also projected around 32 and a half billion dollars of revenue for its
[00:01:32] [SPEAKER_00]: current quarter, topping Wall Street forecasts in a FAXette survey.
[00:01:36] [SPEAKER_00]: NVIDIA's chips have been powering the artificial intelligence boom.
[00:01:40] [SPEAKER_00]: The results are a sign of continued momentum despite concerns that investment in the area
[00:01:45] [SPEAKER_00]: has surged too quickly.
[00:01:48] [SPEAKER_00]: And the impact of the CrowdStrike outage, which knocked 8.5 million computers offline
[00:01:53] [SPEAKER_00]: last month, has led the company to cut its outlook for the year.
[00:01:57] [SPEAKER_00]: The cybersecurity company said it lowered its revenue guidance due to more than 60
[00:02:02] [SPEAKER_00]: million dollars in incentives it's providing related to what it called customer commitment
[00:02:07] [SPEAKER_00]: packages.
[00:02:08] [SPEAKER_00]: CrowdStrike reported net income of 47 million dollars in the second quarter,
[00:02:12] [SPEAKER_00]: which ended about two weeks after the outage.
[00:02:15] [SPEAKER_00]: For a deeper dive into what's happening in tech, check out Thursday's Tech News Briefing podcast.
[00:02:45] [SPEAKER_02]: Test drive of OCI at oracle.com slash wall street, oracle.com slash wall street.