OpenAI valuation soars

+ The smartest ring... ever?

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Ancient Egyptians used nail polish to show class. Pharaohs glammed up with red nails to show their status, while lower classes had to stick to pale shades. If the Pharaohs could see us today…

What’s in store:

  • Will OpenAI shift to for-profit status, or will investors cash out?

  • Oura 4 is here—sleek, sharp, and ready for your finger.

  • Around the web: WP Engine sues Matt Mullenweg, alleging libel and extortion in a WordPress trademark dispute.

  • Lemlist will 3x your outbound reply rates.

Read Time: 5 minutes

OPENAI

OpenAI has raised $6.6 billion, bringing its valuation to $157 billion. The funding was led by Thrive Capital, which invested $1 billion itself.

Thrive also secured the option to invest another $1 billion next year if OpenAI meets certain revenue targets.

With this latest fundraising round, OpenAI is now valued the same as Uber. Which one do you use more?

OpenAI may also restructure from its current setup under a non-profit overseer to a for-profit company within the next two years.

If this change doesn’t happen, investors could ask for their money back.

There are talks about OpenAI becoming a public benefit company, similar to Anthropic.

Here’s what you should know:

  • Thrive Capital invested $1 billion, with the option to invest another $1 billion next year if targets are met.

  • OpenAI might become a for-profit company within two years, or investors could withdraw.

  • OpenAI’s valuation is 40x its current revenue, with significant growth expected.

Big bucks, bigger bots

OpenAI also asked investors not to support rival AI companies like Anthropic or Elon Musk’s xAI.

This funding round edges out the $6 billion raised by xAI earlier this year.

OpenAI’s valuation reflects the huge excitement around AI, standing at 40x its annual revenue.

In August, OpenAI’s monthly revenue hit $300 million, and the company expects $3.7 billion in sales this year, potentially reaching $11.6 billion next year.

The funds will help cover the high costs of training advanced AI models.

Experts predict that AI models costing $1 billion to train are already in development, with even more expensive models on the way.

An AI model that costs superyacht money. Now we’re talking.

OpenAI’s $157 billion valuation - real potential or hype?

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Vote for live results and see results + opinions from yesterday at the bottom of the email.

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On This Day

October 4th 1957 - The Soviet Union launches Sputnik 1, the first artificial satellite, into space, marking the beginning of the space age and the space race.

Riddle Me This

I’m fundamental to your survival, yet I corrode silently in the background.

You encounter me daily, though you rarely notice.

I shift forms in air and water, quietly weakening what I inhabit.

Life depends on me, but I also contribute to decay.

What am I?

Do you know what I am?

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Nifty Numbers

Netflix’s AI-powered recommendation system is a critical part of its success, generating an estimated $1 billion in revenue annually. By personalising suggestions for each viewer, Netflix keeps audiences engaged and prevents churn, ensuring that people always find something compelling to watch.

AI TECH

Oura has launched the fourth version of its well-known smart ring, the Oura Ring 4, nearly three years after the last model.

This new version focuses on refining features rather than making big changes.

The ring has a slimmer design, with sensors now recessed into the ring for a more comfortable fit.

It’s still made from lightweight titanium, comes in more sizes (4-15), and offers six colour options, including a deeper black.

Despite the sensors being recessed, Oura says the ring is now more accurate at tracking health data like heart rate, breathing, and temperature.

It even measures blood oxygen levels, with improvements across the board, like 120% better signal quality for blood oxygen sensing.

The battery lasts up to eight days on a single charge, thanks to its screenless design, making it more efficient than most smartwatches.

Here are some numbers to keep in mind:

  • 120% better signal for SpO2, improving overnight accuracy by 30%.

  • 15% better accuracy in tracking breathing disturbances.

  • 31% fewer gaps in night heart rate data.

Is this the future of wearables?

Android users also get access to new experimental features through Oura Labs, including meal tracking and AI-powered health advice.

The Oura Ring 4 is available for pre-order, with shipping starting on October 15.

It includes a free month of membership, then costs $6 per month or $70 per year. Oura will keep selling the third-gen ring until stocks run out.

This is what Bryan Johnson will propose with.

Mindstream Picks

Space: Yahsat and Bayanat merged to form Space42, valued at $3 billion on the Abu Dhabi Securities Exchange.

Crypto: Ripple Labs will contest the SEC’s appeal of a ruling that retail XRP sales didn’t violate securities laws.

Games: Voice actor Melissa Thom has vowed to promote diversity in gaming after becoming a voting member of the BAFTA Awards.

Music: Pras Michel is suing Lauryn Hill, alleging she took 40% of Fugees' 2023 tour profits before splitting the rest. He seeks damages and to void contracts affecting his rights.

Don’t Miss - WP Engine is suing Matt Mullenweg and Automattic for alleged libel and extortion over a dispute regarding the WordPress trademark. The lawsuit, sparked by a clash over licensing fees, accuses Mullenweg of defamation and financial demands, calling WP Engine “a cancer to WordPress.” WP Engine seeks legal protection and claims the conflict threatens the WordPress community.

AI Art

Our Image of the Day

Artwork submitted by Mindstream reader Craig C: “Bugs Bunny in 1950s cartoon style”

Daily Image Prompt

Sumo battle in the forest

Yesterday’s Poll

“OpenAI vs Anthropic - who's winning?”

Anthropic is going to take over! - 56%

OpenAI - can't be the OGs. - 44%

Your Views:

“They are scooping all the talent that knows how to get the job done after another company paid them to make all the mistakes. It will be more profitable but not the holy grail just yet.” - zane

“I think that the most important aspect of AI is data quality and the trust we can can have in AI answers. I could be wrong but it appears to me that Anthropic is putting heavy emphasis on having ethical guidelines controlling their feeds, mitigating data bias and being fairly transparent about it.” - gmadden

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