World Street | Open AI's valuation soars to $150 bln, Pfizer's stake sale in Haleon, Yen weakens and more

World Street offers a sneak peek into the world of business and economy.

Open AI's latest funding round gathers over $6.5 billion, at a valuation upwards of $150 billion. Tesla continues to feel the heat of  intensifying competition, especially in China. Formula One and LVMH's new partnership. Japan's new Prime Minister does damage control.  Pfizer sells part stake in Sensodyne maker Haleon. All this and more in the October 3 edition of World Street.

Minting Money

OpenAI has gathered over $6.5 billion in new funding, raising its valuation to more than $150 billion as the company continues to spearhead in the development of generative AI technology. This marks one of the largest private investments ever, positioning OpenAI among the top three venture-backed startups, alongside Elon Musk’s SpaceX and TikTok owner ByteDance Ltd., according to sources familiar with the deal.

The substantial investment highlights the tech industry’s confidence in AI and its willingness to fund the costly research driving its progress. Thrive Capital, led by Josh Kushner, spearheaded the funding round, with participation from other global investors, as previously reported by Bloomberg.

Trading stake

US drugmaker Pfizer offloaded part stake in British consumer healthcare company Haleon worth approximately $3.26 billion, reducing its ownership in the Sensodyne toothpaste maker from 22.6 percent to 15 percent.

Despite the stake sale, Pfizer, still remains the largest shareholder in Haleon.  The US drugmaker had previously announced plans to gradually reduce its stake in a "slow and methodical" manner within months.

Damage control

Newly elected Prime Minister Shigeru Ishiba stated that Japan is not in a position for an additional rate increase, seemingly distancing himself from his reputation as a monetary hawk, following a meeting with Bank of Japan Governor Kazuo Ueda. "I do not believe we are in an environment that would require us to raise interest rates further," Ishiba said, making his most explicit comment yet against future rate hikes.

The yen weakened in response to Ishiba's remarks, as investors took this as a sign towards lower likelihood of an imminent rate hike. Likewise, the US dollar rose 0.77 percent against the yen to 144.71 yen per dollar. On the back of this, Japan's Nikkei 225 also soared 2.5 percent in trade on Thursday.

Walking a tightrope

Tesla's third-quarter report for 2024 revealed vehicle production of 469,796 units and deliveries of 462,890 units, slightly missing analysts' expectations of 463,310 deliveries. This compares to 435,059 deliveries and 430,488 EVs produced in the same period last year, while the previous quarter saw 443,956 deliveries and 410,831 vehicles produced. The stock fell by as much as 3.7 percent following the earnings report, as Tesla continues to face growing competitive pressure, particularly in China, from established players like BYD and Geely, as well as newer entrants such as Li Auto and Nio.

New deal in town

Liberty Media-owned Formula One and luxury giant LVMH have announced a 10-year partnership, set to begin with the next F1 season. According to a joint press release, the collaboration will feature "hospitality, bespoke activations, limited editions, and outstanding content." This marks the continuation of a successful relationship, following LVMH’s involvement during last year's Las Vegas Grand Prix. Liberty Media CEO Greg Maffei highlighted the partnership as a reflection of F1's growing commercial vision, expressing excitement to work with Bernard and Frédéric Arnault in the coming years.