World Street | OpenAI’s Altman denies equity rumors; Boeing faces safety warnings; Super Micro Computer probed after Hindenburg allegations; and more

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

OpenAI CEO Sam Altman denied rumors of a "giant equity stake," while the FDA approved Bristol Myers Squibb’s schizophrenia drug. Boeing faces new safety warnings for the 737 MAX. DOJ is probing Super Micro after Hindenburg’s allegations. Citigroup and Apollo announced a $25 billion credit program. All this and more on this edition of World Street.

CEO Says No

OpenAI CEO Sam Altman denied claims of receiving a "giant equity stake" in the company, calling the rumours "just not true". Altman and finance chief Sarah Friar addressed investor concerns about Altman’s lack of equity in the high-valued AI firm he co-founded nearly nine years ago.

Despite the speculation, Altman stated, "There are no current plans here," at a private meeting. While directors consider OpenAI’s future, key executives continue to walk out the door.

FDA Greenlight

The FDA has approved Bristol Myers Squibb’s new schizophrenia drug, Cobenfy, marking the first novel treatment for the disorder in over 70 years. Bristol Myers Squibb plans to launch the twice-daily pill, branded as Cobenfy, by late October, executives shared with CNBC.

Cobenfy could be a huge long-term sales opportunity for the company which faces pressure to offset the potential loss of revenue from top-selling treatments that will see their patents expire.

Boeing Blues

The National Transportation Safety Board (NTSB) has issued “urgent safety recommendations” for some Boeing 737s, including the 737 MAX, warning that critical flight controls could jam. The warning comes after an investigation into a February incident where pilots of a United Airlines MAX 8 landing in Newark reported their rudder pedals stuck in the neutral position.

The NTSB found that an actuator attached to the rudder on certain 737 NG and MAX models could fail. This marks another blow for Boeing, following a string of negative headlines this year, including a mid-air door blowout in January and a strike by 33,000 workers this month.

Hindenburg Hits

The U.S. Department of Justice is investigating Super Micro Computer, nearly a month after short-seller Hindenburg Research accused the AI server maker of "accounting manipulation," according to the Wall Street Journal.

Super Micro’s shares dropped 12% following the report. The probe is still in its early stages, with a U.S. attorney’s office recently reaching out to individuals who may have relevant information. The inquiry appears linked to a former employee who previously accused the company of accounting violations, the report noted.

Credit Collab

Citigroup and Apollo have announced an exclusive agreement to create a $25 billion private credit and direct lending program. Initially targeting North America, the program has the potential to expand globally.

Mubadala Investment Company, Apollo’s strategic partner, along with Apollo’s subsidiary Athene, may also participate in the program. The initiative aims to enhance access to private lending capital for corporate and sponsor clients, offering large-scale funding certainty for strategic transactions.

Xi's Fix

China’s top leaders vowed to halt the ongoing property slump and push for a stable recovery, according to a high-level meeting readout released by state media on Thursday. Authorities emphasized the need to stop the real estate market decline while addressing public concerns, the statement revealed.

Led by President Xi Jinping, the Politburo meeting called for stronger fiscal and monetary policy support and touched on broader issues like employment and China’s aging population. However, the readout didn’t specify the scale or timeline of potential measures.

Mitsubishi’s Move

Mitsubishi Corp. is set to acquire a stake in a Malaysian natural gas liquefaction plant through a deal with state-owned energy giant Petronas. The Japanese trading firm will take a 10% equity share in Malaysia LNG Tiga, effective for a decade starting this year.

Additionally, Mitsubishi will extend its 10% shareholding in Malaysia LNG Dua for another 10 years starting in 2025. The financial terms of the deal were not disclosed, according to a joint statement from Mitsubishi and Petronas on Friday.