Tech5: OpenAI valued at $157 billion in new funding; Samsung to lay off thousands; Microsoft ends HoloLens 2

Forbes India's daily tech news bulletin with five headlines that caught our attention

Harichandan Arakali
Published: Oct 3, 2024 10:29:53 AM IST
Updated: Oct 3, 2024 10:34:56 AM IST

Sam Altman, CEO of OpenAI
Image: Reuters/Carlos BarriSam Altman, CEO of OpenAI Image: Reuters/Carlos Barri

OpenAI raises $6.6 billion at a valuation of $157 billion

OpenAI has secured $6.6 billion in new funding, elevating its valuation to $157 billion and enhancing its efforts in generative AI technology, the company said in a statement on October 2. The funding round was led by Thrive Capital, which had committed to investing $1.2 billion, with the option of investing another $1 billion next year, according to Reuters.

Other big contributions came from Microsoft, which is said to have reported a little less than $1 billion, according to reports citing the Wall Street Journal, and SoftBank, which has invested $500 million.

Additional notable investors included Khosla Ventures, Fidelity Management, Tiger Global Management, Ark Investment Management and Nvidia. Reuters reports that the company is on track to generate $3.6 billion in revenue this year while losses rise to over $5 billion. OpenAI is projecting revenue of $11.6 billion next year.

Samsung laying off thousands across India, Southeast Asia, ANZ: Reports

Samsung Electronics is firing staff in Southeast Asia, Australia and New Zealand as part of a broader reduction in its global workforce by thousands, Bloomberg reported on September 1. Reuters had reported exclusively three weeks ago that Samsung had instructed its subsidiaries around the world to cut sales and marketing positions by 15 percent and admin staff by 30 percent.

The South Korean tech giant had 267,800 employees at the end of 2023, and 147,000 were based overseas, according to its latest sustainability report, Reuters noted on September 11. Manufacturing and development accounted for most of them, sales and marketing staff was around 25,100, and 27,800 people worked in other areas.

The job cuts were already underway and Samsung's Indian unit was already offering severance packages to some mid-level employees who had left in recent weeks. Of the 25,000 or so employees in India, about 1,000 will be given the pink slip, according to Reuters.

US authorities expand SAP probe to 100 agencies: Bloomberg

US prosecutors are expanding their investigation into potential price-fixing involving German software giant SAP and tech services company Carahsoft Technology, focusing on their dealings with nearly 100 government agencies, Bloomberg reported on Thursday.

Recent court documents revealed that the US Justice Department has issued a demand for documents related to 94 civilian agencies that procured over $2 billion in SAP products since 2014, suggesting a significant escalation from prior inquiries that primarily examined military overcharges, according to Bloomberg.

A SAP spokesperson confirmed that both SAP and its US unit have been cooperating since receiving document requests in August 2022, although the company claims the information provided has been narrowly focussed, according to Bloomberg.

Microsoft signals end of life for HoloLens 2: The Verge

Microsoft has ended production of its HoloLens 2 headset, with no replacement plan likely, The Verge reported on October 1, citing a company executive. In an email sent to The Verge, Microsoft cloud communications general manager Craig Cincotta writes that Microsoft is no longer producing the HoloLens 2, and the company has issued a last-time-to-buy date. Support for HoloLens 2, including security updates, will end on December 31, 2027.

Microsoft will “continue to invest in mixed reality opportunities with first-party software solutions and services, partnering the broader mobile phone and mixed reality hardware ecosystem”, according to the email, as cited by The Verge.

Microsoft has a US defence contract to develop an Integrated Visual Augmented System. Last month, the company teamed up with Anduril, a defence deeptech startup, to collaborate on that project.

CCI greenlights Mankind’s acquisition of Bharat Serums

The Competition Commission of India has approved Mankind Pharma Ltd's acquisition of Bharat Serums and Vaccines Ltd. (BSV), involving the purchase of 100 percent shareholding in BSV. Mankind Pharma, a publicly listed company, develops and markets a range of pharmaceutical products and consumer health care items.

BSV, along with its subsidiaries, specialises in research, manufacturing and distribution of pharmaceuticals, biotech formulations, and medical devices, focusing on therapeutic areas such as gynaecology and critical care. A detailed order from the Commission is expected to follow.

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