| Here are today's top Business stories: - 🚙 Tesla recalls 120,000 vehicles due to a technical issue that could result in doors being unlatched during an accident.
- 💵 OpenAI is set to raise a new funding round at a $100B valuation.
- 🚆 Hyperloop One, a company based on Elon Musk's idea to build trains that go 700 mph, shuts down.
Thank you. Arbër
p/Arber | |
| 1 | | Tesla has recalled 120,000 vehicles due to a manufacturing error with doors. The technical issue could result in doors unlatching during an accident. More: - The company, through a letter sent to the National Highway Traffic Safety Administration, confirmed that a technical error affects vehicles in such a way that their doors could be unlocked and unlatched during an accident.
- This error affects the Tesla Model S and X models manufactured from 2021 through 2023.
- Tesla claims that it is unaware of any accidents that have happened due to this error as of Dec. 14, 2023.
Zoom Out: - Last week, the company recalled nearly all its U.S. vehicles due to an error with the autopilot feature. The National Highway Traffic Safety Administration said the feature can give drivers a false sense of security and be easily misused in a way that risks others.
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| 2 | | 
What happened: OpenAI is looking to raise a new funding round at a $100B valuation, according to reports. The valuation would make OpenAI America's second most valuable startup after SpaceX. More details: OpenAI is in talks to launch a new chip company with G42, an Abu Dhabi-based tech company. This potential venture was reported to have been one of the reasons behind the sudden ousting of Sam Altman, OpenAI's CEO, who returned only days later. While the funding round could see its valuation reach $100B, OpenAI will undergo an internal share-selling process led by Thrive Capital in January 2024, enabling employees to sell shares at a valuation of $86B. The company still has Microsoft's $10B commitment, which served as a major boost for the generative AI market during 2023. What the numbers say: OpenAI's rapid rise in valuation directly reflects the increase in funding and buzz that the generative AI market has experienced. OpenAI went from a $14B valuation in 2022 to a $29B in 2023, a 100% increase. With the reported fresh funding round, the company's valuation could reach $100B in 2024. | | | |
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| 3 | | Hyperloop One, a high-speed train project ideated by Elon Musk, has officially shut down. Richard Branson was the company's chairman for multiple years. More: - The original hyperloop was based on an idea published by Elon Musk in 2013, which proposed using the Maglev technology to build high-speed trains.
- The idea was that these trains would travel at 700mph (1,127km/h) and contribute to reducing traffic congestion and making public transportation more efficient.
- Hyperloop One completed initial trials in the Nevada desert but faced multiple engineering challenges that prevented it from achieving more progress.
- Richard Branson, the founder of Virgin Airlines, became the company's chairman in 2017 and rebranded it to Hyperloop One after investing in it.
- Elon Musk's The Boring Company also explores the use of technology to build underground tunnels for transportation.
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| 4 | | The U.K. is nearing a recession as economic growth has slowed, according to official data. The country's GDP shrank by 0.1% between July and September. More: - Estimates had predicted that the country's GDP growth for the July-September period would be flat.
- This is the second time estimates have been wrong, as the country's economy was expected to grow 0.2% during April-June 2023, while GDP growth was zero.
- Earlier this week, data showed that inflation slowed to 3.9% in the year to November 2023, down from 4.6% in October 2023.
- Some economists claim that the Bank of England should cut interest rates to boost businesses and the economy, as inflation has slowed.
- The official interest rate in the country is 5.25%.
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| 5 | | Bristol Myers Squibb is set to acquire Karuna Therapeutics for $14B in an all-cash deal. Following the news, Karuna's stock price rose to $317 per share. More: - Karuna has developed a therapy drug named KarXT, which serves patients who have neurological conditions such as schizophrenia.
- Bristol Meyers Squibb has acquired the company to boost its revenue during this decade, as its patent protection for cancer immunotherapy Opdivo and blood thinner Eliquis will expire during this period.
- The company is based in Boston, Massachusets.
- The acquisition deal is expected to be completed by the end of H1 2024.
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| 6 | | Lionsgate Studios is set to go public via a SPAC named Screaming Eagle Acquisition Corp. The SPAC means the company will split from the STARZ network. More: - The SPAC will value the company at $4.6B, which owns intellectual property titles such as The Hunger Games, John Wick, The Twilight Saga, and Ghosts.
- 87.3% of the total shares of Lionsgate Studios will be held by Lionsgate, while Screaming Eagle public shareholders will own approximately 12.7% of the new entity.
- This public filing comes at the end of a year when Lionsgate has released box-office successes such as John Wick: Chapter 4, Hunger Games: The Ballad of Songbirds and Snakes, Saw X, etc.
- Lionsgate will use $350M from the funds secured through the SPAC to pay its debt obligations.
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- Major tech companies cut their DEI budgets by as much as 90% in 2023, three years after creating them as a response to the George Floyd murder in 2020.
- Tencent has lost over $43.5B in market value as China announced unexpected changes in its set of rules toward online gaming that will aim to reduce consumer spending.
- Atlanta-based GreyOrange has raised a $135M funding round led by Anthelion Capital. The company specializes in providing robotic solutions that help make manufacturing and fulfillment tasks easier.
- On 23 Dec., Super Saturday, 142 million Christmas shoppers are expected to go last-minute holiday shopping.
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 | Writer | | Arbër is an Inside analyst who has previously incubated his startup at the largest incubator in Southeastern Europe. He has collaborated with multiple major publications and holds a business degree from XAMK University in Finland. | | This newsletter was edited by Vibha Chapparike | |
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