OpenAI announces $110bn funding round that would value firm at $840bn

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OpenAI said on Friday it is raising $110bn in a blockbuster funding round that would value the ChatGPT maker at $840bn, in a deal that signals the feverish pace of investment in artificial intelligence,It’s more than double the amount the company raised last year, when it racked up $40bn in the largest private tech deal on record,This year’s funding round, which is still open, includes a $30bn investment from SoftBank, $30bn from Nvidia, and $50bn from Amazon, and comes ahead of the AI startup’s expected mega-IPO later this year,Even more investors are expected to join,“We’re super excited about this deal,” OpenAI CEO Sam Altman told CNBC on Friday.

“AI is going to happen everywhere.It’s transforming the whole economy, and the world needs a lot of collective computing power to meet the demand.”Big tech executives have signaled to their investors in recent weeks that they are doubling down on investing in AI, despite fears that the AI boom could come with heavy costs.AI’s expansion is dependent on the creation of massive datacenters, which are facing scrutiny by lawmakers and communities for driving up energy prices and draining water supplies.There are also fears of AI driving up unemployment, as companies try to replace workers with automated processes.

On Thursday, fintech company Block announced that it would be laying off 4,000 of its 10,000 employees because of gains in AI productivity,That dramatic reduction in workforce appears to be part of a broader trend, as Goldman Sachs noted in February that AI resulted in 5,000 to 10,000 monthly net job losses last year,Big tech companies and large tech investors such as SoftBank are racing to forge partnerships with OpenAI – which is spending heavily on datacenters – betting that closer ties with the company would give them a competitive edge in the AI race,“We are entering a new phase where frontier AI moves from research into daily use at global scale,” OpenAI said in a company blog post on Friday,“Leadership will be defined by who can scale infrastructure fast enough to meet demand, and turn that capacity into products people rely on.

ChatGPT now has more than 900 million weekly active users and more than 50 million consumer subscribers.OpenAI also highlighted the power of its products like Codex, its cloud-based software engineering agent that’s available to paid ChatGPT subscribers – describing its output as equivalent to a “top engineer”.“Weekly Codex users have more than tripled since the start of the year to 1.6M,” the company wrote.“More people are now creating, automating, and shipping software that once required a full engineering team.

”Amazon will start with an initial $15bn investment, followed by another $35bn in the coming months “when certain conditions are met”, OpenAI wrote, without elaborating on what they were.Along with the investment, OpenAI and Amazon have also struck a deal, in which OpenAI will utilize two gigawatts of computing capacity powered by Amazon’s in-house Trainium chips, the companies said.“This agreement lowers the cost and improves the efficiency of producing intelligence at scale,” OpenAI said in a statement on Friday.Amazon’s cloud computing platform, AWS, will also be the exclusive third-party cloud provider for OpenAI Frontier, the ChatGPT maker’s enterprise platform for building, deploying and managing AI agents.The partnership does not change OpenAI’s existing relationship with Microsoft.

Microsoft Azure still remains the exclusive cloud provider for OpenAI’s APIs that provide access to OpenAI’s models, the companies said.OpenAI’s first party products will continue to be hosted on Azure, and Microsoft holds its exclusive license and access to intellectual property across OpenAI models and products.It was not immediately clear whether Nvidia’s $30bn investment replaced its earlier commitment announced in September under which Nvidia would invest up to $100bn in the startup.OpenAI said in its statement that this expansion would strengthen its ability to “train and deploy frontier models at global scale”.Nvidia CEO Jensen Huang affirmed his commitment to working with OpenAI in January in response to reports of tension between the two companies.

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Decision to allow UK exports to Armenian firm under review over Russian links

Ministers are reviewing a decision to allow a British company to export hi-tech equipment to Armenia after the Guardian uncovered links to the Russian military supply chain.Cygnet Texkimp, based in Cheshire, was weeks away from exporting two machines that produce carbon fibre “prepreg”, a lightweight material that can be used in a range of civil and military applications.Whitehall officials told Cygnet last year that it did not require a special licence for the shipment, signalling that the government’s routine vetting process for exports had raised no concerns about how the equipment could be used and by whom.But the trade minister, Chris Bryant, said he was putting the deal on ice, pending a review, over concerns that the machines could be deployed for military purposes. The material they produce can be used in the production of missiles and drones, crucial weapons in the war in Ukraine

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Labour anxiety and accusations after big shift in Muslim vote to Greens

The Green party’s success at winning Muslim votes in Gorton and Denton has sent tremors through Westminster, prompting recriminations and accusations from opposition parties, who sense another major realignment in British politics.Experts say Hannah Spencer’s unexpectedly wide margin of victory was delivered in part by a significant shift of Muslim voters from Labour to the Greens.Labour and Reform UK have accused the Greens of playing sectarian politics, highlighting the party’s use of the Indian prime minister, Narendra Modi, in campaign materials, its endorsement by George Galloway and accusations of voter manipulation.Keir Starmer wrote to Labour MPs on Friday telling them: “[Their] divisive, sectarian politics is a sign that the Greens are not the harmless environmentalists they pretend to be.”But senior figures within Labour admit that the Greens’ ability to turn out the Muslim vote shows the leftwing party is starting to build the kind of finely tuned political machine on which they themselves have relied for years

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‘Our own people hate us’: reality check for Labour as 13,000 majority vanishes

From the outset of the Gorton and Denton byelection, Labour strategists were desperate to say the party was on course to win, but the trouncing at the hands of the Greens has made this look laughable in hindsight.Hollie Ridley, Labour’s general secretary, sent a note to No 10 at the end of January saying it was “clearly a two-horse race” with Reform UK, and only 3% of voters were saying they would stick with the Greens.Later in the contest, cabinet ministers were dispatched to tell journalists things were “looking good” with the data and it was Labour’s biggest ever “get out the vote” operation to ensure victory.This misplaced optimism was mostly designed to make the voters of Gorton and Denton think that voting Labour was the best chance of defeating Reform UK’s divisive candidate, Matt Goodwin. It was a strategy built after Labour felt burned by Plaid Cymru winning a Welsh parliament byelection in Caerphilly and it began to position itself as the pre-eminent stop-Reform party

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PM vows to ‘keep fighting’ after Greens sweep past Labour and Reform to win byelection – as it happened

Keir Starmer has vowed to “keep on fighting” despite Labour’s humiliating defeat in the Gorton and Denton by-election. Speaking to reporters, he acknowledged it was a “disappointing” result and that voters were “frustrated”, but insisted he would carry on. Asked if he had considered resigning, Starmer said: “I came into politics late in life to fight for change for those people who need it. I will keep on fighting for those people for as long as I’ve got breath in my body.”Starmer doubled down on the anti-Green party language he was using during the byelection campaign

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Labour MPs demand Starmer change course after humiliating byelection loss

Keir Starmer is facing an ultimatum from his own party to change direction or risk a leadership challenge within months after the Greens humiliated Labour with a historic byelection victory in Gorton and Denton.Overturning a 13,000 Labour majority from the general election, Hannah Spencer, a local plumber and Green councillor, became the party’s fifth MP on Friday. Reform UK’s Matt Goodwin was second, just ahead of the Labour candidate, Angeliki Stogia.The scale of defeat in an area that had returned Labour MPs for nearly a century, and where Starmer’s party still believed it could win even on polling day, plunged his ministers and MPs into renewed despair just weeks after he saw off a challenge to his position.While only a handful of backbenchers called openly for Starmer to depart after the result, even loyal ministers said the surge in the Greens’ fortunes under the leadership of Zack Polanski meant the prime minister had to address an exodus of Labour voters from its left flank

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Labour leadership truce holds for now but clock is ticking for Starmer

When Labour’s Scottish leader, Anas Sarwar, urged Keir Starmer to stand down two weeks ago, the prime minister’s closest advisers presented him with a choice: fight, flight or hand over his destiny to his party by calling a leadership contest.The prime minister chose the first option and his Downing Street team sprung into action to contain the threat. At the moment of greatest peril for Starmer, MPs peered over the precipice and didn’t like what they saw.In the fortnight since, not much has changed. Even with Labour’s humiliating defeat in the Gorton and Denton byelection, where it was pushed into third place behind the Greens and Reform UK, the uneasy truce has persisted