OpenAI announced a $122 billion capital raise and the market barely blinked. But this may indicate bigger challenges ahead for the AI giant. Then we discuss Nike’s disappointing earnings and why Oracle is laying off 30,000 employees. Travis Hoium, Lou Whiteman, and Rachel Warren discuss: - OpenAI’s $122 billion capital raise - Nike’s disappointment - Oracle lays off 30,000 Companies discussed: Alphabet (GOOG), Amazon (AMZN), Oracle (ORCL), Nike (NKE). Host: Travis Hoium Guests: Lou Whiteman, Rachel Warren Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Oracle Lays Off 30,000 and Nike Falls Flat Once Again

Motley Fool Hidden Gems Investing

# Full Transcript

**Podcast:** Motley Fool Money

## Participants

- **Travis Hoium** (The Motley Fool)
- **Lou Whiteman** (The Motley Fool)
- **Rachel Warren** (Motley Fool)

## Transcript

[SPEAKER_01] OpenAI is raising $122 billion. What comes next? Motley Fool Money starts now. Welcome to Motley Fool Money. I'm Travis Hoyam, joined today by Rachel Warren and Lou Whiteman. And guys, the big headline of the end of the day yesterday was that OpenAI has, I guess,

[SPEAKER_01] officially now raised $122 billion. I don't think they have all the cash yet. But this is companies like Amazon, SoftBank. Microsoft is apparently back in the game investing in OpenAI. But Lou, I'm curious about a couple of things. This, I think, is definitely the biggest raise in Silicon Valley, maybe even the biggest single raise ever for a company. And they're not really close to

[SPEAKER_01] being profitable. So does this bring an IPO closer? And then we also have the ARK funds are investing. So now retail is coming in as well, kind of through a backdoor. So what are your thoughts on that? I know it's kind of a big question, but it just seems like they're setting up for this IPO, but yet they still are burning through tons and tons of cash.

[SPEAKER_03] Yeah. And I think it's important to note that some of this is backwards looking. Some of this is just announcing the close of a round where they've announced some of these, or at least it's been reported if they haven't announced it before. So yeah, a lot of this is just kind of what was coming. Look at the IPO, look, they say $2 billion or so in revenue per month. So figured out on the valuation, about 35X sales. Guys, I'll be honest, I've seen worse. I don't know.

[SPEAKER_01] That's so crazy, but that is true.

[SPEAKER_03] Yeah. But look, theoretically, it's growing, so that's good. Huge caveats with this. Some of Amazon's money is tied to achieving artificial general intelligence. If and when that happens, we'll see. It feels like just lawyer bait. Doesn't it feel like that we're going to end up in court in two years battling over whether or not the AI is actually general intelligent or not? The interesting thing here, though, is trying to figure out what from here, right? And OpenAI wants

[SPEAKER_03] to go public. Shares already trade on secondary markets. Reportedly, it is hard to find buyers for these shares right now. Anthropic is all the rage. I think that's a better gauge, if true. And again, I'm not on those. I don't know that. If true, that is a more interesting data point than basically a press release announcing kind of all of the hard work they've done. But to be honest, OpenAI kind of

[SPEAKER_03] needed the win, right? It's been a rough couple of weeks for them. Even if this is just them out here beating their chest, saying, we're still in this game. We're still in this. Look at all this money we have. Don't be dismissive of us. Maybe that's what they need right now.

[SPEAKER_01] Yeah. Rachel, w...

Oracle Lays Off 30,000 and Nike Falls Flat Once Again

Transcript

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Oracle Lays Off 30,000 and Nike Falls Flat Once Again

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.