Sunday☕️

Time Is Money

Sep 22, 2024 • 7 min read

Trending:

OpenAI Funding Round
Oyo To Acquire Motel 6 & Studio 6

Week Recap:

Amazon recently announced that starting January 2, 2025, many of its corporate employees will be required to return to the office for a five-day workweek. This change is part of the company's ongoing adjustments to its post-pandemic work policies, moving away from the hybrid model that required three in-office days per week. CEO Andy Jassy highlighted the importance of in-person collaboration, creativity, and learning within the company’s culture, citing that remote work does not offer the same level of engagement. While flexibility for special circumstances like illness or business travel will still be honored, the company is shifting back to a more traditional office structure, including assigned desks in its U.S. locations.
On Tuesday, September 17, 2024, Tupperware Brands Corporation officially filed for Chapter 11 bankruptcy, marking a turning point for the company that once revolutionized food storage. Tupperware is known for its durable, airtight plastic containers, designed to preserve food freshness and reduce waste. These products, which became household essentials, were originally sold through direct sales at home-based Tupperware parties, a business model that gained popularity in the 1950s.
A series of explosions occurred across Lebanon as hundreds of pagers detonated simultaneously, resulting in the deaths of over eight people, and injuring thousands more. The pagers were primarily used by Hezbollah for secure communication. The incident shocked both local communities and the international audience, with estimates of those injured ranging from 2,800 to as many as 4,000.
Elon Musk announced that SpaceX will be suing the Federal Aviation Administration (FAA), following recent regulatory delays and a proposed fine of over $630,000 for alleged violations during two launches in 2023. The FAA has accused SpaceX of failing to comply with certain safety requirements, including the use of an unapproved launch control room and not conducting the mandatory readiness poll ahead of a June launch. Musk expressed frustration with these regulatory hurdles, which he believes are stifling progress, particularly as SpaceX is ready to resume Starship launches but is awaiting further FAA approval.
The Federal Reserve implemented a 0.5% interest rate cut, lowering the federal funds rate to a range of 4.75% to 5.0%. This marks a shift after four years of consistent rate hikes designed to combat inflation, which had soared to 9.1% in mid-2022. With inflation now down to 2.5%, closer to the Fed’s target of 2%, the central bank shifted focus to addressing a weakening labor market, which has seen fewer job openings and a rise in unemployment.
Recently, Temu, a rapidly expanding e-commerce platform, had a hacker claim to have stolen 87 million customer records. The hacker, using an alias, posted a sample of the alleged data on BreachForums, suggesting that it contained sensitive customer information like usernames, IP addresses, and shipping addresses. This raised immediate concerns over identity theft and potential fraud. However, Temu responded swiftly, stating that their security team conducted an internal investigation and found no match between the stolen data and their own records.
Neuralink’s Blindsight implant has been granted the FDA’s "breakthrough device" designation, which is not an outright approval but a special status aimed at speeding up the development and review process for medical devices that address serious or life-threatening conditions. This designation provides Neuralink with the opportunity for priority review and more frequent interactions with the FDA during the pre-approval phases.
Snapchat recently unveiled an AI-powered video generation tool designed specifically for content creators, allowing them to produce short videos from simple text prompts. The tool, introduced at Snapchat’s 2024 Partner Summit, is available in beta on the web for a select group of creators. It also promises to expand soon to include image-based prompts, giving creators more ways to generate content efficiently. By leveraging this technology, Snapchat is aiming to further integrate AI into the platform, enabling users to turn creative ideas into video content without needing extensive production resources.

OpenAI Funding Round:

OpenAI is nearing the completion of a $6.5 billion fundraising round, which has drawn more interest from investors than expected, leading to an oversubscription by several billions. This round is set to value the AI company at $150 billion, a rise from its 2023 valuation of $86 billion. The level of demand reflects the growing belief in OpenAI’s potential to shape the future of artificial intelligence.
Thrive Capital, a venture capital firm led by Josh Kushner, is taking the lead in this funding round with a significant commitment of $1.25 billion. Alongside Thrive, major players like Microsoft, Nvidia, and Apple are also involved in discussions about potentially contributing between $2 and $3 billion combined. Microsoft, a key partner since 2019, has already heavily invested in OpenAI and continues to deepen its collaboration as AI becomes increasingly central to its cloud computing business through Azure.
This fundraising round has a high barrier to entry, with OpenAI setting a minimum investment threshold of $250 million per investor. This strategy allows the company to maintain a streamlined investor base, limiting participation to a small group of large investors. Notably, Sequoia Capital, one of OpenAI’s earlier backers, is not expected to join this round, possibly due to its recent involvement in other AI ventures.

Oyo To Acquire Motel 6 & Studio 6:

Oyo, an Indian hotel chain operator, is set to acquire Motel 6 and Studio 6, two well-known budget motel brands, from Blackstone in a deal valued at $525 million. This acquisition is part of Oyo’s broader strategy to expand its presence in the U.S. market. The transaction, which is expected to be completed by the end of 2024, includes both Motel 6, known for its economy lodging, and Studio 6, which caters to customers seeking extended stays. Oyo sees this move as a crucial step in strengthening its global footprint.
For Oyo, the acquisition represents a significant milestone in its international expansion journey, particularly in North America. Having entered the U.S. market only a few years ago, Oyo now operates 320 hotels across 35 states and is aiming to add 250 more by the end of the year. Gautam Swaroop, Oyo’s international division chief, emphasized the importance of this deal, noting that it aligns with the company's growth goals and brings new opportunities to enhance the Motel 6 and Studio 6 brands through Oyo's technology-driven business model.
Blackstone originally purchased Motel 6 and Studio 6 from Accor for $1.9 billion in 2012. Since then, Blackstone has invested heavily in the brands, converting Motel 6 into a franchise operation that now boasts nearly 1,500 locations across the U.S. and Canada. Blackstone’s efforts have positioned these brands for strong growth, making them attractive targets for Oyo. The sale is expected to generate over $1 billion in profit for Blackstone, reflecting the value that has been created during its ownership.

Statistic: