TNB Tech Minute: OpenAI Misses Internal Targets Ahead of Potential IPO

0:00Here's your morning TNB Tech Minute for Tuesday, April 28th. Ami Manimoiz for the Wall Street Journal. We exclusively report that OpenAI recently missed its own internal targets for weekly users and revenue, raising concern among company leaders about whether it will be able to support its massive spending on data centers. People familiar with the matter say CFO Sarah Fryer has told other company leaders that she's worried the company might not be able to pay for future computing contracts if revenue doesn't grow fast enough. Board directors are also questioning CEO Sam Altman's efforts to secure even more computing power despite the business slowdown. In a joint statement, Altman and Fryer called any suggestion that they are at odds, quote, ridiculous, and said they remain totally aligned on buying as much computing capacity as possible. News Corp, the owner of the Wall Street Journal, has a content licensing partnership with OpenAI. Australia's federal government released a draft of a new law today that would tax major tech companies if they don't agree to pay local media outlets for news distributed on

1:00Facebook, Google, and TikTok. Australia authorities say the 2.25% levy would only apply to companies making over $180 million US dollars in local revenue. The Prime Minister said any revenue generated by the tax would go to media providers. Australia has been trying to make tech companies pay local media for years, arguing that investment in journalism is critical to a healthy democracy. China called the latest proposal a digital service tax. Google said it rejects the need for the tax and that it already supports Australian journalism through existing licensing agreements. TikTok owner bite dance didn't immediately respond to a request for comment on the proposal. And Chinese auto giant BYD, the world's largest EV maker, reported a 55% slide and net profit in the first quarter as weak performance in its home market offset growth overseas. New drop 12%, despite a surge in exports primarily to Europe, where high gas prices caused by the war in the Middle East is rekindling demand for electric vehicles. The results highlight how China's fiercely competitive EV market is eroding profitability

2:02even for industry leaders. That's your TNB tech minute. Join us again this afternoon for more.