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OpenAI Seeks Record $40B Funding

OpenAI is in early discussions to raise up to $40 billion in funding that would value the ChatGPT maker at $300 billion, including the new investment. The valuation would nearly double the $157 billion the company commanded in October.

SoftBank Group (TYO: 9984) plans to lead the round with a potential investment of $15-25 billion, with the Japanese company helping recruit additional investors to complete the funding, according to a person familiar with the matter in an exclusive report from the Wall Street Journal. 

The source noted that the discussions are still ongoing and could still fall through.

You can read more on the matter here.

What’s going on?

• Norway in Turmoil as Government Collapses Over EU Electricity Policy (theDeepDive)

• Chrystia Freeland says Canada should target Elon Musk's Tesla in a tariff fight (BNN)

• Trump’s 25% Tariffs On Canada And Mexico Are Coming Tomorrow; Oil Tariffs To Be Decided Tonight (theDeepDive)

• Carney promises to scrap carbon pricing if he becomes prime minister (Globe)

• Canada Signals Retreat from Capital Gains Tax Hike (theDeepDive)

• LinkedIn lawsuit over use of customer data for AI models is dismissed (Reuters)

• Trump Orders Deportation of Foreign Students in Pro-Palestine Protests (theDeepDive)

• Meta Blocked News in Canada. Ads for Scams Are Taking Its Place (Bloomberg)

• ByteDance Components Found in DeepSeek App —Privacy Report (theDeepDive)

• Costco to raise hourly pay for most US store workers to over $30 (Reuters)

• China Has Quietly Spent $57 Billion to Control the World’s Critical Minerals (theDeepDive)

• Canadian food companies plan to move production to U.S. as tariffs loom (Globe)

What’s the latest?

• Canada’s GDP: Canada's real GDP fell 0.2% in November, the largest drop since December 2023, driven by a 0.6% contraction in goods-producing industries, including a 1.6% decline in mining and a 3.6% drop in utilities. Services edged down 0.1%, with transportation and warehousing falling 1.3% due to strikes. However, December GDP is estimated to have risen 0.2%, suggesting Q4 annualized growth of 1.8%. Leisure-related industries saw gains in November, with accommodation and food services up 1.4%, arts and entertainment up 0.8%, and air transportation up 1.3%, boosted by Taylor Swift’s Toronto concerts.

• Tariff Fight: Canadian Liberal leadership candidate Chrystia Freeland proposed 100% tariffs on U.S. alcohol, Teslas, and Wisconsin dairy products if Donald Trump enacts trade tariffs against Canada. She aims to pressure political and business leaders, including Tesla CEO Elon Musk. Tesla’s CFO warned that tariffs could harm the company’s profitability. Trump reaffirmed plans for 25% tariffs on Canadian and Mexican goods starting Saturday.

• Federal Deficit: Canada's federal deficit reached $22.7 billion from April to November, up from $19.1 billion the previous year. Revenues increased by $29.5 billion (10.5%), while program expenses rose by $30 billion (11.3%), driven by higher elderly and EI benefits and a 54% jump in rebates. Public debt charges grew by $5.4 billion (17.4%) due to rising interest rates and bond issuance. Net actuarial losses decreased by $2.4 billion (46.8%).

• Shein: Shein is pushing a public listing in London while addressing product safety concerns, announcing it conducted over 2 million safety tests in 2023 and terminated 260 non-compliant sellers. The retailer recently recalled over 300 hair dryer brushes in the U.S. due to electrocution risks but reported no injuries. U.K. lawmakers remain skeptical, criticizing Shein's refusal to clarify its cotton sourcing amid concerns over forced labor in Xinjiang. The company previously claimed to have stopped sourcing cotton from China but did not reaffirm this during a British parliamentary hearing.

• US Inflation: U.S. inflation remained elevated in December 2024, with the personal consumption expenditures (PCE) price index rising 2.6% year-over-year and core PCE at 2.8%, both above the Federal Reserve’s 2% target. Monthly, headline PCE increased 0.3%, while core PCE rose 0.2%, matching forecasts. Personal income grew 0.4%, and consumer spending rose 0.7%, slightly exceeding estimates. The employment cost index (ECI) increased 0.9% in Q4, bringing the annual gain to 3.8%, slightly below Q3 levels.

Will Trump’s tariffs crush the economy or bring jobs back?

The stock market and stuff

• OpenAI Seeks Record $40 Billion Investment at $300 Billion Valuation (theDeepDive)

• Oil Swings as Traders Await Trump Decision on Canada Oil Tariffs (Bloomberg)

• Commerzbank posts 20% hike in annual profit and launches new share buyback as it wards off UniCredit (CNBC)

• Lundin Mining Fined $3.3 Million Over Sinkhole At Alcaparrosa Mine (theDeepDive)

In the juniors

• Drilling Progressing to Plan at Adyton Resources' Fergusson Wapolu Project (JMN)

• AbraSilver Announces $48.4 Million Financing Package (theDeepDive)

• Sokoman Minerals Drilling Resumes at Western Trend, Moosehead Project, Central Newfoundland (JMN)

FULL DISCLOSURE: Golden Cariboo Resources is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is long the equity of Golden Cariboo Resources. The author has been compensated to cover Golden Cariboo Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.