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Is OpenAI about to double its value with a $40B raise?
Corinne Walker & Maddie Naumann
January 30, 2025 • Estimated Reading Time: 7 minutes
Top News
Google cuts Android, Chrome, and Pixel Employees: In an effort to push full steam ahead on AI, Google has initiated a voluntary exit program for its U.S.-based Platforms and Devices team, encompassing employees working on Android, Pixel hardware, and related projects. This move follows the 2024 merger of Google's Android and hardware teams, pushing to accelerate AI integration. This move reflects a strategic shift in both budgets and priorities, underscoring the heightened focus on AI innovation.
Apple’s Q1 Report Card: Apple reported fiscal first-quarter earnings that exceeded expectations, driven by a 14% increase in services revenue to $26.34 billion. Overall revenue rose 4% year-over-year to a record $124.3 billion, with earnings per share reaching $2.40. However, iPhone sales dipped nearly 1% to $69.14 billion, missing projections, particularly due to challenges in the Chinese market. Despite this, the company saw significant growth in Mac and iPad sales, both rising over 15%.
OpenAI Raising Again: OpenAI is in early discussions to raise up to $40 billion in funding, potentially valuing the company at $300 billion and doubling its valuation. SoftBank is expected to lead the round with an investment between $15 billion and $25 billion, aiming to become OpenAI's largest backer. Although they just raised $6.6 billion in October of last year, OpenAI will need all of the capital they can get with their $18 billion commitment to Stargate. If successful, this raise would position OpenAI as the world's second-most valuable startup, topped only by SpaceX.
TWiST500
Maddie here. Since we just covered Boom Supersonic’s historic flight, I’m going to keep the aerospace theme going—this time on the defense side.
The defense-tech startup just raised $100 million to develop hypersonic strike weapons—missiles that fly at least five times the speed of sound and can evade modern air defenses. Founded by former SpaceX engineers, Castelion is taking a full-stack approach to hypersonics, designing everything from solid rocket motors to onboard electronics. The company is planning its first hypersonic test flight for this summer and is targeting full operational readiness by 2027.
The timing feels significant; the Pentagon has prioritized hypersonic weapons for over a decade, but progress has been slow. China’s 2021 hypersonic missile test raised alarms, yet the U.S. military has missed multiple deadlines. With increased government spending on hypersonics and potential policy shifts under the new Trump administration (More government contracts for startups), startups like Castelion have a clear opportunity to move fast.
It’s part of a broader wave of VC money flowing into defense tech:
With growing government interest and private sector investment, I am expecting more defense startups to be on the TWiST500 in the coming months.
— Maddie
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