This week in AI: OpenAI eyes $40B, Apple debunks AI reasoning hype
From Enterprise AI platform Glean raising $150 million in Series F funding to Apple revealing how reasoning AI models may not be as capable as their fancy benchmark scores suggest, AIStory brings a recap of major developments and emerging trends in the sector this week.
From Enterprise AI platform Glean raising $150 million in Series F funding, pushing its valuation to $7.2 billion to Apple revealing how reasoning AI models may not be as capable as their fancy benchmark scores suggest, AIStory brings a recap of major developments and emerging trends in the sector this week.
Here’s a list of key stories:
OpenAI in talks to raise $40B from Reliance, Saudi’s PIF, and other global investors
OpenAI is in discussions to raise up to $40 billion in funding, holding talks with Saudi Arabia’s Public Investment Fund (PIF), Reliance Industries, and UAE-based MGX, reports The Information.
Each investor is expected to contribute at least several hundred million dollars, with SoftBank reportedly leading the round. The funds will support Sam Altman-led firm’s next phase of model development and its large-scale data centre project, Stargate.
OpenAI has also approached other major backers including Coatue Management and Founders Fund, each expected to invest at least $100 million. The company is targeting an additional $17 billion in financing by 2027.
Meta in talks to acquire 49% stake in Scale AI for $14.8B: Report
Meta Platforms is planning to acquire a 49% stake in Scale AI for $14.8 billion, according to a report by The Information on Tuesday. The deal, yet to be finalised, will see Meta’s cash investment go directly to Scale’s existing shareholders, the report said.
It added that as part of the agreement, the 28-year-old CEO of Scale AI, Alexandr Wang, is expected to take a senior leadership position within Meta. The transaction marks a windfall for Scale’s early backers, including Accel, Index Ventures, Founders Fund, and Greenoaks Capital, as well as current and former employees.
Freshworks enhances Freddy AI with new agentic capabilities to automate enterprise workflows
Nasdaq-listed Freshworks has introduced agentic capabilities to its Freddy AI platform, enabling businesses to automate service operations by allowing AI agents to take action within existing enterprise systems. The new features primarily focus on resolving service requests autonomously, providing real-time insights, and making it easier for support teams to deploy AI agents, the company said in a release.
The company, in a statement, noted that Freddy AI is now capable of performing tasks such as processing insurance claims, updating payroll records, and booking shipments directly within the software businesses already use.
Apple research predicts reasoning models may fall short while faced with complex problems
A new study by Apple has revealed that reasoning AI models may not be as capable as their fancy benchmark scores suggest, facing a ‘complete accuracy collapse’ when faced with complex tasks. In its latest paper titled ‘The Illusion of Thinking: Understanding the Strengths and Limitations of Reasoning Models via the Lens of Problem Complexity’, the iPhone maker argues that while the models may perform well with detailed explanations and responses, they still lack general reasoning.
OpenAI partners with Mattel to infuse AI across toy brands Barbie, Hot Wheels
OpenAI has entered into a partnership with Mattel Inc to integrate generative-AI capabilities into the toymaker’s portfolio and digital experiences, the companies said on Friday. Under the agreement, OpenAI will provide its AI models and tools to help the brand develop new ways for consumers to interact with brands such as Barbie, Hot Wheels, and Fisher-Price.
The joint effort is intended to power connected toys, personalised content, and other immersive experiences while maintaining safety standards required for children’s products.
Enterprise AI startup Glean raises $150M in Series F round at $7.2B valuation
Enterprise AI platform Glean has secured $150 million in Series F funding, pushing its valuation to $7.2 billion. The round was led by Wellington Management, with new backers including Khosla Ventures, Bicycle Capital, Geodesic Capital, and Archerman Capital. Existing investors such as Altimeter, Capital One Ventures, Citi, Coatue, DST Global, General Catalyst, ICONIQ, IVP, Kleiner Perkins, Latitude Capital, Lightspeed Venture Partners, Sapphire Ventures, and Sequoia Capital also participated in the round.
The fresh capital infusion will fuel product development, expansion of its global partner ecosystem, and support its international growth plans.
AI note-taking app Fireflies reaches $1B in valuation, partners with Perplexity
AI-powered meeting assistant Fireflies.ai has crossed a $1 billion valuation following its first tender offer. The company said the tender offer will provide liquidity to early team members who have been with Fireflies for several years, with the offer being extended to 10–15% of the workforce. The San Francisco-based startup has also partnered with AI startup Perplexity to add real-time, voice-activated web search into meetings. This joint effort has led to the creation of a new feature called “Talk to Fireflies,” allowing users to pull up information without leaving meetings.
Ola Krutrim debuts ‘Kruti’ AI assistant to book cabs and place food orders
AI unicorn Ola Krutrim has rolled out Kruti, an agentic AI assistant capable of performing tasks rather than only responding to queries. The assistant is capable of performing tasks such as booking cabs, ordering food, paying bills, image generation, and research, and is equipped with additional features such as read-aloud responses and personalisation.
An upgraded version of Krutrim’s earlier public beta chatbot, Kruti supports both voice and text input, retains conversational context, and adjusts tone, length, and language to user preferences.
Currently, Kruti supports 13 Indian languages and provides advanced functions, such as image creation and in-depth research, at no cost, the company said in a statement on Thursday.
OpenAI clocks $10B in ARR driven by ChatGPT adoption
OpenAI has reached $10 billion in annual recurring revenue (ARR), more than doubling from around $5.5 billion last year, as demand for its ChatGPT products continues to surge. This development comes less than three years after the San Francisco startup first launched the viral AI chatbot.
According to a company spokesperson, the ARR figure includes revenue from OpenAI's consumer subscriptions, business offerings, and API usage, but excludes Microsoft licensing income and large one-off deals, reported CNBC.
Edited by Jyoti Narayan