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Tech Giants Invest Billions in OpenAI's AI Future
19 Feb
Summary
- Orange consortium seeks to acquire struggling SFR, aiming for a three-player French market.
- OpenAI anticipates over $100 billion in its latest funding round.
- Major investors like Amazon and SoftBank are reportedly committing billions to OpenAI.
Orange SA, France's largest telecom provider, is participating in a consortium with rivals Bouygues Telecom and Iliad SA to acquire Patrick Drahi's struggling operator SFR. This potential consolidation aims to reshape the French market into a three-player landscape, reducing price competition and encouraging infrastructure investment. The consortium entered due diligence with Drahi's Altice Group in January for a new bid on SFR.
Orange forecasts a compound annual cash flow growth of approximately 12% through 2028, reaching around €5.2 billion. This outlook supports the company's strategy to offset legacy copper network decline by increasing revenue from B2B services like cybersecurity and reducing costs.
Meanwhile, OpenAI is reportedly close to finalizing the initial phase of a funding round that could exceed $100 billion. This record-breaking deal, with a potential valuation over $850 billion, would provide substantial capital for AI development. Strategic investors including Amazon, SoftBank, Nvidia, and Microsoft are expected to contribute significantly, with allocations possibly near $100 billion for this first tranche.
