Business & Tech News
OpenAI – No Profit in the Next Four Years:
A report from Bloomberg has revealed that Open AI does not anticipate a positive cash flow until 2029. The artificial intelligence major player is having to deal with significant costs from chips, data centres and expensive tech skills that it requires to produce ever increasing demands within an exceptionally competitive AI landscape. The growing number of new GenAI models, including the recently revealed DeepSeek Chinese developed model, has brought fresh competition to the market and boasts that it has developed its computational model at a fraction of the cost of OpenAI. By 2029, OpenAI expects its revenue will exceed the $125 billion mark, that it expects to be buoyed by the strength of its paid AI software, with the forecast to more than triple its revenue to $12.7 billion in 2025. This would eclipse its revenue projection from last year that indicated revenue of $11.6 billion for 2025.
US Stocks Fall while Gold Climbs:
US stocks tumbled in the afternoon session in the US yesterday. The trading session saw the S&P 500 decline by -1.1% and the Nasdaq 100 dropping by -2%, ending a three-day rally, while the Dow Jones lost 134 points. Nvidia and Tesla shares plunged by more than -5.5%, while major tech firms like Meta, Amazon, and Alphabet fell by over -2%. There were renewed tariff concerns that compounded the effect of fading tech momentum that scared off investors. Selling intensified after the White House announced President Trump would unveil new auto tariffs at 4 p.m., sending shares of General Motors, Ford, and Stellantis lower.
The news comes ahead of a broader wave of trade measures expected next week, fuelling concerns over prolonged economic uncertainty. The uncertainty also saw a growth in the gold prices with the yellow metal heading toward a new historic high level this morning where it is currently trading at $3031.
X Sees Big Revenue Growth:
Social media platform X is on track to see the company’s first year of advertising revenue growth since its acquisition by Tech billionaire Elon Musk in 2022. This was revealed in data released by research firm Emarketer, that showed that advertising revenue on X’s in the U.S. is expected to grow 17.5% to $1.31 billion, while global ad sales are estimated to rise 16.5% to $2.26 billion. The growth is a significant turning point for the company after it had seen a massive decline in Ad-revenue of -40% in 2023. Much of the drop-off was believed to be driven by a concerted attempt to cripple the platform, driven by political players.
Asian Stocks – Early Gains Today
In Early trade today, Hong Kong equities climbed 341 points or 1.4% to 23,824 extending gains for a second session amid broad-based gains. Sentiment strengthened after Wall Street banks turned bullish on Chinese stocks. Morgan Stanley raised its 2025 year-end targets for mainland shares for the second time this year, while Goldman Sachs projected further upside driven by positive earnings revisions. A slight decline of 0.3% yoy in China’s industrial profits for the first two months of 2025 also provided support, following a 3.3% drop in 2024 and reinforcing signs that Beijing’s stimulus measures are starting to have a positive impact on the economy.
Markets by Numbers
Currencies:
Currency markets are indicating the Euro has hit its lowest level in three weeks, with the US Dollar currently at 1.07757 against the Euro, and at 1.29773 against the Pound. The Yen is trading flat against the Dollar, and at 150.21 to the dollar currently. The rand remains range bound between R18-20 to R18.25 against the Dollar and is trading at R18.21 to the dollar currently.
Commodities:
- Gold futures prices are currently trading upwards, and heading towards a fresh high, and currently at $3032.
- Copper prices continue have maintained their upward trajectory and at 5.2406 currently.
- Silver prices are trading upwards today, and at 33.705 currently.
- Platinum is trading at $966.70 currently, while Palladium prices are currently trading slightly higher today and at $954.50 currently.
- Brent Crude Oil prices are trending upwards at $73.84 currently, with WTI also trading upwards, and at $69.69 currently.
- Cocoa futures have slipped below the $8000 level this morning, with prices currently at $7992.33 per ton.
- Coffee futures prices have also slipped in trade this morning, and at $391.65 currently.
Crypto Currencies:
- Bitcoin is currently trading at $87652, up over 4% for the week.
- Ether prices have remained above the $2000 mark, and currently trading at $2031.15
- $Trumpcoin is trading up over 1% today and currently trading at $11.57
(All prices quoted at approximately 05H50 – Central African Time)
Other News in Africa Today
Junta General President in Niger:
The leader of Niger’s junta, Abdourahamane Tchiani, has officially been sworn in as the country’s new president Yesterday, and will hold the position for a five-year transitional period. Tchiani has also dissolved all political parties in a move that regresses its democratic origins. This is according to the new charter that has been adopted by the ruling Junta and will now supersede the existing constitution. The decision is controversial and clashes with efforts by the regional Block to expedite a return to democratic governance after the coup in 2023.
Tchiani, a long-serving military officer, was also promoted to the rank of army general, solidifying his authority since he led the military coup that ousted the elected government in June 2023. At the conclusion of the transition period that will end in 2030, Tchiani will have been in power for a period of almost seven years, mirroring the trend of extended military rule seen in other junta-led nations in Africa, such as Mali, Guinea, and Burkina Faso.
Sudan’s Capital Recaptured
According to reports from Sudan’s national broadcaster the military leader of Sudan, Gen Abdel Fattah al-Burhan, has arrived in the Capital Khartoum in his first visit to the area, after it was recaptured by the army barely hours before his arrival. There were scenes of cheering soldiers at the Presidential Palace where al-Burhan declared the capital “free” of the paramilitary group, Rapid Support Forces (RSF), a paramilitary force formerly operated by the government of Sudan. The RSF grew out of, the Janjaweed militias which previously fought on behalf of the Sudanese government. Its military actions in Darfur were deemed crimes against humanity by Human Rights Watch. “Khartoum is free, it’s done,” al-Burham commented. This is believed to be the first time Burhan has set foot in the presidential palace since the start of the civil war almost two years ago.
