ChatGPT firm OpenAI could be valued at $500bn in share sale; Honda Motor profits halve as tariffs bite – business live

Honda’s Quarterly Profit Halves Amid Tariff Challenges

In a recent financial report, Honda Motor Co., Japan’s second-largest automaker, disclosed a significant decline in its quarterly profits. The company reported an operating profit of ¥244.2 billion (approximately £1.24 billion) for the April to June quarter, falling short of analyst expectations of ¥311.7 billion. This downturn is largely attributed to the ongoing trade tensions initiated during Donald Trump’s administration, which have severely impacted earnings.

Honda specifically noted that the 27.5% tariffs on auto imports imposed by the United States reduced its operating profit by about ¥125 billion during this quarter. However, there is a silver lining; the automaker has revised its projections for the full fiscal year, estimating a ¥450 billion impact from tariffs, down from its earlier forecast of ¥650 billion.

In response to these challenges, Honda has increased its full-year operating profit forecast from ¥500 billion to ¥700 billion, citing expectations of a weaker yen than previously anticipated. Furthermore, a recent trade deal between the US and Japan aims to reduce tariffs on Japanese cars to 15%, though a specific timeline for implementation has yet to be established. Japan’s chief tariff negotiator, Ryosei Akazawa, is currently in Washington to negotiate this agreement.

OpenAI in Talks for Share Sale Valued at $500 Billion

Good morning! We are excited to bring you the latest news from the world of business, finance, and the global economy. The artificial intelligence sector continues to gain traction, capturing the attention of investors and promising substantial returns for companies at the forefront of AI innovation.

Recently, OpenAI, the organization behind the popular ChatGPT chatbot, has entered discussions regarding a potential share sale that could value the company at an impressive $500 billion. This represents a significant increase from its previous valuation of $300 billion established during a financing round in March, solidifying its position as one of the largest privately held companies worldwide.

These ongoing negotiations revolve around a possible stock sale for current and former employees, with reports from Bloomberg indicating that existing investors, including Thrive Capital, have expressed interest in purchasing shares. Since OpenAI is not publicly traded, this secondary sale would provide an opportunity for employees to realize returns on their investments.

The timing of this potential sale aligns with a broader trend, as companies rapidly develop and implement AI technologies, causing the market value of chipmaker Nvidia to surge beyond $4 trillion last month. Additionally, shares in Palantir, an AI and analytics firm, rose nearly 8% after surpassing Wall Street expectations and updating its full-year guidance in response to the AI boom.

OpenAI is also reaping the benefits of this trend, with its annual recurring revenue (ARR) reportedly climbing to $12 billion, and projections suggest it could exceed $20 billion by the end of 2025. Furthermore, OpenAI recently launched new, freely available AI models, challenging rivals such as Meta and the Chinese company DeepSeek.

CEO Sam Altman expressed enthusiasm about making these advanced AI models accessible, stating, “We’re excited to make this model, the result of billions of dollars of research, available to the world to get AI into the hands of the most people possible.”