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OpenAI dethrones SpaceX as world’s most valuable startup. (00:21) White House halts ~$26B in funding for infrastructure, climate projects. (00:53) Amazon (AMZN) introduces a new private label aimed at Costco’s (COST) Kirkland and Walmart’s (WMT) Great Value lines. (02:31)
This is an abridged transcript.
OpenAI is worth $500B.
The Microsoft backed company finalized a share sale that allowed current and former employees to sell stock to the tune of $6.6B. $10.3B was authorized.
OpenAI was previously valued at $300B.
We’re diving deeper into OpenAI’s valuation in the Wall Street Breakfast newsletter. It’s our daily one-page news summary. A link to sign up for the newsletter is in the show notes section.
The Trump administration has moved to freeze or cancel about $26B in funding for several infrastructure and climate-related projects across the U.S. amid the federal government shutdown.
Russell Vought, director of the Office of Management and Budget, announced on X that roughly $18B in New York City infrastructure projects were put on hold.
This is “to ensure funding is not flowing based on unconstitutional DEI (diversity, equity and inclusion) principles,” he posted. “Specifically, the Hudson Tunnel Project and the Second Ave Subway.”
The Department of Transportation issued a statement saying the two projects are under administrative review to check for any unconstitutional practices. Project reimbursements can’t be processed – including a $300M disbursement for the 2nd Avenue Subway – until the review is complete, which will take time given the federal government shutdown.
OMB also announced that nearly $8B in funding for climate-related projects would be canceled in 16 states, including California and New York.
The Department of Energy said 321 financial awards supporting 223 projects would be terminated, resulting in savings of ~$7.56B for taxpayers.
“Following a thorough, individualized financial review, DOE determined that these projects did not adequately advance the nation’s energy needs, were not economically viable, and would not provide a positive return on investment of taxpayer dollars,” it added.
Amazon (NASDAQ:AMZN) has a new budget-friendly line. It’s called Amazon Grocery.
It consolidates the Amazon Fresh and Happy Belly private labels into a single brand.
Amazon Grocery will feature more than 1,000 grocery items, almost all priced under $5 and rated at least 4 stars by customers. The assortment includes staples such as milk, olive oil, produce, meat, seafood, snacks, and pantry essentials—available online and at Amazon Fresh store locations.
Amazon Grocery is positioned as a direct rival to Costco’s (COST) Kirkland Signature and Walmart’s (WMT) Great Value.
What’s Trending on Seeking Alpha:
Apple tables Vision Pro sequel to pursue smart glasses: report
Trump holding off on pharma tariffs to negotiate more deals – report
SA analyst upgrades/downgrades: NVDA, IONQ, GIS, MPC
Dow, S&P and Nasdaq futures are in mixed territory. Crude oil is down 0.5% at $61/barrel. Bitcoin is flat at $118,000. Gold is up 0.3% at $3,876.
The FTSE 100 is flat and the DAX is up 1.3%. The market in China is closed for a holiday. The market in Hong Kong has reopened following Wednesday’s holiday closure and the market in India is closed for a holiday.
The biggest movers for the day premarket: Stellantis (NYSE:STLA) +6% – Shares gained after the company posted impressive Q3 car sales numbers.
On today’s economic calendar:
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