Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<ul class="summary-list"><li>OpenAI plans to restructure into a for-profit company, moving away from nonprofit board oversight.</li><li>Key executives have also departed in recent months, citing concerns about OpenAI's future.</li></ul>After a whirlwind week for OpenAI, former and current employees are weighing in on the company's path forward.OpenAI's <a target="_blank" class="" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">chief technology officer, Mira Murati</a>, and top researchers, Barret Zoph and Bob McGrew, announced their resignations on Wednesday last week. The following day, <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-chatgpt-openai-ceo-career-net-worth-ycombinator-prepper-2023-1">OpenAI CEO Sam Altman</a> confirmed reports that the company was considering <a target="_blank" class="" href="https://www.businessinsider.com/what-openai-needs-to-do-to-become-for-profit-altman-2024-9#">restructuring itself as a for-profit company</a> and leaving its nonprofit origins behind.OpenAI has so far been mostly quiet about the restructuring. It hasn't issued a formal statement, but Altman said the company has been thinking about it as part of "what it takes to get to our next stage" at <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-openai-italian-tech-week-executives-restructure-2024-9">a talk during Italian Tech Week</a> last Thursday. The move to a for-profit benefit company coincides with an effort by OpenAI to raise billions in new investment.Outsiders wonder what these developments mean about OpenAI's inner workings, especially since <a target="_blank" href="https://www.businessinsider.com/openai-leaders-who-left-since-2023-sam-altman-leadership-struggle-2024-9">several other high-profile executives and researchers</a> have also recently left the company.According to some of OpenAI's departing employees, there is internal concern that the shift to a for-profit company confirms what they already suspected: Altman is prioritizing profit over safety.OpenAI's mission from the start has been to develop artificial general intelligence — a still theoretical version of AI that can reason like humans — in a way that is safe and benefits all of humanity. The company's commitment to the latter half of that mission has been a point of contention in recent years.When OpenAI safety leader Jan Leike announced his resignation in May, he said on X he had thought it would be "the best place in the world to do this research." By the time he left, however, he said he had reached a "breaking point" with OpenAI's leadership over the company's core priorities.Gretchen Krueger, a former policy researcher at OpenAI, said the company's nonprofit governance structure and cap on profits were part of the reason she joined in 2019 — the year that OpenAI added a for-profit arm. "This feels like a step in the wrong direction, when what we need is multiple steps in the right direction," she said Sunday on X.She said OpenAI's bid to transition into a public benefit corporation — a for-profit company intended to generate social good — isn't enough. As one of the biggest developers of <a target="_blank" class="" href="https://www.businessinsider.com/what-is-agi-artificial-general-intelligence-explained-2023-5">artificial general intelligence</a>, OpenAI needs "stronger mission locks," she wrote.Current employees, however, are mostly towing the company line, at least publicly.Noam Brown, a researcher at OpenAI, disagrees that the company has lost its focus on research. "Those of us at @OpenAI working on o1 find it strange to hear outsiders claim that OpenAI has deprioritized research. I promise you all, it's the opposite," he wrote on X on Friday.Earlier this month, <a target="_blank" href="https://www.businessinsider.com/openai-o1-ai-model-agi-2024-9">OpenAI released o1</a>, a new set of AI models that it says are "designed to spend more time thinking before they respond."Brown, like other current employees, didn't weigh in on the near-simultaneous departures of Murati, Zoph, and McGrew other than to note he would miss them.Mark Chen, the senior vice president of research at OpenAI, also reaffirmed his commitment to the company. "I truly believe that OpenAI is the best place to work on AI, and I've been through enough ups and downs to know it's never wise to bet against us," he wrote on X on Wednesday.OpenAI did not immediately respond to a request for comment from Business Insider.

Here's what OpenAI employees are saying about the company's future

New Delhi: <keyword id="21530712" type="General" weightage="100" keywordseo="Ola-Founder-Bhavish-Aggarwal" source="keywords">Ola Founder Bhavish Aggarwal</keyword> is placing bold bets on new-age technologies with a view for <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> to be at the forefront of the current global <keyword id="22912054" type="General" weightage="20" keywordseo="tech-transition" source="keywords">tech transition</keyword> led by AI, and build <keyword id="22912488" type="General" weightage="20" keywordseo="jobs-of-the-future" source="keywords">jobs of the future</keyword> in the country. In an interaction with PTI editors at the agency's headquarters here, he said the private sector has to do the bulk of job creation, step up and do more, while creating an enabling environment and correcting imbalances, such as that of trade, are the responsibility of the government. Aggarwal also supported the government's move to offer fiscal incentives to global EV makers, including Tesla, through the new EV policy saying it is important for India to attract all kinds of investment, and globally established players will help in the development of the EV ecosystem in the country. The group's newly-listed entity <keyword id="19945904" type="General" weightage="20" keywordseo="Ola" source="keywords" meta.keywordsubtype="org" meta.entityname="Ola" meta.hostid="83" meta.entityid="Ola">Ola</keyword> Electric aims to make India a global electric vehicle (EV) hub but the country has to invent an EV and energy transition paradigm for itself based on its needs as the world cannot achieve a sustainable future without India, he added. "There is a global technology transition happening and AI is a very important technology of the future, and we in India need to lead this journey. If you look at the current state, I think we are still adopters of somebody else's technology paradigms, especially in the digital world," Aggarwal said, explaining why the Ola group had set up AI start-up Krutrim last year. One of the things in Krutrim is to build AI models on Indian data, which is more attuned to Indian use cases, Indian paradigms, he said, adding, "We are making our own AI, on our own cloud, on our own chip." Despite India producing 20 per cent of the world's digital data at present, he lamented that the country does not fully own the data, as 80 per cent are stored outside, which are then processed into AI and "brought back into India and sold to us in dollars". When asked about concerns over AI leading to job losses, he allayed the apprehension saying that the IT boom created jobs in India when people feared that computers would take away jobs, and AI is a similar tool. "AI is not going to replace anyone. Maybe that future is a few decades away... We don't need to get anxious about that future right now. We need to, as a country, see that AI is going to amplify productivity. If we don't get onto the bandwagon, we will be left behind...," he asserted. In his view, Aggarwal said the way forward is for India to become experts in future technology. "Future technologies bring with it jobs of the future, supply chain of the future. And if we are global leaders, we are the fastest adoptive market of future technologies (then) jobs of the future will be built in India, supply chains of the future will be built in India. This is the only way... If we focus on protecting the past, you remain uncompetitive," he added. Sharing his take on employment generation in India, Aggarwal said, "I actually believe the private sector has to do the bulk of the job creation. The government's job is to create the enabling environment, create the fundamentals, help correct imbalances wherever they are, be it trade imbalances, etc and incentivise wherever it needs to be incentivised, like the PLI schemes." The government's steps such as the employment-linked incentives will also encourage private industry, he said, adding "But fundamentally the private sector has to step up and do more". Asked if the government is doing enough to create that ecosystem for the private sector, Aggarwal said, "I'm not in the government, so I want to put the limelight on ourselves. Is the private sector doing enough? I think we all can do more, and I'm on the same page. We all need to do more." In response to a query on his views over the government in extending the fiscal concession that companies like Tesla have been demanding from India, he said, "It is very important for India to attract all kinds of investment, especially (from) world leading companies. "Tesla is a best in class company. The more companies like these invest into India, the better it is for India, in a broad sense as well for the industry." He further said, "The (EV) ecosystem, including my company, will benefit from it, because it will raise the bar on expertise, on excellence, on talent, everything..." About the newly-listed entity Ola Electric, he said, "Our mission at Ola electric is to really make India a global EV hub." The company will build products such as electric two and three-wheelers that Indians need for the country to be able to invent an EV and energy transition paradigm for itself, different from the current global solution for sustainability that is focussed on electric luxury cars, Aggarwal added. On Ola Consumer, he said the ride-hailing mobility vertical is fairly profitable, while it is investing into the new e-commerce for which it has partnered with ONDC.

India needs to lead global tech transition, build jobs of the future: Ola Founder Bhavish Aggarwal

<ul class="summary-list"><li>Saudi Arabia's Public Investment Fund, led by Crown Prince Mohammed Salman, is going global.</li><li>The sovereign wealth fund is investing in everything from Uber and Blackstone to Heathrow and LIV Golf.</li></ul>In the months before <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-crown-prince-mohammed-bin-salman-mbs-2023-10">Mohammed bin Salman</a> celebrated his 30th birthday nearly a decade ago, the yet-to-be anointed Crown Prince of Saudi Arabia was gifted a vital key to unlocking the kingdom's future: full purview of its Public Investment Fund.Back in 2015, MBS became chairman of the sovereign wealth fund established in 1971 by a former king at a time when it was ready to be transformed. A slow-moving cog of the state no more, PIF was ready to become an investment juggernaut with global presence.It's a task the fast-rising royal hasn't shied away from. PIF, officially led by governor Yasir Al-Rumayyan, has been stepping up its mission to invest in high-profile assets globally in recent years to help fulfill its mission of reducing Saudi Arabia's economic dependence on oil.That mission, a fundamental part of <a target="_blank" class="" href="https://www.businessinsider.com/vision-2030-saudi-arabia-plan-future-proof-oil-economy-2023-8">an ambitious program called Vision 2030</a> that MBS is in charge of, depends in part on how successful the PIF is in generating returns from its big bets overseas — and leveraging those bets to build hot new industries at home."MBS' personal ambition is very much to make Saudi Arabia a highly visible and internationally respected post-oil economy," Steffen Hertog, associate professor at the London School of Economics, told Business Insider. "The PIF is by far his most important vehicle in this endeavor."But as PIF spreads its wings, it is becoming increasingly unclear as to just how successful it stands to be beyond the Gulf.<h2 id="ab7cae77-96ba-4c12-be58-1085931cd388">Saudi Arabia goes global</h2><div type="image" title="Prince Mohammed bin Salman in front of a black background." height="320" width="640" msid="112575436" hostid="261" sizebytes="15426"></div>A look at the <a target="_blank" class="" href="https://www.pif.gov.sa/en/our-investments/our-portfolio/#ourportfolio_e=0">PIF's portfolio</a> presents a show reel of some of the most prolific names in global business.In the tech sector, it has <a target="_blank" href="https://www.businessinsider.com/how-investment-in-uber-brought-saudi-prince-to-silicon-valley-2020-9">pumped $3.5 billion into Uber</a>, poured $45 billion into SoftBank's Vision Fund, taken a 60% stake in <a target="_blank" href="https://www.businessinsider.com/tesla">Tesla</a> rival Lucid, and become majority owner of augmented reality startup Magic Leap.Beyond that, it has pumped <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-public-investment-fund-pif-sports-influence-pga-liv-2023-6">billions of dollars into LIV Golf</a>, led a $415 million takeover of Newcastle United, backed up a Blackstone infrastructure fund with $20 billion and invested in Carnival, the world's biggest cruise operator. In June, PIF expanded its stake in London's Heathrow Airport.Figures published in July by <a target="_blank" href="https://globalswf.com/reports/2024gsr#market-update-1h-2024-1">GlobalSWF</a>, a data firm tracking sovereign-wealth-fund activity, found that PIF deployed more capital in the first half of 2024 than all other state-owned investors, which collectively invested close to $100 billion in the six-month period.According to LSE's Hertog, PIF's attraction to high-profile brands isn't just about making itself more visible to the West. "These for the most part are corporates active in sectors that the PIF and MBS see as key for Saudi Arabia's domestic economic diversification."To make these deals happen, the kingdom has been busy doing a lot of courting.In February, it backed a two-day conference in Miami, where the likes of Blackstone leader Stephen Schwarzman and Donald Trump's son-in-law Jared Kushner were <a target="_blank" class="" href="https://fii-institute.org/wp-content/uploads/2023/12/02.22_FII-PRIORITY-Miami-2nd-Edition-Program.pdf">billed as speakers.</a> In October, the kingdom will be prepared for the global elite to descend on capital city Riyadh for its "<a target="_blank" class="" href="https://www.businessinsider.com/saudi-business-conference-davos-in-desert-costs-15000-attend-2023-9">Davos in the desert</a>" investment conference.<div type="image" title="Prince Mohammed bin Salman in front of a black background." height="320" width="640" msid="112575436" hostid="261" sizebytes="15426"></div>The event, which has previously attracted the likes of JP Morgan and BlackRock CEOs <a target="_blank" class="" href="https://www.businessinsider.com/jamie-dimon-career">Jamie Dimon</a> and <a target="_blank" class="" href="https://www.businessinsider.com/blackrock-ceo-larry-fink-net-worth-career-history">Larry Fink</a>, has proven controversial in the past. <a target="_blank" class="" href="https://www.businessinsider.com/biden-mbs-responsible-for-jamal-khashoggi-murder-2022-7">MBS's alleged role</a> in the murder of journalist Jamal Khashoggi in 2018, which he denies having involvement in, gave some dealmakers pause for thought.That said, the world's corporate elite appear to be looking past the incident as time passes — something the Saudis seem to be aware of. This year's theme, <a target="_blank" href="https://fii-institute.org/conference/fii8/">"Infinite Horizons,"</a> offers a nod to the global scope it has in mind for its future.For global companies, fund managers, and bankers, Saudi Arabia's wealth has been a big draw at a critical time. While other investors have exercised caution in the face of a higher interest rate environment, the kingdom has kept its money flowing.That's partly because the fund has set a target of $2 trillion in assets under management by the end of the decade, and is racing against the clock to meet the deadline for its ambitious Vision 2030 program.Saudi Arabia also finds itself l<a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-vs-uae-middle-east-economic-power-supremacy-dubai-2023-9">ocked in a tense rivalry with other economic powerhouses</a> in the region such as the United Arab Emirates, where funds such as Mubadala and <a target="_blank" class="" href="https://www.businessinsider.com/satya-nadella-microsoft-ai-kingpin-g42-openai-china-2024-4">G42 have been busy securing their own big international deals</a>. Bragging rights are on the table.<h2 id="daf6e7aa-7788-42a8-84dd-cb066c69057e">Risky high-stakes game</h2><div type="image" title="Prince Mohammed bin Salman in front of a black background." height="320" width="640" msid="112575436" hostid="261" sizebytes="15426"></div>However, while the Saudis prepare to continue flashing their cash abroad, the PIF faces some risks.For one, the fund has had to learn the hard reality of going big, as a number of its high-profile investments overseas have struggled financially. Earlier this month, for instance, <a target="_blank" class="" href="https://www.businessinsider.com/middle-east-funds-racing-rescue-investments-saudi-arabia-pif-mubadala-2024-8">PIF had to plug a funding gap for Lucid</a> by pumping in an extra $1.5 billion.The electric vehicle maker first <a target="_blank" href="https://lucidmotors.com/fr-ca/media-room/lucid-motors-executes-us1bn-investment-agreement-public-investment-fund-saudi-arabia">raised more than $1 billion from the Saudis in 2018</a> after <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-blames-saudi-investor-backpedaling-taking-tesla-private-trial-2023-1">PIF's talks with Elon Musk to take Tesla private fell through</a>, but has struggled with a high burn rate and waning demand for EVs.PIF has also had to backstop another company. According to filings released in the UK this month, the fund has put $750 million into Magic Leap since the start of 2023, as it struggling to take its immersive reality headsets mainstream.For Hertog, though companies like Lucid have "fallen on hard times" — and other bets from PIF on the likes of the <a target="_blank" class="" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">SoftBank Vision Fund</a> have "indeed not done well" — it is still too early to say how the overall performance will turn out. The fund did swing to an annual profit in 2023 following an $11 billion loss the previous year, Bloomberg reported, though many bets are still in their early days."There are inherent risks in investing in new sectors so what matters is not individual failures but the performance of the whole portfolio," Hertog said.PIF's tanglings with political figures are also raising concerns. Donald Trump's son-in-law Kushner, who started private equity firm Affinity Partners in 2021, <a target="_blank" class="" href="https://www.businessinsider.com/jared-kushner-private-equity-firm-funding-from-saudi-arabia-report-2022-4">received a $2 billion commitment from PIF</a> for its debut fund, with that commitment now facing an investigation by Senate Finance Committee chair Sen. Ron Wyden.<div type="image" title="Prince Mohammed bin Salman in front of a black background." height="320" width="640" msid="112575436" hostid="261" sizebytes="15426"></div>In <a target="_blank" class="" href="https://www.finance.senate.gov/chairmans-news/wyden-probes-kushner-firm-payments-from-gulf-states-potential-fara-loophole">a letter published in June</a>, the senator raised concerns that PIF and other Middle Eastern funds were "using payments to Affinity executives as a means to influence Kushner and other politically powerful individuals."For Abdullah Alaoudh, a director at the Middle East Democracy Center, it seems clear that buying "a lot of influence" — or "whitewashing" as he puts it — is a key part of the fund's dealmaking overseas. If potential partners can gloss over some of its more controversial activities, such as <a target="_blank" class="" href="https://www.businessinsider.com/biden-investigation-us-military-aid-saudi-arabia-massacre-migrants-yemen-2023-9">the Kingdom's war in Yemen</a>, it'll have an easier time seeing deals through.As Hertog notes, it's worth remembering that PIF's main priority remains its domestic portfolio. "While some domestic investments have been pruned, the fund's main ambition is domestic diversification," he said.Still, Saudi Arabia seems intent on making its mark on the global stage through the PIF. The world will be keeping watch.The PIF did not immediately respond to a request for comment from BI.

Saudi Arabia is on a high-stakes mission to buy the world 

<ul class="summary-list"><li>Eric Schmidt says drones are the future of warfare, calling the use of tanks "useless."</li><li>"A $5,000 drone can destroy a $5,000,000 tank," he said.</li></ul>Ex-<a target="_blank" class="" href="https://www.businessinsider.com/google-earnings-q3-2024-new-code-created-by-ai-2024-10">Google</a> CEO <a target="_blank" class="" href="https://www.businessinsider.com/eric-schmidt-google-ai-data-centers-energy-climate-goals-2024-10">Eric Schmidt</a> said future wars will be fought by AI-powered drones, and urged the US military to do away with what he called "useless" <a target="_blank" class="" href="https://www.businessinsider.com/ukraine-war-top-tanks-taken-out-by-cheap-hobby-drones-2023-8">tanks</a>.Speaking at the Future Investment Initiative in Saudi Arabia on Wednesday, Schmidt said the low cost of automated <a target="_blank" class="" href="https://www.businessinsider.com/ukraine-wild-hornets-sting-shahed-drones-war-russia-iran-2024-10">drones</a> will soon make traditional forms of combat obsolete."The world has an awful lot of tanks. Those tanks are largely useless now. A $5,000 drone can destroy a $5,000,000 tank," he added."I read somewhere that the US had thousands and thousands of tanks stored somewhere," he added. "Give them away. Buy a drone instead. In fact, buy 10, buy 20, buy 50, buy 100."For almost a decade, Schmidt has advised the US government and military on technology. He became chairman of the Department of Defense's Innovation Board in 2016 and has chaired the US National Security Commission for Artificial Intelligence.He's also working on a startup that builds AI attack drones to help Ukraine. Speaking at Stanford University in April, <a target="_blank" class="" href="https://www.businessinsider.com/eric-schmidt-white-stork-ai-drones-ukraine-war-russia-2024-8">he said</a> the goal of the startup, named White Stork, was to use AI "in complicated, powerful ways."Schmidt is working on the project with former Udacity and Kittyhawk CEO <a target="_blank" class="" href="https://www.businessinsider.com/inside-kittyhawk-google-founder-billionaire-larry-page-flying-car-company-2023-4">Sebastian Thrun</a>. Forbes previously reported Schmidt was interested in "kamikaze drones," a broad term for unmanned systems packed with explosives that detonate upon hitting their targets. They are also known as loitering munitions because they can linger above an area before descending on their targets."The cost of autonomy has fallen so quickly that the drone war, which is the future of conflict, will get rid of eventually tanks, artillery and mortars," said Schmidt in Saudi Arabia this week.Asked about the Russia-Ukraine conflict, Schmidt said he had been surprised by innovations in drone technology. "If you look at the drone tactics, the drone tactics are changing every day," he said.Ukraine has also developed its own homemade drone program, producing sophisticated systems for land, air, and sea missions.Drone warfare has been a dominating element of the Ukraine conflict, with cheap first-person-view drones threatening everything that moves, from vehicles to aircraft to individual soldiers. Even top tanks, such as the Russian T-90 and American armor, have succumbed to this threat. Tank crews have been forced to adapt, employing extensive explosive reactive armor on tanks and other armored vehicles and equipping them with <a target="_blank" class="" href="https://www.businessinsider.com/ukrainian-operation-builds-cage-armor-protect-us-made-abrams-tanks-2024-6">cage armor</a> of varying sophistication to shield them from emerging battlefield threats. While drones have made the battlespace more transparent and more dangerous, conventional warfighting elements remain for the time being. Troops are being more cautious, but <a target="_blank" class="" href="https://www.businessinsider.com/bradley-fighting-vehicles-prove-worth-ukraine-short-on-abrams-tanks-2024-7">tanks are still active</a>, armored fighting vehicles have repeatedly proven their worth, and artillery continues to be king. However, as unmanned technology matures, especially with the introduction of AI, that could change.Do you have more insight to share? You can reach the reporter Hugh Langley via the encrypted messaging app Signal (+1 628-228-1836) or email (<a target="_blank" href="mailto:hlangley@businessinsider.com">hlangley@businessinsider.com</a>).

Former Google CEO Eric Schmidt says future wars will be fought by AI drones and calls tanks 'useless'

President Droupadi Murmu on Friday voiced concern over increasing <keyword id="20715750" type="General" weightage="20" keywordseo="space-debris" source="keywords">space debris</keyword> as a result of numerous satellites being placed in orbit and lauded <keyword id="19915124" type="General" weightage="20" keywordseo="ISRO" source="keywords" meta.keywordsubtype="org" meta.entityname="ISRO" meta.hostid="261" meta.entityid="ISRO">ISRO</keyword> for setting itself a target to make future <keyword id="20018231" type="General" weightage="20" keywordseo="space-missions" source="keywords">space missions</keyword> debris free by 2030. Murmu was speaking at the celebration of the maiden <keyword id="22301946" type="General" weightage="20" keywordseo="National-Space-Day" source="keywords">National Space Day</keyword> celebrations to mark the first anniversary of the landing of India's Chandrayaan-3 project. "Space debris can cause problems for space missions," she said during the event at Bharat Mandapam in New Delhi that was attended by Union minister Jitendra Singh, Indian Space Research Organisation (ISRO) Chairman S Somanath, engineers, ISRO scientists and representatives of the country's nascent space industry. The president appreciated the ISRO System for Safe &amp; Sustainable Operations Management facility, which ensures continuous progress of space research activities. "I am also happy to note that India is moving forward to make all its space missions debris free by 2030," Murmu said. The president presented awards to winners of the Robotics Challenge and the Bharatiya Antariksh Hackathon on the occasion. The president said ISRO had made remarkable achievements in the space sector as well as invaluable contributions to the country's social and economic development. She appreciated the dedicated scientists who placed India's space programme among the best in the world by using minimum resources. Murmu also expressed confidence that the country would make continuous progress in space science and continue to set new standards of excellence. The president said the progress of India's space sector was extraordinary. "Be it a successfully completed Mars mission with limited resources or the successful launch of more than a hundred satellites at once, we have made many impressive achievements," Murmu said. The president said space exploration had increased the capabilities of human beings and transformed imagination into reality. "But space exploration is a challenging task. Research conducted to solve the problems during space exploration accelerates the development of science and improves human life," she said. The president said many sectors, including health and medicine, transportation, security, energy, environment and information technology, had benefited from developments in the space sector. The president pointed out that with the opening of the space sector to private entities, the number of start-ups had increased at a very rapid pace. "This has not only brought progress in space research but also given new opportunities to our youth to showcase and hone their talents," Murmu said. The president said she was happy to note that just a few months ago, an Indian company successfully launched a single-piece 3D-printed semi-cryogenic engine-powered rocket, the first such achievement. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/webstories/2024-tvs-jupiter-vs-honda-activa-6g-which-110cc-scooter-should-you-buy/slidelist/112730069.cms">2024 TVS Jupiter vs Honda Activa 6G – which 110cc scooter should you buy?</a> <a href="https://www.businessinsider.in/tech/how-to/how-to-add-music-to-instagram-profile/articleshow/112732934.cms">You can now add music to your Instagram profile – here's how</a> <a href="https://www.businessinsider.in/business/auto/news/audi-q8-facelift-launched-in-india-with-a-1-17-crore-price-tag/slidelist/112707701.cms">Audi Q8 facelift launched in India with a ₹1.17 crore price tag</a>

President Murmu voices concern over increasing space debris

<ul class="summary-list"><li>Two US Navy aviators were killed last week when their fighter jet crashed during a training flight.</li><li>The Navy on Monday identified the two aviators as Lt. Cmdr. Lyndsay Evans and Lt. Serena Wileman.</li></ul>The two US Navy aviators who were killed in a fighter jet crash in the United States last week had recently returned from flying combat missions against the Houthis.Lt. Cmdr. Lyndsay Evans and Lt. Serena Wileman were killed when their EA-18G Growler <a target="_blank" class="" href="https://www.navytimes.com/news/your-navy/2024/10/20/navy-pronounces-missing-ea-18g-growler-jet-aviators-deceased/">crashed during a training flight</a> near Washington's Mount Rainier on October 15, the Navy <a target="_blank" class="" href="https://www.dvidshub.net/news/483570/remembering-two-trailblazing-aviators-lt-cmdr-lyndsay-miley-evans-and-lt-serena-dug-wileman">said</a> Monday.In a statement, the Navy's Carrier Strike Group 2, which is led by the flagship USS Dwight D. Eisenhower, described Evans and Wileman as two "highly skilled, combat-decorated" aviators. It said they had recently returned from a Middle East deployment with Electronic Attack Squadron 130, which flies the Growler, <a target="_blank" class="" href="https://www.businessinsider.com/us-navy-electronic-attack-aircraft-first-air-to-air-kill-2024-7">an electronic-warfare aircraft</a> made by Boeing.<div type="image" title="Lt. Cmdr. Lyndsay &quot;Miley&quot; Evans and Lt. Serena &quot;Dug&quot; Wileman" height="1268" width="1585" msid="114438884" hostid="261" sizebytes="117644"></div>The squadron spent nine months aboard the Eisenhower <a target="_blank" class="" href="https://www.businessinsider.com/us-navy-carrier-strike-group-eisenhower-houthis-red-sea-2024-6">aircraft carrier</a>, which acted as the lead ship for the bulk of the Navy's <a target="_blank" class="" href="https://www.businessinsider.com/us-navy-battles-best-iranian-tech-red-sea-admiral-2024-10">counter-Houthi campaign</a> in late 2023 and during the first half of 2024.The Ike and its multiple squadrons mainly operated from the Red Sea, where they helped <a target="_blank" class="" href="https://www.businessinsider.com/us-navy-carrier-strike-group-fighting-houthis-fired-hundreds-munitions-2024-5">defend merchant shipping lanes</a> from relentless Houthi attacks. American forces have routinely shot down missiles and drones launched by the rebels and carried out strikes against them in Yemen over the past year.The Navy said that Evans and Wileman planned, coordinated, and flew multiple strikes into Houthi-controlled territory of Yemen during their monthslong deployment, making them two of the few women to fly combat missions over land.<div type="image" title="Two aircraft flying against a clear blue sky." height="2660" width="3990" msid="114438883" hostid="261" sizebytes="71930"></div>US <a target="_blank" class="" href="https://www.businessinsider.com/inside-us-navy-aircraft-carrier-tactics-shift-houthi-missiles-drones-2024-2">airstrikes in Yemen have targeted</a> Houthi weapons, launchers, radars, storage facilities, and other military sites used by the Iran-backed rebels, the aim being to degrade their capabilities.Evans was awarded two Single Action Air Medals for her role during strikes in January and three Strike Flight Air Medals for actions during missions between December and March.And Wileman was awarded three Strike Flight Air Medals for her role in combat missions between December and April.The Navy credited Evans with helping to develop and execute new warfare approaches, noting that "the tactics, techniques, and procedures for the EA-18G she pioneered defending against Houthi aggressions directly contributed to the successful defense of the entire CSG and will be used as a template for adaptability at the unrelenting pace of combat in future fights." Wileman was celebrated for her "calm and collected demeanor under pressure," even during combat operations."During their deployment, both Evans and Wileman distinguished themselves in combat operations," the Navy said of the aviators, who went by the call signs "Miley" and "Dug," respectively."Their efforts directly contributed to the Navy's mission defending US and Coalition forces while keeping the seas open and free with precision and purpose," the sea service said, adding that "these role models cemented legacies by making history that will inspire future generations of Naval officers and aviators."

US Navy aviators killed in stateside Growler fighter jet crash flew combat strike missions off a carrier in the Red Sea fight

<ul class="summary-list"><li>Scientists have known for years that the <a target="_blank" href="https://www.businessinsider.com/nasa-moon-is-shrinking-like-raisin-producing-moonquakes-2019-5">moon is shriveling</a> like a grape, causing moonquakes.</li><li>A new study said moonquakes in the south pole could put astronauts at risk from landslides.</li></ul>NASA has known for years that the moon is shrinking. In 2019, for example, scientists estimated the moon had contracted by about 150 feet over the last several hundred million years.The moon's interior is cooling, and its brittle crust is cracking, creating "thrust faults" where one piece slides over another, which can trigger <a target="_blank" href="https://www.businessinsider.com/indias-moon-lander-detects-signs-of-possible-moonquake-2023-9">moonquakes</a>.That was all common knowledge in the scientific community at least five years ago.However, a new study published in the peer-reviewed <a target="_blank" href="https://iopscience.iop.org/article/10.3847/PSJ/ad1332">Planetary Science Journal</a> shows some of these faults are near potential landing sites for NASA's <a target="_blank" href="https://www.businessinsider.com/nasa-launching-artemis-mega-rocket-orion-spaceship-around-the-moon-2022-8">Artemis III</a> mission and could be an issue for long-term lunar settlements.<h2>Danger at the lunar south pole</h2>Artemis III plans to land astronauts near the <a target="_blank" href="https://www.businessinsider.com/moon-missions-why-astronauts-have-not-returned-2018-7">moon's south pole</a>, which contains water ice, among other vital resources. It would be the first time a human has set foot on the lunar surface since 1972.Even small tremors at the moon's south pole could trigger landslides, according to a <a target="_blank" href="https://www.nasa.gov/earth/moon/shrinking-moon-causing-moonquakes-and-faults-near-lunar-south-pole/">NASA press release</a>, which may be dangerous to astronauts.That said, "short-term missions like Artemis III are not likely a risk because strong shallow moonquakes are infrequent," Tom Watters, lead author of the paper, <a target="_blank" href="https://www.newsweek.com/moon-shrinking-moonquakes-danger-lunar-missions-nasa-1864336">told Newsweek</a>.The bigger risk is to long-term settlements like those that NASA envisions to <a target="_blank" href="https://www.businessinsider.com/nasa-artemis-humans-to-live-moon-by-2030-says-official-2022-11">happen by 2030</a>."We're going to be sending people down to the surface and they're going to be living on that surface and doing science," the lead of NASA's Orion lunar spacecraft program, told the <a target="_blank" href="https://www.bbc.com/news/uk-63688229">BBC in 2022</a>.As the moon continues to slowly shrink, it will lead to new thrust faults and this "should be considered when planning the location and stability of permanent outposts on the moon," Watters said in a recent statement.<h2>Moonquakes can seem stronger than earthquakes</h2>Watters and other researchers created a model that predicts moonquakes could cause landslides along the walls of the region's Shackleton crater at the lunar south pole.Asteroids and comets have also broken up the lunar surface, Nicholas Schmerr, a co-author on the study, <a target="_blank" href="https://cmns.umd.edu/news-events/news/Nicholas-Schmerr-moon-shrinking-causing-landslides-and-instability-lunar-south-pole">said in a statement</a>."Loose sediments make it very possible for shaking and landslides to occur," he said.<div type="image" title="apollo astronaut moon 1971" height="3025" width="4096" msid="107338487" hostid="261" sizebytes="1122390"></div>The researchers believe slipping thrust faults triggered a series of moonquakes between 1969 and 1977. During their missions, <a target="_blank" href="https://www.businessinsider.com/apollo-astronauts-50th-moon-landing-anniversary-photos-2019-4">Apollo astronauts</a> placed seismometers on the moon that detected the quakes.While these seismic events were relatively mild — the largest was a magnitude 5.0 — by Earth's standards, the moon's lack of gravity makes them seem worse, <a target="_blank" href="https://www.cnn.com/2024/01/31/world/moon-shrinking-moonquakes-south-pole-scn/index.html">Watters told CNN.</a>"That kind of shaking can really start throwing things around in a low G environment," he said.<h2>NASA's moon landings are already in jeopardy</h2><div type="image" title="illustration shows spaceship with solar panel wings flying past the far side of the moon with earth in the distance" height="1080" width="1440" msid="107338488" hostid="261" sizebytes="94360"></div>In January, NASA announced it had <a target="_blank" href="https://www.businessinsider.com/nasa-moon-flight-landing-delay-pushed-back-2024-1">pushed back</a> its mission to orbit the moon, <a target="_blank" href="https://www.businessinsider.com/nasa-artemis-missions-first-black-astronaut-woman-canadian-to-moon-2023-4">Artemis II</a>, from late 2024 to September 2025.The agency made the decision after the private space company Astrobotic's <a target="_blank" href="https://www.businessinsider.com/vulcan-peregrine-us-mission-first-land-moon-astrobotic-human-remains-2024-1">Peregrine lunar lander</a> had to abandon its moon mission due to a <a target="_blank" href="https://www.businessinsider.com/peregrine-lunar-lander-no-chance-land-moon-fuel-leak-2024-1">fuel leak</a> shortly after launching from Earth.The setback will likely also delay NASA's later missions and the agency's aspirations to build a permanent base at the moon's south pole. So, at least for now, NASA has more pressing matters to concern itself with than moonquakes and lunar landslides.

Yes, the moon is shrinking but that's not the disturbing news scientists discovered that could threaten future NASA missions

<ul class="summary-list"><li>Saudi Arabia and Abu Dhabi's sovereign wealth funds have had a busy few years.</li><li>The funds have been on a huge investment spree beyond the Gulf, with tech a particular focus.</li></ul>On the global stage, few have been as active in flaunting their cash in recent years as the Middle East's most powerful money men.Leaders of <a target="_blank" class="" href="https://www.businessinsider.com/saudi-arabia-public-investment-fund-pif-sports-influence-pga-liv-2023-6">Saudi Arabia's Public Investment Fund</a> (PIF) and Abu Dhabi's Mubadala — sovereign wealth funds that oversee assets worth more than $1 trillion combined — have been on a busy investment spree beyond the Gulf region to stake a claim in whatever takes their fancy.Data <a target="_blank" href="https://globalswf.com/reports/2024gsr#market-update-1h-2024-1">published last month by GlobalSWF</a>, a platform tracking sovereign wealth fund activity, found that over half the $96 billion invested by state-backed funds globally in the first six months of 2024 came from Middle Eastern funds.A particular focus for these funds built on the back of petrodollars has been to build ownership and influence in the tech sector. Mandates to diversify their economies at home through initiatives like <a target="_blank" class="" href="https://www.businessinsider.com/vision-2030-saudi-arabia-plan-future-proof-oil-economy-2023-8">Vision 2030</a> have created incentives to bet on those with an eye to the future.In 2017, both funds made a collective commitment of $60 billion to <a target="_blank" class="" href="https://www.businessinsider.com/inside-softbank-vision-funds-awful-year-former-employees-rival-vcs-2022-12">SoftBank's then-newly minted Vision Fund</a>, the world's biggest venture capital vehicle that would go on to transform the world of startup investing with bets on companies like TikTok owner ByteDance and Uber.More recently, PIF and Mubadala have been busy making tech bets of their own, pouring billions of dollars into everything from electric vehicle companies to fintech startups seeking to shake up the world of finance.Not all of them seem to be going to plan.<h2 id="9c0825b9-c7bd-475a-b6f2-4a91031a1215">Lucid action</h2><div type="image" title="MBS" height="658" width="1024" msid="112371997" hostid="261" sizebytes="60394"></div>Over the past week, PIF and <a target="_blank" class="" href="https://www.businessinsider.com/abu-dhabi-mubadala-sovereign-wealth-fund-investing-in-software-ai-2023-7">Mubadala</a> have been busy figuring out what to do when their unbridled ambitions for tech companies face reality.On Monday, Saudi Arabia's sovereign wealth fund pulled up its money truck for <a target="_blank" class="" href="https://www.businessinsider.com/lucid-chinese-automakers-years-behind-tesla-electric-vehicles-elon-musk-2024-5">Lucid, the California-based Tesla rival</a> it has 60% ownership of, with a fresh $1.5 billion commitment aimed at helping the company through a tough period.<a target="_blank" href="https://ir.lucidmotors.com/news-releases/news-release-details/lucid-group-inc-announces-public-investment-fund-commitment-15">According to Lucid</a>, the commitment will see PIF affiliate company Ayar purchase $750 million in convertible preferred stock and provide a $750 million loan facility at a critical moment for the firm.In March, CEO Peter Rawlinson told the Financial Times that although Lucid has sufficient funds to see it through to next year, it was spending about $1 billion a quarter in its mission to deliver luxury EVs to the market.The heavy spending needed to build a strong EV brand hasn't been helped by a <a target="_blank" class="" href="https://www.businessinsider.com/tesla-sales-miss-ev-slowdown-new-wave-customers-2024-4">global slowdown in demand for clean energy vehicles</a>, as inflation and high interest rates prompt consumers to spend more cautiously.The Lucid Air, marketed as "a superior long-range electric sedan" that can hit 60 miles an hour in 1.89 seconds, starts at $69,900.<div type="image" title="Lucid Air Sapphire" height="681" width="1024" msid="112372000" hostid="261" sizebytes="71938"></div>Although Lucid now has a new lease of life from the Saudis, Rawlinson acknowledged back in March that it was dangerous to expect the state's <a target="_blank" href="https://www.ft.com/content/356479d2-f08b-4ab1-9233-3a2bc49596ff">"bottomless wealth"</a> would be a constant fallback. How long the Saudis want to stick around remains to be seen.PIF has also been pushed to offer a lifeline to Magic Leap.<a target="_blank" href="https://find-and-update.company-information.service.gov.uk/company/09320795/filing-history">UK filings</a> released for the augmented reality company on August 2 said that the Saudi fund, which has been majority owner since 2022, put $750 million into the struggling business from the start of last year through to July 2024.The filings also said that "based on the most recent forecasts," the company would need to raise funds again before "late August 2024 and again in January 2025 and June 2025" to meet financial obligations.<h2 id="fc65cabf-4f30-4a75-9b64-8c22a87d8815">Rescue mode</h2>Will the Saudis be the ones to plug that financing hole? If it plans on sticking with Magic Leap in the long term, it'll be aware of just how much support the firm will need, as it's spent 14 years struggling to get its vision for immersive technology off the ground.Abu Dhabi's Mubadala appears to have been in rescue mode this past week too.Reports from the Financial Times and Bloomberg have shone a light on efforts being made by the sovereign wealth fund to boost returns in European startups it has invested billions of dollars in.Several of these nascent tech companies, such as insurance firm WeFox, have been bruised by shifting sentiment in the markets in recent years. The lofty valuations they secured when interest rates remained low have taken a hit, triggering moves such as restructurings and leadership changes, the reports said.It's worth noting that both Mubadala and the PIF remain in strong positions overall. In May, <a target="_blank" href="https://www.mubadala.com/en/news/mubadala-investment-company-reports-2023-financial-results">Mubadala announced</a> that its assets under management in 2023 had risen 9.4% from the year before. In July, PIF said it swung to a profit last year after making a loss in 2022.Still, both funds will be aware that they have embarked on a globe-trotting mission to establish a reputation for themselves as sophisticated investors capable of making shrewd moves.Seeing their tech bets fall apart will be a tough reality to face.

You Searched For "future missions" and got 9 results

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

Ira Alok Puranik

Here's what OpenAI employees are saying about the company's future

Lakshmi Varanasi

India needs to lead global tech transition, build jobs of the future: Ola Founder Bhavish Aggarwal

PTI

Saudi Arabia is on a high-stakes mission to buy the world

Hasan Chowdhury

Former Google CEO Eric Schmidt says future wars will be fought by AI drones and calls tanks 'useless'

Hugh Langley

President Murmu voices concern over increasing space debris

PTI

US Navy aviators killed in stateside Growler fighter jet crash flew combat strike missions off a carrier in the Red Sea fight

Jake Epstein

Yes, the moon is shrinking but that's not the disturbing news scientists discovered that could threaten future NASA missions

Jenny McGrath

Middle East wealth funds are scrambling to rescue their big bets on the future

Hasan Chowdhury

Popular Keywords

Buying Guides