International News 07 May 2025
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OpenAI Rumored to Acquire Windsurf for US$ 3 Billion
OpenAI is poised to acquire Windsurf, a company specialising in AI-assisted coding, for a substantial $3 billion. While the deal has not yet been finalised, Windsurf, formerly known as Codeium, has been seeking funding to increase its valuation to $3 billion, with interest from investors such as General Catalyst and Kleiner Perkins. Windsurf's current valuation stands at $1.25 billion following a funding round led by General Catalyst. This acquisition, representing OpenAI's most significant to date, will augment ChatGPT's coding capabilities. While Windsurf has been enhancing its coding with each new model release, it faces stiff competition in the market. OpenAI and Windsurf have not yet responded to requests for comments on the reported acquisition.
Ford recalculates performance projections, Trump tariffs impact US$1.5 billion in 2025
Ford Motor Co. has suspended its full-year financial guidance due to the potential adverse effects of US President Donald Trump's automotive tariffs, which are affecting profits and are estimated to result in a $1.5 billion drop in adjusted earnings before interest and taxes for 2025. The total impact of tariffs on the company is around $2.5 billion, with $1 billion expected to be offset through strategies like bonded transportation. Ford's decision to withdraw its previous forecast of $8.5 billion in adjusted Ebit this year was influenced by a number of factors, including industry-wide supply chain disruptions and escalating levies. Consequently, Ford's shares experienced a 2.4% decline in trading, though the stock has demonstrated a 3.8% year-to-date growth, outperforming the S&P 500 Index.
Oil Prices Close to 4-Year Low, Dragged by OPEC+ Policy
Crude oil prices fell, with Brent and West Texas Intermediate closing at their lowest levels since February 2021, as OPEC+'s decision to accelerate production increases raised concerns about global supply amid uncertain demand. Brent crude for July delivery fell 1.7% to $60.23 a barrel, while West Texas Intermediate for June delivery fell 2% to $57.13. Saudi Arabia's suggestion that it could cope with a prolonged low price environment outweighed optimism over US-China tariff talks, resulting in Brent and WTI falling 8.3% and 7.5% respectively last week. OPEC+ members, including Russia, agreed to increase oil production by 411,000 bpd in June, a total of 44% less than originally planned for April, May and June.