🤯 OpenAI Raises $40B

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Hey Fintech Explorers—Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech!

It’s the first Sunday of the April 2025—and the pace isn’t slowing. From a funding milestone that’s shaking up the AI world to strategic plays in banking and payments, fintech is already on the move.

Here’s what we’re diving into:

• OpenAI raises $40B, hits $300B valuation. 🤯

• Visa bids to process Apple Card—a potential $20B deal. 💰

• Chime offers up to 3.75% APY to fuel its IPO plans. 🚀

It’s all happening—and that’s just the start…

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Let’s dive in!

🌎 3 Major Stories

Dive into this week’s top Fintech developments.

OpenAI Secures $40B Funding, Valued at $300B 🤯

The Big Story 📰: OpenAI has officially secured a groundbreaking $40 billion funding round led by SoftBank Group Corp., boosting its valuation to a staggering $300 billion. This represents the largest financing round in history, nearly doubling its prior valuation of $157 billion from October. With hundreds of millions using ChatGPT weekly, the investment will enhance AI’s applicability in daily life. Furthermore, OpenAI is moving towards an independent for-profit structure from its nonprofit overseer by year-end, which is crucial for future funding milestones. SoftBank's initial investment includes $7.5 billion, with a potential additional $30 billion by 2025, contingent on successful restructuring.

Key Takeaway ⚡️: OpenAI's monumental funding round signals a robust confidence in AI's future, not just from SoftBank but also other high-profile investors like Microsoft. For fintech and tech sectors, this expansion could fast-track innovations and the integration of AI into everyday financial products. The shift to a more autonomous structure may pave the way for increased investment opportunities and competitive advantages in the AI landscape. As the industry evolves, stakeholders should keep an eye on AI's growing role, making this a pivotal moment for those looking to leverage artificial intelligence in their offerings.

Visa Eyes $20B Apple Card Deal with $100M Offer 💰

The Big Story 📰: Visa ($V ( ▼ 1.3% ) ) is making waves by proposing a $100 million offer to Apple, aiming to become the payment processor for the Apple Card, effectively replacing Mastercard ($MA ( ▼ 1.15% ) ). This move comes as Apple is in the midst of replacing Goldman Sachs, the current issuing bank, which has decided to exit the consumer lending space. The Wall Street Journal reports that Visa faces competition from American Express and Mastercard, with all eyes on the $20 billion in customer balances that could be lucrative if managed correctly. Apple Card, launched in 2019, was initially designed to boost customer loyalty and create a revenue stream, but issues such as customer support and unclear terms have stifled its potential. With Apple's increasing dominance in the payment sector, financial institutions are riding a wave of cautious optimism and fear.

Key Takeaway ⚡️: Visa's offer underscores the escalating competition for control over digital payment systems, as Apple continues to reshape the fintech landscape. This isn't just about processing payments; it's about establishing a strategic partnership with a tech giant that is becoming integral to consumers' financial lives. For financial institutions, this highlights the crucial need to adapt and innovate to meet Apple's growing influence. The potential fallout from Goldman Sachs' exit raises questions about profitability and customer satisfaction in the evolution of Apple Card. This shake-up could lead to even more partnerships or rivalries as companies navigate the complex ecosystem of digital finance while vying for consumer loyalty. As such, startups and established financial firms alike should pay close attention to these dynamics to stay ahead in the competitive landscape.

Chime's Bold Move: Up to 3.75% APY! 🚀

The Big Story 📰: Chime is ramping up its offerings as it prepares for an IPO, aiming to attract new customers with an enticing 3.75% APY for those who have their paychecks directly deposited into their accounts. For customers who don't opt for direct deposit, they can still enjoy a competitive 2% APY. This is particularly striking given that the national average savings account yield stands at just 0.61%. With a current customer base of around 7 million and substantial annualized revenue, Chime's moves seem designed to deepen customer retention. Additionally, Chime recently expanded various features, including dedicated customer support and new cashback deals, to further enhance user experience.

Key Takeaway ⚡️: Chime's aggressive interest rate strategy and feature expansion underscore its commitment to attracting and retaining customers in a highly competitive digital banking landscape. By offering favorable rates that far exceed the national average and enhancing their service features, Chime positions itself as a compelling alternative for everyday Americans. This evolution is crucial not just for customer growth, but also for establishing strong market presence heading into its IPO. As fintech companies like Robinhood launch new services to compete, other players will likely need to adapt quickly, making Chime’s actions a significant marker of the evolving financial landscape.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Circle Eyes IPO: A Second Shot 🚀: Circle, the issuer of USDC stablecoin, has officially filed for a public listing, trying again after a failed SPAC merger in 2022. The company reported a revenue increase to $1.68 billion for 2024, though net income dipped to $156 million. Investors are optimistic as Circle aims to raise around $750 million in its offering, amidst a crypto-friendly environment thanks to the Trump administration. With $60 billion worth of USDC in circulation, the stakes are high for Circle as it seeks to navigate its way to the stock market successfully.

• Brazil's Pix Unveils Installment Payments 🌟: Starting this September, Brazil's popular instant payment system, Pix, is rolling out a new feature called Pix Parcelado, enabling users to pay for transactions in installments. This innovation is aimed at consumers and businesses alike, allowing payers to stagger payments while ensuring payees receive the full amount immediately. The central bank believes this could significantly enhance Pix's usage, particularly for larger purchases, thereby appealing to those with limited access to traditional credit options. Additionally, future features will enable users to leverage Pix receivables as collateral for loans starting in 2026.

• Stride Bank Teams Up with Affirm! 🤝: Stride Bank has just struck a significant partnership with Affirm, becoming a new card issuing partner for the Affirm Card™. This innovative debit card allows consumers to pay upfront or opt for flexible pay-over-time options for their purchases within the Affirm app. With 1.7 million active cardholders, this collaboration aims to enhance consumer access to Affirm's transparent payment solutions, which are already beloved by millions. Stride Bank's commitment to accessible finance aligns seamlessly with Affirm's mission to empower consumers and improve their financial well-being.

💸 Major Money Moves

Tracking big market shifts in Fintech this week.

• Plaid Raises $575M but Delays IPO 🕰️: Fintech giant Plaid has tapped into $575 million in common stock, riding a wave of market shifts to a $6.1 billion valuation—less than half its peak. The funding, led by Franklin Templeton, focuses primarily on addressing employee stock challenges and demonstrating a robust outlook despite recent valuation drops. Plaid has grown revenue by over 25% in 2024, nearing sustained profitability while expanding its multi-product suite. Though an IPO in 2025 is off the table, the company remains well-capitalized and optimistic about the road ahead.

• Fuse Secures $6.6M to Simplify MENA Payments 🌍: Dubai-based fintech, Fuse, has raised $6.6 million in seed funding to tackle the payment complexities faced by businesses in the Middle East and North Africa (MENA). Founded in 2023 by CEO George Davis and CTO James Smith, Fuse offers the region's first infrastructure-grade payments platform with virtual International Bank Account Numbers (IBANs), streamlining cross-border transactions. Currently serving over 20 clients, including platforms like Airbnb and Etsy, Fuse aims to expand beyond the UAE with its unique capability to process local payments without the need for a traditional local banking setup.

• Turbine Raises $22M to Unlock VC Cash 💸: Turbine, a new credit platform for venture capital limited partners, just announced a $22 million funding round to tackle liquidity issues plaguing investors in the VC space. Founded by Mike Hurst, Turbine allows these investors to leverage their stakes in funds as collateral for loans. Instead of scrambling for cash or selling stakes at a loss, LPs can unlock value from appreciated investments, albeit with interest rates around 9%. Supported by major firms like Alpha Edison and TTV Capital, Turbine aims to alleviate cash crunches for wealthy individuals and family offices navigating a stagnant IPO landscape.

Thanks for reading and have a relaxing Sunday,

— The Money Explored team