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Close up of a woman’s hand paying with her smartphone in a cafe, scan and pay a bill on a card machine making a quick and easy contactless payment. 

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PayPal and Venmo users will soon be able to earn yield on their stablecoin holdings, the company said Wednesday.

Customers will earn an annual interest rate of 3.7% beginning this summer. It will be paid in the PayPal USD stablecoin (PYUSD) on their holdings of the same token. The rewards will be available to use for transacting with other users on the platform, funding international transfers, exchanging dollars or other fiat currency or to make purchases with PayPal merchants.

PayPal launched PYUSD in 2023, making it the first major financial institution to launch a U.S. dollar-backed stablecoin. It now makes up less than 1% of the market, which is dominated primarily by Tether’s’ USDT (66% of market cap) and Circle’s USDC (28%), according to CryptoQuant. The total market cap for stablecoins has grown 37% in the past year.

Unlike bitcoin, ether and other cryptocurrencies, stablecoins are designed to have a stable value against a non-crypto asset, usually the U.S. dollar. Historically, they’re used for trading and as collateral in decentralized finance (DeFi), and stablecoins are closely watched for evidence of demand, liquidity and activity in the market. More recently, they’ve become more attractive as a way to offer underbanked users access to financial services. Additionally, yield-bearing stablecoins have increased in popularity.

PayPal has long maintained that as its business model lies in payments, its use of stablecoins should be focused on that function, enabling the transfer and exchange of value and purchasing goods. Others, by contrast, such as Tether and Circle, which filed earlier this month to go public, make money from interest income by holding reserves in interest-bearing assets.

Now, in order to get users to use PYUSD within the PayPal ecosystem, the company is incentivizing them to buy the stablecoins to help get them to that step.

“Stablecoins have the power to reshape the future of commerce as the foundation for the next generation of payments,” Alex Chriss, president and CEO of PayPal, said in a statement shared with CNBC. “Combining this innovative technology with our expansive global network allows us to help all users thrive in the world economy.”

PayPal is committed “to an innovative, commerce-ready ecosystem by enabling it for the settlement of cross border transfers, vendor payments and in the future for additional payment use cases like payouts and bill pay,” he added.

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OpenAI is going big in India — here’s everything the ChatGPT developer is up to

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OpenAI is going big in India — here's everything the ChatGPT developer is up to

Open AI CEO Sam Altman speaks at the annual Snowflake Summit in San Francisco, California on June 02, 2025.

Justin Sullivan | Getty Images News | Getty Images

OpenAI is rapidly expanding its presence in India — one of the key markets for its flagship ChatGPT product.

India is an appealing destination for U.S. tech giants, with companies ranging from Google to Meta betting on its huge — and young — population over recent years.

OpenAI CEO Sam Altman visited the country in February this year and met with the country’s IT Minister Ashwini Vaishnaw to discuss collaboration. During the visit, Altman said India was OpenAI’s second-largest market by number of users.

He has subsequently said that AI adoption in India is “amazing to watch.”

“We love to see the explosion of creativity–india is outpacing the world,” he said on X earlier this year.

India is one of ChatGPT’s fastest-growing markets globally, Nick Patience, practice lead for AI at tech research and analysis firm Futurum Group, told CNBC. “OpenAI’s India focus is a strategic move to gain a competitive edge,” he added.

Here’s a rundown of how OpenAI is expanding in India.

ChatGPT explosion

ChatGPT, OpenAI’s core product, has seen strong growth in India. The app was downloaded 10.2 million times in India in August, a huge jump from the 2.5 million downloads seen during the same month last year, according to analytics firm Appfigures.

Since its launch, ChatGPT has 111 million downloads in India, ahead of its 80 million downloads in the U.S, Appfigures data shows.

Downloads do not necessarily equal daily or monthly users, but the figures emphasise OpenAI’s growth trajectory in the country.

The download numbers are also far ahead of rivals, including Google’s Gemini and Anthropic’s Claude. The closest challenger was Perplexity, Appfigures said, which had 6.4 million downloads in August.

India-specific product

ChatGPT Go launches in India: OpenAI must forge local partnerships to increase adoption

“It’s a classic wedge strategy to capture a price-sensitive market and build a user base that will be difficult for local players to dislodge later,” Futurum Group’s Patience said of the strategy.

Infrastructure and hiring

According to Bloomberg, OpenAI is scouting a location in India for a data center with at least 1-gigawatt capacity. The facility will be part of OpenAI’s Stargate-branded infrastructure push, Bloomberg said this week, although CNBC was unable to verify the report.

The ChatGPT developer said last month that it would open a local office in the market and is currently advertising three sales roles in India.

It also announced last month an education program in India that will include funding for research and provide half a million ChatGPT licenses for educators and students across the country.

India challenges

While India doesn’t have a home-grown artificial intelligence company as big as OpenAI, there are some challengers in the form of domestic startups, including Sarvam AI and Krutrim, and other American tech giants like Google and Meta.

Continued geopolitical tensions between the U.S. and India over trade, however, have the potential to cause complications if there’s any backlash from New Delhi against American tech firms.

OpenAI is also locked in a legal battle with Asian News International in India, which has accused the ChatGPT developer of using copyrighted material illegally. It’s a closely-watched case in the country for how copyright laws apply in the AI era.

“OpenAI’s success in India is not guaranteed and depends heavily on its ability to navigate these legal and political hurdles,” Futurum Group’s Patience said.

“While the Indian market is vast, its diversity in languages and user needs presents challenges. OpenAI’s ability to deliver a truly localized product and its long-term impact on India’s AI talent remain uncertain.”

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Waymo to begin testing at San Jose airport this fall

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Waymo to begin testing at San Jose airport this fall

Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.

Uber Technologies Inc.

Alphabet’s Waymo unit will begin test-driving robotaxis at its first California-based airport, the company said Thursday.

The autonomous car unit has been cleared to begin testing driverless rides at the San José Mineta International Airport in San Jose, California, this fall. Waymo said it plans to offer paid rides at the airport later this year.

“With San José at the epicenter of the biggest sporting events of 2026, Waymo is an ideal mode of transportation that will help visitors move around the area smoothly and safely,” San José Mayor Matt Mahan said in a release.

The vehicles will pick up passengers at the Ground Transportation Centers in Terminal A or B and roll out to locations in Waymo’s San Francisco Bay Area service area, according to the release.

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Once fully operational, it will be the second international airport where the company has service.

In 2023, Waymo launched at Phoenix Sky Harbor International Airport, which has become the most popular Waymo destination in its Phoenix metropolitan service area, a Waymo spokesperson said Thursday.

Waymo has continued to expand its driverless, ride-hailing service across the U.S. after already launching commercial operations in Austin, Texas, as well as Atlanta, San Francisco, Phoenix and Los Angeles.

In March, Waymo expanded its service to include an additional 27 square miles of coverage around the San Francisco Bay Area, including Mountain View, Palo Alto and San Jose.

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Ex-Salesforce co-CEO Bret Taylor’s Sierra is the latest $10 billion AI startup

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Ex-Salesforce co-CEO Bret Taylor's Sierra is the latest  billion AI startup

Bret Taylor, chairman of the board of directors of OpenAI, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

Bret Taylor’s artificial intelligence startup Sierra has just joined an exclusive club: The company sports a new $10 billion valuation after raising $350 million in fresh capital.

Sierra is one of just a handful of AI startups, including OpenAI, Anthropic, xAI, Safe Superintelligence and Thinking Machines that are valued at or above $10 billion.

Investors are pouring money into this competitive group of companies in the hopes that they’ll eventually hit the public markets.

Taylor is the chairman of OpenAI’s board, and previously served as co-CEO of Salesforce alongside Marc Benioff. Taylor co-founded Sierra in 2023. The company builds and implements AI agents for customer service. AI agents can carry out tasks autonomously on behalf of their users.

Shares of Salesforce fell 5% Thursday after the company reported weak guidance and concerns lingered about how AI is affecting software companies.

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Sierra said its agents are already being used by “hundreds of millions of people” to help with tasks like refinancing homes, ordering lunch, delivering furniture, understanding insurance deductibles and fixing technology, among other things.

Greenoaks led Sierra’s latest funding round, the company said. Its valuation more than doubled from its most recent raise in October.

“We’re in this for the long term,” Sierra said in a blog post on Thursday.

The company said it will use its fresh funding to invest in its platform and focus on domestic and international expansion.

Sierra’s funding follows a flurry of other major AI raises in Silicon Valley. Earlier this week, Anthropic announced it had closed a $13 billion funding round at a $183 billion post-money valuation.

WATCH: Sierra co-founder Bret Taylor on AI agents’ role in an evolving global landscape

Sierra co-founder Bret Taylor on AI agents' role in an evolving global landscape

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