GM Money Masters, 👋
OpenAI, the company behind ChatGPT, has just experienced a coup d’état. Its co-founder and top executive Sam Altman was fired, to the dismay of investors and employees.
While Meta has decided to disband its Responsible AI team to focus on other efforts. Coz who cares about safety, right?
Lastly, we have Elon Musk in hot water for… well, for being Elon.
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MONEY MASTERY BRIEF
- Sam Altman Booted Out of OpenAI
- Meta Axes Responsible AI Team
- Big Tech Companies Boycott X Platform
👢 Sam Altman Booted Out of OpenAI
Julius Caesar’s brilliant leadership transformed the Roman Republic into an empire. He implemented reforms that ushered in stability and a thriving economy. He expanded the empire’s territory and wealth. However, despite his achievements he was assassinated by members of the senate in 44 BC.
These types of stories still happen today. It even happens in the corporate world. Well, not as gruesome as being stabbed to death, but still as controversial. The latest example is Open AI’s co-founder Sam Altman, who was unceremoniously ousted as the company’s top honcho.
Altman was suddenly given the boot by OpenAI’s board of directors on November 18. Just like loyal Roman praetorian guards, several senior researchers and staff quit their posts as a sign of support for the ex-CEO. Another co-founder, ex-President Greg Brockman chose to leave instead of supporting the coup.
Open AI’s COO Brad Lightcap describes the incident as a “breakdown of communication” and not a product of “malfeasance”. However, reports are saying that the company’s Chief Scientist Ilya Sutskever was the one allegedly pulling the strings. Reports coming out suggest that Sutskever and Altman are locking horns over the AI company’s direction, specifically around AI safety.
This type of shakeup affects not only OpenAI but the whole tech industry as well. Its flagship product ChatGPT is seen as the AI that started it all. Microsoft (NASDAQ: MSFT), which reportedly invested $13 billion and has 49% ownership of the AI startup, was left in the dark after Altman’s removal. The plan of selling shares to investors at a $86 billion valuation is now also in peril.
The board probably realized the damage they had done and invited Altman for a meeting. However, the former CEO posted on X a picture of himself wearing an OpenAI visitor’s badge with the caption “First and last time I ever wear one of these”. It sounds like a bad breakup.
Whatever happens, this is probably not the end for the ousted chief executive. Steve Jobs was also in the same position. He was ousted, but returned and was able to steer Apple (NASDAQ: AAPL) to greater heights. In fact, Microsoft CEO Satya Nadella announced that Sam Altman and Greg Brockman will be joining the tech giant to lead an advanced AI research team.
And OpenAI better be ready, because the best revenge is to overtake and crush the company that discarded you. Maybe ChatGPT can give them pointers on how to prepare.
🪓 Meta Axes Responsible AI Team
For fans of sci-fi movies, the Terminator movie series is probably the most iconic representation of a dystopian future where there is a possibility of AIs and Robots rising against humanity. This scenario is something some are contemplating with the advent of advanced AI systems. Even renowned scientist Stephen Hawking said that the “development of full artificial intelligence could spell the end of the human race”. This is the reason why some AI companies are investing in safety measures to make sure that AI will not be used as an instrument of harm and will be aligned with human values. The US government even asked tech companies to come up with AI safety rules.
Mark Zuckerberg’s Meta (NASDAQ: META) had the Responsible AI (RAI) Team to keep everything in check. However, the social media giant has decided that the group preventing an apocalyptic scenario needs to go. The move to disband the RAI team is part of Meta’s shift to focus more on generative AI and infrastructure. According to the company, the former members of RAI will be distributed to other departments and will continue to support safe and responsible AI development. Why does it feel like that is something you would hear from a teenager on prom night?
❌ Big Tech Companies Boycott X Platform
Several Tech Companies, including Apple and IBM (NYSE: IBM) have paused advertising on Elon Musk’s X (formerly Twitter), following allegations of antisemitism and pro-Nazi content appearing on the social media platform.
IBM’s suspension of its ad campaign on X after apparent images of IBM ads right beside pro-Hitler posts. According to media reports, a non-profit news watchdog called Media Matters for America is saying that ads from big brands were run on a pro-Nazi account.
Apple, on the other hand, has halted advertising on X after Musk agreed to an X post saying that Jewish communities support “dialectical hatred against whites”.
Elon, being Elon, will not go down without a fight and is threatening Media Matters for America and “All those who colluded in this fraudulent attack” on his company with a “thermonuclear” lawsuit. The tech billionaire insisted that the news watchdog misrepresented the user experience on X and is just trying to bring harm to the platform.
Musk also took it further by promoting X’s Premium+ since it does not have ads. He also posted a scathing statement: “Many of the largest advertisers are the greatest oppressors of your right to free speech.”
Oh boy! Elon is on a warpath on this. Aside from a legal case, those on his naughty list will probably also get on SpaceX’s no-fly list.
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$50 billion. This is the amount Microsoft is reportedly spending for its data centers for 2024 and beyond. The amount is meant to build infrastructures that will help accelerate Artificial General Intelligence (AGI) and bring generative AI to our daily lives. Windows has changed the way we interact with computers, let us see how this one will play out.
Amazon (NASDAQ: AMZN) to lay off hundreds of employees under the Alexa voice assistant unit. Daniel Rausch, VP of Alexa and Fire TV said “We’re shifting some of our efforts to better align with our business priorities, and what we know matters most to customers – which includes maximizing our resources and efforts focused on generative AI… These shifts are leading us to discontinue some initiatives.”. Full story
General Motors’ (NYSE: GM) Cruise just lost its CEO. Kyle Vogt announced that he will be resigning as CEO of the autonomous vehicle venture. He offered words of encouragement by saying that: “Cruise is still just getting started, and I believe it has a great future ahead”. Vogt’s resignation came after a series of accidents involving the company’s robotaxis. Full story
Foxtron Vehicle Technologies (TPE: 2258), a unit of Foxconn (TPE: 2354), did not do well in its market debut. Shares of the EV company fell as much as 9%. Analysts say that the newcomer is facing headwinds in the highly competitive EV market. Full story
Hyundai Motors (KRX: 005380) and Kia Corp (KRX: 000270) see a strong US demand for EVs. This prediction is in contrast with fears that high inflation and interest rates will negatively affect electric vehicle sales. Hyundai Global’s COO Jose Munoz said: “I am still very bullish on the battery electrics,” and added that their EV sales were doubling year-over-year. Full story
Tesla (NASDAQ: TSLA) has competition in creating good-looking EVs. Chinese smartphone maker Xiaomi (HKG: 1810) is making a cool-looking EV. Due to a public sales release license filing in China, the public was able to take a peek at the sporty-looking vehicle. The filing also revealed that the top version has a max speed of 164 mph (263 km/h)! Full story
Tesla’s Cybertruck has serious competition with the Ford (NYSE: F) F-150 Lightning. Ford CEO Jim Farley shared a video on his X account, showing their electric truck having an easier time going up obstacles compared with the Cybertruck. Full story
The S&P 500 is nearing overbought levels. An overbought asset means that it is overvalued and a possible pullback is on the horizon. Pay close attention to the RSI and be careful.
Demand is what drives the value of assets. The demand for shares of S&P 500 companies is what is driving it to overbought territory. But a lot of new investors don’t pay attention to this important metric. They don’t realize that there is a potential price pullback soon and once they see they see a declining portfolio they will panic and sell at a loss.
Honestly, we have all been guilty of this, most especially during our first few trades. It is a learning experience, albeit a painful and costly one.
Have you ever bought a stock or asset without realizing it is already approaching overbought levels?
Let us know by replying YES or NO to this email.
Thanks for reading, and may your investments thrive. 🙂
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