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For those holding Nvidia stock, you have every reason to be happy because the chipmaker just beat Wall Street expectations; it’s starting to become a routine.
Meanwhile, it has been a crazy week at OpenAI. But Sam Altman is finally back in the saddle of his co-founded company.
Things are also heating up at X, with the social media company suing Media Matters.
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MONEY MASTERY BRIEF
- Sam Altman Returns to OpenAI
- Nvidia Earnings Exceed Wall Street Expectations
- X Sues Media Matters
🙂 Sam is BACK!!!
It was a whirlwind romance like those in a high school drama—a sudden breakup followed by an unexpected reunion! Sam Altman and OpenAI quickly patched things up, leaving Taylor Swift storylines in the dust.
The Artificial Intelligence company dropped the bombshell yesterday, “the return of Altman as CEO,” seemingly resolving their tiff. Joining him are new board members, including Bret Taylor, Larry Summers, and Adam D’Angelo.
This is only five days after the board sacked Altman without a major reason. What followed the incident quickly showed that it was a wrong decision.
- OpenAI president Greg Brockman resigned in solidarity
- Microsoft, a major investor, pushed for OpenAI to rehire Altman and Brockman
- After failing to achieve that, Microsoft hired Altman and Brockman to lead their AI division
- More than 700 employees (95%) signed a letter calling for reinstatement of Altman and threatening to resign
- Venture capital firms with a stake in OpenAI also considered suing the company for fear of losing their investment
The former board was left with eggs on their face for their decision. Not helping matters, they faced rejection from at least two tech bigwigs until Emmet Shear stepped in as the interim CEO. Reports even said the OpenAI board knocked on Anthropic’s door, trying to woo their CEO, Dario Amodei, and even floated the idea of a merger.
But all of that is in the past as Altman is making a comeback!
However, Microsoft’s gearing up for some serious board shake-ups – they want more seasoned heads in the game. Observers are buzzing, thinking OpenAI’s turmoil might just be the ticket for rivals to swoop in and make gains in the AI battleground.
🚀 Nvidia Expectedly Beat Wall Street Expectations
Check out the AI kingdom’s throne: Nvidia (NASDAQ: NVDA) just nailed it in their recent earnings, proving once again that AI reigns supreme despite the OpenAI drama.
Wall Street got quite the surprise when the chip giant reported earnings that soared beyond expectations. Would you believe it? Their $18.12 billion in revenue totally knocked the socks off analysts’ predictions of $16.1 billion. And that’s not all – their earnings per share hit a high note at $4.02.
Its third-quarter revenue skyrocketed by 34%, leaving last quarter in the dust. And get this – it’s a whopping 206% higher than last year’s figures. With such a smashing performance, Nvidia’s set the bar high, eyeing a revenue target of $20 billion for the upcoming fourth quarter.
But hey, despite the standing ovation, NVDA stock didn’t quite dance to the upbeat tune. Why? Well, there’s a cloud on the horizon – concerns about export restrictions to China. Nvidia’s giving a heads-up that it might put a dent in their fourth-quarter results. But fear not! They’re on it, planning to team up with the US government to roll out fresh new products.
Even with this bit of suspense, the AI royalty that is Nvidia continues to shine in the tech realm, showing resilience and ambition in the face of potential challenges.
👨⚖️ X Sues Media Matters
It’s no longer news that X (Twitter) is losing advertisers, and the social media platform has found a scapegoat. X is now suing Media Matters, claiming that the non-profit manipulated the Twitter algorithm to create images showing adverts appearing alongside racist and anti-semitic posts.
After the research publication showing ads from brands such as IBM, Apple, and Amazon appearing alongside anti-semitic content, some of the major brands have announced they’ll pause adverts on the platform. This means further trouble for a company already struggling with revenue.
According to X, the research distorted user experience and damaged its reputation with advertisers. The company claimed pairings are “manufactured, inorganic, and extraordinarily rare.”
Whether it’ll succeed in the lawsuit is another question entirely. But it’s worth noting that X is not denying that there is antisemitic content on its platform. The CEO Linda Yaccarino claimed that only two users saw Apple’s ad next to racist and antisemitic content.
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“We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D’Angelo. We are collaborating to figure out the details. Thank you so much for your patience through this.”
– OpenAI walking back on its decision to sack Sam Altman
$3 Trillion. That’s what Microsoft’s market capitalization almost hit after the tech company quickly appointed Sam Altman to lead a new AI venture for the company.
Jeff Bezos could sell up to $1 billion of Amazon (NASDAQ: AMZN) stocks. As of last week, the billionaire has already sold $240 million worth of shares. But that might just be the beginning. Bezos is selling Amazon stocks to fund investments in his space company, Blue Origin. Earlier this month, he said he’d move to Miami to be closer to Blue Origin operations. Full story
Sony (NYSE: SONY) is facing a class action lawsuit that could cost up to £6.3 billion ($7.9 billion) over claims that it abused its dominant position to overcharge customers. The lawsuit is for about 9 million in the UK who bought digital games and other content on PlayStation store. Full story
Ford (NASDAQ: FORD) will resume construction at its EV battery plant in Michigan, which was earlier postponed due to the UAW strike. However, the company intends to reduce the size of the factory to match the slowing growth in EV sales. With the scaleback, annual cell output will drop to 230,000 vehicles per year from 400,000. Full Story
Broadcom (NASDAQ: AVGO) will close the $69 billion VMWare acquisition deal by Wednesday after getting regulatory approvals. The Chinese regulators gave the final approval on Tuesday, allowing the chipmaker to complete the deal with additional restrictive conditions. Full story
Sunbird has shut down its iMessage app for Android, citing security concerns. The concern revolves around whether the messages are end-to-end encrypted. The move comes one week after Sunbird partnered with the phone brand Nothing. The app has now been taken off the Play Store. Full story
Anthropic has launched the latest version of Claude 2.1 Large Language Model (LLM). The new version has a context window of 200,000 tokens, which represents 500,000 words or more. It’s also more accurate than earlier versions and has a lower price and access to beta tool use. Since the LLM powers its Claude chatbot, it’ll be available for free and paying users. Full story
Spotify (NYSE: SPOT) has a secret deal with Google (NASDAQ: GOOG), enabling it to pay zero fees when it processes payments. It only pays a 4% fee when Google processes the fees, far below the 15% that Google normally takes from subscription apps. Full Story
Mega Cap tech stocks are close to having their best yearly return since the Dot Com Bubble.
After a busy few days at OpenAI, Sam Altman has finally returned. When he was sacked, many compared it to Apple firing Steve Jobs in 1985. OpenAI didn’t have to wait as long as Apple to realize its mistake.
However, there are still concerns about the future of AI since safety concerns were the reason the board gave for letting go of Altman.
So, do you think OpenAI bringing back Altman is the right decision?
Let us know by replying YES or NO to this email.
Thanks for reading, and may your investments thrive. 🙂
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