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Tag: openai

  • OpenAI debuts ChatGPT subscription aimed at small teams | TechCrunch

    OpenAI debuts ChatGPT subscription aimed at small teams | TechCrunch

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    OpenAI is launching a new subscription plan for ChatGPT, its viral AI-powered chatbot, aimed at smaller, self-service-oriented teams.

    Aptly called ChatGPT Team, the plan provides a dedicated workspace for teams up to 149 people using ChatGPT as well as admin tools for team management. All users in a ChatGPT Team gain access to OpenAI’s latest models — GPT-4 (which generates text), GPT-4 with Vision (which understands images in addition to text) and DALL-E 3 (which creates images) — plus tools to allow ChatGPT to analyze, edit and extract info from uploaded files.

    ChatGPT Team also lets people within a team build and share GPTs, custom apps based on OpenAI’s text-generating AI models. GPTs don’t require coding experience and can be as simple or complex as desired. For example, a GPT could ingest a company’s proprietary codebases so that developers can check their style or generate code in line with best practices.

    As an added benefit, OpenAI says that ChatGPT Team customers will get unspecified new features and improvements down the line, and that it won’t train models on team data or conversations.

    ChatGPT Team is priced at $30 per user per month or $25 per user per month billed annually — higher than ChatGPT Plus, OpenAI’s individual premium ChatGPT plan, which costs $20 per month. But ChatGPT Team is a good deal cheaper than ChatGPT Enterprise, which costs as much as $60 per user per month with a minimum of 150 users and a 12-month contract.

    ChatGPT Team seems tailor-made for small- and medium-sized business customers who want team-oriented ChatGPT features without having to pay top dollar for them. That’s likely to be a lucrative space; according to a recent survey from ResumeBuilder, 49% of companies use ChatGPT for use cases like coding, creating content like job descriptions and interview questions and summarizing documents and meetings, while 30% say that they intend to use ChatGPT in the future.=

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    Kyle Wiggers

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  • A timeline of Sam Altman's firing from OpenAI — and the fallout | TechCrunch

    A timeline of Sam Altman's firing from OpenAI — and the fallout | TechCrunch

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    In a dramatic turn of events late Friday, ex-Y Combinator president Sam Altman was fired as CEO of AI startup OpenAI, the company behind viral AI hits like ChatGPT, GPT-4 and DALL-E 3, by OpenAI’s board of directors. Then, the company’s longtime president and co-founder, Greg Brockman, resigned — as did three senior OpenAI researchers. And the fallout continues.

    Tip TechCrunch

    Do you work at OpenAI and know more about Sam Altman’s departure? Get in touch with TechCrunch.

    It’s a fast-moving situation that we’re still trying to get to the bottom of. No doubt more will become clear as time goes on. To make it easier to follow all that’s happened in the meantime, though, we’ve put together a timeline; we’ll do our best to keep it current.

    Timeline of Sam Altman’s firing from OpenAI

    January 5

    The identity of OpenAI’s board observer has been revealed. According to Bloomberg, Microsoft has chosen Dee Templeton, VP for tech and research partnerships and operations and an advisor to Microsoft CTO Kevin Scott, as its non-voting board observer. Bloomberg says that Templeton has already begun attending board meetings; The Information previously reported that Templeton was being considered for the role.

    November 29

    Microsoft gains a board observer

    Microsoft will gain representation on the new initial board of directors in the form of a non-voting observer, OpenAI announced. It wasn’t immediately clear who this observer might be — only that they won’t have an official vote in board business.

    November 21

    Sam Altman, OpenAI reach agreement on return as CEO and ‘initial’ new board

    In a sudden late announcement, OpenAI revealed that it and Altman “have reached an agreement in principle” for him to return as the company’s CEO. In addition to Altman’s return, its new “initial” board will include former Salesforce chief executive Bret Taylor, former US Secretary of the Treasury Larry Summers and Quora founder Adam D’Angelo.

    Altman also posted about the new deal, giving some insight into the roller coaster that we’ve all been riding since his firing was revealed Friday. In his words, his decision to join Microsoft on Sunday “was the best path for me and the team.” Since then, the new board’s composition and Microsoft’s support appear to have been enough to bring him back to the AI company he co-founded.

    Altman and board in talks

    OpenAI’s board of directors is reportedly in talks with Sam Altman, ex-Y Combinator president and an OpenAI co-founder, to return to OpenAI as CEO as soon as this week. That’s according to Bloomberg, which in a brief — citing sources close to the matter — said that discussions are happening between Quora CEO Adam D’Angelo, one current member of the OpenAI board, and Altman — and possibly other board members as well.

    Board tensions boil over

    The New York Times reports that, before his ousting, Sam Altman made a move to push out board member Helen Toner because he thought a paper she had co-written was overly critical of OpenAI. That, among other issues, led to OpenAI’s current predicament. Speaking of, The Times indicates that negotiations to hire Altman back continue — but that one major sticking point remaining is “guardrails” meant to improve Altman’s communication with the board.

    November 20

    Altman joins Microsoft

    Sam Altman, Greg Brockman and colleagues announce that they’ll join Microsoft to lead a new AI research team. Nadella leaves the door open to other OpenAI staffers, saying that they’ll be given the resources they need should they choose to join.

    Sutskever’s mea culpa

    Sutskever publishes a post on X suggesting that he regrets his decision to remove Altman and that he’ll do everything in his power to reinstate Altman as CEO.

    Employees threaten to resign

    Nearly 500 of OpenAI’s roughly 770 employees — including, remarkably, Sutskever — publish a letter saying that they might quit unless the startup’s board resigns and reappoints the ousted Altman. Later Monday, that number climbed to over 650.

    Altman and Brockman considering return

    As reported by The Verge, Altman’s move to Microsoft isn’t a done deal — and both Altman and Brockman are still open to returning to OpenAI. That is, if the remaining board members who initially fired him step aside.

    OpenAI board considers merger

    OpenAI’s board of directors approached Dario Amodei, the co-founder and CEO of rival large-language model developer Anthropic, about a potential merger of the two companies, The Information reports. The approach was part of an effort by OpenAI to persuade Amodei to replace Altman as CEO — but Amodei quickly turned down the CEO offer.

    November 19

    Altman to meet at OpenAI HQ

    According to The Information, Altman is expected to meet at OpenAI’s San Francisco headquarters as executives at OpenAI push to have him reinstated as CEO. Brockman was invited to join — but it’s unclear whether he’ll take execs up on that invitation.

    Board negotiations hit a snag

    Bloomberg reports that Lightcap and Murati, among others, are pushing the board to reinstate Altman. But unsurprisingly, the directors are resisting. As of midday Sunday, the board hadn’t resigned out of concern over who could replace them, and were vetting candidates. One possible new addition could be Salesforce co-CEO Bret Taylor.

    Altman out, Shear in

    Altman won’t be returning as CEO, according to a report in The Information citing an internal memo sent by Sutskever. As the search for a new permanent CEO continues, OpenAI has appointed Emmett Shear, the co-founder of video streaming site Twitch, as interim CEO — replacing Murati.

    November 18

    “Not … in response to malfeasance”

    In an internal memo obtained by Axios sent Saturday morning, OpenAI COO Brad Lightcap said yesterday’s announcement “took [the management team] by surprise” and that management had had “multiple conversations with the board to try to better understand the reasons and process behind their decision.” Discussions were ongoing as of Saturday morning, per the memo.

    “We can say definitively that the board’s decision was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices,” Lightcap added. “This was a breakdown in communication between Sam and the board … We still share your concerns about how the process has been handled, are working to resolve the situation, and will provide updates as we’re able.”

    OpenAI’s funding in jeopardy

    The planned sale of OpenAI employee shares that would value the startup at about $86 billion could be in jeopardy. The Information, speaking to three sources formerly with the company, reports that they no longer expect the sale — led by Thrive Capital — to happen, or, if it does, to come with a lesser valuation because of the recent turn of events.

    Altman planning new venture

    Altman has been telling investors that he’s planning to launch a new venture, according to The Information. Brockman is expected to join the effort — whatever form it takes. (Possibly an AI chip startup.)

    Investors pushing for Altman’s return

    Investors — furious at the turn of events — are reportedly exerting pressure on OpenAI’s board to reinstate Altman, going so far as to recruit Microsoft. Nadella is said to be sympathetic.

    Board agrees to reverse course — in principle

    The Verge reports that the board agreed in principle to resign and to allow Altman and Brockman to return. It waffled, however, missing a deadline yesterday by which many OpenAI staffers were set to leave the company. Altman is said to be ambivalent about coming back and asking for “significant” governance changes.

    November 17

    Brockman demoted

    Brockman says he got a text from Sutskever shortly after noon on Friday asking for a quick call. After sending a Google Meet link, Brockman was told that he was being removed from the board as chairman “but was vital to the company and would retain his role” as president, and that Altman had been fired.

    Altman’s firing publicly announced

    OpenAI published a post on its blog announcing the executive shake-up. The company’s management team was aware shortly after.

    All-hands meeting

    OpenAI held an all-hands meeting Friday afternoon during which Sutskever defended Altman’s ouster. He dismissed suggestions that pushing Altman out amounted to a “hostile takeover,” and claimed that it was necessary to protect OpenAI’s mission of “making AI beneficial to humanity.”

    Microsoft releases a statement

    Satya Nadella, the CEO of Microsoft, a major investor in — and partner with — OpenAI, published a statement about Altman’s firing:

    As you saw at Microsoft Ignite this week, we’re continuing to rapidly innovate for this era of AI, with over 100 announcements across the full tech stack from AI systems, models and tools in Azure, to Copilot. Most importantly, we’re committed to delivering all of this to our customers while building for the future. We have a long-term agreement with OpenAI with full access to everything we need to deliver on our innovation agenda and an exciting product roadmap; and remain committed to our partnership, and to Mira and the team. Together, we will continue to deliver the meaningful benefits of this technology to the world.”

    Brockman quits

    Brockman announced his resignation from OpenAI, citing “today’s news.” After sending a memo internally, he published the text on X.

    Senior OpenAI researchers resign

    Three senior OpenAI researchers resign after Brockman, including the director of research Jakub Pachocki and head of preparedness Aleksander Madry.

    November 16

    Ilya Sutskever schedules call with Altman

    According to a post on X (formerly Twitter) from Brockman, Ilya Sutskever, the chief scientist at OpenAI and a co-founder, texted Altman on Thursday evening about scheduling a Friday noon call.

    Murati told of Altman’s firing

    Brockman alleges that Mira Murati, OpenAI’s CTO and now interim CEO, was informed on Thursday night that Altman would be fired.

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    Kyle Wiggers

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  • What a long, strange year it's been in enterprise tech news | TechCrunch

    What a long, strange year it's been in enterprise tech news | TechCrunch

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    From Salesforce drama to the year of generative AI

    Apologies to the Grateful Dead, but what a long, strange year it’s been in 2023 enterprise tech news. It began with a ton of Salesforce drama and eventually got taken over by generative AI and ChatGPT, which seemed to come out of nowhere to completely dominate the news cycle this year.

    But even though AI clearly influenced much of the news, and even my own coverage, there was still a ton of other enterprise stories that made the news this year.

    The rise of generative AI in the enterprise

    It would be impossible to discuss this year’s news cycle without talking about the impact of generative AI. When OpenAI released ChatGPT at the end of last year, it would have been impossible to understand the impact it would have on enterprise software in the coming months. Yet it has the potential to be truly transformative, changing the way we interact with software, and perhaps represents the biggest change to UX (user experience) design since point-and-click.

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    Ron Miller

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  • Startups Yearly: The biggest startup stories from 2023 | TechCrunch

    Startups Yearly: The biggest startup stories from 2023 | TechCrunch

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    Welcome to Startups Weekly. Sign up here to get it in your inbox every Friday.

    Thank you for subscribing to Startups Weekly. This week, I’m taking my parents to Yosemite to explore the snowy peaks and to see if my car can handle snow. In lieu of a regular Startups Weekly, I figured I’d dive in and give you a reminder of some of the biggest startup stories from 2024 — both on TechCrunch and our subscription sibling TechCrunch+.

    Here are some of the biggest themes that have echoed throughout the startup ecosystem in 2023.

    Crime and punishment

    Image Credits: Bryce Durbin / TechCrunch

    Some of the biggest startup stories on TechCrunch in 2023 were related to the deeds and misdeeds of those in the ecosystem.

    By far one of our most-read stories this year was the murder of Bob Lee, best known as the creator of Cash App and former CTO of Square. He was tragically killed in a stabbing incident in San Francisco, in the otherwise usually quiet Financial District. Rolling Stone picked up the story from there, digging into who Bob Lee and his alleged murderer were.

    The other big story was the trial of Theranos founder and CEO Elizabeth Holmes. She is now serving a prison sentence of 11 years and 3 months after being indicted for wire fraud in a scheme to defraud investors. Theranos, once valued at $10 billion, promised revolutionary blood testing technology but was exposed in 2015 for its nonfunctional technology, which posed health risks to patients. The subsequent unraveling of Theranos led to numerous lawsuits and government investigations. The case serves as a stark reminder of the consequences of fraudulent practices and that the “fake it till you make it” approach that can be prevalent among startups doesn’t always work out.

    The other big “hmm, maybe you shouldn’t have done that” serial story of the year was the Sam Bankman-Fried trial, which extended over five weeks. It turned out to be a spectacle of evasion and memory lapses. The former CEO of FTX faced the jury for several days, delivering a testimony that was remarkable mostly for its lack of substance. When cross-examined by prosecutors about his past decisions and actions, Bankman-Fried’s responses were predominantly “Yup” (372 times), “Not sure” (117 times), and “I don’t remember” (73 times). He was found guilty on all seven charges of fraud and money laundering, and will be sentenced in March 2024. Around the same time, there will likely be a second trial, with a bunch of additional charges.

    More from the courts and legal systems:

    It’s not just the startups . . . :  Former VC Mike Rothenberg, known for hosting extravagant parties, was convicted on 21 counts last month, including for bank fraud, false statements, money laundering, and wire fraud. The conviction brings his journey from a promising entrepreneur, launching a VC firm in 2013, to being a convicted fraudster to a close. He was originally charged with fraud by the SEC in 2018, which resulted him having to pay $31 million. Sentencing in the fraud case is scheduled for March.

    I’m trying to reach you about your extended warranty: The FCC imposed a record $300 million fine on a robocaller operation for scamming people with fake auto warranty sales. This operation made at least 5 billion calls.

    The Swiss army knife for hackers: Flipper Zero, a multi-tool hacking device, is on track to achieve $80 million in sales this year, a significant increase from its $25 million sales last year. Started in 2020, the device can manipulate various systems like garage openers and RFID card systems.

    The fun and quirky

    Apple Vision Pro headset

    Image Credits: Brian Heater

    The world of startups wasn’t just murders, fraud and shenanigans — some of our most-read stories this year were a lot more lighthearted, thank goodness.

    One of the highlights was Apple’s 31 new emojis — including a shaking face for when you’re “shook” and a pink heart because, obviously, we need more heart colors. There are even two pushing hands that could mean “stop” or “high five” — because interpreting vague hand gestures is what we all needed more of. Want to spam your friends with a moose or a jellyfish? Apple had your back this year.

    My other favorites in the more-or-less-quirky-news category:

    [very recognizable drum riff]: MindGeek, the owner of adult entertainment sites such as Pornhub, Brazzers, and RedTube, was acquired by Canadian private equity firm Ethical Capital Partners. The terms of the deal were not disclosed.

    Strap this computer to your face: Apple’s new mixed-reality (XR) device made a significant impact with its high-quality hardware and features. It boasts 24 million pixels across two panels and advanced optics. It has brand-new chips to ensure smooth performance without judder or frame drops, with accurate eye tracking and gesture control. Panzer tried it out, and I argued that the device would be a game-changer for startups operating in the space.

    We’re getting a little bored of Elon’s antics: At some point, TechCrunch editor Darrell decided he had enough, and penned this piece — concluding that enough is enough.

    The year of AI

    An illustration of Sam Altman in front of the OpenAI logo

    Image Credits: Darrell Etherington with files from Getty under license

    There can be little doubt that, above all, for better and for worse, 2023 was the year of AI.

    OpenAI was on everybody’s lips. The company made GPT-4 universally available, which got everyone hella excited. It also gave ChatGPT the ability to browse the broader internet, which unlocked a world of functionality and excitement.

    The darker side of AI got its time in the limelight as well. The advancement of AI porn generators, such as Unstable Diffusion, has raised significant ethical and societal concerns. These generators, which have improved in creating more realistic and diverse images, are posing some new risks — and continues to make the internet more toxic, especially for women (the majority of deepfake pornography targets women and is often used as a tool for harassment). We were also successful in tricking Lensa into generating NSFW content by putting crudely photoshopped photos into its source material. In short: maybe deepfakes-for-all is worse than we thought.

    Another big AI drama story of the year was Sam Altman getting fired as OpenAI’s CEO. We put together a whole timeline, because, goodness, that was quite the saga.

    From the desk of “didn’t see that coming”

    SVB forces African banks to rethink their bank options

    Image Credits: Nikolas Liepins/Anadolu Agency / Getty Images

    If there’s one thing startups love doing, it’s throwing curveballs. This year was no exception, and here are a handful of the most surprising ones:

    A banking collapse: Everything was fine one moment, then suddenly one of the biggest startup banks — Silicon Valley Bank, or SVB among friends — took a nosedive. We put together a timeline of what happened, along with a wall of coverage and analysis. Venture debt was one of the big question marks post-collapse.

    The DPReview saga: DPReview, a renowned digital camera review site, was shut down by Amazon after 25 years of operation, before Gear Patrol bought the property and revived it.

    That submarine story: OceanGate trying to dip down to the Titanic and imploding in the process was everywhere for a hot moment. A whistleblower was fired in January 2018 after presenting a scathing quality-control report on the vessel to OceanGate’s senior management, including founder and CEO Stockton Rush — who later died onboard the submarine. We originally covered the company back in 2017 when it first revealed the plans to go 3D-scan the Titanic.

    Is it a bird? Is it a balloon?: Pathfinder 1 is an electric airship that’s giving the Goodyear blimp a run for its money. At 124.5 meters long, it’s like the Hindenburg had a tech-savvy baby with a drone. With 12 electric motors and a penchant for helium (significantly safer than its high-explosive, Hindenburg-exploding hydrogen counterpart), it’s set to conquer the skies at a whopping 75 mph . . . eventually.

    Round after round after round of layoffs: Woof.

    The biggest hits from TC+

    TechCrunch+ is TechCrunch’s subscription service, offering in-depth analysis, exclusive articles, and comprehensive reports on the technology industry, startups, and venture capital. If you’re not a subscriber — well, you should absolutely subscribe.

    My popular Pitch Deck Teardown series is up to more than 75 sample pitch decks, complete with analysis for what’s working and what ain’t. And, of course, there’s oodles of additional amazing content too. Here’s a handful of stories you may have missed:

    From cloud to on-premise: After a decade of cloud transformations, sophisticated enterprises are now developing hybrid strategies to support critical data science initiatives, moving away from exclusive reliance on cloud computing and bringing workloads back to on-premises systems.

    The evolution of layoffs: Back in July, we looked at how the era of tech layoffs was evolving, noting that while it was not over, it was losing some of its intensity and was developing into its own unique trend.

    Stage appropriate over perfection: Startups should focus on creating minimum viable products that are laser-focused on answering specific questions, rather than trying to scale too quickly, wasting resources in the process.

    Hey, OpenAI, generate a marketing strategy: In this case study, we showed how using OpenAI for generating marketing strategies led to significant improvements in SEO ranking on Google, resulting in a substantial increase in site traffic, domain rating, and backlinks in less than a year.

    Build on someone else’s tech and get burned: An update on OpenAI’s ChatGPT allowed for PDF uploads. That was a spanner in the work for startups, especially those built around a feature gap in ChatGPT. It underscored the vulnerability of such businesses to changes in underlying technologies.

    Growth is hard: The former CEO of PlanGrid reflected on key mistakes they made while leading the company to $100 million in annual recurring revenue, offering insights to help other founders avoid similar pitfalls.

    Setting the stage for a battery gold rush: Volkswagen’s breakthrough in lithium-ion battery technology could significantly impact the automotive industry, especially as it grapples with increased costs due to inflation and supply chain issues.

    F you, pay me: If an investor tells you not to take a salary after you’ve raised VC funding, tell them to go do something anatomically strenuous.

    The best laid plans of mice and men: We examine the evolution of fintech over the past decade, looking on several hyped fintech ideas that ultimately failed to transform the financial services industry as intended.

    To remote or not to remote: We looked at the shift in remote work startups, where initial enthusiasm for dedicated remote work tools has waned, as companies have adapted to a hybrid work model rather than a purely remote one, leading to challenges for startups focused solely on remote work solutions.

    Here’s why your pitch deck sucks: In the year of AI, I built a tool that analyzes startup pitch decks (because of course I did — why wouldn’t I build a tool that puts me out of business) and found a ton of interesting data about what startup founders get wrong when they create pitch decks.

    Oh, and because I just know you are crazy curious: The featured image of this post was taken with an iPhone 14 Pro Max. I created the bauble using the Circular Name Ornament creator from Cuttle Labs, along with a Glowforge Aura. After I reviewed the entry-level laser cutter from Glowforge in July, I decided that I just had to have one. Because, well, what kind of nerd would I be if I didn’t set shit on fire on a semi-regular basis.

    Happy New Year — see y’all in 2024!

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    Haje Jan Kamps

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  • Sam Altman's OpenAI to be second-most valuable U.S. startup behind Elon Musk's SpaceX based on early-talks funding round

    Sam Altman's OpenAI to be second-most valuable U.S. startup behind Elon Musk's SpaceX based on early-talks funding round

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    OpenAI is in early discussions to raise a fresh round of funding at a valuation at or above $100 billion, people with knowledge of the matter said, a deal that would cement the ChatGPT maker as one of the world’s most valuable startups.

    Investors potentially involved in the fundraising round have been included in preliminary discussions, according to the people, who asked not to be identified to discuss private matters. Details like the terms, valuation and timing of the funding round haven’t yet been finalized and could still change, the people said.

    If the funding round happens as planned, it would make the artificial intelligence darling the second-most valuable startup in the US, behind only Elon Musk’s Space Exploration Technologies Corp., according to data from CBInsights.

    OpenAI declined to comment.

    The company is set to complete a separate tender offer in early January, which would allow employees to sell their shares at a valuation of $86 billion, Bloomberg previously reported. That is being led by Thrive Capital and saw more demand from investors than there was availability, people familiar with the matter have said.

    OpenAI’s rocketing valuation mirrors the AI frenzy it kicked off one year ago after releasing ChatGPT, a chatbot capable of composing eerily human sentences and even poetry in response to simple prompts. The company became Silicon Valley’s hottest startup, raising $13 billion to date from Microsoft Corp., and spurred a new appreciation for the promise of AI that changed the tech industry landscape within a few months.

    Amazon.com Inc. and Alphabet Inc. have since poured billions into OpenAI-rival AnthropicSalesforce Inc. led an investment into Hugging Face that valued it at $4.5 billion, and Nvidia Corp., which makes many of the semiconductors that power AI tasks, said earlier this month it made more than two dozen investments in 2023.

    OpenAI has also held discussions to raise funding for a new chip venture with Abu Dhabi-based G42, according to people with knowledge of the matter.

    The startup has discussed raising between $8 billion and $10 billion from G42, said one of the people, all of whom requested anonymity to discuss confidential information. It’s unclear whether the chips venture and wider company funding efforts are related.

    OpenAI Chief Executive Officer Sam Altman had been seeking capital for the chipmaking project, code-named Tigris. The goal is to produce semiconductors that can compete with those from Nvidia, which currently dominates the AI chip market, Bloomberg News reported last month.

    In October, G42 announced a partnership with OpenAI “to deliver cutting-edge AI solutions to the UAE and regional markets.” No financial details were provided. The firm, founded in 2018, is led by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and chair of the Abu Dhabi Investment Authority.

    OpenAI’s future looked briefly uncertain after its board suddenly fired Altman earlier last month. At the time, some investors considered writing their stakes down to zero. But after five days of leadership tumult, Altman was brought back and a new board was named. The company has aimed to signal to customers that it’s refocusing on its products following the upheaval.

    — With assistance from Hannah Miller

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Gillian Tan, Edward Ludlow, Shirin Ghaffary, Bloomberg

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  • Sam Altman hints at OpenAI boardroom drama in blog post stating need to fight bureaucracy ‘every time you see it’ and ‘get back up and keep going'

    Sam Altman hints at OpenAI boardroom drama in blog post stating need to fight bureaucracy ‘every time you see it’ and ‘get back up and keep going'

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    OpenAI CEO Sam Altman has long dispensed advice to Silicon Valley entrepreneurs, having led the startup accelerator Y Combinator before his current role leading what is arguably the world’s most important artificial intelligence company. But with his latest round of advice, given in a post on his personal blog on Thursday, it’s hard not to think about the recent turmoil at OpenAI that saw Altman ousted then quickly reinstated as CEO last month, a boardroom drama that captivated Silicon Valley and much of the business and technology world.

    OpenAI’s nonprofit board abruptly fired Altman last month, giving only vague reasons. The move blindsided among others Microsoft CEO Satya Nadella, whose company has invested billions into the ChatGPT maker. After five tumultuous days in which investors and employees rallied around Altman, it became clear that he would be reinstated as CEO and the board would be revamped.

    Earlier this month, Altman told Trevor Noah on the What Now? podcast about his short-lived but intense ordeal: “I’m still a little bit in shock and a little bit just trying to pick up the pieces. I’m sure as I have time to sit and process this I’ll have a lot more feelings about it.” 

    In the blog post yesterday, some of Altman’s pieces of advice were pretty standard (“Optimism, obsession, self-belief, raw horsepower, and personal connections are how things get started”) while others seemed like they might refer to last month’s chaos—and may be part of the processing that Altman mentioned to Noah.

    Of course, this is only speculation, and Altman may not have been referring to the OpenAI chaos or even had it in mind when writing his post. Fortune has reached out to the company and will update this story with any response. But with knowledge of his ouster, it’s difficult not to read some of the advice without thinking about recent events at the company, including, “Get back up and keep going.”

    In particular, the seventh item reads: “Fight bullshit and bureaucracy every time you see it, and get other people to fight it too. Do not let the org chart get in the way of people working productively together.”

    Altman certainly fought against the decision to fire him as colleagues and investors rallied around him. Two days after his dismissal, Altman posted an image of himself wearing a guest badge in the OpenAI office, writing: “First and last time I ever wear one of these.” And just hours after it, fellow cofounder Greg Brockman resigned in protest from his role as OpenAI president.

    Soon, OpenAI colleagues were repeating the line “OpenAI is nothing without its people” in X posts, with Altman responding with a heart emoji. That emoji became something of a rallying cry among employees in the days that followed.

    Another piece of advice from Altman: “Communicate clearly and concisely.” When they fired him, the board said Altman had not been “consistently candid in his communications,” so Altman might be referring here to his own communication to the board. Or reading it another way, perhaps he’s taking a dig at the board over their bureaucratic-sounding explanation of why they fired him in the first place.

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Steve Mollman

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  • Box CEO Aaron Levie’s top takeaway from OpenAI meltdown: ‘Don’t have weird corporate structures’

    Box CEO Aaron Levie’s top takeaway from OpenAI meltdown: ‘Don’t have weird corporate structures’

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    When OpenAI’s board ousted CEO Sam Altman over a reported disagreement, claiming he was “not consistently candid,” it left many onlookers scratching their head. How could such a thing occur to one of the most buzzy startups in Silicon Valley? The surprise firing highlighted the bizarre corporate structure at the $86 billion startup where the nonprofit controls the for-profit subsidiary. This structure has drawn criticism from plenty of tech characters including Box CEO Aaron Levie. From tweets to the stage, Levie doubled down on his stance regarding OpenAI’s unorthodox structure at Fortune‘s Brainstorm AI conference in San Francisco on Monday.

    “If you just look at the ratio of the amount of drama to the amount of takeaways, the ratio is way off,” Levie said on stage. “The main takeaway is, don’t have weird corporate structures. It never ends well.”

    At the heart of the dispute at OpenAI was a reported clash of perspectives on the trajectory of artificial intelligence growth. On one side stood the effective altruist faction, to which former board member Helen Toner subscribed, that worries about a doomsday-like scenario where AI could destroy the world. On the opposing front there are effective accelerationism (e/acc) enthusiasts, believing in AI’s potential to positively transform our world and advocating for an expedited development. It wasn’t that black and white internally, but that seems to be the layman’s gist of the dispute.

    Levie highlighted these two growing factions within Silicon Valley, and while he leans more towards acceleration, he said his biggest takeaway from the philosophies is that we need to “land the plane as an ecosystem on this topic ASAP.” There’s “tens of thousands of products” that rely on OpenAI, giving rise to a community of companies whose own fortunes have become deeply entwined in the success of OpenAI.

    Take Khan Academy founder Salman Khan, who described earlier Monday at Brainstorm AI, how his team had to reach out to “the highest levels of contacts” they had at Microsoft to make sure that they wouldn’t have an interruption of service as a result of the boardroom drama.

    Levie highlights this dependence as a key reason why so much drama was kicked up, with so many figures rallying behind the success of OpenAI and Altman.

    “It was not your classic sort of leadership struggle or dynamic,” Levie said.

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    Kylie Robison

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  • Backed by Cresta founders, Trove's AI wants to make surveys fun again | TechCrunch

    Backed by Cresta founders, Trove's AI wants to make surveys fun again | TechCrunch

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    Surveys have become an integral part of many aspects of our lives, but most of them are tedious, leading to ineffective responses and actions. Dinghan Shen and Yuan Xue, two software engineers working in Silicon Valley, recognized an opportunity to leverage the breakthroughs brought by large language models to make surveys more empathetic and engaging.

    Around six months ago, Shen and Xue, who had been friends since high school, started Trove AI, a SaaS platform that lets users create conversational surveys powered by GPT-4 and its own fine-tuned models. The idea has received backing already. Zayd Enam and Tim Shi, co-founders of Shen’s former employer Cresta, an a16z-backed unicorn empowering contact center agents with AI, invested an undisclosed amount in the startup’s pre-seed funding.

    Launched six weeks ago, Trove’s first version has amassed over 1,000 users who are mostly small and medium-sized businesses from around the world. “Dozens of” them have sent surveys at least twice since. Still free to use, the platform has attracted a wide range of users, including a London-based spa, a K-12 school in Boston, and a travel agency focused on Latin America.

    Applying conversational AI to surveys appears to be a low-hanging fruit in this era of ChatGPT frenzy. Enterprise-focused survey giant Qualtrics has adopted AI across its line of customer and employee feedback products. SurveyMonkey, the go-to survey provider for SMBs, is using AI to automate the creation process.

    To differentiate, Trove aims to ultimately become a “customer and employee experience management platform” for companies of all sizes, Shen said. The product is essentially experience management around customers, employees, products, and more. Following the recent management saga of OpenAI that briefly disrupted its chatbot service, applications that build on top of ChatGPT, or “wrapper products,” are rethinking their heavy dependence on third-party APIs.

    “We are 80% SaaS and 20% AI,” Shen told TechCrunch in an interview. As such, he reckoned Trove offers ample value in addition to its features powered by OpenAI. “We aim to do everything from survey creation, response, analytics, ticket creation to CRM integration… It’s an AI-generated feedback loop.”

    CRM integration, specifically, would allow Trove to create highly customized surveys upon which the system can create a ticket automatically and send a personalized follow-up email to thank the customer for giving feedback.

    “Fundamentally, we’re rethinking the experience management workflows from scratch in the context of the powerful large language model capabilities today,” said the founder.

     

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    Rita Liao

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  • IBM, Meta and more than 50 others launch alliance to challenge dominant AI players

    IBM, Meta and more than 50 others launch alliance to challenge dominant AI players

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    Discussions around the leading voices of the AI zeitgeist have not often included the old hands of computing like IBM, Intel, Sony Group, or Dell.

    But on Tuesday, the four corporations—along with the younger Meta, a host of top universities, as well as a collection of tech startups and foundations—announced an “AI Alliance” in an apparent attempt to challenge the perceived dominance of OpenAI, Microsoft, Google, and recently Amazon.

    “To some degree, but unfortunately, to a large degree, the last year of conversation and dialogue around AI has been focused on a very small number of institutions,” Darío Gil, a senior vice president at IBM and head of the corporation’s research lab, told Fortune. “The reality is that this field is much, much larger than that.”

    When asked who he was referring to when he said a “very small number of institutions,” Gil declined to specify: “You know who.”

    ‘Open’ AI

    The formation of the AI Alliance continues a longstanding debate among developers about the values of the “open” and “closed” development of artificial intelligence.

    Despite its name, OpenAI, the creator of ChatGPT, has kept its models, or mammoth AI algorithms, under lock and key. Developers can only access them only with permission from OpenAI, which counts Microsoft as its biggest backer. Google, another AI frontrunner, as well as Amazon, which recently unveiled its answer to ChatGPT and invested in buzzy AI startup Anthropic, have also not open-sourced, or let researchers fully download, their models. All tech giants have cited the reasons of competition and safety for why they’ve locked up their technology. 

    This tight-fistedness has led to consternation in the research community and among competing businesses. (In fact, competitors watched with glee as OpenAI’s corporate leadership fell into disarray in November.) “There’s been a lot of debate about: Should the future of AI be closed and proprietary? Or what is the role of open source, open science, and open innovation in the field?” Gil, the IBM executive, said.

    The AI Alliance falls into the latter camp. The group of over 50 has coalesced around a number of broad objectives, including the creation of common frameworks for evaluating the strength of AI algorithms, devotion of capital to AI research funds, and collaboration on open-source models.

    In addition to the corporate giants, other participants include the chip manufacturers AMD and Cerebras, AI startups like Hugging Face and Stability AI, and Ivy League universities like Yale, Cornell, and Dartmouth. 

    As an example, Gil pointed to IBM’s work with NASA on a recently open-sourced AI model trained on geospatial data, which he says can help track deforestation or predict crop yields. He also said IBM has committed approximately $100 million to universities to support AI research projects over the next five years, and that the computing titan has worked with Meta to build out an open-source toolkit for AI development.

    As for governance, Gil said that the alliance is still working out the details. The focus so far has been on building out a coalition and hashing out the organization’s objectives. Next steps include the formation of “technical working groups” for the more than 50 participants as well as the design of a governance structure that may lead to an external nonprofit.

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Ben Weiss

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  • Why Sam Altman is a no-brainer for Time’s ‘Person of the Year’

    Why Sam Altman is a no-brainer for Time’s ‘Person of the Year’

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    Nothing has changed our lives more this year than the advances made in artificial intelligence — and they have the potential to alter our lives in even more dramatic ways down the road.

    So it’s a no-brainer that Sam Altman, co-founder and recently returned chief executive of the once-little-known OpenAI, should be named “Person of the Year” by Time Magazine when the selection is announced Wednesday.

    Altman has already cracked Time’s shortlist, joining candidates from varied backgrounds, including world leaders like Xi Jinping and entertainment phenomenon Taylor Swift. The selection ultimately comes down to an “individual or group who most shaped the previous 12 months, for better or for worse.”

    But Time has often given “agents of change” its yearly honor — just look at 2021 winner Elon Musk — and Altman certainly fits that bill.

    No other innovation in the past year has had an impact in such disparate realms. OpenAI publicly launched its ChatGPT chatbot late last year, and as the technology grew viral in 2023, it upended the stock market, Silicon Valley and companies that wouldn’t normally be classified as technology businesses. The ensuing product development and surge in generative AI investment revitalized a tech industry that had sunk into the doldrums amid a pandemic hangover.

    Admittedly, it will take time for companies to realize the true financial benefits of AI: Nvidia Corp.
    NVDA,
    -2.68%

    is among the few to generate serious money from the frenzy so far. But market researcher IDC predicted that global spending on AI, including software, hardware and services for AI-centric systems will reach $154 billion this year, up 27% from a year ago. That total could zoom above $300 billion by 2026.

    Also read: One year after its launch, ChatGPT has succeeded in igniting a new era in tech

    And AI isn’t only impacting the corporate world. The technology is already affecting our daily lives, and it will have even deeper effects going forward. Chatbots are getting smarter on websites, facilitating better customer service. They’re starting to alter the workplace as well, spitting out mostly coherent marketing copy, research and even, gasp, news articles — albeit with plenty of errors.

    At first, ChatGPT seemed like a fun way to kill time or get homework help, but the chatbot and its ilk will seriously alter the working world, helping to eliminate perhaps millions of jobs. Morgan Stanley recently predicted that more than 40% of occupations will be affected by generative AI in the next three years.

    Altman himself has been the face of OpenAI in the past year. He’s talked up the technology, but he also appeared at congressional hearings in May to discuss potential regulation of AI, testifying that “if this technology goes wrong, it can go quite wrong.” His recent firing and quick rehiring by OpenAI and its small, nonprofit board late last month fueled a veritable media storm before the Thanksgiving holiday in the U.S.

    Time chooses its persons of the year for their impact, not because they’re saints. And Altman’s own story is not without controversy. The recent brouhaha over his leadership of OpenAI is believed to have been caused by a deep schism over the ethics of AI development. The board seemingly wanted more guardrails and precautions, and feared that rushed development could irrevocably doom mankind.

    Read in the Wall Street Journal: How effective altruism split Silicon Valley and fueled the blowup at OpenAI

    Altman, who also wooed Microsoft Corp.
    MSFT,
    -1.43%

    to become an investor in OpenAI, emerged the victor in the upheaval with his own company’s altruistic board. Had Altman truly been fired from OpenAI, Microsoft was planning to hire him, and nearly every employee at OpenAI was ready to quit and follow him there. While OpenAI faces plenty of competition, including from Alphabet Inc.’s
    GOOG,
    -2.02%

    GOOGL,
    -1.96%

    Google, Altman should continue to be the face of AI development, for good and for bad, even as he has advocated industry regulation.

    The debut and influence of ChatGPT and follow-on AI products are having the biggest impact on tech development since the invention of the iPhone. Altman is at the center of it and leading the charge. Whether he can keep the lid on Pandora’s Box or not depends on many factors, but he and the company he leads are clearly driving a new tech movement that affects us all, whether we like it or not.

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  • BlackRock meets with SEC over ETF, Binance’s new era begins and SBF loses release bid: Hodler’s Digest, Nov. 19-25

    BlackRock meets with SEC over ETF, Binance’s new era begins and SBF loses release bid: Hodler’s Digest, Nov. 19-25

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    Top Stories This Week

    US officials announce $4.3B settlement with Binance, plea deal with CZ

    Binance and its co-founder, Changpeng “CZ” Zhao, have reached a settlement over criminal and civil cases with the United States Department of Justice. CZ will plead guilty to one felony charge as part of the negotiated agreement. Attorney General Merrick Garland announced the settlement, claiming Binance’s policies allowed criminals involved in illicit activities to move “stolen funds” through the exchange. As part of the settlement, CZ announced on X (formerly Twitter) that he had stepped down as CEO and that Binance’s global head of regional markets, Richard Teng, will assume the position. He added he was “proud to point out” that U.S. officials didn’t allege that Binance misappropriated funds or manipulated markets. CZ was released on bail and is battling government efforts to bar his return to the United Arab Emirates to be with his family. His sentencing is scheduled for February.

    BlackRock met with SEC officials to discuss spot Bitcoin ETF

    Representatives from BlackRock and Nasdaq met with the U.S. Securities and Exchange Commission (SEC) to discuss the proposed rule allowing the listing of a spot Bitcoin exchange-traded fund (ETF). BlackRock provided a presentation detailing how the firm could use an in-kind or in-cash redemption model for its iShares Bitcoin Trust. Many reports have suggested the SEC could be nearing a decision on a spot BTC ETF for listing on U.S. markets. SEC officials also met with Grayscale representatives this week to discuss the listing of a Bitcoin ETF. BlackRock is one of many firms with spot crypto ETF applications in the SEC pipeline awaiting a response, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck and Bitwise.

    Bitcoin user pays $3.1M transaction fee for 139 BTC transfer

    A Bitcoin user paid $3.1 million in fees for transferring 139.42 BTC. The transaction fee is the eighth-highest in Bitcoin’s 14-year history. A wallet address tried transferring 139.42 BTC only to pay more than half the actual value of the transaction fee. The destination address received only 55.77 BTC. The mining pool Antpool captured the absurdly high mining fee on block 818087. This is the largest Bitcoin transaction fee ever paid in dollar terms, knocking off Paxos’s September transfer of $500,000.

    SEC sues Kraken alleging it’s an unregistered exchange, mixes user funds

    The U.S. Securities and Exchange Commission has sued Kraken, alleging it commingled customer funds and failed to register with the regulator as a securities exchange, broker, dealer and clearing agency. Additionally, the SEC alleged Kraken’s business practices and “deficient” internal controls saw the exchange commingle up to $33 billion worth of customer assets with its own. The SEC said this resulted in a “significant risk of loss” for its clients. In a follow-up blog post, Kraken said the SEC’s commingling accusations were “no more than Kraken spending fees it has already earned,” and the regulator doesn’t allege any user funds are missing.

    Appeals court rejects Sam Bankman-Fried’s bid for release

    Sam Bankman-Fried will stay jailed after failing to convince a United States appellate court that he should be freed while his legal team appeals his conviction. Government prosecutors accused Bankman-Fried of leaking Caroline Ellison’s journals to The New York Times in July, which caused his bail to be revoked by a New York District Court. Bankman-Fried was found guilty of seven fraud and money laundering-related charges on Nov. 2. The former FTX CEO will remain behind bars while he awaits his sentencing on March 28 next year.

    Winners and Losers

    At the end of the week, Bitcoin (BTC) is at $37,710, Ether (ETH) is at $2,079, and XRP is at $0.62. The total market cap is at $1.43 trillion, according to CoinMarketCap.

    Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Blur (BLUR) at 99.25%, FTX Token (FTT) at 39.05% and KuCoin Token (KCS) at 24.82%. 

    The top three altcoin losers of the week are Celestia (TIA) at -19.89%, ORDI (ORDI) at -17.63% and THORChain (RUNE) at -15.53%.

    For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

    Read also


    Features

    Home loans using crypto as collateral: Do the risks outweigh the reward?


    Features

    Slumdog billionaire 2: ‘Top 10… brings no satisfaction’ says Polygon’s Sandeep Nailwal

    Most Memorable Quotations

    “The U.S. has a financial regime that basically has been weaponized.”

    Charles Hoskinson, founder of Cardano

    “I made mistakes, and I must take responsibility.”

    Changpeng “CZ” Zhao, former CEO of Binance

    “We, the employees of OpenAI, have developed the best models and pushed the field to new frontiers, [but] the process through which you terminated Sam Altman […] has jeopardized all of this work and undermined our mission and company.”

    OpenAI employees

    “Get your crypto company out of the U.S. warzone.”

    Jesse Powell, co-founder of Kraken

    “The regulatory uncertainty that permeates the U.S. market is having an impact on the rest of the world.”

    Oliver Linch, CEO of Bittrex Global

    “I’m looking forward to returning to OpenAI and building on our strong partnership with Microsoft.”

    Sam Altman, CEO of OpenAI

    Prediction of the week

    ‘Enjoy sub-$40K Bitcoin’ — PlanB stresses $100K average BTC price from 2024

    Bitcoin buyers should enjoy the chance to add to their stack below $40,000, according to PlanB, pseudonymous creator of the stock-to-flow family of BTC price models. He believes Bitcoin will rise much higher than its recent 18-month highs.

    Bitcoin bear market bottoms are characterized by the spot price dipping below the realized price, while bull markets begin once the spot crosses the two-year and five-month realized price levels. BTC/USD is now once again above all three realized price iterations.

    “Enjoy sub-$40k bitcoin … while it lasts,” PlanB commented on an accompanying chart.

    Asked whether the market should expect lower levels from here, PlanB would not be drawn, saying that he simply expected an average BTC price of at least $100,000 between 2024 and 2028 — Bitcoin’s next halving cycle.

    FUD of the Week

    HTX to restore services ‘within 24 hours’ after $30M hack

    Crypto exchange HTX, formerly known as Huobi Global, resumed deposits and withdrawals within 24 hours after suffering a $30 million exploit on Nov. 22. The exploit was reported to be $13.6 million around the time of the incident, but has since increased in value. HTX’s hot wallets were compromised alongside a coordinated $86.6 million attack against the HTX Eco (HECO) Chain bridge, consisting of HTX, Tron and BitTorrent. The company has promised to fully compensate users for any losses incurred as a consequence of the hack.

    CZ an ‘unacceptable risk of flight,’ should stay in US: DOJ

    United States prosecutors are trying to stop former Binance boss Changpeng “CZ” Zhao from leaving the country, expressing concern about his potential flight risk. The government requested a review and overturn of a judge’s decision that would allow Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bond under the condition that he returns to the U.S. two weeks before his February 2024 sentencing. In a proposed order, prosecutors wrote that Zhao “presents an unacceptable risk of flight,” arguing that his ties and favored status in the UAE, along with the country’s lack of an extradition treaty with the U.S., are reasons to block him from leaving the country.

    KyberSwap hacker offers $4.6M bounty for return of $46M loot

    The decentralized exchange KyberSwap has offered a 10% bounty reward to the hacker who stole $46 million on Nov. 22 and left a note of negotiation. The exchange wants 90% of the loot returned. The hacker made away with roughly $20 million in Wrapped Ether, $7 million in wrapped Lido-staked Ether and $4 million in Arbitrum tokens. The hacker then siphoned the loot across multiple chains, including Arbitrum, Optimism, Ethereum, Polygon and Base.

    Read also


    Features

    Daft Punk meets CryptoPunks as Novo faces up to NFTs


    Features

    Open Source or Free for All? The Ethics of Decentralized Blockchain Development

    Top Magazine Pieces of the Week

    This is your brain on crypto: Substance abuse grows among crypto traders

    According to some addiction experts, the high-stress atmosphere of cryptocurrency trading can provide a perfect environment for substance abuse.

    Michael Saylor’s a fan, but Frisby says bull run needs a new guru: X Hall of Flame

    Bitcoin enthusiast Dominic Frisby has a wild journey, from penning one of the first-ever Bitcoin books to plastering “Bitcoin fixes this” on the Bank of England.

    6 Questions for Alex O’Donnell about financial journalism and the future of DeFi

    Alex O’Donnell spoke to Cointelegraph Magazine about his career as a financial journalist — and how it led to his involvement in crypto and Umami DAO.

    Editorial Staff

    Cointelegraph Magazine writers and reporters contributed to this article.

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    Cointelegraph By Editorial Staff

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  • Elon Musk warns ‘something scared’ OpenAI chief scientist Ilya Sutskever as CEO Sam Altman’s return fails to answer key questions

    Elon Musk warns ‘something scared’ OpenAI chief scientist Ilya Sutskever as CEO Sam Altman’s return fails to answer key questions

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    Elon Musk played a big role in persuading Ilya Sutskever to join OpenAI as chief scientist in 2015. Now the Tesla CEO wants to know what he saw there that scared him so much.

    Sutskever, whom Musk recently described as a “good human” with a “good heart”—and the “linchpin for OpenAI being successful”—served on the OpenAI board that fired CEO Sam Altman two Fridays ago; indeed, Sutskever informed Altman of his dismissal. Since then, however, the board has been revamped and Altman reinstated, with investors led by Microsoft pushing for the changes.

    Sutskever himself backtracked on Monday, writing on X, “I deeply regret my participation in the board’s actions. I never intended to harm OpenAI.” 

    But Musk and other tech elites—including ones who mocked the board for firing Altman—are still curious about what Sutskever saw. 

    Late on Thursday, venture capitalist Marc Andreessen, who has ridiculed “doomers” who fear AI’s threat to humanity, posted to X, “Seriously though — what did Ilya see?” Musk replied a few hours later, “Yeah! Something scared Ilya enough to want to fire Sam. What was it?”

    That remains a mystery. The board gave only vague reasons for firing Atlman. Not much has been revealed since.

    ‘Such drastic action’

    OpenAI’s mission is to develop artificial general intelligence (AGI) and ensure it “benefits all of humanity.” AGI refers to a system that can match humans when faced with an unfamiliar task. 

    OpenAI’s unusual corporate structure put a nonprofit board higher than the capped-profit company, allowing the board to fire the CEO if, for instance, it felt the commercialization of potentially dangerous AI capabilities was moving at an unsafe speed.

    Early on Thursday, Reuters reported that several OpenAI researchers had warned the board in a letter of a new AI that could threaten humanity. OpenAI, after being contacted by Reuters, then wrote an internal email acknowledging a project called Q* (pronounced Q-Star), which some staffers felt might be a breakthrough in the company’s AGI quest. Q* reportedly can ace basic mathematical tests, suggesting an ability to reason, as opposed ChatGPT’s more predictive behavior.

    Musk has longed warned of the potential dangers to humanity from artificial intelligence, though he also sees its upsides and now offers a ChatGPT rival called Grok through his startup xAI. He cofounded OpenAI in 2015 and helped lure key talent including Sutskever, but he left a few years later on a sour note. He later complained that the onetime nonprofit—which he had hoped would serve as a counterweight to Google’s AI dominance—had instead become a “closed source, maximum-profit company effectively controlled by Microsoft.”

    Last weekend, he weighed in on the OpenAI board’s decision to fire Altman, writing: “Given the risk and power of advanced AI, the public should be informed of why the board felt they had to take such drastic action.” 

    When an X user suggested there might be a “bombshell variable” unknown to the public, Musk replied, “Exactly.”

    Sutskever, after his backtracking on Monday, responded to the return of Altman by writing on Wednesday, “There exists no sentence in any language that conveys how happy I am.”  

    Subscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up for free.

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    Steve Mollman

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  • The Week’s Hottest Takes, From Scott Pilgrim To TLOU 2

    The Week’s Hottest Takes, From Scott Pilgrim To TLOU 2

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    Gamers are a passionate bunch, and we’re no exception. These are the week’s most interesting perspectives on the wild, wonderful, and sometimes weird world of video game news.


    The Scott Pilgrim Anime Backlash, Explained

    Image: Netflix

    Scott Pilgrim Takes Off, the new animated series based on Bryan Lee O’Malley’s graphic novels, is out on Netflix. The eight-episode series reunites the voice cast of the 2010 live-action movie Scott Pilgrim vs. the World and is a hilarious blend of the series’ quick wit and well-measured pop culture references. All of this sounds like a recipe for success, right? Well, it’s a little more complicated. Read More


    The New Division Game Has A Feature Every Game Should Steal

    An image shows Division characters being fast-forwarded.

    Image: Ubisoft / Kotaku

    Ubisoft’s new The Division game isn’t even out yet, as it’s still in beta testing and won’t launch officially until 2024. But after trying the beta, I already want one feature from the upcoming game to become standard in every video game I play in the future. Read More


    The Future Of ChatGPT Just Became A Circus [Update]

    Sam Altman appears at OpenAI Dev conference with a clown emjoi for a face.

    Photo: Justin Sullivan / Applle / Kotaku (Getty Images)

    OpenAI is the research organization behind ChatGPT, the AI-generated chatbot that took the internet by storm last year for its capacity to have really weird conversations with tech journalists. It’s at the center of Microsoft’s big bet on generative AI tools transforming the world, gaming, and more, and it’s now at risk of imploding after its CEO, Sam Altman, was mysteriously ousted by the OpenAI board of directors and Twitch co-founder Emmett Shear was desperately recruited to replace him. Here’s all you really need to know about OpenAI to appreciate what a clusterfuck the last few days have been. Read More


    Kotaku Asks: How Soon Is Too Soon For A Video Game Remaster Or Remake?

    A screenshot shows a sad Joel looking at Ellie in The Last of Us Part II.

    Screenshot: PlayStation / Naughty Dog

    How much time has to pass before it becomes acceptable to remaster or even remake a game? 10 years? 15 years? What about three-ish years? Is that enough time between the original and the remaster? Well, that’s what’s happening early next year as Naughty Dog is remastering 2020’s The Last of Us Part II.  Read More


    I’m So Tired Of Crossover ‘Skins’ Cluttering Up Video Games

    An image shows a collage of crossover video game skins from Destiny, Payday, and Rainbow Six.

    Image: Xbox / Epic Games / Bungie / Overkill Software / Kotaku

    Another day, another big video game crossover. This time it’s Bungie’s online looter shooter, Destiny 2, adding Witcher 3-inspired armor to its digital store. Are you excited? I’m not. In reality, I’m just really tired of every brand mixing together, regardless of whether it makes sense or is needed, as if concocting the world’s worst stew. Read More


    Admit It, You Don’t Understand Skill-Based Matchmaking (And Neither Do I)

    A man and a woman stand, scratching their heads in confusion, in front of a Modern Warfare III scoreboard.

    Image: Kotaku / Asier Romero / Luis Molinero (Shutterstock)

    Whenever a new blockbuster first-person shooter drops, gamers limber up so they can once again argue over how multiplayer matches get made and the algorithmic systems that determine who plays against whom and when. The recent release of Call of Duty: Modern Warfare III is no exception—not long after its multiplayer servers booted on November 10, players began flocking to Reddit, X (Twitter), and everywhere in between to complain about the quality (or perceived lack thereof) of Activision’s matchmaking. But, as with so many issues in the gaming industry, there’s a serious lack of nuance and true understanding at play here. Read More


    I Can’t Miss The Last Of Us If It Won’t Leave

    The key art of The Last of Us Part II Remastered featuring Ellie and Abby.

    Image: Naughty Dog

    Remember when it took us seven years to get a new The Last of Us game? Remember when there was even a question about whether or not we’d ever get a sequel to Naughty Dog’s post-apocalyptic action game because the ending was so intentionally ambiguous and thought-provoking?

    Now, it seems we can’t go a year without being reminded that Sony thinks as many people should experience this series as possible, while folks associated with the HBO adaptation praise the game in ways that border on the absurd. Now, we’re getting a remaster of The Last of Us Part II, and it feels like we’re reaching peak Last of Us fatigue. Read More


    This Modern Warfare 3 Gameplay Feature Spices Up A Weak Campaign

    This Modern Warfare 3 Gameplay Feature Spices Up A Weak Campaign

    Open Combat Missions are a fresh idea worth carrying over to future Call of Duty games.


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    Kotaku Staff

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  • OpenAI, emerging from the ashes, has a lot to prove even with Sam Altman’s return | TechCrunch

    OpenAI, emerging from the ashes, has a lot to prove even with Sam Altman’s return | TechCrunch

    [ad_1]

    The OpenAI power struggle that captivated the tech world after co-founder Sam Altman was fired has finally reached its end — at least for the time being. But what to make of it?

    It feels almost as though some eulogizing is called for — like OpenAI died and a new, but not necessarily improved, startup stands in its midst. Ex-Y Combinator president Altman is back at the helm, but is his return justified? OpenAI’s new board of directors is getting off to a less diverse start (i.e. it’s entirely white and male), and the company’s founding philanthropic aims are in jeopardy of being co-opted by more capitalist interests.

    That’s not to suggest that the old OpenAI was perfect by any stretch.

    As of Friday morning, OpenAI had a six-person board — Altman, OpenAI chief scientist Ilya Sutskever, OpenAI president Greg Brockman, tech entrepreneur Tasha McCauley, Quora CEO Adam D’Angelo and Helen Toner, director at Georgetown’s Center for Security and Emerging Technologies. The board was technically tied to a nonprofit that had a majority stake in OpenAI’s for-profit side, with absolute decision-making power over the for-profit OpenAI’s activities, investments and overall direction.

    OpenAI’s unusual structure was established by the company’s co-founders, including Altman, with the best of intentions. The nonprofit’s exceptionally brief (500-word) charter outlines that the board make decisions ensuring “that artificial general intelligence benefits all humanity,” leaving it to the board’s members to decide how best to interpret that. Neither “profit” nor “revenue” get a mention in this North Star document; Toner reportedly once told Altman’s executive team that triggering OpenAI’s collapse “would actually be consistent with the [nonprofit’s] mission.”

    Maybe the arrangement would have worked in some parallel universe; for years, it appeared to work well enough at OpenAI. But once investors and powerful partners got involved, things became… trickier.

    Altman’s firing unites Microsoft, OpenAI’s employees

    After the board abruptly canned Altman on Friday without notifying just about anyone, including the bulk of OpenAI’s 770-person workforce, the startup’s backers began voicing their discontent in both private and public.

    Satya Nadella, the CEO of Microsoft, a major OpenAI collaborator, was allegedly “furious” to learn of Altman’s departure. Vinod Khosla, the founder of Khosla Ventures, another OpenAI backer, said on X (formerly Twitter) that the fund wanted Altman back. Meanwhile, Thrive Capital, the aforementioned Khosla Ventures, Tiger Global Management and Sequoia Capital were said to be contemplating legal action against the board if negotiations over the weekend to reinstate Altman didn’t go their way.

    Now, OpenAI employees weren’t unaligned with these investors from outside appearances. On the contrary, close to all of them — including Sutskever, in an apparent change of heart — signed a letter threatening the board with mass resignation if they opted not to reverse course. But one must consider that these OpenAI employees had a lot to lose should OpenAI crumble — job offers from Microsoft and Salesforce aside.

    OpenAI had been in discussions, led by Thrive, to possibly sell employee shares in a move that would have boosted the company’s valuation from $29 billion to somewhere between $80 billion and $90 billion. Altman’s sudden exit — and OpenAI’s rotating cast of questionable interim CEOs — gave Thrive cold feet, putting the sale in jeopardy.

    Altman won the five-day battle, but at what cost?

    But now after several breathless, hair-pulling days, some form of resolution’s been reached. Altman — along with Brockman, who resigned on Friday in protest over the board’s decision — is back, albeit subject to a background investigation into the concerns that precipitated his removal. OpenAI has a new transitionary board, satisfying one of Altman’s demands. And OpenAI will reportedly retain its structure, with investors’ profits capped and the board free to make decisions that aren’t revenue-driven.

    Salesforce CEO Marc Benioff posted on X that “the good guys” won. But that might be premature to say.

    Sure, Altman “won,” besting a board that accused him of “not [being] consistently candid” with board members and, according to some reporting, putting growth over mission. In one example of this alleged rogueness, Altman was said to have been critical of Toner over a paper she co-authored that cast OpenAI’s approach to safety in a critical light — to the point where he attempted to push her off the board. In another, Altman “infuriated” Sutskever by rushing the launch of AI-powered features at OpenAI’s first developer conference.

    The board didn’t explain themselves even after repeated chances, citing possible legal challenges. And it’s safe to say that they dismissed Altman in an unnecessarily histrionic way. But it can’t be denied that the directors might have had valid reasons for letting Altman go, at least depending on how they interpreted their humanistic directive.

    The new board seems likely to interpret that directive differently.

    Currently, OpenAI’s board consists of former Salesforce co-CEO Bret Taylor, D’Angelo (the only holdover from the original board) and Larry Summers, the economist and former Harvard president. Taylor is an entrepreneur’s entrepreneur, having co-founded numerous companies, including FriendFeed (acquired by Facebook) and Quip (through whose acquisition he came to Salesforce). Meanwhile, Summers has deep business and government connections — an asset to OpenAI, the thinking around his selection probably went, at a time when regulatory scrutiny of AI is intensifying.

    The directors don’t seem like an outright “win” to this reporter, though — not if diverse viewpoints were the intention. While six seats have yet to be filled, the initial four set a rather homogenous tone; such a board would in fact be illegal in Europe, which mandates companies reserve at least 40% of their board seats for women candidates.

    Why some AI experts are worried about OpenAI’s new board

    I’m not the only one who’s disappointed. A number of AI academics turned to X to air their frustrations earlier today.

    Noah Giansiracusa, a math professor at Bentley University and the author of a book on social media recommendation algorithms, takes issue both with the board’s all-male makeup and the nomination of Summers, who he notes has a history of making unflattering remarks about women.

    “Whatever one makes of these incidents, the optics are not good, to say the least — particularly for a company that has been leading the way on AI development and reshaping the world we live in,” Giansiracusa said via text. “What I find particularly troubling is that OpenAI’s main aim is developing artificial general intelligence that ‘benefits all of humanity.’ Since half of humanity are women, the recent events don’t give me a ton of confidence about this. Toner most directly representatives the safety side of AI, and this has so often been the position women have been placed in, throughout history but especially in tech: protecting society from great harms while the men get the credit for innovating and ruling the world.”

    Christopher Manning, the director of Sanford’s AI Lab, is slightly more charitable than — but in agreement with — Giansiracusa in his assessment:

    “The newly formed OpenAI board is presumably still incomplete,” he told TechCrunch. “Nevertheless, the current board membership, lacking anyone with deep knowledge about responsible use of AI in human society and comprising only white males, is not a promising start for such an important and influential AI company.”

    Inequity plagues the AI industry, from the annotators who label the data used to train generative AI models to the harmful biases that often emerge in those trained models, including OpenAI’s models. Summers, to be fair, has expressed concern over AI’s possibly harmful ramifications — at least as they relate to livelihoods. But the critics I spoke with find it difficult to believe that a board like OpenAI’s present one will consistently prioritize these challenges, at least not in the way that a more diverse board would.

    It raises the question: Why didn’t OpenAI attempt to recruit a well-known AI ethicist like Timnit Gebru or Margaret Mitchell for the initial board? Were they “not available”? Did they decline? Or did OpenAI not make an effort in the first place? Perhaps we’ll never know.

    Reportedly, OpenAI considered Laurene Powell Jobs and Marissa Mayer for board roles, but they were deemed too close to Altman. Condoleezza Rice’s name was also floated, but ultimately passed over.

    OpenAI has a chance to prove itself wiser and worldlier in selecting the five remaining board seats — or three, should Altman and a Microsoft executive take one each (as has been rumored). If they don’t go a more diverse way, what Daniel Colson, the director of the think tank the AI Policy Institute, said on X may well be true: a few people or a single lab can’t be trusted with ensuring AI is developed responsibly.

    Updated 11/23 at 11:26 a.m. Eastern: Embedded a post from Timnit Gebru and information from a report about passed-over potential OpenAI women board members. 

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    Kyle Wiggers

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  • DoorFeed raises another €7M for its platform allowing large-scale investors to hoover-up family homes | TechCrunch

    DoorFeed raises another €7M for its platform allowing large-scale investors to hoover-up family homes | TechCrunch

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    Institutional real estate investors have historically struggled to buy up tonnes of family homes (the so-called ‘Single Family rental sector’) so they can turn us all into rental slaves and lock millions to a rentier economy. A few startups are trying to ease the ‘pain’ of these rapacious harbingers of hyper capitalism.

    Immo Capital, a platform for managing residential real estate portfolios has raised $90.7 million. Bricklane is another platform for rental housing (raised £6 million out of London). And Casafari in Spain/Portugal has raised $20.5 million.

    Into this market has launched DoorFeed, founded by James Kirimy, an early Uber UK employee. It’s secured a new funding round of €7 million Seed extension round led by Motive Ventures (backed by Private Equity firm Apollo, owners of Yahoo! and thus TechCrunch), with participation of Stride VC and Seedcamp. The firm previously raised a €3.5 million seed led by Stride and Seedcamp in 2021, and a €1.5 million debt financing by BPI France in 2022.

    In simple terms, DoorFeed provides the data platform and operations for investment funds to assemble and manage large scale portfolios of apartments and houses. It also allows them to figure out which houses have a bad energy performance, and then renovate them, possibly unlocking ESG credits from governments, it claims.

    It makes money via a sourcing fee and renovation management fee, as well as an annual property and asset management fee.

    Looking at the market independently, these companies are clearly onto something that would make a hedge fund manager blush.

    Investment in European living assets exceeded all other real estate assets classes in the second quarter at €10.6 billion, according to JLL, and 20% of the market is buy-to-let investors.

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    Mike Butcher

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  • OpenAI, emerging from the ashes, has a lot to prove even with Sam Altman’s return | TechCrunch

    OpenAI, emerging from the ashes, has a lot to prove even with Sam Altman’s return | TechCrunch

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    The OpenAI power struggle that captivated the tech world after co-founder Sam Altman was fired has finally reached its end — at least for the time being. But what to make of it?

    It feels almost as though some eulogizing is called for — like OpenAI died and a new, but not necessarily improved, startup stands in its midst. Ex-Y Combinator president Altman is back at the helm, but is his return justified? OpenAI’s new board of directors is getting off to a less diverse start (i.e. it’s entirely white and male), and the company’s founding philanthropic aims are in jeopardy of being co-opted by more capitalist interests.

    That’s not to suggest that the old OpenAI was perfect by any stretch.

    As of Friday morning, OpenAI had a six-person board — Altman, OpenAI chief scientist Ilya Sutskever, OpenAI president Greg Brockman, tech entrepreneur Tasha McCauley, Quora CEO Adam D’Angelo and Helen Toner, director at Georgetown’s Center for Security and Emerging Technologies. The board was technically tied to a nonprofit that had a majority stake in OpenAI’s for-profit side, with absolute decision-making power over the for-profit OpenAI’s activities, investments and overall direction.

    OpenAI’s unusual structure was established by the company’s co-founders, including Altman, with the best of intentions. The nonprofit’s exceptionally brief (500-word) charter outlines that the board make decisions ensuring “that artificial general intelligence benefits all humanity,” leaving it to the board’s members to decide how best to interpret that. Neither “profit” nor “revenue” get a mention in this North Star document; Toner reportedly once told Altman’s executive team that triggering OpenAI’s collapse “would actually be consistent with the [nonprofit’s] mission.”

    Maybe the arrangement would have worked in some parallel universe; for years, it appeared to work well enough at OpenAI. But once investors and powerful partners got involved, things became… trickier.

    Altman’s firing unites Microsoft, OpenAI’s employees

    After the board abruptly canned Altman on Friday without notifying just about anyone, including the bulk of OpenAI’s 770-person workforce, the startup’s backers began voicing their discontent in both private and public.

    Satya Nadella, the CEO of Microsoft, a major OpenAI collaborator, was allegedly “furious” to learn of Altman’s departure. Vinod Khosla, the founder of Khosla Ventures, another OpenAI backer, said on X (formerly Twitter) that the fund wanted Altman back. Meanwhile, Thrive Capital, the aforementioned Khosla Ventures, Tiger Global Management and Sequoia Capital were said to be contemplating legal action against the board if negotiations over the weekend to reinstate Altman didn’t go their way.

    Now, OpenAI employees weren’t unaligned with these investors from outside appearances. On the contrary, close to all of them — including Sutskever, in an apparent change of heart — signed a letter threatening the board with mass resignation if they opted not to reverse course. But one must consider that these OpenAI employees had a lot to lose should OpenAI crumble — job offers from Microsoft and Salesforce aside.

    OpenAI had been in discussions, led by Thrive, to possibly sell employee shares in a move that would have boosted the company’s valuation from $29 billion to somewhere between $80 billion and $90 billion. Altman’s sudden exit — and OpenAI’s rotating cast of questionable interim CEOs — gave Thrive cold feet, putting the sale in jeopardy.

    Altman won the five-day battle, but at what cost?

    But now after several breathless, hair-pulling days, some form of resolution’s been reached. Altman — along with Brockman, who resigned on Friday in protest over the board’s decision — is back, albeit subject to a background investigation into the concerns that precipitated his removal. OpenAI has a new transitionary board, satisfying one of Altman’s demands. And OpenAI will reportedly retain its structure, with investors’ profits capped and the board free to make decisions that aren’t revenue-driven.

    Salesforce CEO Marc Benioff posted on X that “the good guys” won. But that might be premature to say.

    Sure, Altman “won,” besting a board that accused him of “not [being] consistently candid” with board members and, according to some reporting, putting growth over mission. In one example of this alleged rogueness, Altman was said to have been critical of Toner over a paper she co-authored that cast OpenAI’s approach to safety in a critical light — to the point where he attempted to push her off the board. In another, Altman “infuriated” Sutskever by rushing the launch of AI-powered features at OpenAI’s first developer conference.

    The board didn’t explain themselves even after repeated chances, citing possible legal challenges. And it’s safe to say that they dismissed Altman in an unnecessarily histrionic way. But it can’t be denied that the directors might have had valid reasons for letting Altman go, at least depending on how they interpreted their humanistic directive.

    The new board seems likely to interpret that directive differently.

    Currently, OpenAI’s board consists of former Salesforce co-CEO Bret Taylor, D’Angelo (the only holdover from the original board) and Larry Summers, the economist and former Harvard president. Taylor is an entrepreneur’s entrepreneur, having co-founded numerous companies, including FriendFeed (acquired by Facebook) and Quip (through whose acquisition he came to Salesforce). Meanwhile, Summers has deep business and government connections — an asset to OpenAI, the thinking around his selection probably went, at a time when regulatory scrutiny of AI is intensifying.

    The directors don’t seem like an outright “win” to this reporter, though — not if diverse viewpoints were the intention. While six seats have yet to be filled, the initial four set a rather homogenous tone; such a board would in fact be illegal in Europe, which mandates companies reserve at least 40% of their board seats for women candidates.

    Why some AI experts are worried about OpenAI’s new board

    I’m not the only one who’s disappointed. A number of AI academics turned to X to air their frustrations earlier today.

    Noah Giansiracusa, a math professor at Bentley University and the author of a book on social media recommendation algorithms, takes issue both with the board’s all-male makeup and the nomination of Summers, who he notes has a history of making unflattering remarks about women.

    “Whatever one makes of these incidents, the optics are not good, to say the least — particularly for a company that has been leading the way on AI development and reshaping the world we live in,” Giansiracusa said via text. “What I find particularly troubling is that OpenAI’s main aim is developing artificial general intelligence that ‘benefits all of humanity.’ Since half of humanity are women, the recent events don’t give me a ton of confidence about this. Toner most directly representatives the safety side of AI, and this has so often been the position women have been placed in, throughout history but especially in tech: protecting society from great harms while the men get the credit for innovating and ruling the world.”

    Christopher Manning, the director of Sanford’s AI Lab, is slightly more charitable than — but in agreement with — Giansiracusa in his assessment:

    “The newly formed OpenAI board is presumably still incomplete,” he told TechCrunch. “Nevertheless, the current board membership, lacking anyone with deep knowledge about responsible use of AI in human society and comprising only white males, is not a promising start for such an important and influential AI company.”

    Inequity plagues the AI industry, from the annotators who label the data used to train generative AI models to the harmful biases that often emerge in those trained models, including OpenAI’s models. Summers, to be fair, has expressed concern over AI’s possibly harmful ramifications — at least as they relate to livelihoods. But the critics I spoke with find it difficult to believe that a board like OpenAI’s present one will consistently prioritize these challenges, at least not in the way that a more diverse board would.

    It raises the question: Why didn’t OpenAI attempt to recruit a well-known AI ethicist like Timnit Gebru or Margaret Mitchell for the initial board? Were they “not available”? Did they decline? Or did OpenAI not make an effort in the first place? Perhaps we’ll never know.

    OpenAI has a chance to prove itself wiser and worldlier in selecting the five remaining board seats — or three, should Altman and a Microsoft executive take one each (as has been rumored). If they don’t go a more diverse way, what Daniel Colson, the director of the think tank the AI Policy Institute, said on X may well be true: a few people or a single lab can’t be trusted with ensuring AI is developed responsibly.

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    Kyle Wiggers

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  • OpenAI Tried to Fire Sam Altman. It Only Made Him More Powerful.

    OpenAI Tried to Fire Sam Altman. It Only Made Him More Powerful.

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    “The thing people forget about human babies,” mused Sam Altman, the entrepreneur whisperer turned artificial intelligence diviner, to The New Yorker’s Tad Friend in 2016, “is that they take years to learn anything interesting.” Tough but fair, although any babies reading this oughtn’t feel too embarrassed: Altman pointed out elsewhere in the piece, which was titled “Sam Altman’s Manifest Destiny,” that we grown-ups aren’t too quick on the uptake ourselves.

    “There are certain advantages to being a machine,” said Altman, the 38-year-old who—with the hectic exception of the past five-ish days; more on that in a moment!—has been the high-profile and highly influential CEO of OpenAI since 2019. His company recently flirted with an implied valuation of $80 billion; it is behind products like the smart image generator DALL-E and the beguiling large language model chatbot ChatGPT. “We humans are limited by our input-output rate—we learn only two bits a second, so a ton is lost,” Altman told Friend. “To a machine, we must seem like slowed-down whale songs.”

    It’s easy to imagine a tech leader like Altman sympathizing with the plight of such a bot. When you’re a guy who likes to operate not just on a different wavelength from most other mortals, but in a whole nother realm of consciousness—one in which the goal of achieving AGI, or “artificial general intelligence,” is considered possibly world saving or world ending, depending on who is doing the extrapolations—those brisk whirs of industry tend to resonate better than humanity’s low, musical moans.

    Why, just the other day—last Thursday, to be specific—Altman sat at a developer conference and described a recent experience that had left him positively vibrating with wonder. “On a personal note,” he told interviewer Laurene Powell Jobs and the rest of the APEC audience, “just in the last couple of weeks, I have gotten to be in the room when we sort of, like, push the veil of ignorance back and the frontier of discovery forward.” I’ve heard people use this kind of language to describe, like, the glory of childbirth, but in Altman’s case, he was describing the arrival of a different little bundle—lines of code on a computer that could go on to change the world.

    And yet, even the sleekest, purringest, many-billion-dollar flywheel can get smoked by a dumb, sudden bird strike; even the deepest-dwelling whales can surface at random and upend a vessel. Why, just the other day—last Friday, to be specific—the OpenAI board of directors abruptly decided it would be prudent to fire its CEO into the sun. And so, without telling anyone, including its publicly traded partner and mega-investor Microsoft, it went ahead and did it, with a ruthlessness that might have pleased the machines if everything hadn’t turned out so aggressively, humanly awkward instead.


    It’s always jarring when a real story feels fake, when everyone is skeptical of buying what you’re telling. Sometimes, the very people most familiar with a story are the ones most moved to try to explain things via shared fiction.

    Even among the techno journos and cyber doomers and network statists and “See, corporate governance matters!” nerds who have been glued to the sudden goings-on and votings-out at OpenAI—even among those of us who are terminally online enough to have tuned in eagerly last Friday to a highly speculative and information-light Twitter Spaces event about Altman’s odd ousting cohosted by Martin Shkreli; ask me how I know—we couldn’t help but notice that the past five days have unfolded like something you’d find on TV.

    Like an episode of Succession! Like a whole season of Succession, I should say, with enough rapid twists and U-turns in the power struggle timeline to make GoJo seem slo-mo by comparison. On Wednesday morning, when I woke up to the news that we’d reached a finale and Altman was coming back to OpenAI as CEO, my rotted brain could only think about Tom Wambsgans saying to Kendall Roy: “I’ve seen you get fucked a lot, and I’ve never seen Logan get fucked once.” And when I learned that Altman’s return involved a board of directors shake-up that installed both former Salesforce co-CEO Bret Taylor and former jetsetting Harvard president and compulsive opiner Larry Summers (?!?) … I mostly thought about how ’ol “Lawrence of Absurdia” would have been quite the character on Silicon Valley. (“Larry sucks up, and he bullies down” has the makings of a Russ Hanneman motivational speech, you know?)

    But mostly, all this time, I’ve thought about Survivor: specifically, one of those humdingers where the tribal council has started but there are still 24 minutes left in the episode. Just consider that, between the close of the stock market’s trading hours at 4 p.m. Eastern time Friday and the opening of the stock market’s trading hours at 9:30 a.m. Monday, all of the following happened:

    • OpenAI’s board of directors—a riddle wrapped in a mystery inside an enigma, which sits on the original nonprofit side of the organization but has absolute control over the newer for-profit side too, due to a once-idealistic, now-unusual corporate governance structure—announced that Altman was out. It informed him of this decision via Google Meet; it informed most of the rest of the world via a press release that cryptically described Altman as having been “not consistently candid in his communications with the board.”
    • Into this absence of information flowed many theories. The abruptness of the decision suggested the worst. On the Twitter Spaces event I joined, Shkreli posited that perhaps it had something to do with a recent New York magazine story titled “Sam Altman Is the Oppenheimer of Our Age,” in which Altman’s sister, Annie, spoke out about her estrangement from her brothers and followed up on past accounts of familial abuse. (The hosts of the Twitter Spaces event concluded that this explanation for Sam’s ouster seemed less likely once big names in Silicon Valley began speaking out with public statements of support for him.)
    • Greg Brockman, OpenAI’s president and a member of the board who was also blindsided by a vote of removal, bid adieu in protest.
    • Another theory behind the decision began to take hold around social media and hasn’t quieted since: that the board of directors had fired Altman out of some sense of moral duty because members felt or knew that he was being too cavalier, or maybe too commercial, with the technology’s rate of veil-lifting, frontier-pushing growth. Was this an attempt to keep OpenAI from breaking with its nonprofit origins and expanding its for-profit operations? Was it a way of slowing the company from iterating its way into the brave new world of actual AGI too soon? It’s not unusual for a board of directors to make decisions based on an organization’s mission or first principals or founding charter. But when that mission is related to the very future of mankind, the stakes are slightly raised.
    • Terms like “doomers” (used to describe fretful people who regard the potential of AGI with dread), “safetyists” (self-explanatory), and “decels” (people who think we should just sloooow down, man, before someone gets hurt) were all over my timeline, deployed with varying amounts of derision or respect.
    • An October tweet from board member Ilya Sutskever, who was said to have delivered the news to Altman, resurfaced and was widely analyzed for clues: “if you value intelligence above all other human qualities,” he had written, “you’re gonna have a bad time.”
    • Altman posted “I love you all” on Twitter; followers with big Swiftie energy pointed out that the first letters of each word spelled out ILYA.
    • Elon Musk, who cofounded and named OpenAI in 2015 and had served on the board for a time (along with Shivon Zilis, a former Yale hockey goalie who has worked at Tesla and Neuralink and who is also the mother of one of Musk’s sets of twins), stoked the existential crisis flames. He retweeted Sutskever’s quote; “I am very worried,” Musk added. “Ilya has a good moral compass and does not seek power. He would not take such drastic action unless he felt it was absolutely necessary.”
    • OpenAI’s chief operating officer, Brad Lightcap, wrote an internal memo viewed by several media outlets that explained all the reasons that weren’t behind Altman’s firing: The move “was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices,” Lightcap wrote. “This was a breakdown in communication between Sam and the board.” About what, he did not say.
    • The Verge and other outlets reported that Altman was in talks to return to the company. Soon after, he posted a photo of himself wearing an OpenAI guest badge. Another AI employee posted a photo of Altman taking said selfie, as proof of life.
    • OpenAI made an announcement confirming that Altman would not be returning as CEO—because the company had made a new indefinite-term hire. A warm welcome to onetime Microsoft intern Emmett Shear: the former CEO of Twitch, a noted Harry Potter fan, and one hell of a reply guy. Shear, a self-described safetyist/doomer who also seemed not to know exactly why his predecessor had gotten got, vowed to launch an investigation immediately.
    • Microsoft CEO Satya Nadella released a scorcher of a corporate communication around midnight Pacific time Sunday, expressing optimism about the company’s many-billion-dollar investment in OpenAI and adding that, oh, by the way, he had decided to hire Altman and Brockman into Microsoft directly so they could start a new in-house artificial intelligence and also that, oh, by the way, Big Clippy would be happy to hire any of the hundreds of OpenAI employees who sought to follow their former leaders to the BigCo. This was bonkers stuff. (Also, something about the glint of “We look forward to getting to know Emmett Shear” made my blood run cold.)
    • OpenAI employees loyal to Altman—including Mira Murati, who had ever so briefly been interim CEO—flooded Twitter with heart emoji and the line, “OpenAI is nothing without its people,” which sounds precisely like the kind of thing a scheming AI would say to butter us tenderhearted humans up. (I did see someone on Twitter joke that maybe if he joined in and tweeted the line too, he could slip right into a seven-figure job at Microsoft undetected.)
    • ILYA TWEETED THAT HE DEEPLY REGRETTED HIS PARTICIPATION IN THE BOARD’S ACTIONS AND WROTE THAT HE NEVER INTENDED TO HARM OPENAI. (?????) (!!!!!!!!)
    • SAM RETWEETED ILYA’S TWEET AND ADDED SOME HEART EMOJI.
    • As reported by Kara Swisher, a petition went around imploring the remaining board holdouts—one of whom included the CEO of Quora, because of course—to step down or face the mass resignation of what would eventually be something like 95 percent of OpenAI employees. ILYA SIGNED THE PETITION. (It’s unclear whether he was clad in a hot dog suit at the time.)

    And that accounting of the weekend absurdity doesn’t include the most Silicon Valley detail of them all, the one so on the nose it seemed scripted, but only because it happened after the opening bell:

    • The CEO of a “smart mattress” company called Eight Sleep tapped into the mainframe and emerged with some data: Few people in San Francisco got a good night of sleep on Sunday. Maybe it’s because they’re being surveilled by their mattresses?

    The breakneck pace of updates continued once the workweek got under way: There were lots of reports about meetings, more OpenAI employees signing the petition; wives doing work; Salesforce’s Marc Benioff getting roasted; Shear trying and failing to learn why Altman got sacked in the first place; things of that nature. For a time, Altman existed in a sort of quantum state, employed (though not quite yet) by Microsoft and fired from (but still looming over) OpenAI. On Tuesday night, a New York Times story noted the deep rift between Altman and some of the members of the board—one of whom, Helen Toner, had criticized OpenAI in an academic paper she wrote and had also said that the company, and the mission, and humanity, could be better off without Altman.

    I fell asleep thinking this might last for a while, feeling sorry for tech reporters whose Thanksgiving might be ruined. And when I woke up, Sam was back.


    I know some readers might be thinking: What’s up with all the Sams? And you know what, they’re right to do so. Because there really are a number of similarities between Altman and another Sam of recent yore—Bankman-Fried—whose fraud trial I spent my October observing.

    Both have totally aptronymic last names, if you think hard about it, man. Bankman-Fried had a disagreement with a business partner named Tara Mac Aulay that led to a professional schism; Altman had a disagreement with a now-former board member named Tasha McCauley that led to Friday’s professional schism. (As a side note, McCauley married Joseph Gordon-Levitt in 2014, which I understandably have no parallel for, but it feels essential to mention.) Both had game-changing moments while on hikes just outside San Francisco: Bankman-Fried charmed Michael Lewis into writing a book, while Altman “relinquished the notion that human beings are singular” and began thinking more deeply about the power and might of simulating intelligence. (So, like, same, except exactly the opposite.) Bankman-Fried named his investment firm Alameda Research in an attempt to sound less crypto-y; Altman had an early entity he called Hydrazine, named after the compound used in rocket fuel.

    And both Sams ultimately became well-known and willing avatars for their respective nascent industries, always ready to don those little nude nub microphones they hand out at tech conference panels and opine about P values and the future of crypto or AI. They may not have written the code underlying their ventures, but they sure spoke the media’s lingua franca. (Wait, were they the personality hires?!) In their own ways, they cultivated press relationships: Bankman-Fried’s attention to his own narrative was so deliberate that the prosecution used it against him in court, while Altman’s rapport with some reporters may have helped him this weekend, as one opined.

    But the other quirky Samilarity is that both of their ascents had ties to effective altruism, the rationalist-adjacent worldview that seeks to define, quantify, and ultimately encourage the actions that can do the most good for all of humanity—both now and in the future. For Bankman-Fried, effective altruism was, at least nominally, an ethical framework that compelled him to seek greater and greater sums of money and encouraged him to take bigger and unwieldier financial swings. (He struck out.)

    Altman’s engagement with EA is murkier. On Twitter, a coalition of shitposters, venture capitalists, and chaos slurpers—whoa, everything really IS (a) securities fraud and (b) college football—have started half-jokingly calling themselves “effective accelerationists,” or “e/acc,” of late, a salvo against what they consider to be the gloomier-and-doomier EA types. Altman offers glimpses of futures that both EA believers and e/acc trolls want, and some in the latter group have interpreted his reverse-Grandpa Simpson as a sign that perhaps he shares their merrier approach to AI R&D. Whether he actually does is something I assume we’ll find out when our strawberry overlords come to town.


    While the Altman drama was in full flux, much of Silicon Valley hearkened back to its most notorious founder ousting of all time: that of Apple’s Steve Jobs, a farewell so famous that Uber’s Travis Kalanick later tried to turn the breakup into a verb. “If only twitter had been around during the john sculley / steve jobs conflict,” wrote Founders Fund principal Delian Asparouhov (recently described as “the man speed-running the new space race”). “History is so much more interesting when you watch it play out live on a timeline.”

    It wasn’t just the firing of Jobs that is relevant to Altman’s situation, though. It was the way his eventual return only enhanced his power and influence.

    Walter Isaacson’s biography of Jobs quotes him in 1983, two years before the split with Apple, when he recruited Sculley away from PepsiCo with this winning pitch: “Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?” But in the real world, Jobs and Sculley clashed over the disappointing sales of, among other products, the Macintosh. An attempt by the Apple cofounder to appeal to the board of directors following a demotion led instead to his departure from the company. “I am but 30 and want still to contribute and achieve,” Jobs wrote in a parting letter to the company’s vice chairman.

    A little over a decade later, at the end of 1996, Apple was floundering, and Jobs was brought (and bought) back into the fold. At the time, I was a teenage employee of an online chat company with Apple roots that had Sculley as a board member and investor, as well as a huge Apple dweeb who handled the return of Jobs like a Marvel fan glimpsing a bygone fav in a mid-credits scene. When Apple debuted its “Think different” campaign in the fall of 1997, I downloaded a grainy QuickTime of the ad and watched it again and again.

    By then, the company was back on the rise. Earlier that summer, I had attended the Macworld expo in Boston, where Jobs went on stage and made a pivotal announcement about a big, stabilizing $150 million investment from … Microsoft. Jobs was but 42, and still had a whole lot to contribute and achieve; to doom and bless the world with. Or, as he might’ve put it, he had a few more one more things up his sleeve.

    Altman’s exile, depending on whether you calculate the end of it as his show of support from Microsoft or his return to OpenAI specifically, lasted roughly between one-twentieth and one-tenth of 1 percent as long as Jobs’s did. But it included a larger, undefined number of heart emoji tweets, that’s for sure. Like Tom Sawyer and Huckleberry Finn sneaking into their own funeral service, both Altman and Brockman got to observe an enormous amount of employee support for their leadership. Now, back atop the company, they get to figure out what to do with it, and how to ensure that all this goodwill doesn’t break bad.

    Since the will they or won’t they nature of this story has given way to (some?) clarity, this is the biggest focal point surrounding OpenAI’s future. In a pair of televised appearances Monday evening, Microsoft’s Nadella had amiably and CEO-ishly hedged about whether he thought Altman would wind up in-house at Microsoft or whether he’d be able to return to OpenAI. “I’m open to both options,” he said on CNBC. “One thing I will not do is stop innovating.” (He’s running!) Over the past few days, Microsoft served as an important backstop for OpenAI, a sort of employer-of-last-resort during what felt like the HR version of a bank run. In exchange for Nadella’s trouble, it stands to reason that OpenAI’s new board—which, at the moment, consists of just three people: Taylor, Summers, and the Quora CEO Adam D’Angelo, who already had a seat—will have a much friendlier and likely more commercial relationship with the company who provides all that computing power in addition to capital. And Microsoft will ostensibly at some point want to push for a board seat of its own.

    There are two other parts of the 2016 New Yorker story that feel especially relevant today. The first is a quote from the venture capitalist Paul Graham, a longtime Altman colleague and advocate who once approvingly wrote that “software is eating the world” and had a track record of finding Altman to be formidable. “Sam is extremely good at becoming powerful,” Graham told Friend in the story. It echoed something that Graham wrote back in 2008, linking to a video of Altman presenting his Gossip Girl–approved app, Loopt, at an Apple developers conference while wearing two polo shirts with popped collars: “Sam Altman has it. You could parachute him into an island full of cannibals and come back in 5 years and he’d be the king.”

    The second resonant part of that New Yorker story is an anecdote about a leading AI researcher from Google visiting Altman and Brockman. The researcher asks them—I mean really asks them—how they would define OpenAI’s goal. Brockman’s answer is classic Silicon Valley, and classic Silicon Valley. “Our goal right now … is to do the best thing there is to do,” he declares. “It’s a little vague.”

    What isn’t as vague is that, going forward, OpenAI is well and truly Altman’s baby—a baby that has a much scarier and expedient learning curve than our human ones do. These past few days have been filled with everyone talking over one another—investors, founders, and observers alike. But to the machines, it was all just background noise, some distant hum of human discord. Sometimes you eat the whale, and sometimes the whale eats you.

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    Katie Baker

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  • A timeline of Sam Altman’s firing from OpenAI — and the fallout | TechCrunch

    A timeline of Sam Altman’s firing from OpenAI — and the fallout | TechCrunch

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    In a dramatic turn of events late Friday, ex-Y Combinator president Sam Altman was fired as CEO of AI startup OpenAI, the company behind viral AI hits like ChatGPT, GPT-4 and DALL-E 3, by OpenAI’s board of directors. Then, the company’s longtime president and co-founder, Greg Brockman, resigned — as did three senior OpenAI researchers. And the fallout continues.

    Tip TechCrunch

    Do you work at OpenAI and know more about Sam Altman’s departure? Get in touch with TechCrunch.

    It’s a fast-moving situation that we’re still trying to get to the bottom of. No doubt more will become clear as time goes on. To make it easier to follow all that’s happened in the meantime, though, we’ve put together a timeline; we’ll do our best to keep it current.

    Timeline of Sam Altman’s firing from OpenAI

    November 21

    Altman and board in talks

    OpenAI’s board of directors is reportedly in talks with Sam Altman, ex-Y Combinator president and an OpenAI co-founder, to return to OpenAI as CEO as soon as this week. That’s according to Bloomberg, which in a brief — citing sources close to the matter — said that discussions are happening between Quora CEO Adam D’Angelo, one current member of the OpenAI board, and Altman — and possibly other board members as well.

    Board tensions boil over

    The New York Times reports that, before his ousting, Sam Altman made a move to push out board member Helen Toner because he thought a paper she had co-written was overly critical of OpenAI. That, among other issues, led to OpenAI’s current predicament. Speaking of, The Times indicates that negotiations to hire Altman back continue — but that one major sticking point remaining is “guardrails” meant to improve Altman’s communication with the board.

    November 20

    Altman joins Microsoft

    Sam Altman, Greg Brockman and colleagues announce that they’ll join Microsoft to lead a new AI research team. Nadella leaves the door open to other OpenAI staffers, saying that they’ll be given the resources they need should they choose to join.

    Sutskever’s mea culpa

    Sutskever publishes a post on X suggesting that he regrets his decision to remove Altman and that he’ll do everything in his power to reinstate Altman as CEO.

    Employees threaten to resign

    Nearly 500 of OpenAI’s roughly 770 employees — including, remarkably, Sutskever — publish a letter saying that they might quit unless the startup’s board resigns and reappoints the ousted Altman. Later Monday, that number climbed to over 650.

    Altman and Brockman considering return

    As reported by The Verge, Altman’s move to Microsoft isn’t a done deal — and both Altman and Brockman are still open to returning to OpenAI. That is, if the remaining board members who initially fired him step aside.

    OpenAI board considers merger

    OpenAI’s board of directors approached Dario Amodei, the co-founder and CEO of rival large-language model developer Anthropic, about a potential merger of the two companies, The Information reports. The approach was part of an effort by OpenAI to persuade Amodei to replace Altman as CEO — but Amodei quickly turned down the CEO offer.

    November 19

    Altman to meet at OpenAI HQ

    According to The Information, Altman is expected to meet at OpenAI’s San Francisco headquarters as executives at OpenAI push to have him reinstated as CEO. Brockman was invited to join — but it’s unclear whether he’ll take execs up on that invitation.

    Board negotiations hit a snag

    Bloomberg reports that Lightcap and Murati, among others, are pushing the board to reinstate Altman. But unsurprisingly, the directors are resisting. As of midday Sunday, the board hadn’t resigned out of concern over who could replace them, and were vetting candidates. One possible new addition could be Salesforce co-CEO Bret Taylor.

    Altman out, Shear in

    Altman won’t be returning as CEO, according to a report in The Information citing an internal memo sent by Sutskever. As the search for a new permanent CEO continues, OpenAI has appointed Emmett Shear, the co-founder of video streaming site Twitch, as interim CEO — replacing Murati.

    November 18

    “Not … in response to malfeasance”

    In an internal memo obtained by Axios sent Saturday morning, OpenAI COO Brad Lightcap said yesterday’s announcement “took [the management team] by surprise” and that management had had “multiple conversations with the board to try to better understand the reasons and process behind their decision.” Discussions were ongoing as of Saturday morning, per the memo.

    “We can say definitively that the board’s decision was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices,” Lightcap added. “This was a breakdown in communication between Sam and the board … We still share your concerns about how the process has been handled, are working to resolve the situation, and will provide updates as we’re able.”

    OpenAI’s funding in jeopardy

    The planned sale of OpenAI employee shares that would value the startup at about $86 billion could be in jeopardy. The Information, speaking to three sources formerly with the company, reports that they no longer expect the sale — led by Thrive Capital — to happen, or, if it does, to come with a lesser valuation because of the recent turn of events.

    Altman planning new venture

    Altman has been telling investors that he’s planning to launch a new venture, according to The Information. Brockman is expected to join the effort — whatever form it takes. (Possibly an AI chip startup.)

    Investors pushing for Altman’s return

    Investors — furious at the turn of events — are reportedly exerting pressure on OpenAI’s board to reinstate Altman, going so far as to recruit Microsoft. Nadella is said to be sympathetic.

    Board agrees to reverse course — in principle

    The Verge reports that the board agreed in principle to resign and to allow Altman and Brockman to return. It waffled, however, missing a deadline yesterday by which many OpenAI staffers were set to leave the company. Altman is said to be ambivalent about coming back and asking for “significant” governance changes.

    November 17

    Brockman demoted

    Brockman says he got a text from Sutskever shortly after noon on Friday asking for a quick call. After sending a Google Meet link, Brockman was told that he was being removed from the board as chairman “but was vital to the company and would retain his role” as president, and that Altman had been fired.

    Altman’s firing publicly announced

    OpenAI published a post on its blog announcing the executive shake-up. The company’s management team was aware shortly after.

    All-hands meeting

    OpenAI held an all-hands meeting Friday afternoon during which Sutskever defended Altman’s ouster. He dismissed suggestions that pushing Altman out amounted to a “hostile takeover,” and claimed that it was necessary to protect OpenAI’s mission of “making AI beneficial to humanity.”

    Microsoft releases a statement

    Satya Nadella, the CEO of Microsoft, a major investor in — and partner with — OpenAI, published a statement about Altman’s firing:

    As you saw at Microsoft Ignite this week, we’re continuing to rapidly innovate for this era of AI, with over 100 announcements across the full tech stack from AI systems, models and tools in Azure, to Copilot. Most importantly, we’re committed to delivering all of this to our customers while building for the future. We have a long-term agreement with OpenAI with full access to everything we need to deliver on our innovation agenda and an exciting product roadmap; and remain committed to our partnership, and to Mira and the team. Together, we will continue to deliver the meaningful benefits of this technology to the world.”

    Brockman quits

    Brockman announced his resignation from OpenAI, citing “today’s news.” After sending a memo internally, he published the text on X.

    Senior OpenAI researchers resign

    Three senior OpenAI researchers resign after Brockman, including the director of research Jakub Pachocki and head of preparedness Aleksander Madry.

    November 16

    Ilya Sutskever schedules call with Altman

    According to a post on X (formerly Twitter) from Brockman, Ilya Sutskever, the chief scientist at OpenAI and a co-founder, texted Altman on Thursday evening about scheduling a Friday noon call.

    Murati told of Altman’s firing

    Brockman alleges that Mira Murati, OpenAI’s CTO and now interim CEO, was informed on Thursday night that Altman would be fired.

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    Kyle Wiggers

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  • Amidst OpenAI chaos, Sam Altman’s involvement in Worldcoin is ‘not expected to change’ | TechCrunch

    Amidst OpenAI chaos, Sam Altman’s involvement in Worldcoin is ‘not expected to change’ | TechCrunch

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    Sam Altman may have been asked to leave OpenAI, but his involvement in crypto project Tools for Humanity, which is building Worldcoin, remains uninterrupted, a source close to the project told TechCrunch.

    Altman has “consistent and valuable” engagement with Tools for Humanity and “that is not expected to change,” the source said. The source added that Altman is still chairman and co-founder of the project, confirming that the information on the project’s website is up to date.

    News of Altman’s ouster sent the Worldcoin token, WLD, plummeting to a low of $1.84 on Saturday, but the token recovered over the weekend and is currently trading on par with previous levels at $2.40, per CoinMarketCap data.

    Worldcoin raised $115 million in May in a Series C round led by Blockchain Capital. As of March, Altman was on the project’s board, but was not involved in day-to-day operations.

    “Proof of personhood is becoming increasingly important in the rapidly advancing age of AI,” The Worldcoin Foundation told TechCrunch late on Monday. The team supporting Worldcoin is still focused on the project’s mission, “building a more human internet and a more accessible global economy through World ID, a privacy-enhancing way to verify humanness and uniqueness online,” the company said.

    Worldcoin is well-known for its controversial Orb hardware, which scans peoples’ irises and assigns them an ID that lets users access the Worldcoin’s application and a digital passport. The verification process is meant to prove individuals’ identities and stop anyone from making multiple accounts.

    The crypto project has faced pushback from some countries, especially Kenya, which banned Worldcoin from scanning any more of its citizens’ eyeballs on concerns that the company failed to inform users about the data security and privacy measures it had taken, and how the data collected would be used or processed.

    Worldcoin has also faced backlash from critics, who allege the company targets developing countries with laxer privacy rules. The project gives most participants (outside the U.S. and some other countries) 25 WLD tokens, worth roughly $58.5, in exchange for signing up, and that has spurred its critics to call it exploitative.

    That hasn’t stopped individuals from signing up. Since launching to the public 120 days ago, over 2.46 million people have signed up for Worldcoin, according to its website. Over the past seven days, more than 65,200 new accounts have been created and the project has averaged 137,000 wallet transactions daily.

    Tiago Sada, head of product for Tools for Humanity and a core contributor to Worldcoin, previously told me that focusing on developing countries and providing free tokens was “fair” because most tech projects focus on emerging markets first, given that they are the “easier ones to operate in.” And Altman should be around to help for the foreseeable future.

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    Jacquelyn Melinek

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  • OpenAI’s ‘unusual’ board can make unilateral decisions without asking permission from anyone—like deep-pocketed backer Microsoft and Satya Nadella

    OpenAI’s ‘unusual’ board can make unilateral decisions without asking permission from anyone—like deep-pocketed backer Microsoft and Satya Nadella

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    OpenAI’s dramatic decision to fire its CEO Sam Altman on Friday, and the days-long power struggle that followed, was only possible thanks to the unusual power held by its directors. The ChatGPT developer’s extraordinarily powerful board doesn’t answer to shareholders or an ownership group, but instead to none other than all of mankind. “Our primary fiduciary duty is to humanity,” OpenAI’s charter reads. 

    Microsoft CEO Satya Nadella, who’s taken a central role in negotiating OpenAI and Sam Altman’s future, now wants governance changes at the pioneering AI startup. “Surprises are bad,” he told Bloomberg during an interview Monday evening. 

    The surprise, in this case, is OpenAI’s firing of Altman on Friday, without informing Nadella until a minute before it went public, reports Axios. OpenAI’s unique corporate structure doesn’t give deep-pocketed backers like Microsoft, which has invested $13 billion in the AI developer, seats on its board.

    OpenAI’s board “can essentially take decisions unilaterally” without conferring with investors, says Karen Brenner, executive director of law and business initiatives at NYU’s Stern School of Business.  

    Nadella, who has in the meantime committed to hiring Altman at Microsoft, says he plans to remain in business with OpenAI but will now push for changes to its board structure.

    In normal for-profit entities, investors usually have some ability to influence strategy, whether through governance rights and board seats. Not at OpenAI. “It’s unusual that when you form an entity to pursue a strategy, which requires an unusual amount of capital, that the people who provide the capital wouldn’t have some degree of voice or control or oversight of the capital that they provide,” Brenner says. 

    Why is OpenAI’s board so powerful?

    OpenAI’s unique board structure comes from its founding as a nonprofit. In 2015, Altman, Greg Brockman, and current board member Ilya Sutskever, alongside other partners including Tesla CEO Elon Musk, started OpenAI as an AI research lab. By 2019, OpenAI’s leadership realized it would need to raise money—and likely huge sums of it—to fund its research. To make that possible, OpenAI created a capped for-profit subsidiary. 

    A capped for-profit entity is already unusual. Companies are rarely in the habit of preemptively limiting their profits. But as a division of a nonprofit, whose goal is to “ensure [artificial intelligence] is used for the benefit of all,” OpenAI decided it didn’t want investors to have an unfettered profit motive. 

    “Part of the objective was to limit the financial upside potential and also keep close control over the social implications of this technology,” Brenner says. 

    But OpenAI’s massive success may be this strange structure’s undoing. The technologies the for-profit arm developed were so advanced that it eventually attracted the multibillion dollar investments from Microsoft and the Silicon Valley VCs who poured money into OpenAI. As it became more successful, investors and executives alike wanted to capitalize on the commercial opportunity of their work, according to Vasant Dhar, a data science professor and AI researcher at NYU’s Stern School of Business. 

    ”OpenAI has just been a victim of its own success,” Dhar says. “I don’t know whether they really expected to be this far along so quickly—but they are.”

    OpenAI’s board wields such power within the company because it answers to no one and isn’t bound by a fiduciary duty to help shareholders get a return on their investment. Even other big name investors, including top venture capital firms like Sequoia Capital, a16z, and Tiger Global don’t have a say in the company’s decision making. 

    These VCs, like Microsoft, aren’t used to being bystanders in their investments and may start to exert more influence through other channels. They could try to exert private or public pressure, as a16z founder Marc Andreesen did by tweeting cryptic messages. Investors could pull future funding commitments, although that would depend on the terms of each of their original deals. And Microsoft has an even bigger trump card: withholding access to the computing resources that power OpenAI’s tech. 

    “Usually the people with the money have a lot to say,” Brenner says. At OpenAI “they don’t technically have a lot to say in terms of the governance structure, but they have a lot to say because they provide the capital.” 

    Can OpenAI’s investors do anything?

    OpenAI’s board removed Altman after alleging that he was not “consistently candid” with his communications, without providing details. Board chair and OpenAI president Greg Brockman wasn’t aware the meeting to fire Altman was going to take place, according to a post on X. Even that is unusual in its own right, as board chairs usually dictate when and where board meetings will happen. In fact, Brockman was removed from the board by his fellow directors shortly after Altman was fired. He promptly quit upon hearing the news.

    Yet the outcry around the firing then led to days of tense negotiation, as OpenAI’s board tried to figure out how to bring Altman and Brockman back into the organization. Newly appointed interim CEO Mira Murati pushed to rehire the two in different roles, according to Bloomberg. Instead, the board made another surprising decision by hiring yet another interim CEO to replace Murati: Twitch founder Emmett Shear.

    The board now faces a full mutiny from its employees. More than 700 of OpenAI’s roughly 750 employees have signed a letter stating they will quit if the board does not resign and reinstate Altman and Brockman. 

    The New York Times reports that Sutskever was concerned that Altman was moving too quickly to bring tech to market, without considering the risks. He has since changed his mind, throwing his support behind Altman’s return. 

    Because OpenAI’s investors don’t have a say in its governance, they have limited recourse to remove board members, which they would have been able to do in a more traditional structure. Normally, if a board takes decisions that shareholders deemed ineffective they can get voted out of their role. In OpenAI’s case this isn’t permitted, strengthening the board’s hand. 

    The board can even take an unpopular decision, like it did in firing Altman, that risks a wholesale defection from hundreds of employees. Ordinarily, a board with a fiduciary responsibility to shareholders wouldn’t make a decision that could risk such a brain drain. If “the talent pool walks out the door or is fired, then it calls the whole enterprise into question,” Brenner says. “That’s going to leave lots of questions going forward. Where does technology reside? And what can the executives who end up leaving the company do in another configuration?”

    OpenAI’s investors are unlikely to be happy with such a major talent exodus. The board “basically handed their IP to Microsoft on a platter,” Dhar says. 

    To Bloomberg, Nadella said Microsoft would welcome any former OpenAI employees. “Anyone else who is at OpenAI and wants to go somewhere else, we want them to come to Microsoft,” he said. 

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    Paolo Confino

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