🤖 Is OpenAI In Choppy Waters?

Good morning. US stock futures rose in Thursday morning trading as the broad market indices continued to notch record highs.

🤖 OpenAI considers major management, corporate overhaul

📝 Our report: OpenAI’s board is reportedly mulling over a switch to a for-profit structure according to anonymous sources close to the action who say that discussions are still in progress. The structure would be more straightforward for investors and would make it easier for OpenAI employees to realize liquidity, the sources added.

 🔑 Key points:

• News of the discussions comes after OpenAI Chief Technology Officer Mira Murati said she is leaving the company after six and a half years.

• OpenAI CEO Sam Altman said research chief Bob McGrew and Barret Zoph, a research vice president, are also departing, as the high-valued artificial intelligence startup continues to lose top talent.

• Murati raised eyebrows earlier this year, telling an audience at The Wall Street Journal’s WSJ Tech Live conference that new artificial intelligence tools will likely lead to the disappearance of some creative jobs.

💡 So what: If OpenAI transitions to a for-profit model, it could lead to a stronger focus on generating revenue, attracting significant investments for future AI advancements. However, this shift might raise ethical concerns, as prioritizing profits could conflict with the company's mission to ensure AI benefits humanity. It could also intensify competition with tech giants like Google and Microsoft, leading to rapid AI development but less collaboration. Additionally, partnerships and accessibility to OpenAI's technology may become more transactional, potentially limiting access for smaller developers and non-profits.

Thursday - Federal Reserve Chair Jerome Powell Gives Opening Remarks, GDP (second revision)

Friday - Consumer Sentiment (final)

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👓 Meta unveils updates to AR/VR glasses

WHAT: Meta rolled out updates to its VR headset and Ray-Ban smart glasses, flexing its AI muscles while showing off the next wave of tech that could outshine your smartphone and computer. CEO Mark Zuckerberg, speaking at the company’s annual Meta Connect conference, said Meta is working to “bring the future to everyone” with its headsets, glasses and AI system.

WHY: Meta — which renamed itself from Facebook in 2021, still makes nearly all of its money from advertising. In its most recent quarter, 98% of its more than $39 billion in revenue came from ads. At the same time, the company is investing heavily in AI and what Zuckerberg sees as the next generation of computing platforms such as VR headsets and AR glasses.

🖥️ Google squares off with Microsoft in Europe

WHAT: Google has lodged a complaint with the EU, accusing Microsoft of using sneaky, anti-competitive tactics to steer clients toward its Azure cloud platform. Microsoft required customers that ran Windows on its rivals’ cloud platforms—specifically Google Cloud, Amazon Web Services, and Alibaba Cloud—to pay a 400% markup, Google Cloud Vice President Amit Zavery said in a blog post announcing the complaint.

WHY: Google cited a 2023 study from CISPE, a European cloud services organization with members including Amazon, that found that public and private entities were paying Microsoft as much as 1 billion Euros ($1.1 billion) annually in licensing penalties.

✖️ X requests Brazilian restart

WHAT: Elon Musk's platform X plans to submit the documents requested by Brazil's Supreme Court, hoping to get the green light to restore service in the country, according to two insiders. Access to the platform formerly known as Twitter has been blocked in Brazil since the end of August, following an order by Supreme Court Justice Alexandre de Moraes.

WHY: The dispute led X to close its offices in the country and let go of employees including its legal agent, breaching a local law. The platform may again be available to Brazilians as early as next week after X provides documents requested by the court proving it now has a legal representative in the country, said the sources familiar with X's plans.

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