Sam Altman Shocker | Bloomberg Technology
>> FROM WHERE THE HEART OF INNOVATION AND POWER COLLIDE, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: I AM AT THE WORLD HEADQUARTERS IN NEW YORK. ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WE TAKE A DEEP DIVE INTO THE SHOCK OUSTER OF SAM ALTMAN OPENAI, WHAT HAPPENED, MOST OF THE COMPANY'S STAFF THREATENED TO DEPART. ED: A CLEAR WIN FOR MICROSOFT, ANALYSTS SEE RISKS CONTAINED FOR THE COMPANY'S AI AMBITIONS AS ALTMAN JOINS MICROSOFT TO LEAD A NEW TEAM. CAROLINE: DISCUSSING WITH THE ECOSYSTEM
LOOKS LIKE FOR THESE SORT OF SOME OF OPENAI. YOU HAVE TO SHINE A LIGHT ON THE PUBLICLY TRADED SHARES IMPACTED BY ALL OF THIS. ED: THIS IS THE PROXY SENTIMENT OF WHAT HAPPENED OVER THE LAST 48 HOURS. MICROSOFT SHARES HIGHER, FLIRTING WITH A FRESH RECORD HIGH, REVERSING THE LAST-MINUTE DROP THEY HAVE FRIDAY WHEN USE BROKE IN THE LAST FEW MINUTES OF THE SESSION, THIS IS VERY POSITIVE ON THE DEVELOPMENTS WHICH ARE PRINCIPALLY AS IT STANDS SAM ALTMAN AND GREG BROCKMAN WHO WAS CHAIRMAN OF THE BOARD OF OPENAI HAVE JOINED MICROSOFT IN ORDER TO LEAD THIS NEW AI RESEARCH UNIT. WE WILL GET INTO THAT LATER. WHAT YOU CANNOT SEE IS WHAT IS PLAYING OUT IN PRIVATE MARKETS. TRUST ME, THERE IS A LOT
PLAYING OUT IN PRIVATE MARKETS. WE WILL GET THAT DETAIL LATER IN THE SHOW. AS WE SPEAK THERE ARE HUNDREDS OF OPENAI STAFF THAT ARE TAKING ACTION. LET US BREAK DOWN THE NEWS WITH BLOOMBERG'S RACHEL WAS JOINING ME ON SET -- WHO IS WINNING THE ONSET. >> THE COMPANY'S EMPLOYEES SAY THAT THEY WILL LEAVE IF THEY ARE DEMANDS ARE NOT MET. THEY ARE REALLY UPSET ABOUT THE
OUSTING OF SAM ALTMAN AND A SUBSEQUENT RESIGNATION OF BROCKMAN. ED: 599 OUT OF 770 STAFF. THE VAST MAJORITY OF STAFF HAVE SIGNED THIS LETTER. WHO'S SIDE IS THE STAFF ON? THEIR TALKING ABOUT EVERYONE OTHER THAN THOSE WHO HAVE DEPARTED ALREADY? >> PRETTY MUCH. WHAT I THOUGHT WAS INTERESTING WHEN I SAW THIS LETTER EARLY THIS MORNING IS THAT IT MAKES IT VERY CLEAR WHOSE SIDE MOST OF THE EMPLOYEES ARE ON, I THINK BEFORE THERE WAS A SENSE A LOT OF PEOPLE WERE ON SAM ALTMAN'S SIDE, BUT IT WAS NOT CRYSTAL CLEAR, THIS IS ALMOST ALL OF US ARE ANGRY, SO ANGRY WE ARE WILLING TO LEAVE OUR JOBS, THE WORLD'S LEADING INDEPENDENT AI COMPANY.
CAROLINE: NUMBER 12 TOOK MY EYE ON THE LIST OF THOSE WHO HAVE SIGNED THIS LETTER, GAVE A, -- ELIA, HE MADE THE CALLS TO SAM ALTMAN AND CRANK HIMSELF TO BRISKLY LET THEM KNOW THAT THEY ARE NO LONGER GOING TO BE AT THE COMPANY. >> THAT IS REALLY A BIT CONFUSING, I THOUGHT HMM, IT HAS BEEN A LONG DAY THAT HAS LASTED THREE DAYS. I THINK HE TWEETED THIS MORNING THAT HE MADE A MISTAKE AND IT -- I DO NOT THINK HE WANTS THE COMPANY TO EXPLODE. PERHAPS HE DID NOT ANTICIPATE WHAT THE CONSEQUENCES WOULD BE OF THE ACTIONS HE WAS TAKING. CAROLINE: NO WONDER WE ARE GETTING SO MUCH VIEWS AND THEORIES BEING SHARED ULTIMATELY ABOUT CORPORATE GOVERNANCE, WE GO INTO THAT WHICH MORE LATER IN THE SHOW BUT I’'M INTERESTED IN ALSO ULTIMATELY WHO IS BEING DRAFTED INTO REPLACE HIM? HOW ON EARTH DOES THE NEW CEO OF OPENAI TRY TO ENSURE THAT WE DO NOT HAVE THIS MASS DEPARTURE? >> THAT IS AN EXCELLENT QUESTION. THE PERSON WHO WAS NAMED VERY
LATE YESTERDAY AS THE NEW CEO BY THE BOARD, HE WAS A COFOUNDER OF THE VIDEOGAME STREAMING SERVICE TWITCH, ALSO OF COURSE STOOD FOR ALL KINDS OF STREAMING AT THIS POINT. IT IS MORE ON THE CONSERVATIVE SIDE OF TECHNOLOGY DEVELOPMENT IN THE SENSE THAT HE IS IN FAVOR OF SLOWING THINGS DOWN SOMEWHAT WHICH IS WHAT ILLYA HAD ALSO BEEN PUSHING, IN LINE WITH THE BOARD MEMBERS THEN AND HIM, HE IS GOING TO PROBABLY HAVE TO DO A LOT OF CONVINCING TO THE STAFF IF HE WANTS TO GET THEM TO STAY WITH HIM IN CHARGE, IT WILL BE INTERESTING TO SEE WHAT HAPPENS OVER THE NEXT I WAS GOING TO SAY DAYS BUT LET'S SAY HOURS. ED: IT HAS BEEN 48 HOURS SINCE NEWS BROKE THAT SAM ALTMAN HAD BEEN FIRED, THIS IS THE TIMELINE OF WHAT HAPPENED. WE SPENT MOST OF THE WEEKEND WITH EVERYONE ELSE THINKING SAM IS COMING BACK, THIS IS HAPPENING BASED ON THE REPORTING THAT HE EXPLAINS WHAT ACTUALLY HAPPENED AND THE CHRONOLOGY OF EVENTS.
>> HOW FAR DO YOU WANT ME TO GO? ED: START WITH SAM BEING FIRED ON FRIDAY. >> WE WERE TOLD THAT HE HAD BEEN FIRED BY THE BOARD, IT CAME AS A SHOCK TO ANYBODY EXCEPT FOR THE BOARD. ONCE THAT HAPPENED IT WAS A SCRAMBLE TO FIGURE OUT WHAT HAPPENED HERE DID SOMETHING REALLY BAD HAPPENED? IT SOUNDED MYSTERIOUS. INFORMATION STARTED COMING FROM
OPENAI EXECUTIVES THEMSELVES IN THE FORM OF THAN MOST THEY WERE SINGING -- SENDING INTERNALLY, MALFEASANCE WHICH I THINK WAS THE WORD USED IN THE MEMO THAT WAS SENT OUT TO STAFF, THEN IT STARTED TO SOUND LIKE THE INTERIM CEO HAD BEEN THE CHIEF TECHNOLOGY OFFICER ON INCREASING WEIGHT AN PROMINENT -- AN INCREASINGLY PROMINENT FIGURE OF THE COMPANY. PERHAPS SHE WAS GOING TO REHIRE SAM ALTMAN AND GREG BROCKMAN WHO HAD BEEN ALSO AT THE COMPANY AND QUIT AFTER SAM WAS OUSTED. THEN IN A LAST-MINUTE TWIST, IS ON LIKE EMMETT SCHEER WAS HIRED AND EVERYBODY SIGNED THIS LETTER, MOST PEOPLE HAVE SIGNED THIS LETTER SAYING WE ARE GOING TO JOIN THIS COMPANY THAT MICROSOFT IS CREATING THAT SAM AND GREG ARE GOING TO RUN. IF YOU DO NOT BRING THEM BACK, ESSENTIALLY.
I DO NOT KNOW ABOUT YOU, BUT I KEEP TURNING LEFT AND RIGHT, I AM NOT SURE WHAT WILL HAPPEN HERE CAROLINE: WHIPLASH. WE THANK YOU SO MUCH MAKING TIME FOR US WHEN I KNOW YOU HAVE BEEN AT THE GRINDSTONE WITH YOUR REPORTING, WE THANK YOU SO MUCH. WE FINISHED WHERE RACHEL WAS DISCUSSING WHAT IS NEXT FOR MICROSOFT AS IT SETS UP A NEW AI FOCUS POINT. WHAT IS THE IMPACT ON THE PUBLICLY TRADED COMPANY? THE ABILITY TO TURN THE STORE AROUND, JOINING US IS A SENIOR ANALYST, YOU HAVE A RATING ON MICROSOFT, IS THIS A POSITIVE AS IT STANDS? >> AS IT STANDS, IT IS A WIN-WIN FOR MICROSOFT. THEY GET UP-AND-COMING INDIVIDUALS INTACT AND SECONDARILY THEY HAVE BEEN TALKING ABOUT THIS FOR A LONG TIME, HOW DID THEY REDUCE INDEPENDENCE ON ONE VENDOR LIKE OPENAI AND SPREAD THEIR AI BETS ACROSS OTHER LANGUAGES.
WE THINK ALTMAN CAN PROBABLY STEER THAT SHIP IN A REALLY GOOD WAY. FROM INTERNALLY AT MICROSOFT, FROM THE HIRING PERSPECTIVE, IF YOU HAVE OVER 500 PEOPLE SIGNED A PETITION THE FEEL -- I HAVE NEVER SEEN THIS IN MY COVERAGE OF TECHNOLOGY IN 20 YEARS, WE HAVE NEVER SEEN THIS INTACT. EVER. THEY FEEL THAT STRONGLY ABOUT
HIM, HE SAYS WOULD YOU LIKE TO COME OVER HERE TO MICROSOFT? WHAT IS THE TALENT POOL AND MARKETS AWKWARD TO LOOK LIKE TWO MONTHS FROM NOW? IT IS GOING TO BE INSANE. ED: THE QUESTION I HEAR IS WILL MICROSOFT BUY OUT THE REST OF OPENAI? CAN MICROSOFT BUY OUT THE REST OF OPENAI? >> I DO NOT KNOW IF THEY CAN, THEY CARE FOR THE FUTURE, THEY WANT TO ENSURE THAT THIS HAPPENS. MY VIEW IS OPENAI WILL GET THAT BOARD SETTLED DOWN AND KEEP EVERYONE IN PLACE. I'M NOT SURE THAT I WOULD WANT TO LOSE ALL OF MY INCENTIVE COMP BECAUSE I'M UPSET THE CEO LEFT. MY SENSE IS THAT SHIP WILL BE CALMED. MICROSOFT, THEY WILL FIGURE OUT A WAY TO ENSURE THAT THEY KEEP THIS INTACT AND KEEP THEIR INVESTMENT RESERVE AND ALSO HAVE THE BEST OF HAVING SAM AND TEAM THERE.
I LOOK AT A BETTER OUTCOME HOPEFULLY FOR OPENAI AND THEIR EMPLOYEES WHERE THEY CAN GET ADDITIONAL BOARD MEMBERS IN AND GET THEM COMBED DOWN, I UNDERSTAND WHY THEY ARE AS UPSET, I CANNOT RECALL A STORY IN 20 YEARS WHERE THAT MANY PEOPLE SIGNED A PETITION AND WALK OUT. I THINK YOU'LL END UP SEEING A SITUATION WHERE THERE IS A MIDDLE GROUND THAT IS MET AND THAT HOPEFULLY BOTH CAMPS SURVIVE PEACEFULLY AND WE MOVE ON AND WE CAN ALL ENJOY YOUR THANKSGIVING WEEK. CAROLINE: DO YOU THINK MICROSOFT REMAINS A KEY PLAYER IN AI? CAN THEY REMAIN BASICALLY, STILL HAVING THE DISTANCE BETWEEN THEMSELVES AND ULTIMATELY THE VIEWPOINT THAT ALPHABET IS BEHIND, FOR EXAMPLE? >> MICROSOFT IS CRUSHING IT. I WAS AT THE DEVELOPER CONFERENCE, THE PACE OF INNOVATION IS NOTHING I HAVE SEEN COVERING TECH IN 20 YEARS -- 420 YEARS. FOR 20 YEARS. THE PRODUCT IS NOT PERFECT, IT
IS NOT GOING TO BE THE SMOOTHEST RIDE OUT OF THE GATE, BUT THE LEVEL OF INNOVATION IS BEYOND ANYTHING WE HAVE SEEN AT ANY TIME I HAVE SPENT COVERING MARCUS OUT AS A DEVELOPER IN THE 90'S -- COVERING MICROSOFT AS A DEVELOPER IN THE 90'S. THEY ARE SO FAR AHEAD OF EVERYONE ELSE AND WE BELIEVE THAT AMAZON IS GOING TO ALSO THE IN THE MIX. OUR THESIS IS AMAZON, MICROSOFT, GOOGLE, THE CONSUMER MARKET, THERE ARE DIFFERENT MARKETS. ALL THREE WILL HAVE A SEAT AT THE TABLE. ED:
THAT IS THE MICROSOFT SIDE OF THIS STORY, WILL CONTINUE THE CONVERSATION ON SAM ALTMAN AND OPENAI'S EMPLOYEES THREATENING TO LEAVE THE COMPANY IF THE BOARD DOES NOT RESIGN. THE REACTION IS NEXT. THIS IS BLOOMBERG TECHNOLOGY. ED: TO RECAP OUR TOP STORY, IN A LETTER TO THE OPENAI REPORT FROM HUNDREDS OF EMPLOYEES, THE VAST MAJORITY OF THOSE LEFT AT OPENAI SAY THEY WILL RESIGN FROM THE COMPANY AND JOINED THE NEWLY ANNOUNCED MICROSOFT LED BY THE SAME ELEMENT AND GREG BROCKMAN IF THE BOARD OF OPENAI DOES NOT RESIGN. A LOT OF IMPLICATIONS, JOINING US IS SOMEONE WHO KNOWS OPENAI, ORCS WITH OUR COMPANY AND LEADS HIS OWN STARTUP -- WORKS WITH OPENAI AND LEADS HIS OWN STARTUP. YOU ARE A DEVELOPER THAT RELIES
ON THE UNDERLYING TECHNOLOGY, YOU ARE TRYING TO BUILD THE UNDERLYING TECHNOLOGY, HAVE YOU HAD ANY UPDATE FROM OPENAI? >> WE HAVE BEEN AROUND SINCE 2016, WE NOW ARE BUILT ON TOP OF OPENAI'S GPT FORGE. WE HELP ENTREPRENEURS RUN A AUTOMATIONS AND HELP THEM GENERATE OVER HALF $1 MILLION. A LOT OF IT IS BECAUSE OF WHAT OPENAI HAS PROVIDED US. THIS WEEKEND HAS BEEN REALLY TUMULTUOUS.
I'M A BIG BELIEVER IN SAM, THE COMMUNITY IS A BIG BELIEVER IN SAM. I KNOW HIM FROM MY TIME IN 2012, OPENAI, WE HAD THE DEAD OF DAY, I WAS THERE, THE PEAK OF THEIR TECHNOLOGY, EXCITEMENT WAS OFF THE CHARTS. IT WENT REALLY WELL. NOW, THERE IS A LITTLE BIT OF MISTRUST ON WHAT IS GOING TO HAPPEN. I'M HEARING FROM OPENAI THAT THERE ARE SUPPORT FOR DEVELOPERS, THEY MAKE SURE THAT THE TECHNOLOGY DOES NOT GO DOWN. THIS WEEKEND HAS BEEN A LOT FOR ANYONE IN THE AI ECOSYSTEM. ED: LET US STAY WITH YOUR
RELATIONSHIP WITH SAM AND THE COMPANY. YOU KNOW A LOT PEOPLE WHO WORK THERE. YOU ARE FRIENDS WITH PEOPLE WHO RELY ON THE ECOSYSTEM AS WELL. IN YOUR MINDS, IS THERE A PATH FORWARD WHERE SAM COMES BACK TO OPENAI? OR ARE WE LOOKING AT A NEW OPENAI AND TRYING TO UNDERSTAND HOW YOU WORK WITH THEM? AND HOW OTHERS WORK WITH THIS NEW OPENAI? >> IT IS UNCLEAR. OVER THE WEEKEND WE THOUGHT SAM WAS GOING TO COME BACK.
NOW HE HAS ANNOUNCED HE IS OVER AT MICROSOFT, OBVIOUSLY, HE HAS TO MAKE SURE THAT THE MICROSOFT STOCK IS PERFORMING WELL, WE DO NOT KNOW IF YOU CAN FLIP BACK ON THAT, IT IS A GOOD SITUATION, IT IS UNCLEAR, I HAVE NO IDEA WHAT IS GOING ON, I DO NOT THINK THE OPENAI EMPLOYEES KNOW WHAT IS GOING ON. CAROLINE: MUCH OF THIS IS ABOUT THE CONCERN OF THE PACE OF INNOVATION. HAVE YOU HAD ANY CONCERN? THE ABILITY FOR OPENAI TO LIVE UP TO THE DEMAND WE ARE SEEING AS WELL? >> OPENAI IS SOMETHING THAT IS MAGIC, THEY ARE THE SOLE OF NO MATTER WHAT ANYBODY WANTS TO SAY, THEY ARE THE SOUL OF THE AI COMMUNITY AND MOVEMENT, IN TERMS OF HOW I HAVE THOUGHT ABOUT HOW AI IS GOING TOO FAST OR GOING TOO SLOW, I THINK THIS DISRUPTION IS DEFINITELY CAUSING IT TO GO SLOWER. I WOULD LIKE IT TO GO FASTER AS WELL AS A LOT OF PEOPLE IN THE AI COMMUNITY. WE RELY ON THIS TECHNOLOGY, IT IS ALLOWING YOU TO PUT HUMAN INTELLIGENCE INSIDE OF YOUR CODE WHICH MEANS THAT A PROGRAM CAN WRITE CONTENT AND TALK LIKE A HUMAN AND MAKE REASONED DECISIONS LIKE A HUMAN.
IT CAN BE AUTONOMOUS. IT IS GETTING BETTER AND AT BREAKNECK SPEED. THIS IS FOR MYSELF AND ANYONE BUILDING ON TOP OF THIS TECHNOLOGY, IT MEANS IT IS GOING TO GO SLOWER OR IS IT GOING TO BE PULLED BACK? WHAT HAPPENS NEXT. THIS IS NOT AN IDEAL SITUATION BY ANY MEANS. CAROLINE: WHAT DO YOU THINK IT MEANS IN TERMS OF YOUR DESIRE TO WORK WITH THE NEWLY FORMED UNIT WITHIN MICROSOFT OR WITHOUT A COMPETITOR? >> OPENAI WAS SEEN AS SOMEONE WHO COULD NOT BEAT. TOO BIG TO BEAT.
BECAUSE OF THIS WEEKEND, BECAUSE OF THIS CHAOS, NO MATTER WHAT HAPPENS, LET US SAY THEY BRING BACK SAM AND EVERYBODY STAYS, OPENAI IS NOT INFALLIBLE, THEY ARE SOMEONE YOU CAN BEAT NOW AND THAT OPENS OPPORTUNITIES FOR NEW PEOPLE WHETHER THEY ARE EX-EMPLOYEES OF OPENAI OR OTHER ENTREPRENEURS TO GO START COMPANIES THAT COMPETE WITH OPENAI AND I THINK THAT WILL HAPPEN, IS A HUGE OPENING FOR THAT. IF A LOT OF PEOPLE LEAVE OPENAI, AND WOULD MICROSOFT AND DOING SAM AND GREG, A LOT OF THE OTHER ONES START COMPANIES AND MORE CAPITAL THAN EVER IS GOING TO FLOW INTO AI. JUST THIS YEAR, I STARTED A VENTURE CAPITAL FIRM WITH BEN TO DO JUST THAT AND THAT IS THE SITUATION WITH OPENAI, AT THE SAME TIME, INVESTORS ARE GOING TO BE CLAMORING FOR IT. CAROLINE: THAT IS A VENTURE CAPITALIST, WE THANK YOU SO MUCH, COMING UP, SO MUCH MORE ON THE OPENAI DRAMA. ANOTHER CONVERSATION ON THE VENTURE SPACE, INVESTMENT, WE HAVE SARAH GUO.
CAROLINE: THE DRAMA IN THE AI LANDSCAPE, SARAH GUO, THE FOUNDER OF A COMPANY BUILT TO SERVE AI COMPANIES, MORE INNOVATION, OR START WILL COME OF THIS, DO YOU ABIDE BY THAT SILVER LINING TO WHAT FEELS LIKE A CLOUD RIGHT NOW? >> I WOULD START BY SAYING I HAVE SUCH AN ENORMOUS RESPECT FOR THE WORK THE SAM AND GREG AND THE ENTIRE OPENAI TEAM HAVE DONE OVER THE YEARS. BEFORE WE TALK ABOUT SILVER LININGS I THINK WE SHOULD TALK ABOUT THE CONTRIBUTION THEY HAD IN TERMS OF IGNITING THE TECHNOLOGY REVOLUTION, IT IS SAD TO SEE IT HAPPEN. SINCERE RESPECT TO ILLYA FOR THE PUBLIC APOLOGY, THIS IS HIS LIFE'S WORK AND HE HAS MADE A CONTRIBUTION TO THE WORK OF AI. WE PARTNER WITH OPENAI IN LIKE HARVEY, LEGAL AI, AND A PORTFOLIO COMPANY FOR OPENAI. WE BENEFIT FROM ALL OF THE INNOVATION.
I THINK THAT BEING SAID, THE ECOSYSTEM, THE LANDSCAPE IS MUCH MORE OPEN THAN IT WAS A WEEK AGO WHICH IS A LOT TO SAY. OPENAI IS REVERED AND FEARED IN ITS CURRENT STATE, IT IS MUCH DIMINISHED. ED: DELIGHTED TO HAVE YOU ON THE SHOW, YOU KNOW EVERYONE, YOU KNOW THE PLAYERS, YOU YOURSELF HAVE NOT INVESTED IN OPENAI, BUT THE ECOSYSTEM CALMLY OR CLOSELY CONNECTED TO, JUST TELL ME YOUR REACTION FRANKLY? HOW YOU FELT THIS WEEKEND WATCHING THAT UNFOLD. >> I STARTED WITH RESPECT AND SADNESS FOR FRIENDS WHO WORK AT OPENAI. I THINK MY SECONDARY REACTION IS REALLY JUST AS THE CHAMPION LEVEL BUSINESS PEOPLE YOU HAVE TO HAND IT TO THE PEOPLE MANAGING ALL OF THIS, THE MULTIPLE ON MICROSOFT STOCKS SINCE 2014 IS UP 10 X, ONE OF THE LARGEST COMPANIES IN THE WORLD. I AM JUST FLOORED BY THEIR ABILITY TO NAVIGATE THE SITUATION, IT IS HARD TO BE THIS AGGRESSIVE AND STRATEGIC AND STEERING SO LARGE A SHIP. ANTICIPATING THE TIDAL WAVE AND
COMING OUT SO FAR AHEAD, ALL ROADS FROM HERE ARE PAVED WITH GOLD FOR MICROSOFT. GOING BACK TO THE FIRST QUESTION, WE ARE AN AI FOCUSED EARLY-STAGE INVESTMENT FIRM. A PART OF IT IS A RECOGNITION THAT THERE ARE OPPORTUNITIES AT EVERY LAYER WHICH WE CONTINUE TO BELIEVE, BUT NOW, EVEN MORE SO FOR THE INDEPENDENT FOUNDATION MODEL SUCH AS IN FLEXION AND PHILANTHROPIC -- IN FLEXION AND PHILANTHROPIC. THERE IS INCREASING INTEREST IN OPEN SOURCE FROM CORPORATIONS AND DEVELOPERS, HAVING MORE CONTROL OVER THEIR OWN MODELS AND RUNNING THEM ON THEIR OWN INFRASTRUCTURE LIKE BASE 10.
THERE WILL BE CONTINUED CAPRILES MAKING THESE BETS -- CAPITAL ON MAKING THESE BETS AND APPLICATION LEVEL COMPANIES AS WELL. ED: WHO INVESTED IN STARTUPS BUILDING LARGELY WHICH MODELS. YOU HAVE PODCASTS WITH LEADERS MAKING BIGGER MODELS WITH PARAMETERS. DOES THIS WEEKEND MAKE IT A MORE COMPETITIVE MARKETPLACE FOR BUILDING GENERATIVE AI TECHNOLOGY? >> I THINK COMPANIES ARE -- THERE ARE TWO DIMENSIONS. WHAT IT TAKES TO COMPETE, AND OF COURSE, THE REACTION FROM THE ECOSYSTEM OR CUSTOMERS AND DEVELOPERS. THIS GIVES ALL OF OPENAI'S CUSTOMERS AND DEVELOPERS'S PAUSE. THEY ARE MAKING LONG-TERM BETS.
MY EXPERIENCE, FOUNDERS ARE SOMETIMES RELUCTANT TO ASK FOR THE EARLY CHECK, BEING TOO PROFIT SEEKING. I THINK TRANSPARENCY IS KEY. THAT IS A LESSON FROM THIS WEEKEND. I HAVE HEARD SO MANY CUSTOMERS
ASK HOW ARE YOU PLANNING TO MAKE MONEY? ASK ME AS AN INVESTOR, I AM WILLING TO PLAY, I DO NOT WANT TO MAKE THE WRONG BET. WELL THEY MAKE IT. THE PROFIT BOARD HERE IS ITS MOST ELITE PRIORITIZING OTHER GOALS THEY HAVE HAD ABOVE CUSTOMERS AND DEVELOPERS. I THINK THAT DOES CHANGE THE ECOSYSTEM.
IN TERMS OF OTHER OPPORTUNITIES LIKE WE SHOULD NOT TRIVIALIZE THE WORK THAT OPENAI HAS DONE OVER THE YEARS. CREATING FOUNDATION MODELS IS A HUGE EFFORT AND FROM AN INFRASTRUCTURE DATA PARTNERSHIP, POOLING AND TALENT PERSPECTIVE, I THINK YOU KNOW, THE SHIP OF THESEUS, IT IS A THOUGHT EXPERIMENT, IF YOU BUILD A SHIP FROM NEW PARTS, IS IT THE SAME SHIP? IT IS A QUESTION OF IDENTITY. IT APPLIES TO ORGANIZATIONS TOO. IF OPENAI HAS THE WHITE AND ALL OF THE ADVANTAGES WE WERE TALKING ABOUT, THEY ARE HUGE. ED: YES. CAROLINE: BREAKING NEWS, THE UNITED STATES JUSTICE DEPARTMENT IS SEEKING MORE THAN $4 BILLION FROM FINANCE, -- BINANCE TO END A CRIMINAL CASE, NEGOTIATION BETWEEN THE DOJ AND BINANCE SAY THAT THE FOUNDER WOULD FACE CRIMINAL CHARGES AFTER THE PROBE INTO ALLEGED MONEY LAUNDERING, FRAUD, AND VIOLATIONS. BACK TO OUR KEY NUMBER ONE STORY. ED:
IT ALL CHANGED IN OPENAI, HOW QUICKLY THINGS DO CHANGE, EARLIER THIS YEAR, BLOOMBERG'S EMILY CHANG CAUGHT UP WITH THE FORMER CEO SAM ALTMAN FOR TALK ABOUT HIS RELATIONSHIP WITH MICROSOFT. -- TO TALK ABOUT HIS RELATIONSHIP WITH MICROSOFT. >> HOW MUCH CONTROL THAT THEY HAVE? I HAVE HEARD PEOPLE SAY MICROSOFT IS GOING TO BUY OPENAI. YOU ARE MAKING BIG TECH BIGGER. >> THE COMPANY IS NOT FOR SALE. I CANNOT BE MORE CLEAR THAN THAT. WE HAVE A GREAT RELATIONSHIP
WITH THEM. IT IS LIKE THESE BIG, MAJOR PARTNERSHIPS BETWEEN COMPANIES USUALLY DO NOT WORK. THIS IS AN EXAMPLE. ED: A OK COMOFEST FS FOUR, MICROSOFT ANNOUNCES SAM ALTMAN AND HIS COFOUNDER GREG BROCKMAN WILL JOIN THE COMPANY, OR JOIN MICROSOFT, THIS ANNOUNCEMENT ON LITERALLY ON THE HEELS OF A FRENETIC WEEKEND IN SILICON VALLEY FOLLOWING THE AFTERMATH OF ALTMAN'S FIRING ON FRIDAY, MARKETS UP PUSHING HIGHER IN THE SESSION, UP 1.9%. BLOOMBERG'S CORRESPONDENT AND
AMONG THE REST OF US HAS BEEN ALL OVER THIS ALL WEEKEND. LET US TALK ABOUT THIS NEW UNIT WITHIN MICROSOFT. THEY ANNOUNCE IT LATE LAST NIGHT. WHAT DO WE KNOW? >> MUSICAL CHAIRS, A GAME OF THRONES? WHAT WE KNOW IS MICROSOFT, THEY SPENT THE WEEKEND TRYING TO FIGURE OUT A WAY WITH OTHER INVESTORS TO GET SAM AND THE COMPANY AS OF LATE SUNDAY NIGHT, THEIR CONVERSATIONS ABOUT THE INTERIM CEO TRYING TO DO EXACTLY THAT, GO PUBLIC WITH BOARD MEMBERS, THOSE CONVERSATIONS FAILED.
THEY HAD TO GO TO PLAN B WHICH WAS OK, WE WILL JUST BUY SAM AND GREG OURSELVES. THE CONCERN MICROSOFT HAD IS WHEN THERE IS ALMOST AN UPHEAVAL IN OPENAI, YOU SEE EVERYBODY THREATENING TO JUMP SHIP. THAT VERY MUCH HURTS MICROSOFT'S INVESTMENT, BUT ITS ENTIRE STRATEGY. THE ENTIRE COMPANY'S PRODUCT
LINE IS RUN ARTIFICIAL INTELLIGENCE AND THAT ARTIFICIAL INTELLIGENCE IS ON OPENAI. IF OPENAI CEASED TO EXIST IN A WAY THAT MICROSOFT HAD EXPECTED, IT HAS ENORMOUS PROBLEMS FOR MICROSOFT. CAROLINE: FOR NOW, THE DEAL BROKERING SEEMS TO BE IN ITS ADVANTAGE. THAT THE HIRING IS A CLEAR WIN FOR MICROSOFT, BASICALLY A HIGHER, WHAT ARE THE DIFFICULTIES AROUND DOING THIS CULTURALLY AND INDEED POTENTIALLY EVEN REGULATORY AND THE LONGER TERM? >> WE DO NOT KNOW WHAT THE REGULATORS WILL LOOK AT THIS AS. MICROSOFT BOTH BECAUSE OF THE COMPLICATED AND NONPROFIT FOR-PROFIT STRUCTURE OF OPENAI AND REGULATORY ITEMS COULD NOT HAVE OPENAI AS MOST EXPERTS THINK. ONE OF THE PROBLEMS, MICROSOFT HAS ITS OWN ARTIFICIAL INTELLIGENCE, IT HAS BEEN WORKING ON IN THE AREA FOR MORE THAN TWO DECADES. THERE HAS BEEN SOME TENSION A
LITTLE AS A COUPLE OF YEARS IN THE WAY IN WHICH ARE SOFT AND OTHERS CHOSE TO PRIORITIZE RESOURCES AND FOCUS THE WORK OF OPENAI AND THE INTERNAL PROJECTS. SOME OF THE PEOPLE MOST CONCERNED ABOUT THAT LOVED MICROSOFT BUT THERE ARE STILL AI RESEARCHERS SAID THEY ARE, THERE IS SOME QUESTION ABOUT HOW YOU INTEGRATE THOSE THINGS WITHOUT MAKING A REAL SORT OF ISSUE FOR THE PEOPLE WHO WERE ALREADY THERE. THERE ARE MORE MUNDANE DETAILS, HOW MANY OPENAI PEOPLE IS MICROSOFT GOING TO HIRE? HOW DO THEY DECIDE TO COMPENSATE THEM? ARE THERE PEOPLE ALREADY A MICROSOFT WHO HAD A SALARY INCREASE THAT YOU ABOUT THAT CONVERSATION THAT ALREADY HAD A SALARY INCREASE FEEL ABOUT THE COMPENSATION? I THINK ARCHITECTURALLY THINKING ABOUT MICROSOFT 10 YEARS AGO, THEY HAVE ACQUIRED COMPANIES LIKE LINKEDIN, AND HAVE THEM FUNCTION QUITE EFFECTIVELY. HE HAS HIRED EXECUTIVES LIKE KEVIN SCOTT WHO LEADS AI. EXECUTIVES FROM OUTSIDE WHO ARE VERY SENIOR AND VERY IMPORTANT TO MICROSOFT IN A WAY THAT WAS NOT THESE THOUGHTS TO DO IN THE OFFICE. CAROLINE: MANY NOTING THE TITLE OF SAM ALTMAN OF BEING A CEO INTERNALLY.
THANK YOU FOR THE PUBLICLY CITED COMPANY AND LET US TALK ABOUT WHAT IS LEFT THAT OPENAI. LATE SUNDAY, EMMETT SCHEER WAS APPOINTED CEO AFTER THEY VENTED CANDIDATES QUIETLY. EMMETT SCHEER WAS SEEN AS SOMEONE WHO RECOGNIZES AN EXISTENTIAL THREAT FROM AI, UNLIKE SOME MEMBERS OF THE OPENAI BOARD, THEY ARE A PART OF THE EFFECT OF ALL TOURISM MOVEMENT -- OF THE ALL TOURISM TRUSIM MOVEMENT. ZACHARY LIPTON IS AT A COMPANY USING GENERATIVE AI FOR AUTOMATIC GRAPHING OF CLINICAL NOTES AND A PROFESSOR OF MACHINE LEARNING AT CARNEGIE MELLON UNIVERSITY, THE FACT THAT YOU FOCUS ON UNDERSTANDING THE SOCIAL IMPACTS OF MACHINE LEARNING IN A PHILOSOPHICALLY COHERENT WAY, IS THAT WHAT THE TENSION WAS HERE ON OPENAI? PHILOSOPHICAL AT THAT? >> I THINK IT IS IMPORTANT TO DRAW A BIG DISTINCTION. THERE IS A CONTINGENT OF THIS COMMUNITY THAT IS MORE FOCUSED ON THE IDEA OF AI AS AN EXISTENTIAL RISK TO HUMANITY. THERE IS A BUNCH OF US WHO ARE MORE IN THE GROUP OF SOCIAL SCIENTISTS, ETHICISTS, SOME SOCIALLY INCLINED COMPUTER SCIENTISTS HAVE LOOKED AT THIS PROBLEM AND ARE MORE FOCUSED ON THE NEAR-TERM TERRESTRIAL, ACTUAL HARMS OF AI SYSTEMS AS OPERATIONALIZED PHYSICISTS TODAY.
A LOT OF WORK I THINK VERY FEW PEOPLE DISAGREE IS SERIOUS OR REAL PROBLEMS IN OUR WORLD TODAY ABOUT UNDERSTANDING HOW WE THINK ABOUT PRIVACY, ACCOUNTABILITY, TRANSPARENCY, RELIABILITY GOES WHEN YOU HAVE A GREAT DEGREE OF AUTOMATION AND DECISION-MAKING. THE OTHER SIDE, THERE IS A GROUP OF PEOPLE WHO ARE FOCUSED ON SOMETHING CALLED RISK, AI IS CAREENING TOWARDS MECHANISMS KNOWN OR UNKNOWN THAT THERE IS THIS MARCHING PROGRESS TOWARDS SOMETHING THAT IS A DIFFERENT KIND OF THREAT THAT NEEDS TO BE REGARDED AS MORE OF AN EPOQUE CHANGING -- EPOCH CHANGING ANALOGOUS TO NUCLEAR WEAPONS. MY WORK IS IS NEAR-TERMISM. THIS GROUP'S PHILOSOPHICAL POSITION, NO MATTER HOW SMALL THE THREAT, IF THE RISK IF THEY ARE WRONG IS WIPING OUT HUMANITY, IT IS THE MOST IMPORTANT ALREADY IN THE WORLD.
IT IS A BELIEVE AMONG TECHNOLOGISTS AND BUSINESS PEOPLE THAT DOES HAVE SOME WELL HEALED -- WELL HEALED BACKERS AND HAS SOME FOOTHOLD IN SAN FRANCISCO AND IN PARTICULAR RESEARCH IN OPENAI, IT DOES HAVE SOME INSOLENCE OF THIS. THE EXISTENTIALIST THINKING. ED: WHETHER THE EXISTENTIAL THREAT IS A FRENCH IDEA OR NOT, WHAT IS WE CAN AGREE ON, THE EVENTS OF THE LAST WEEKEND, MONUMENTAL, I GUESS WITHIN YOUR CAREER, BOTH ACADEMIA AND BUILDING GENERATIVE AI, REFLECTING QUICKLY ON WHAT YOU MADE OF THE LAST 48 TO 72 HOURS.
>> IT IS QUITE WILD GIVEN THAT. WHEN I ENTERED THE FIELD 10 YEARS AGO, HAD TO EXPLAIN TO MY PARENTS WHAT MACHINE LEARNING AND IR WERE AND THEY WERE GLAD I WAS NOT TRYING TO MAKE A LIVING PLAYING THE SAXOPHONE ANYMORE. GOING FROM THERE TO THE FRONT PAGE OF THE NEW YORK TIMES, THERE IS A KERFUFFLE NAI STARTUPS -- IN A STARTUPS, IT IS PRETTY WILD. IN GENERAL WE ARE WATCHING BEFORE OUR EYES THE MATURATION OF AN INDUSTRY. A LOT OF HAVING BOUGHT HERE, WE SEE THIS ALL OVER THE ECONOMY -- A LOT OF US HAVEN'T GOT HERE, WE SEE THIS ALL OVER THE ECONOMY, SOME AMOUNT OF INSANITY, AS WE WENT FROM A SORT OF FIRST-GENERATION SET UP COMPANY WITH STRANGE GOVERNANCE STRUCTURES, A CERTAIN KIND OF VELOCITY TO A MORE MATURE ENVIRONMENT THAT IS NOT SPELLING THE DOOM OF THE INTERNET BUT IT BEEN GROWING UP. WHAT WE ARE WATCHING BEFORE OUR EYES IS US MOVING FROM A PERIOD OF THIS BEING BRAND-NEW TECHNOLOGY AND PEOPLE BEHAVING IN STRANGE WAYS THAT ARE EXCEPTIONAL BY ANY NORMAL STANDARDS TO A PERIOD THAT WILL FOLLOW THAT WILL BE MORE ROBUST AND INVOLVE PEOPLE DEPENDENT ON A MUCH WIDER AND MORE STABLE ECOSYSTEM PROVIDED BY A LARGER SET OF COMPANIES. ED:
ALMOST 600 PEOPLE REPRESENTING THE INTELLECTUAL CAPITAL WITHIN OPENAI CURRENTLY THREATENING TO LEAVE AND GO TO MICROSOFT. ASSISTANT PROFESSOR OF MACHINE LEARNING, BREAKING DOWN WHAT WEEKEND IT HAS BEEN. THE BREAKING NEWS AGAIN EARLIER ON, SONALI BASAK RUNNING TO SET. WHAT DO WE KNOW? >> THERE IS NOT CLARITY AROUND THE STRUCTURE OF THE DEAL BUT IT COULD COST $4 BILLION, THIS IS A YEAR'S LONG PROBE BY THE JUSTICE DEPARTMENT INTO BINANCE TO LOOK AT ALLEGED MONEY LAUNDERING AND THIS WOULD CREATE AN END TO THAT SAGA FOR BINANCE VERSUS THE JUSTICE DEPARTMENT. WE ALSO KNOW THAT BINANCE HAS SOUGHT TO MINIMIZE PENALTIES AND PUT FORWARD AN AGREEMENT THAT WOULD PUT IT TO PROSECUTION SO LONG AS IT MEETS CERTAIN THRESHOLDS, USUALLY A PENALTY, AND STATEMENT OF FACTS OUTLINING WHAT EXACTLY HAPPENED HERE. THIS COULD COME AS SOON AS THE
END OF THE MONTH. WE DO NOT KNOW THE TOTAL TERMS OF THE DEAL ITSELF. AGAIN, IT COULD BE AS MUCH AS $4 BILLION FROM BINANCE TO END THE CASE AND IT WOULD BE WORTH THE LARGEST PENALTY IS TIED TO CRYPTO MATTER IN THE UNITED STATES, LET ALONE WORLDWIDE. CAROLINE:
THE BREAKING NEWS, WE THANK YOU SO MUCH. OTHER NEWS WE ARE FOLLOWING FOR YOU, ASK CEO HAS ACKNOWLEDGED THAT SOME ADVERTISERS ARE TAKING A BREAK, A PAUSE FROM THE PLATFORM. THIS FOLLOWS SOME OUTRAGE OVER ANTISEMITIC COMMENTARY AND WASTE BY THE SITE -- POSSIBLY ENDORSED BY THE SITE'S OWNER, ELON MUSK. REFERENCING A PIECE THAT SAID ADS FROM BIG BRANDS WERE BEING PLACED NEAR OFFENSIVE CONTENT.
ED: COMING UP ON BLOOMBERG TECHNOLOGY, BRADLEY TUSK JOINS US, WE GO BACK TO OPENAI, THE DRAMA THAT HAS IMPACTED THE AI SPACE. WE HAVE TO ASK QUESTIONS ABOUT CORPORATE GOVERNANCE. WE ARE LOOKING AT SHARES OF GENERAL MOTORS, UP 1.8 PERCENT,
THE NEWS, CURIOUSLY TIMED LATE SUNDAY NIGHT, KYLE VOTE RESIGNED AS THE CEO OF CRUZ, PUTTING A LOT OF LONG-STANDING EXECUTIVES TO RUN THE UNIT, GOODNESS KNOWS WHAT HAPPENS NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WE WERE TURNED TO THE DRAMA CONSUMING OPENAI AND HOW IT COULD IMPACT THE STARTUPS OR BROADLY. SAM ALTMAN WAS OUSTED BY THE COMPANY'S BOARD ON FRIDAY PROMPTING A CAMPAIGN FROM STAFF TO BRING HIM BACK HERE AT HIRED SAM ALTMAN. THE FORMER TWITCH LEADER, EMMETT SCHEAR IS TAKING OVER AS THE EXECUTIVE. WE BRING IN TUSK FOR HIS RAID ON ALL OF THIS, HE IS THE CEO OF TUSK VENTURES, AND THE AUTHOR OF SATIRICAL IN HINDSIGHT. THE WAY THAT DECISIONS AREN'T BEING MADE BY THOSE IN POWER.
IS ALL THIS OBVIOUS IN HINDSIGHT WHEN YOU LOOK AT THE CORPORATE GOVERNM -- GOVERNANCE STRUCTURE? >> YOU HAVE SUCH A BIG UNDERLYING COMPANY THAT IS FOR-PROFIT WITH THE NONPROFIT BOARD ON TOP OF IT, I THINK IT RAISES QUESTIONS ABOUT BIG CORPORATIONS AND HE TO A CERTAIN EXTENT. THERE ARE FIDUCIARY DUTIES THAT NEED TO BE ALIGNED. WHEN YOU HAVE BOARDS THAT CLEARLY HAVE OTHER INCENTIVES AND OTHER IDEAS ABOUT THE SHAREHOLDERS, ABOUT THE EMPLOYEES AND CUSTOMERS, YOU CAN CREATE A LOT OF PROBLEMS WHICH IS WHAT JUST HAPPENED. CAROLINE: LET US GO THROUGH WHAT THIS BOARD, HOW IT DIFFERS FROM OTHERS. IT IS MADE UP OF FOUR PEOPLE, BECAUSE OF -- GREG HAD BEEN FIRED, OTHERS HAVE LEFT.
THIS IS A NOT-FOR-PROFIT BOARD, THE WHOLE THESIS IS THAT IT WAS THE MISSION OVER PROFIT. IS THAT REPLICATED ANYWHERE ELSE? IS THIS SOMETHING THAT VENTURE SHOULD BE LEARNING FROM? >> I DO NOT THINK WE WILL SEE THIS EVER AGAIN AFTER THE DEBACLE THAT THIS WAS. GETTING PAST THAT, AT B CORP.'S, HYBRID VERSIONS OF WHAT WE ARE TALKING ABOUT, PUBLIC CORPORATIONS THAT ARE FOR-PROFIT BUT THEY ARE MEANT TO BE DOING SOCIAL GOOD, AT LEAST, I THINK VC'S SHOULD BE TAKING A HARD LOOK AT THE BYLAWS OF THE BOARD.
I HAVE ONE OR TWO IN MY PORTFOLIO AND I'M TAKING A LOOK AT THEM RIGHT NOW. I DO NOT WANT A SITUATION WHERE THE BOARD HAS A MORAL STANCE OR AN IDEOLOGICAL STANCE THAT COMES AT THE BEST INTEREST OF THE COMPANY ITSELF. THERE IS ALWAYS ROOM ON EVERY BOARD TO TALK ABOUT MORALITY AND IDEOLOGY. AT THE END OF THE DAY YOU HAVE A FIDUCIARY DUTY TO THE SHAREHOLDERS. WHOEVER IT IS. THE HAS GOT TO BE MET. WHILE I AM SURE MOST B COURTS ARE OK, IT SEEMS TO ME THAT THE POTENTIAL FOR WHAT WE SAW, WE ARE TALKING ABOUT COMPANIES LIKE WARBY PARKER AND BEN & JERRY'S, NOT JUST TALKING ABOUT NO-NAME COMPANIES HERE.
I AM CONCERNED AND OTHER VC'S SHOULD BE LOOKING AT IT TOO. ED: I WANT TO BRING IT UP TO HER AUDIENCE, AND THE PRIVATE MARKETS, QUESTIONER, THE CEO OF RIGHT CAPITAL, EVERY PROBLEM HAS A SOLUTION, IN THE BACKGROUND THERE IS A TENDER OFFER WORTH BILLIONS OF DOLLARS IN QUESTION HERE RUNNING THIS MONTH WHERE OPENAI EMPLOYEES WERE DUE TO SELL SHARES. I KNOW YOU ARE NOT AN INVESTOR, AND OPENAI, IS THERE ANY WORLD IN WHICH THAT TENDER GOES AHEAD? >> YES. IT HAS TO COME ALL OF THESE EMPLOYEES WHO ARE PROBABLY NOT MAKING THAT MUCH MONEY IN TERMS OF SALARY BECAUSE THAT IS WHAT HAPPENS WHEN YOU WORK WITH A TECH STARTUP AND THE PROMISE IS THE RAINBOW, THE PART OF GOLD AT THE END OF THE RAINBOW. IT IS A TENDER OFFER, IT OFFERS LIQUIDITY FOR PEOPLE WHO HAVE BEEN COUNTING ON IT, RELYING ON IT, COMPANIES WANT TO MOVE HOMES -- PEOPLE WHO WANT TO MOVE HOMES. WHETHER WHOEVER IT IS IS RUNNING THE COMPANY, YOU HAVE A RESPONSIBILITY, A REALLY HAPPY WORKFORCE WHO ALREADY HAS A WORKFORCE WITH OVER 100 PEOPLE SIGNED A LETTER THREATENING TO QUIT. I THINK THIS WOULD EXACERBATE
THE PROBLEM. THE QUESTION IS AT WHAT VALUATION? I THINK IF THEY CAN GET THE SHIP RIGHTED AND WAIT A FEW WEEKS, IT GOES BACK TO NORMAL. IF IT CONTINUES TO BE CHAOS, OBVIOUSLY INVESTORS ARE NOT GOING TO PAY UP THAT AMOUNT AND THE SHAREHOLDERS AND EMPLOYEES ARE OUT. ED: THAT IS BRADLEY TUSK, GREAT TO HAVE YOU HERE ON BLOOMBERG TECHNOLOGY. COMING UP, MORE COVERED ON THE ONGOING DRAMA, WE WILL BRING YOU WHAT HAPPENED THIS WEEKEND, THE INSIDE SCOOP ON THE BEST OF BLOOMBERG.
THIS IS BLOOMBERG TECHNOLOGY. ED: LET US WRAP UP OUR COVERAGE OF SAM ALTMAN'S EXIT FROM OPENAI WITH THE BLOOMBERG QUICKTAKE, WHERE JOINED BY MAX WHO PENNED THE MONUMENTAL BUSINESSWEEK PIECE BUT ALSO BLOOMBERG'S ASHLEY. WE HAVE BEEN IN THE TRENCHES FOR THREE DAYS COVERING EVERYTHING THAT HAPPENED FROM LUNCHTIME FRIDAY ONWARDS.
REFLECT ON EVERYTHING WE HAVE LEARNED AND THIS SIDE SCOOP WE HAD THAT SAM ALTMAN WAS TRYING TO RAISE TENS OF BILLIONS OF DOLLARS FOR A COMPLETELY DIFFERENT CHIP COMPANY. WHAT IS THAT ABOUT? >> THERE IS SO MUCH GOING ON HERE. SAM ALTMAN IS AN AMBITIOUS GUY, HE IS OUT TRYING TO MAKE THIS NEW ARTIFICIAL INTELLIGENCE CHIP THAT WOULD COMPETE AGAINST NVIDIA. OPENAI USES A TON OF NVIDIA CHIPS. ANOTHER INDICATION OF ALL OF
THESE OTHER THINGS GOING ON ON TOP OF OPENAI THAT I THINK THE BOARD WAS CONCERNED ABOUT. CAROLINE: THIS LINKS TOWARDS THE HEADLINE OF YOUR BIG TAKE, THE DOOMED MISSION BEHIND SAM ALTMAN'S OUSTER. THE DOOMED OUSTER, PERHAPS A DOOMED SET OF ALIGNED OR MISALIGNED FOCUS IS COMING FROM THE LEADER OF OPENAI? >> A LOT OF PEOPLE CONCERNED ABOUT THESE APOCALYPTIC AI SCENARIOS, YOU HAD A SAM ALTMAN AND HHIS ALLIES USING THE POTENTIAL OF THE APOCALYPSE TO SELL THIS NEW TECHNOLOGY ON THOSE TWO THINGS COLLIDED. I THINK SAM SAW THAT AS A GREAT WAY TO MARKET OPENAI, HE HAD PEOPLE WHO BELIEVED AND GOT INCREASINGLY WORRIED OVER THE PAST FEW WEEKS. ED: LET US BE HONEST, HE AND I HAVE
HEARD PRETTY EARLY IN THE DAY SUNDAY THAT THE BOARD WAS DIGGING IN. THAT THERE WOULD BE A NEW CEO. NO ONE BELIEVED IT. YOU HAVE A TWEET APOLOGIZING. YOUR FINAL THOUGHTS? >> ILLYA IS DOING A COUP UPON A COUP.
ALL OF THESE CAMPS ARE FIGHTING TO BRING OPENAI BACK, 707 HUNDRED 80 EMPLOYEES HAVE VOWED TO LEAVE THE COMPANY IF SAM AND GREG ARE NOT BROUGHT BACK, I DO NOT THINK THIS IS DONE, WE HAVE OTHER NEWS. CAROLINE: THE WEIRDEST LINE YOU HEARD THIS WEEK? >> THE IDEA OF A COUNTER COUP TAKING PLACE WHILE ANOTHER IS GOING ON IS JUST LIKE ASHLEE SAYS IS TOO CRAZY. THIS IS THE MOST IMPORTANT PART OF ONE OF THE WORLD’'S LARGEST COMPANIES. MICROSOFT IS DEPENDENT ON THIS RELATIONSHIP WITH OPENAI. SEEING ALL THIS CHAOS AND FOLD
A ON THAT IS SO CRITICAL BUT IS SO MUCH MONEY, IT IS SOMETHING. CAROLINE: IT WAS SOMETHING, IT WAS SOMETHING THAT YOU BROKE, AN EXTRAORDINARY, HERCULEAN EFFORT FROM ALL OF YOU. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. WE DID NOT GET TO TALK ABOUT THE DOOR DASHERS BEING DONE OVER THE WEEKEND. ED: THEY WENT TO DOORDASH TO OPENAI, SO MUCH TO RECAP ON OPENAI. WE HAVE A PODCAST. CHECK IT OUT WHERE YOU GET YOUR PODCAST.
2023-11-24 20:26
