AI's Investment Implications

Cruise CEO Kyle Vogt resigns from GM-owned robotaxi unit

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Qualcomm's new Snapdragon CPU set to rival Apple's M2 for power | Tom's Guide.

OpenAI is finished. What a bunch of morons!!

:skull_and_crossbones:

:boom:

The new OpenAI CEO:

Why even bother having an AI company at all? Might as well disband and return investor money.

Zuck wins again. Its model is second best and will now win by default because the other team just quits.

:rofl:

Big win for all the other players. Satya must be furious.

Except Satya wins after all! Plot twist!!

Satya =

:goat:

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All done before Monday market opens. Satya is really the master of them all!

Also now OpenAI will be competing with Microsoft, the sugar daddy who gives them the compute they need to train their models. Maybe with their new CEO they don’t develop no more. Just obsessed with safety all day long.

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FML. This is going to make my week a lot busier.

This is going to be a mess for anyone who’s using OpenAI. Who knows if Microsoft will offer a competing service or keep the new AI models for themselves. Their war chest is huge. Co-pilot will have much lower cost once they are running their own models over buying OpenAI tokens. Once the talent starts leaving OpenAI, there will be a mad scramble for OpenAI customers to switch to Anthropic.

The questions are how fast will employees leave and how fast will revenue decline.

Looks like safety was not the reason

https://x.com/simeon_cps/status/1725958642405400896?s=46

https://x.com/eshear/status/1726526112019382275?s=46

Altman wants to make two chips, one to compete with NVDA and one to compete with AAPL. Apparently, MSFT harbors the same thought as Altman. IOW, NVDA has the best compute AI chip and AAPL has the best device AI chip currently. Going forward would be interesting. May be AAPL or NVDA or QCOM acquire OpenAI on the penny? Going slow and care about safety is more inlined with AAPL current approach… when come to life and death of the human species, we have to put safety ahead of everything… speed = death…reckless progress = extinction of the human species.

Thinking aloud: Given AGI could mean extinction of the human species, shouldn’t Federal and other governments step in to regulate the R&D? This issue is bigger than national security of individual nations.

Thanks to this OpenAI saga, market realizes AAPL is THE leading device AI chip… and MSFT might be able to challenge NDVA to be THE compute AI chip. And GOOG is not in the running for AI chip dominance.

Right, but they can’t seem to articulate why. They had to have know this would be PR disaster. The lack of preparedness for the fallout is inexcusable. The board is a bunch of amateur clowns. They need an adult board if there’s even anything left to save. They have to do damage control to try slowing down the number of employees leaving.

I don’t get why Sam needs to join Microsoft. He probably does not like Google/Facebook or other AI firms, but if he starts a new company his old cohorts would probably join him over time. Now that he is at Microsoft, I doubt Microsoft would have the same kind of attraction to those folks. Satya is probably a master salesman. From being completely blindsided by the news on Friday to coming out on top by the end of the weekend, he sure knows how not to let a crisis go to waste.

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It takes time to start a company though. There’d be a big disruption in the work. I’m sure his comp package will end up being disclosed, and it’ll be insane. Also, it’s a chance to stick it to the OpenAI board. They already have a petition signed by over 500 employees demanding the board resign, or they’ll join Microsoft. It appears Microsoft has said anyone there has a standing job offer to join them. There’s no way to execute it THAT fast with starting a new company.

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Can do the same thing in OpenAI in MSFT without any employment violations? Thought you’re restricted to join a competitor doing similar things within a year?

Does anyone even make people sign a non-compete anymore? They are pretty useless in court.

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Maybe when you are fired the non-compete clauses are different.

Sam probably feels that he owes Microsoft. That fact that Microsoft invested 13B and still didn’t get a seat at the board was probably because of him. Now that he is out, Microsoft’s tie with the OpenAI is taking a huge hit. If he starts a new company to compete against OpenAI, Microsoft will be on the losing end of this turmoil and Satya will still blame him even though he was pushed out.

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What about IP thefts? High probability that employees will be using similar algorithms and codes.

Good luck. Unless they do what the Google guy did and download all the work files and take them, then there’s nothing that can be done. That’s why Uber got in trouble over it.

Non competes are illegal in California. I have been screaming at the rooftop for years this is one big reason why silicon valley is in CA not some backward states like Texas.

The instacart guy used to work for Amazon in Seattle. But he moved to SF to start instacart. Bezos could shut him down if he stayed in Seattle. Can’t do anything if the guy is in California.

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