we partner with openai in like harvey, legal ai, and a portfolio company for openai.nefit 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

we go back to the ongoing, at openai -- ongoing drama at openai.discussed with margaret mitchell of hugging face, what it means for ai more broadly. ed: u.s. adrs, that chatbot hoping the top line in the quarter. this is bloomberg. ♪ the power goes out and we still have wifi to do our homework. and that's a good thing? great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. ed: welcome back to "bloomberg technology." i'm ed ludlow in san francisco. caroline: i am caroline hyde in new york. "the wall street journal" reporting that the ceo of binance, cz, has stepped down and pleaded guilty to anti-money laundering requirements. the cryptocurrency exchange will pay fines. this is the doj's investigation, not the sec. what caught your attention from this line from "the wall street journal"? sonali: the funds will be $4.3 billion, an

this mean for openai? i mean, if it's stripped of its assuming those 500 employees who are unhappy, demanding an explanation, not getting it and then leaving? i guess first of all, this means nadella said, hey altman, if you come anybody who wants to follow you from openai will offer them a job too, right? this is, i mean, a huge commitment, but okay, talk about the competition , right? microsoft is in the game. you know, they have bing chat, google has barred meta has a i don't know what it's called, but everybody's getting in on this ai chatbot advanced ai. tell us why it's so important and why they're all trying to win this game, right? >> so it's not just google and meta and microsoft and openai. i mean, there are probably at least 10 to 20 chat bots that are sprinkling sprinkling up right. and they all want market share, right? they want advertisers, they want revenue because people are using chat bots, right? you can use it for simple things. you can use it for summarization. you can use it for plann

because of openai. we had a lot of openai capability before, with openai, and after.enai, we have the leading llm, or the large model, and we have the leading small model with five, which we are now at 2.0. it just speaks to, i think, the breadth, and by the way, we have all the open source models on az su azure, as well we have the best tooling, the best data architecture around a.i., and then the best products with co-pilot, so -- i don't feel that, you know -- if anything, we're much more resolute in our sort of road map and pushing forward on the innovation, and i feel like, hey, look, there's a lot of talk, there are very few people with real products, with -- at-scale, innovating on behalf of our customers >> you mentioned governance before, it seems to me that it's likely that you come out of this situation as microsoft with more leverage in the openai relationship, one way or another, than you had friday morning, okay? because your relationship with sam altman remains close and it seems like sam is either going back there with more control or coming to microso

coming up, returning to openai. we break down the changes that the artificial intelligence company as altman take the helm after -- after an ouster. the world's most valuable chipmaker nvidia top earnings estimates failing to meet lofty expectations from investors breaking down the results. and a deep dive into the world of crypto. cz pleads guilty to criminal charges for anti-money laundering. a quick check on the public market perspective. nvidia smashes that in the fiscal third quarter giving a strong outlook in the fiscal fourth-quarter. ahead of the street consensus, the story, the impact of u.s. technology curves -- curbs taking hold will impact them in the fiscal fourth-quarter. we will go deep and bring you the analysis on the stock and what the world of ai accelerators looks like going into next year. the other publicly traded part sam altman is back at openai, largely seen as a big plus for microsoft with the stock up 1.5%, the third time this week microsoft has hit a fresh record high. there is some evide

a revolt at openai. more than 700 of the company's 770 employees have signed this letter saying they're going to leave the company unless the board resigns and altman is reinstated. and not just microsoft, other major companies want to hire the disgruntled openai employees. that includes salesforce boss marc benioff. he posted on twitter saying that salesforce would match the compensation of any openai researcher. joining us now is nbc's scott mcgrew, one of our business and tech reporters. scott, nice to have you on the program. so we've been doing this for a long time. you've been doing this for a long time in the silicon valley. is this similar to a steve jobs getting forced out of apple kind of thing because this is -- it's getting so much traction here. >> reporter: well, there are obvious parallels, right? sam is a founder of the company as was steve. it was entirely unexpected. on scale, apple was much bigger at the time than openai was. i'm going to give you another comparison, raj, and that is h

battle has been playing out. >> who gains from this if openai is weakened? >> google gains because they have the anthropic investment and gemini coming out. but i think amazon it's been about bring your own model and using it within the amazon web services. now microsoft is taken down a peg. their main competitor with azure. you have amazon in a strength position saying, anybody can come to us by the way, the ceos we work with, they're still in their jobs. >> clearly the argument is that this changes the competitive landscape. to what extent do we think that microsoft has had a note or head start? or do you think given the price action that we've overvalued that head start and that will come to bear fruit going forward? >> they have had a tremendous head start the last earnings report they said they went from 11,000 people on the openai service to 18,000 a huge jump. to get 7,000 enterprise clients to jump on in a quarter is unheard of so they had that head start. but there's a natural path all these companies take they begin on openai because it's easy and

yes, basically openai - that down for us? yes, basically openai has i that down for us?ai has what that down for us? yes, - basically openai has what is called a capped profit model which is the idea that you can only make a certain amount of profit because part of the initial idea behind openai was that it would not be concerned about profit, it would focus on what would be best for humanity, what would make humanity, what would make humanity most safe and interacting with artificial technology. and yet they ended up technology. and yet they ended up hiring altman who does focus on things like commercialisation and profit, maybe at the expense of longer term thinking. so the board has onejob to do in term thinking. so the board has one job to do in terms of the initial foundations one job to do in terms of the initialfoundations of one job to do in terms of the initial foundations of what openai is focusing on and at the same time that the company has a also be able to continue surviving, demonstrating that it can make something commercially successful. mil commercially

when it comes to openai, sam altman will return to openai as ceo. these negotiations have been going on. it was unclear what that looked like that there is a preliminary agreement in place at the moment. some of the finer details are getting hammered out. it looks like the board is changing up. when you look at previous members, it looks like we will get brett taylor on the board creating more support for sam altman when it comes to how the company chooses to move forward. i want to get instant analysis. we are joined by bloomberg intelligence and our tech guru. what do you make of this? we knew there was difference whether or not sam would return to the company but what do you think? >> i'm not surprised. particularly in light of the employee revolt over the last few days. i thought he would come back. it is the right place for him to be. the play microsoft made to give him support was helpful. if he had not come back, there was a risk that openai would completely unravel. there is too much skin in the game for that to happen. now we know he is goi

openai was founded as a — those other companies?onprofit. interestingly, specifically to resist the fact that so much of ai development at that point in time, 2015, was already being dictated by for—profit corporations within the tech industry. so it was founded as a nonprofit on the premise that such a nonprofit on the premise that such a consequence technology for our time should not actually be dictated by profit, not beholden to shareholders wanting to grow their gains. what happened was after that, openai decided to pursue a very particular path for al development that was very expensive. they realised that nonprofit was not able to help them raise enough capital fast enough to get to that vision. so that ultimately came up with this very bizarre solution which is to nest a for—profit entity or what they called a captive profit see underneath of the nonprofit entity. so legally, it actually looks nothing like the traditional tech company in that there is an arm of the company that is raising capital, hiring talent, building pro

who will be ceo of openai tomorrow? satya: i will leave it to openai and its board. emily: thank you, i know you've had a busy few days and i appreciate you taking the time to talk to us. guys, back to you. haidi: emily chang speaking with satya nadella, asking questions that everyone watching this openai drama wanting to know. we will bring you the latest as the story develops. still ahead, we will be speaking with piedmont on the outlook when it comes to the ev manufacturing sector and production as well as supply of these critical minerals. first, we talk investment strategy amid the fallout from the openai turmoil. this is bloomberg. ♪ annabelle: a check on markets, just about 15 minutes into the session for australian stocks, the asx 200 a little higher as we get online. materials leading, energy, consumer discretionary. the things playing into that, firstly you had another day of gains on wall street that came through, a weaker dollar helps things like the aussie. also the move around energy in particular we are tracking. trading volumes are very thin and lower

meanwhile, microsoft has invested more than $13 billion in openai.d altman and brockman who will lead a new advanced ai research team. openai employees said in their letter microsoft assured them that there would be jobs for all. on monday altman and brockman�*s curry said microsoft shows up 2%, hitting a record high for the tech giant. as herod mentioned, missed altman's forced exit from openai has sent shock waves across the world of artificial intelligence. the technology's been making headlines since the company's chatgpt was made available to the public a year ago. since then authorities around the world have been scrambling to understand the potential risks and benefits of ai. earlier i spoke to an ai researcher and scientist, margaret mitchell, who told me it all boils down to opposing views about how the technology should develop going forward. it's actually a bit of a conflict of values. so, openai is tied up in a lot of operationalising of different ethical values including things like safety and things like profit. so i think what we're se

with openai.loomberg has seen a memo that says the company is in intense discussions to unify staff. investors are trying to return sam to a leadership role. must get more insight with alex webb this morning. when the odds of a return for sam altman when we thought he was entering the umbrella of microsoft? >> it's looking probable. there will be some sort of unification. is interesting when sam posted on twitter as it used to be known as a visitor to the headquarters he had a guest badge. so even on the weekend he was optimistic something would happen. kriti: a dramatic saga but there is this idea that whether sam altman is at openai or microsoft they still have steak. nvidia releasing results after the bell. what do we expect? >> people are optimistic. it is looking at the growth in data centers. 12 point eight in the quarter. that was more than the annual revenue they were generating. the revenue was a lot less than that. so that is the continuing growth story. the trouble might be if they do n

that to say sam altman should not be at openai anymore?— at openai anymore? at the core of _ at openai anymore? that is at the core of what _ at openai anymore? that is at the core of what these - at openai anymore? that is at the core of what these past. the core of what these past five days have been, just this uncertainty of what exactly the board was so rift about, when they put out that statement on friday. it was very opaque. there is no clear indication over what had not been candid about. they did not say what, from what we understand and our reporting shows, part of the rift was due to how sam altman was not in the same page as some of the board members on aia safety. they felt perhaps he was going a bit too fast on the commercialfront, all he was going a bit too fast on the commercial front, all of the commercial front, all of the business opportunities coming up and perhaps not thinking about the implications to ai responsibility and safety, and we are not totally sure what exactly was in the works that became so objectionable to the board. we unde

does this mean that openai as we know it may, in fact, mean that openai as we know it may, infact, ceaseft? one would think, if all these reports hold true and all those hundreds of employees — i think it was up to over 700 last time i checked — go to microsoft, then yes, that might be true. but i want to really be clear here — everything is still in flux. you have the ceo of microsoft doing multiple media interviews just this evening saying he'd be ok with sam altman going back to ownope and not technically being employed by microsoft. what happens now is still just completely unwritten. is stilljust completely unwritten.— is stilljust completely unwritten. �* , , unwritten. and the employees have called — unwritten. and the employees have called for— unwritten. and the employees have called for the _ unwritten. and the employees have called for the remaining l have called for the remaining three directors of openai to resign. how likely is that, given what you've been saying there about the concerns, the regulation?— there about the concerns, the regulation? honestly, it could ha en. r

it's not just the openai show anymore. maybe a year ago, they released chatgpt, leading the field, and the other companies were trying to figure out how to catch up. now they've caught up because they were building on top of commoditized technology that google introduced. now that everybody is caught up, say openai's new ceo says we'll put our foot on the brake. do you think everyone else will? no foot on the gas. they'll surpass openai if it takes a pause. that's why this idea of ai safety is a crazy idea we won't have a development of ai that happens safely because of the way this works. the technology is out there. people want to build they'll develop whatever they have open source will be released by multi. partners nobody has a monopoly on this development. >> it's why i wanted your opinion so much, malcolm, because, you know, let's remind our viewers on this show where you so publicly came on and said, you know what, alphabet blew it, and i'm selling that stock as a result of them, in your mind, at least, ceding the

openai staff say they'll walk if bosses aren't reinstated. we begin with the chaos at openai where there's a growing rift between employees and the company's upper management. nearly all staff at the ai firm are threatening to walk if the company's former bosses are not reinstated. meanwhile, other tech industry giants seem to be trying to take advantage the growing discontent. cloud—based software firm salesforce as well as microsoft have both said they'd be willing to employ openai's researchers. our north america business correspondent erin delmore has the latest from new york. what began as the firing of openai ceo and co—founder sam altman on friday is now a stand—off between hundreds of open ai employees and the company board. nearly all of openai's workers are threatening to quit if the board doesn't resign and reinstate the former

— but he still has oversight over openai anyways? deal where he would - openai anyways? the much talked about deal where he would move l openai anyways? the much talked | about deal where he would move to microsoft is not a done deal yet, so i don't think we can count on that happening until we really see how all the pennies fall. what we have to focus here on is whether the assets and the people from this organisation, where they will go? already chatgpt and openai are tied to microsoft, they can't take their toys and join in other cloud technology company because microsoft are one of their major investors. but the question is... or whether there is a resolution where sam and most of the rest of the staff stay at openai and things returned almost at openai and things returned almost a normal? the at openai and things returned almost a normal? ., ., . a normal? the former ceo of twitch sounds like — a normal? the former ceo of twitch sounds like he'll— a normal? the former ceo of twitch sounds like he'll slowpoke - sounds like he'll

it is a guest pass for the officers of openai. it is a guest pass for the offices of openai. he was fired on friday. he has been invited back by the interim ceo mira murati according to reuters, that's with a view to him possibly rejoining the company. when he was fired, the company released a statement, they said this... "mr altman's departure follows a deliberate review process by the board which concluded..." "the board no longer has confidence in his ability "to continue leading openai." his dismissal has angered current and former employees concerned about what his departure may mean for the value of the company. one of the big shareholders is microsoft, reportedly owns 49% of the company. they are among those apparently taking a lead in trying to get mr altman back on board. their concern is that his departure may mean to bleeding of other wider talent. a challenge though is whether they can get his reinstatement passed the current board. earlier i spoke to managing director at wedbush securities dan ives and he said openai's board might not walk away from this unscathe

of oenai. a ., openai.ch the — openai. microsoft offering to match the pay _ openai. microsoft offering to match the pay of _ openai. microsoft offering to match the pay of anyone - openai. microsoft offering to match the pay of anyone who j match the pay of anyone who works for openai. if there are any winners in this situation it would be microsoft, right? you would have to be happy if you were an employee of openai who doesn't worry about noncompete clauses. it is a great offer from the ceo and we also saw the microsoft cto speak up to say that they will match the offers which is great but many people still have questions about why microsoft did not have a board seat to begin with and i think it is still working to try and rebuild some confidence in how much controller does have over openai. so while it is a win if microsoft get the talent i think it also has to do a little bit of questions about why it was unaware of the board decision until a few minutes before. u, , decision until a few minutes before

it's much better for microsoft to be partners with openai and allow openai to execute at the pace theycute outside of the microsoft umbrella once you bring that sort of research and that sort of pace into a multitrillion dollar company like microsoft, you're just not going to have the same level of execution so i think microsoft probably wants sam back at openai all the employees want him back. you know, frankly most of silicon valley is in sam's camp and seems to want him back, as well so i think there's a lot of horses that are pushing that way right now, and it's just the most sensible outcome. >> one more to push this, and hopefully to that point that's what is happening is people trying to figure that out, but shouldn't there be, sleteve slon some governance changes so that openai is two companies or it becomes a for profit with shareholder fiduciaries opposed to the structure now i wonder if that's part of the negotiation here >> absolutely. you know, you have seen that there's kind of mediators. i heard brett taylor's name thrown around. i totally agree, that there has to be som

let's talk about openai. what you think l question. let's talk about - openai. well the board resigned today? that happen next? well the board resigned today?— resigned today? that is a difficult question. - resigned today? that is a difficult question. it - resigned today? that is a difficult question. it is i difficult question. it is certainly a very fluid situation. there are two aspects to this story. there is what was the driver behind the firing of sam altman because it is not very clean —— clear what they mean by not being candid with the board. it mightjust be a power struggle and they were trying to set up a separate company on the back of openai and that triggered the decision, or it might be related to their views about progress ai going forward. that will be important to determine what happens with openai after the situation, and yes it is possible that the board has to resign because it is really a survival situation for al right now. microsoft has taken the key employees from the company, and it is not clear how the relationship with openai will u

a clown show, by the openai board. and ultimately it's really now microsoft and nadella that are going to own openai in terms of altman and brockman and everyone at microsoft and now openai for all intents and purposes is almost a shell company. everyone now goes to microsoft i would argue that microsoft is in a stronger position today than they were in the twilight zone scenario, than they were before this all started on friday and i think it's an example of this board were like 8-year-olds playing checkers and nadella, the grandmaster chess player, ultimately is the one that swooped in, and now it's microsoft for the strivictory. >> the only question i have, what about the chatgpt product it's still an openai product this company is now in complete disarray and there are clients who are trying to figure out because they have to use it today and tomorrow and the next day. do they need to quickly find a substitute or not? >> to that point, the software has already been fully integrated and steve knows this, that's the

openai planning to hire the former ceo of twitch. as interim ceo murati pushes to reinstate founder sam altman. javier milei wins argentina's presidency on a platform that includes plans to shut down the central bank and dollarized of the economy. full coverage in just a few moments. the united states says a hostage deal with hamas may be at its closest yet. israel releases a video it says shows a tunnel beneath al-shifa hospital in gaza city. a lot of crosscurrents and geopolitics, not to mention the corporate news. let's get a quick check on markets. when you look at futures trading, there is a lot to digest. it is thanksgiving week in the united states. you will see volume lower around the world. amid this low volume, not a ton of volatility. euro stoxx 50 futures virtually unchanged, same in the u.k. on ftse 100 futures. when you look at s&p futures, a slightly sour town. a lot of this has more to do with the corporate news. you have the openai saga where microsoft has a 49% stake in the company. the world will be looking at the

ip belongs to openai, which has other investors. from an r&d perspective it might take longer for microsoft to replicate something like this even with sam altman and all the folks who work at openai. jon: it sounded like you said -- sorry about that. i was going to ask about the timeframe of how quickly we have to get something together to avoid the lead they already had been building. mandeep: it is all about ecosystem. it took years for openai, chatgpt to develop that ecosystem. there are four versions of chatgpt. it requires iterations and that is where microsoft will be going. sonali: coming up we get a preview of what to watch the latest results from nvidia after the bell. before we had to break, i want to bring you breaking news. we have that big breaking binance story. zhao is agreeing to plead guilty to anti-money laundering charges and personally pay a $50 million fine. binance had already agreed to plead guilty, according to people familiar with the matter, and pay a $4.3 billion fine on top of that. we will bring you more

sam altman is back with openai larry summers and bret taylor will also join openai. >>> and israel andike a deal to release hostages and prisoners. they test the potential of this deal. >>> shares of nvidia are under pressure as the company warned of significant sale declines in china, this after a blowout quarter of over 2% year over year the reported move marks a shift in beijing helped by the country's builders citi is in talks to add to its strategy by lending to financial business next year which could include teaming with partners. >>> and ahead of thanksgiving, warren buffett donating $870 million of berkshire hathaway stock to families. >>> here's what to watch today, several pieces of economic data on tap including weekly ads and we look at consumer sentiment figures. we get deere results. >>> let's get one more check of futures this morning taking a look right now, you can see they're in the green across the board, the dow hitting the highs. the s&p and nasdaq now firmly in the green. for much more let's bring in tiffany mcghee, a cnbc contributor. great to have you here. >>

openai has had a for—profit arm and a nonprofit arm. held all the control over what happens at openai. who works there, who's in charge, whether sam altman is kept as ceo. they've been worried about safety, whether these ai models are going too far. they've been worried that the technology is developing too fast without proper guardrails, whether from within the company or within the government. and this is still reporting — it is not entirely confirmed by the board themselves yet — but those fears came to a head and they thought that sam altman was sort of the face of the company moving too fast without the proper guardrails. so they ousted him very unceremoniously, and there was immediate pushback. the people who work at openai absolutely love sam altman. they have so much loyalty to this man. he has such a great reputation in silicon valley among all the places he's worked. that swift pushback has resulted in a chaotic past couple of days where we still are not even totally sure where things stand with openai and microsoft as we spea

they will want talent from openai. you got apple saying they want to build out ai additions so they are in good positions even as it has been a tumble to a 72 hours. yvonne: it is a fragile moment right now in the industry. rishaad: they fired him because he had not been consistently candid. david: i'm afraid if he was candid and they allowed to go further -- i'm going to leave it there. annabelle: the question points to the issue that he had ambitions for openai in terms of developing other products and when you look at what the next iteration will be it will be sam altman. he has got a governance structure that had questions around safety and security. david: thank you so much, annabelle droulers on top of the story. we've got the update and i suspect we will. stocks are up, dollars down, yields are pushing lower and commodities, or at steel prices up, iron ore is up. this comes down to risk appetite and it seems that markets are more sensitive to news out of china. you're looking at big movers there. rishaad: regula

it is because of all the people at openai who have signed letters, 500 open i -- openai employees signed a letter in support of him. if you bring some of that talent to microsoft with him that is a huge boost to microsoft. is a huge boost to microsoft. one of the reasons they were perceived before openai as being a slight detriment to google's they did not have their own ai research division. employees signed a letter in support ofmicrosoft had a supplr relationship. this gives them the opportunity to build a captive ai division -- guy: an understanding of the governor structure around some of these efforts is critically important and may be as we were talking about at the last hour, the idea that some sort of more altruistic approach may not be the way to go. it brings into the question around open source versus proprietary models. openai, even though it has the word open in its name, is not an open foundational model. there are a couple of approaches out there. meda has open source and you can see at least in terms of the process. chatgpt is priority eric -- is proprietary. it is very

we begin with the turmoil at the top of openai. there are reports of ongoing discussions among the company's top executives about reinstating sam altman as chief executive. this just days after the board of the company behind chatgpt shocked the tech world by firing mr altman, a man who has been the face of openai's rise. our business reporter david waddell has more. it has been a tumultuous few days at openai. on sunday, sam altman sent a tweets and said this... what is that? it is a guest pass for the offices of openai. he was fired on friday. he has been invited back by the interim ceo mira murati according to reuters, that's with a view to him possibly rejoining the company. when he was fired, the company released a statement, they said this... "mr altman's departure follows a deliberate review process by the board which concluded..." "the board no longer has confidence in his ability "to continue leading openai." his dismissal has angered current and former employees concerned about what his departure may mean for the value of

for all openai employees."ealing the employees. tom: look for this in the 9:00 hour. 300 men -- citi cutting more than 300 manager roles as part of restructuring. ♪ the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com jonathan: live from new york city, good morning. four days of gains coming into monday. equity market just about positive. the countdown to the open starts right now. >> everything you need to get start -- get set for the start of u.s. trading, this is bloomberg: the open with jonathan ferro. ♪ jonathan: live from new york, coming up, equity markets on a

what do you think happens here with microsoft and openai?ese entities move forward or could they move forward together in a more meaningful way? pierre: it is a very good question. you're moving the conversation where it should be next, which is talent. something we realized over the weekend is something that is amazing. we all thought ai was all about complex power and data. it is about people. the real value in this business are 500 people, 65% of openai staff. by designing where they are going to work they will decide where they're going to go next. whether they go to a croissant office where they first the current bus to resign and they reinstate openai. the real estate business same. we urge to get rid of this nonprofit structure with very strong ties to microsoft. microsoft is a great winner. then we will need competition. we will need other organizations to attract talent. you have google, you have meta-. all these organizers would have to step in and make sure movement takes -- and controlling ai technology. guy: just throw it all of

where is sam altman is back at the helm of openai. what a series of twists and turns that started with him being fired, hired by microsoft, then brought on again as openai staff. almost 770 staff members threatened to quit. a few moments ago we heard from vinod khosla about altman's return prayed he was an early investor in artificial intelligence. vinod: i am very happy to see sam back. he is uniquely positioned for stewardship of this very important company. it's much more than just a company. it is a benefit of ai to humanity in a much larger way over the next few decades. i think we have restored that path. sonali: for more we are joined by mandeep singh of bloomberg intelligence. think about openai, microsoft trying to bring on sam altman. now sam altman back at openai where it has huge investment. how important is it for microsoft to get board representation at openai? mandeep: they will probably have more say in openai than before even with the 49% stake. i don't know if they will end up taking a board seat because obviously th

so what does this mean for openai? - and surprising. so what does this mean for openai?ean for openai? it is the ai platform most people would be most familiar with. what does it leave the company and its future?— its future? the company has lost two co-founders - its future? the company has lost two co-founders on - its future? the company has - lost two co-founders on monday, lost two co—founders on monday, and sam and greg played very important roles at this company. they were the public face. particularly in greg's case they were behind the products that has become so dominant in the sector, and openai still has chatgpt, it still has phenomenal technology and a huge number of consumers who have signed up to use that, so they are in a strong position, they have a very strong partnership with microsoft and huge investment, but it is impossible to say this has not rocked the company. openai was seeking an $86 million valuation in recent weeks, and whether or not it achieves that is now i think a bit of an open question. it is now being led by the former chief technology

hundreds of openai employers are threatening to quit following the ouster of leader sam altman. even some of the board members that fired sam altman are now threatening to quit openai and go to microsoft. and the last hour we heard from the ceo of a company that uses openai, about his thoughts on the whole debacle. take a listen. >> a big believer in sam, the community is a big believer in sam, i know him back from 2012. openai, i was there, it was the peak of their technology, excitement was off the charts, it went really well. now there is a little bit of -- a lot of mistrust on what is going to happen. matt: for more on how we got to this point and where we could go next, we want to bring in bloomberg's rachel metz, doing incredible reporting on this story. one of the things i appreciated about what you've been uncovering was zeroing in on the why. we were quickly charging ahead on the changes without fully knowing what was happening behind the scenes. i do wonder, after all these months of watching the openai story play out, are we left with the fact that a once non-profit t

openai ceo ousted and then not. it is a win for sam altman and the employees who threatened to walk. after openai's board complained the that she was not communicative enough. microsoft made moves to grab him while almost all the 770 employees at openai threatened to follow him. press forward, this morning and a new reality. openai has a new board in place and altman is back and he looks forward to a new era with the company. >>> let's go to oakland. tips from neighbors. it shows how important it is to:those tips. they helped to lead to two arrests connected to in oakland mother who was shot to death while sleeping on her couch. please say the killers aimed at a passing car but instead hit her from a block away in the laurel district. they are still on the hunt for more suspects. >>> coming home. monterey county is taking a major step forward in its effort to prevent flooding in the area after last winter's disastrous storms. a signing ceremony was held yesterday for a new flood protection project along the pajaro r

, whether he's at microsoft those employees at openai, they'll be either at openai working with us orth us. others in the industry are trying to argue, hey, you don't want all your next that basket come listen to our pitch about what developers can do with our ai tools. >> yeah. well and, obviously, marc benioff putting an advertisement on twitter come to us. you can't discount elon musk and xai trying to build. software engineers very valuable svb, it's not inconceivable openai could almost collapse if they lose all their employees. it's hard to stay in business. >> and there's a question about who is the dominant force in the epic of ai at this point, how it gets developed, how quickly with what safeguards. i asked nadella about that, and he tried to make a strong case microsoft is building ethically, not just concerned about making a quick buck. >> great to get nadella at that crucial moment thank you for bringing us the latest let's take a break here but before we do, a road map for the rest of the hour the drama surrounding sam altman continues to highlight the divide in the futu

now, openai says that conversations are still ongoing with altman.out and says he's open to altman returning to openai, and that's after he announced yesterday that microsoft hired altman and former openai or president if greg brockman to head up microsoft's new a.i., their new research team. satya does say that governance if needs to change at a openai which is a bit unusual since it is owned by a nonprofit. but then it operates a for-profit arm that makes money off chatgpt and other products that they make like dolly. microsoft is the largest investor in openai, private investor, along with venture funds like thrive and tiger global. now, those three, other three besides microsoft are still reportedly trying to wrangle and pressure and bring sam altman back to openai after friday a's shock firing. meanwhile time, you have reports that investors are suing, accusing the board of destroying investor value by unilaterally firing sam altman without any consul consultation. as for altman himself, he and satya are focused on openai continuing to thrive. c

meantime in reaction to openai, microsoft's stock hit a record high today. investors are pleased that ceo satya nadella has hired sam altman. >> all right. jo ling kent, thank you. >>> the "cbs overnight news" will be right back. do you shop for vitamins at walmart? force factor products powerfully improve your health, but they're also delicious, easy to use and affordable. that's why force factor is now the number one best selling superfoods brand in america. unleash your potential with force factor at walmart. my frequent heartburn had me taking antacid after antacid all day long but with prilosec otc just one pill a day blocks heartburn for a full 24 hours. for one and done heartburn relief, prilosec otc. one pill a day, 24 hours, zero heartburn. it ain't my dad's razor, dad. ay watch it! it's from gillettelabs. this green bar releases trapped hairs from my face... gamechanga! ...while the flexdisc contours to it. so the five blades can get virtually every hair in one stroke. for the ultimate gillette shaving experience. the best a man can get is gillette

openai ousts its ceo.e is causing some turmoil and there could be other effects here in the bay area. former ceo sam altman is heading to microsoft and now hundreds of openai employees say they want to go with him if changes aren't made immediately. >> abc7 news reporter zach fuentes has more on how experts think the bay area could be affected. >> openai the company behind chatgpt has the artificial intelligence industry reeling? the company's board fired ceo sam altman on friday. the reason not entirely clear the equivalent of if apple had fired steve jobs right after the iphone came out. it's something hundreds of openai employees are not happy about. now, monday, an announcement that altman, along with openai's former president, will join investor microsoft in an open letter, employees called for the company's board to resign. they threatened to take up microsoft on job offers and join altman there. microsoft is based in washington. openai is based in san francisco. >> employees who are in california ma

openai is a massive company.ight do you put on the individuals from a talent perspective? everyone has gp use. there are very few data scientists or engineers that can make them work, from what i understand. bucky: at this stage startups are about the people behind them. this is a world-class team that brings together a unique combination of research engineering and research talent that we think is the most potent in the space. that is what we are excited about. ed: it is one year to the days since chatgpt was released. how has the last 12 months changed or accelerated what you've tried to do in ai? vipul: it is the moment that made it very clear of foundation models and their applicability. that has created huge market and interest in large language models. caroline: fascinating from both of you. bucky moore, seeing around corners with infrastructure when it comes to ai. thank you. and of ceo and cofounder of together ai with series a. child safety online. how tech ceos have been called capitol hill to testify o

microsoft has not had a board seat on openai's board. so where the ip goes is still an open question. lauren: yeah. >> but in california you can enforce a non-compete. they have no reason to be able to go to microsoft. we'll see what happens. lauren: what happens? sam altman was a face there. i think he straddled the line and slowing down the advancement in a.i. in general, but the new ceo of openai, is famous for saying slowdown. if you're stumbling in a dark room slow down. who will be the poster-child of congress right now? >> so, first of all i don't think sam altman is really going anywhere in terms of capitol hill. he is still going to play a leading role in that. jack clark of anthropic is another one to watch people are not talking about in terms of government policy, he is a leading driver, kind of more so behind the scenes in all of this but sam is still there. so you have on the one hand, this is fight of someone saying slow down versus speed up and who is going to win? i think at the end of the day somewhere in the middle wil

today is the openai dev conference.hen the company holds an event like this, what do you want to hear from them? >> i would expect to hear more about model features. new features that they are introducing. cogeneration. maybe multimodal models? that is a model that can work across text and speech and image and possibly video. both input and output. it can move between those modes of interaction. i would expect to see greater clarity around costs of using these models. one of the problems with genitive ai is the costs are unpredictable. that can be a big barrier to getting these things into production and creating value from them. i have expect to see -- i expect to see safety features. safety is a huge factor in ai. we put out some consumer research a couple of weeks ago we interviewed 10,000 consumers by their attitude towards ai. more than 90% of people had concerns about data privacy and usage. where their companies have been responsible and transparent with ai. i think there is something there. taking the privacy fo

we don't know what caused openai's board to oust altman., perhaps that altman began to favor commercialization over responsible development of the technology elon musk is someone who has had his own history and agenda with altman and the company itself, but i think it is worth bringing up this post from over the weekend. he wrote, i'm very worried referring to co-founder and board founder elliott thought to be behind altman's ousting, musk says he has a good moral compass and would not take drastic action unless he felt it was absolutely necessary you're aware, this makes this morning's letter signed and his post all the more confounding. it may be that this is some kind of desperate bid to keep 500 employees from walking out the door the whole industry here operates on research and data scientists and compute power. i thought it was telling that microsoft's ceo satya nadella's tweet ended with we look forward to moving quickly to provide them with the resources needed for their success by highlighting resources i think he's talking to the

what is going on at openai?ce sam altman, news of his departure was broken on friday night. now we know that he is going to be joining microsoft, to head up this advanced artificial intelligence team. with him, he's going to be taking a greg brockman, the other co—founder of openai, and there is going to be a host of people moving from openai to microsoft. in fact, a lot of people posting on social media, a lot of key employees at the firm, saying that openai is nothing without its people. it looks like we might start to cease some mass resignations at openai, moving towards microsoft, to a new team. microsoft has invested heavily, and put billions of pounds into openai, and in fact owns around 49% of the company. one of the reasons it is thought that mr altman was let go, was because of concerns to his commitment to the central core value of openai, providing safe, ethicaland core value of openai, providing safe, ethical and beneficial ai core value of openai, providing safe, ethical and beneficial al to everyo

the fallout from a decision to oust openai founder sam altman continues.ior staff members threatened to resign on monday. the artificial intelligence company is best known for creating chatgpt, the general chatbot. let's get up to speed on what happened. it started on friday when sam altman sacked from his position as openai's ceo. he is one of the most prominent figures in artificial intelligence. in a series of fast-moving and chaotic events over the weekend, it seemed like altman might get his job back. only for it to be announced he was joining microsoft, a major founder of his former company. the backlash continued into monday, when at least 500 open --openai staff threatened to quit and they called on the board to resign in an open letter. we can speak for the latest with chief technology reporter at axios who has been following all of this. very good to see you. for those who have not been following, how do you describe what has been happening? >> first of all, unprecedented. i have been covering silicon valley for 25 years. . i've never seen anythi

we will get his take. ♪ >> openai's investors want cofounders sam altman. staff is also threatening to quit saying they will follow him to microsoft unless the board is ousted. what happens next? take a listen. >> we are leading. we continue to be open to ai and committed to stan and the team. i think about stan who has chosen to work multiple times with us. the thing is, the capability that microsoft has is what attracts great people like stan, people like sam and innovators when it comes to ai and we are thrilled about it. >> you hired stan, as well as greg. we are hearing that sam wants to return to openai. haven't you feel about that? >> we want to partner with openai and stan. sam is working with microsoft and that is the case. i do not believe that is the case tomorrow. >> something like this never happens again. what specifically are you looking for, for example, when you want the board to seed or something else? >> we definitely want some changes. we want to make sure that it is not in a way that -- that is about it. there is this idea that suddenly

and tonight altman is back at openai.ne of his conditions, that openai gets a new board, which is happening. openai tweeted that they've reached an agreement with sam altman and they're working on assembling a new board. altman also tweeting about 45 minutes ago that he's looking forward to returning with the new board's support. many believe sam altman is the face of artificial intelligence since he's taken over openai in san francisco. >>> also tonight, the holiday travel rush is on. bet you're glad you're 99 this traffic at l.a.x. just a mad rush of people trying to get out of town or pick up loved ones before thursday. fortunately, things are a little calmer here. behind me a live look at sfo tonight. we're not seeing too many issues locally, but according to flight aware around 4900 flights have been delayed across the country and more than 70 have been canceled. and as nbc bay area's jocelyn moran explains, passengers traveling to the east coast are bracing themselves as a storm system stirs up trouble. >> reporter: