deep mind was seen as secretive, openai was initially committed to making all of its openai models completely open for other people to use. what happened subsequently is it turned out it took a lot more money to develop these very powerful ai models and i think elon and sam altman that -- then they anticipated. there was some debate about raising money and elon musk at one point wanted to take the nonprofit on completely himself and merge it into his other companies like tesla, but the other cofounders of the company did not want to do that so they needed to come up with another option. and that option was to create a for-profit entity that would still be in control by the nonprofit board but the for-profit entity would be able to have extra capital funding. -- they did that, and then in 2019, they got a large investment from microsoft, a billion-dollar investment to help build the computing infrastructure they needed to start tilting out powerful ai systems. in particular, openai became interested in large language models, ai models that inject tons of text from the internet. the largest one

and openai changes direction. the chatgpt creator is reportedly abandoning its not—for—profit status. welcome to business today. i'm tadhg enright. we start in china, where president xi and other top leaders have admitted the economy is facing new "problems" and vowed to tackle the long running property crisis, pledging to deploy "necessary" spending and further interest rate cuts to make sure china meets its growth target of 5% this year. this, alongside further reforms to the banking and business sectors, comes hot on the heels of stimulus measures that came out on tuesday. and it appears markets like what they're hearing. let's have a quick look. the news has given a boost to european markets opening up, and the close in asia saw significant gains in hong kong and japan. the picture there is across the world, that is last night but this is what we are drawing our attention to here, the hang seng up by almost 4% and then ak injapan up by 3% as well. for more, joining me now is rory green, chief china economist a

, after openai was started, has left the company.d we have seen of top executives leaving. that is part one. the other part of the reporting we have is that they are now in the middle of going from nonprofit to a benefit corporation, so this is a unique structure in corporate america. but it's quite common in ai, so anthropic, openai's rival out of here, is a public benefit corporation, so is xai, which is elon musk's rival to openai. it's -- they're heading in this direction, so they're essentially going to be a for-profit. as part of that, i'm told by a source that sam altman will get equity in the company for the first time. so a lot is going on. so those have been the headlines. >> deidre, you know where i'm going with this, to the original sin. that's what elon musk is saying, quoting someone on twitter who is talking about -- accusing sam basically of raising $50 million from elon to start a non-profit. tell everyone you're doing it for humanity, raise billions, and convert to a for-profit and boom. a lot of people this doesn't

how much does openai want this?: it is good to have trillion dollar companies in your court certainly. it remains to be seen what exactly they have in mind, what kind of partnerships they want to expand upon. but yeah, i think it is a very competitive race to be the leader in ai and if you have companies like microsoft, apple, and nvidia betting on you, it makes you even more competitive. caroline: katie roof, we thank you. another side of ai is its regulation. the united nations expert group says ai government discussions have been too fragmented. it just came out with a report suggesting measures like establishing a fund to support poorer countries the king to work on artificial intelligence and calling on companies to limit military use of ai to prevent human rights violations. we sat down with the president of latvia and asked him whether ai should be more regulated. >> the use of social media artificial intelligence for this information, interference and elections, i think we need some framework. at the same ti

george: we work with a lot of people at openai.ard to tell who is -- a joke that i am the chief customer service agent. i am there every week. there is a lot of people at openai who we work with. i do not know which one i would name. ed: the reason i ask is you explained how the contractual relationship works and how the data works but as you have seen the reporting, there is consideration about the transfer from a nonprofit with a for-profit subsidiary to a b crop -- b corp. as a company doing business with openai, what do you think? george: we will continue to have a relationship. they are a great company with a complicated history. their product took off so explosively. we were replicating data for them back then. we saw their account go to the moon. it is exciting. there is some drama that has come with it. from where i sit, the peoplrolis are going to the moon? six george: some big customers. for example, lvmh. we were just talking about what was going on in europe. lvmh is a big customer. they are mostly centralizing data fro

we'll have details. >>> first more on openai.his is quite a development. >> yeah, so a major executive at openai leaving the company. this is mira moradi, the chief technical officer, the cto. she's been with this company for 6.5 years, was briefly the interim ceo, if you remember about a year ago when sam altman was removed from the company briefly. that was back in november, 2023. it comes amid some other recent departures for this company. you had names like john shulman who left for antropic, but i do want to read a tweet from moradi, "i have something to share after much reflection, i have made the difficult decision to leave openai." she says, it's never an ideal time to step away from a place one cherishes, yet the moment feels right. she says she wants to create time and space to do her own exploration. i will say a lot of the openai founders, early executives, have gone to build other companies. she's not said what she's working on, but they've had no problem raising venture capital mean. i want to read a tweet from sam

she's just written a book about the alarms race and the battle between openai and google�*s deepmind wanted to focus on these two men. and when chatgpt came out almost two years ago now, i remember thinking at the time, like, "wow, we have — i don't think people really understand "the story or know about the story behind all this." and when you say two men, it's — well, name them. yeah. demis hassabis. yes, demis hassabis, who is the founder of deepmind, which is the ai lab here in london which was bought by google in 2015 and sam altman, who's the founder of openai. the reason i focused on those two men is because they were the first to try and build companies or organisations that would create superintelligent ai, human—levelai, and they both had these humanitarian ambitions that once they built this ai, it could solve all sorts of problems. just unpick that. so, this is about developing artificial general intelligence. right. what is that? just spell it out. it's a theory. a lot of people don't believe that it's even possible, but these guys did. it's essentially a machine that ca

in the end, microsoft took greater control of openai, google took complete control of deepmind.o you think? i think there's always been a little bit of — a fair amount of competition between tech companies on al, particularly since 2012. but november 2022, when chatgpt came out, i mean, that was really the starting gun for a race between companies. they were all trying to replicate chatgpt because everybody could see how potentially transformational this technology was going to be. and absolutely, what ended up happening is companies releasing software or ai models that make mistakes, that are encoded with bias, because the data that they're training the models on is biased, and that is extracting a huge amount of energy through these data centres, and... and do you believe that winning this race has meant compromising the original principles that they laid out? absolutely, and that's already happened. if you — i mean, just look at deepmind... how? just look at deepmind's website, for example, that used to be all about the different ways that al was going to do these — address t

deidre bosa is more in today's "tech check." >> never a dull moment for openai. startup darling, it could welcome apple and nvidia to its cap table. that may mean it needs to re-examine its structure, which is a hybrid entity. so a nonprofit foundation and a for profit arm. a disclaimer on the website states, it would be wise to view any investment in openai in the spirit of a donation. of course, the mega cap reportedly looking to invest in this latest round. they answer to shareholders looking for returns on their investment. how do you go? it's the eternal question, how do you go from scrappy startup to mature or ration and the stakes in generative ai, higher than ever. do you lose some of the innovation and grit but gain structure in managers? an interesting piece in "the new york times" on openai. 80% of its more than 1700 employees started after the release of chatgbt. additions that include some of the most respected people in technology like kevin wheel from facebook, crystal han from coinbase. but founders weighed in on the founder, writing many founders

she is the latest high level executive to leave openai. moretti said she is stepping away to, quote, create the time and space to do her own exploration. shortly after moretti announced her departure, reuters reported openai is planning to restructure. it will become a for profit business that will no longer report to a nonprofit board. openai is backed by microsoft and behind chatgpt and search. gpt, a sign that things are getting back to normal for bart. ridership numbers are surpassing pre-pandemic levels. the agency says daily ridership yesterday was over 204,000 riders for the first time since the pandemic started in 2020. they're crediting the return to office for bay area companies after years of people working remotely. okay, a live look at the coliseum. all that sadness and anger. excuse me? all that anger is now turning to sadness and tears. about 24 hours remaining of oakland a's baseball. and then they're done with oakland. this is a live look at the coliseum. the a's taking on the rangers tonight. and then the finale of oaklan

great to try and coordinate safety when using open ai -- openai products. in the early days of that process microsoft in the midst of planning a big or important launch, the launch of gpt 4 and microsoft launched gpt 4 to tens of thousands of users in india without getting approval from that deployment safety board. another example since i stepped off the board, concerns raised inside the company that in the lead up to the launch of the model, the voice assistant with exciting launch videos launched the day before google event that might upstage them with concerns from inside the company about their inability to carry through the safety commitments the company made in advance of that. additional examples, but that, those two illustrate the point. >> i will be hopeful of another round of questions and i will be respectful of my five minute rule in turn to the ranking member. >> my understanding is when you left the openai board, you felt you couldn't do your job properly mean you couldn't afford to oversee mr. altman and the safety decisions he was made but

coming up, openai crosses one million customer milestone.details next. ♪ caroline: you are looking at a live shot of the principal room. find the bloomberg technology podcast on apple, spotify and i heart. this is bloomberg. ed: power players is underway in new york as jason kelly sits down today with prominent people in the sports industry discussing the global sports boom. >> probably should. many businesses and industries, leagues and teams have gone through this evolution. it takes a long time for leagues and franchises to make money to show the evaluation the market is seeing. this is an asset class, $3 trillion asset class, have people take a step back. what are you even saying? the nfl. 32 franchises. average franchise, $6 billion. $180 billion value in franchises. each of those has all sorts of ancillary businesses. stadiums, real estate development, technology related businesses, retail, food and beverage. when people say what is the size of this industry? i would argue most folks looking are woefully underestimating the value globa

what do we know about openai's latest fun race?> we know they are trying to raise quite a bit of money and they are trying to raise an amount in the form of debt. as you and i and some of our colleagues reported, they are hoping to do this at quite a high valuation. 158 billion would be much higher than the amount we previously reported which was under $100 billion. i think what we have to think about when we think about this company trying to raise a lot of money is that what they are doing is extremely expensive. they are building enormous ai systems and running enormous ai systems and that costs a lot of money. caroline: let's talk about where the money is being spent, the latest models. this is where training of these models, the computer, the talent -- compute, the talent, but what's the outcome? rachel: strawberry is a model that has been in the works for a wild. essentially what they are hoping that it can do is some tasks that are similar to how humans would conduct reasoning. it's going to be aimed at things like more comp

now to the scoop on openai.earned that the company behind chatgpt is giving sam altman a 7% equity stake. let's bring our tech reporter annabelle droulers. how's the shift for the team of openai that had been a nonprofit. quakes extremely significant. thinking about this possible equity stake for sam altman. he's someone who has been on record. he's someone who said the only reason he would want to stake is so people can stop asking him why he wants a stake. he said he didn't want any ownership of the business because it was there to serve the greater good to benefit society. now it seems like that has shifted somewhat. but we hear from sources, it could be a 7% stake. to put it in context. alluding to that non-for profit structure. that's how openai was established back in 2015. it started to generate a lot of investor interest, for finding eai tools. they are expensive to develop. so they established a for-profit subsidiary that stat beneath the umbrella of not-for-profit structure in 2019. that led to some te

and one of openai's co-founders is raising $1 billion for his ai startup.ange" is back after this this that you'll definitely want to hear. depending on the plans available in your area, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special. needs plan. all these plans include a healthy options allowance. a monthly allowance to help pay for eligible groceries, utilities, rent, and over-the-counter items like vitamins, pain relievers, first-aid supplies and more. the healthy options allowance is loaded onto a prepaid card each month. and whatever you don't spend, carries over from each month. other benefits on these plans include free rides to and from your medical appointments. you pay nothing for covered prescriptions, all year long. all plans have dental coverage which includes 2 free cleanings a year, fillings, and a yearly exam. they also have vision coverage including vision exams and a yearly allowance towards eyewear such as lenses or contacts. and hearing coverage, which includes routine hearing tests and c

we think of openai. any idea that they are going to think?ur investment committee improve, adjust, change as innovations happen? doug: that is one of the most insight -- exciting parts of using ai as an investor. sam alton has this quote, the models we are using today are the dumbest models you will ever have to use. the disappointing thing is he is calling these models done. we don't think they are dumb because testing shows they are very effective as investors but the upside to that is that these models only get smarter from here. we think about o1, advanced reasoning capabilities. as we see that permeate these other models we use like claude and gemini, i think the committee will continue to get smarter over time. ed: do you pay or license from the llm providers? doug: we do use their apis, so we pay for the usage of that technology. ed: intelligent alpha ceo doug clinton, thank you for coming back on the show. more news. the chip start up ampere is exploring a potential sale according to sources who say the chip designer has been working

not a total layup for openai but from our perspective openai has threaded that immediately well and inh others who are formidable. >> does that mean that apple wins or loses at $218 a share? >> you know, we are very optimistic about apple, you know. there's a lot of great products coming down the road with apple, and we're excited to use them. >> okay. we'll leave the conversation there. thank you very, very much. >> thanks, andrew. >>> it is just coming up, 30 seconds, to 7:00 a.m. on the east coast. you're watching "squawk box" right here on nbc. i'm andrew ross sorkin along with joe kernen and becky quick. our top story, a very big week for investors as we get you ready for wednesday's fed rate decision. all eyes will be on 2:00 p.m. wednesday. we'll likely get the first rate cut in four years. will it be 25 basis points, 50 basis points? doesn't matter. maybe it's just the beginning of a long cycle of cuts. meanwhile, the s&p and the nasdaq are coming off their best weeks since november of last year, and then disney and directv reaching an agreement over the weekend that brings dis

that needs to get settled quickly before further damage is done to boeing >>> firms like apple and openairepare to launch new ai models lots of people are talking about the threats of ai. oprah winfrey releasing a substantive special on the subject last night and we will talk to tristan harris who was featured in the special, he previously sounded the alarm on social media and now says we are making the same mistakes with ai as we did with that. >> i thought the fact she did a special on this was so interesting. i remember when she did the big lance armstrong interview years and years ago. i think if anything wall street is backing away from this idea of worrying about a lot of the dangers of ai and just actually wondering what the investment cycle is going to look like. so perhaps maybe -- >> i guess we will make the case that we need laws and regulations on ai to avoid what he says has happened with respect to social media. it's very hard to know how to regulate something when you don't know what the effects of that something may be. >> 100%. >> so we will explore that with tristan. >>>

chatgpt maker openai will soon lose its chief technology officer mira murati, who has been with the firms, who says she made the decision to "create the time and space to do my own exploration". her departure comes as the microsoft—backed start—up is pursuing a new funding round. election on our website, bbc.com/news. in the last few hours, kamala harris hit out at trump's economic plan, saying it will invite a recession. she was giving her first major solo interview on msnbc. chatgpt maker openai will soon lose its chief technology officer mira murati, who has been with the firm for six and a half years, who says she made the decision to "create the time and space to do my own exploration". her departure comes as the microsoft—backed start—up is pursuing a new funding round. the asian development bank has released its latest economic forecasts for developing asia, and things are looking up. growth has been upgraded to 5% for the year, thanks to increasing demand for goods produced in the region like semiconductors. but china is expected to continue to underperform. albert park explained

o openai sending a letter reassuring a.i.l to investors sent by a source cfo sarah fryer addressing departure who said wednesday leaving the company and later that day two top researchers also stepped down. fryer wanting to personally reach out following the news of the departure and emphasize, "we are in a strong position with talented leadership bench to guide ut forward." openai backed by microsoft one of the busiest start-ups out there, in the midst of closing a multibillion dollar. around $150 billion according to sources familiar with the matter. fryer still on track to close next week saying it was over sub described. collectively remain laser focused bringing openai to everyone and building revenue models that deliver value to investors and employees. guys, openai declined to comment on that email. back to you. >> kate, what, what's the story on the sam altman equity piece of this? i think a, a lot of speculation about that even obviously in the past 24 hours? sounds like maybe -- less equity? more equity? >> we heard

. >>> we've got a news alert on openai kate rooney, what's the story?so openai just announcing an improved model, that are ai model has better reasoning this has been reportedly called strawberry, so a lot of buzz around it. the big takeaway is it's got better reasoning, they're calling it openai 01, better at science, coding, they're releasing a preview of this version and say it's helpful for ph.d. students and performs as well as ph.d. students on some challenging benchmark tests like chemistry and biology, that is not like browsing the web. they say chatgbt is actually better for most normal use cases. it also represents a new level of ai capability, and part of this is developing new safety training approaches as part of this model improving these models, a big part of openai's value proposition, they have to justify that price tag they are raising new capital, between $5 billion and a $150 billion valuation. >> this model is meant to be a smaller one that can still complete certain tasks >> smaller, more niche, but it hints at going after enterpri

what would change that if we made an ai system that was better at doing ai research than all of openai and you could push a button and just say, improve, really fast. >> that's an example of something i think would be moving too fast. >> very intriguing. the special ai and the future of us will be available on hulu starting tomorrow. >> the largest wildfire burning in california has now burned more than 51,000 acres and is 0% contained, according to cal fire. >> the bridge fire is also threatening more than 5000 structures. nearly three dozen homes have been destroyed by the fire burning in los angeles and san bernardino. san bernardino counties. that's according to local media. one resident spoke out after losing their home in the fire. >> how are you feeling right now? >> uh- mixed feelings. very overwhelmed. maybe i can start doing some facials and massages again. and. but we have to do it one day at a time. >> parts of eastern los angeles county and western san bernardino county are under evacuation orders. the fire has been burning since sunday, and we are monitoring other fires t

in the name that is not openai.thropic >> they have gotten a lot of traction. they're the number two sort of stand alone private market, foundation model player. then i do think there is this question that folks should be looking into around we sort of have this movement in silicon valley called effective ultras, there is the basic idea is there is this set of entrepreneurs, this set of companies where they want to make all the money in the world, and then use that money to quote, unquote save the world and the standard bearer for effective ultra until 2021 was sam bankman-fried, he's in jail for the fdx fraud. today's standard bearer is dario of anthropic. we want to really look into the effective ultras and anthropic link and what is going on there. google, of course, second largest investor in anthropic. maybe the doj should look at what's going on there as well. quite skeptical. want to make all the money in the world to save the world, that scares me, that's a scary thought to me and that's the anthropic ethos.

. >>> a number of headlines we're keeping an eye on involving openai including the company's businesskate rooney has a lot of those changes for us. >> david, a lot happening with openai in the last 24 hours. right now it's in the process of pivoting from a nonprofit to what's known as a benefit cooperation, according to a source familiar with the matter as the company wraps up what could be the largest private funding round in history, the big nest recent memory and value openai at $150 billion. that's according to a source familiar who tells me sam altman will get equity in the company for the first time. in the middle of that material changes we're seeing in the c suite. chief technology officer mira murati stepping down yesterday and she has been instrumental in openai's growth developing chatgpt. you might have heard this name she became a household name in silicon valley when she stepped in as interim ceo about a year ago when sam altman was momentarily ousted by the board. murati has been an advocate for responsible ai development and did not say why she was leaving aside from,

openai popularized it.ot of us could open source teams have been open source models but that means there are companies giving away every element of it. meta has done it. there is no -- a company in abu dhabi has built powerful oils. we are seeing a building of evolution that seems more democratized than other technologies before. again, i think we are in a singularity and it is easy to speculate and make contrastive statements. let's be open-minded but the potential exists. >> back in may, sam altman testified in congress. here is a little of what he had to say. >> i agree that when we get to very powerful systems the landscape will change. i am more optimistic that we are incredibly creative in finding other things to do with tools and that will keep happening. my worst fear is that we cause significant harm to the world. if this technology goes wrong, it can go quite wrong and we want to be vocal about that and work with the government to prevent that from happening, but we tried to be very clear about wh

what would change that if we made an ai system that was better at doing ai research than all of openai and you could push a button and just say, improve, really fast. >> that's an example of something i think would be moving too fast. >> very intriguing. the special ai and the future of us will be available on hulu starting tomorrow. >> the largest wildfire burning in california has now burned more than 51,000 acres and is 0% contained, according to cal fire. >> the bridge fire is also threatening more than 5000 structures. nearly three dozen homes have been destroyed by the fire burning in los angeles and san bernardino. san bernardino counties. that's according to local media. one resident spoke out after losing their home in the fire. >> how are you feeling right now? >> uh- mixed feelings. very overwhelmed. maybe i can start doing some facials and massages again. and. but we have to do it one day at a time. >> parts of eastern los angeles county and western san bernardino county are under evacuation orders. the fire has been burning since sunday, and we are monitoring other fires t

new chains to openai and not everyone is on board.working on a plan to restructure its core business into a for-profit corporation. one that will no longer be controlled by its non-profit board. it will continue to exist and own a minority statke in the for-profit sector. sam altman will receive a paycheck for the first time. the exit of the company includes executives announcing their departures via x yesterday afternoon. all this as openai negotiates a new $6.5 billion financing round that would value the company at $150 billion contingent on the new corporate structure. unclear if the executive exits have an impact on the funding round. frank. >>> thank you. coming up on "worldwide exchange," the one word every investor needs to know today and the chip rlyal fueled by micron. my next guest says it could be on a run. right now, shares are up 15%. stay with us. commend us. ameriprise financial. advice worth talking about. when it comes to amgen's life-changing medical breakthroughs, every second counts. but without investment, those

openai has experienced a number of high-profile departures, including the head of the alignment team, who left to join their rival, anthropic. upon departing, he wrote on x, i have been disagreeing with openai researchers about the core priorities for a time, until we finally reached a breaking point. he also wrote that he, quote, believed much more of our bound with should be spent getting ready for the next generation of models, of security, monitoring, preparedness, adversarial robustness, social impact, and related topics. these problems are quite hard to get right, and i'm concerned that we are on a trajectory to not get there. let me ask all of you. based on your first-hand experiences, would you agree essentially with those points? let me begin with you, mr. saunders, and go to the others, if you have responses. >> thank you, senator. >> he was talking about a number of issues where openai is not ready to deal with models that have some significant catastrophic risks, which is high risk models. things that could actually like start to, you know, assist novices in like creating

what do we know about the valuation and where openai stands in this sector?abelle: valuation is strong, that is the key thing. we hear from sources that openai , the creator of chatgpt, is looking to raise $6.5 billion in equity financing, that is at a valuation of $150 billion which cements its status as one of the most valuable startups in the world and is a huge jump to where we were a few months ago. $86 billion is what we reported in february when they completed a different round of financing. now at $150 billion instead. we are hearing they're looking to raise $5 billion from banks for debt financing, a revolving credit facility. that could be the start of the walk toward the ipo. we have seen that previously from tech giants. tom: that $150 billion would make it one of the most valuable companies in the world. the success of nvidia has come at the cost of intel. that is the subject of today's big take. what are we learning of its future? annabelle: intel missed out on the ai boom, and that is something that has come across strongly. we had results a fe

now, the company behind chatgpt — openai — is in the midst of a $6 billion funding round.rom thrive capital — a venture capitalist — suggests it believes the company has the potential to grow to well over $1 trillion. apple, nvidia and microsoft are also in talks to join this funding round. let's explore this more with the independent market analyst craig erlam. good morning to you. it is not surprising to hear, is it, that there was a lot of interest in open ai? there was a lot of interest in open al?— there was a lot of interest in open ai? absolutely not, since it appeared _ open ai? absolutely not, since it appeared on _ open ai? absolutely not, since it appeared on the _ open ai? absolutely not, since it appeared on the scene - it appeared on the scene earlier last year there has been a huge amount of excitement around chatgpt and what the scope ultimately for al what the scope ultimately for ai will be. the possibilities are endless and this is where the excitement around funding opportunities like this come from. you have major companies looking to get involved, you

. >> two years ago, it was revolutionary and magical to use openai chatgpt for the first time.icrosoft came out with copilot about 12 months ago. it is okay, but the use case is clunky and it is not intuitive and you cannot integrate it into the day-to-day work flow. what we have seen in the last three months, the start of the new product release cycle from the large enterprise software companies with a.i. agents. this is where you outsource processes that you do inside the enterprise to an agent that does it for you. we saw great announcements with microsoft and starting to see really cool a.i. agents with python and data science doing powerpoints. we are looking forward to those products released in the next three months. >> storm, i want to skip ahead. you say the platform companies like netflix and amazon and spotify, why do they benefit from the agents and why does it hurt the providers? >> if you implement the technology inhouse, you have cost savings. amazon is using amri q to aid software developers. that brings a savings of $250 million a year. this is the early use ca

deep mind was seen as secretive, openai was initially committed to making all of its openai models completelyfor other people to use. what happened subsequently is it turned out it took a lot more money to develop these very powerful ai models and i think elon and sam altman that -- then they anticipated. there was some debate about raising money and elon musk at one point wanted to take the nonprofit on completely himself and merge it into his other companies like tesla, but the other cofounders of the company did not want to do that so they needed to come up with another option. and that option was to create a for-profit entity that would still be in control by the nonprofit board but the for-profit entity would be able to have extra capital funding. -- they did that, and then in 2019, they got a large investment from microsoft, a billion-dollar investment to help build the computing infrastructure they needed to start tilting out powerful ai systems. in particular, openai became interested in large language models, ai models that inject tons of text from the internet. the largest ones are

openai did decline to comment on this one.es we're talking over 30 multiple on revenues in terms of where that valuation is. you know, that being the case, it doesn't seem to be stopping any of the investors that i'm aware of from what i understand, they, you know, they have been lining up to participate in this, despite what are often paying fees on fees to the funds that participate in these kinds of deals as well. i understand they may be cutting people off in terms of it. unlimited demand, i don't know. significant demand. >> yeah. i've talked to some silicon valley investors who have not been able to get into this round. there's also these sort of special purpose vehicles or spvs that are raising money from other smaller investors so thrive is putting in a billion dollars but also doing this through an sv becomes. they're doing their mini fundraising. there's a ton of interest and investors that have been left on the sidelines here, a ton of demand. i would say the structural change is big, that it will now become a for p

caroline: let's talk openai. it's pitched on the need for massive data centers that could each use as much power as entire cities. the expansion is necessary to advance ai models and compete with china. seth joins us now. the context of how massive we are talking, each data center as many as three nuclear plants. >> as many as five nuclear plants. where does that power come from, nobody can really say but it speaks to the tremendous scope of ambition that sam altman openai has. we reported for a lot of this year he's been trying to build up a coalition to support infrastructure development in the u.s. and globally. this is really the clearest and most specific indication we have of what he's thinking in the u.s. and abroad. >> it's based on a document bloomberg review think back to february when we reported and i think you edited the story about this idea sam altman also went to the u.s. government and said i kind of want some green light to take money from other investors because we know this is good to be reall

platform to new capabilities, the knowledge-based system would work with chat gpt and openai to help users write e-mails, reports, text messages and generate images, shares of apple opted under double digit, you want to keep it to fox business monday with all the big headlines and moves in the stock price, that will do it for me, thank you for join great weekend, i will see you next time. >> behringer roundtable sponsored by global x etf's. >> welcome to behringer roundtable where we get behind the headlines and prepare you for the week ahead, coming up investors either 2284 but enter presidential race ahead of u.s. public policy on what the election could be for the markets, later huge energy demand is driving american companies to a once shunned alternative, how investors can play the nuclear energy come back, we begin with the expert panel and three things investors are to be think about right now on the "barron's roundtable" ben levisohn, teresa and jacob sunshine. it was one of those weeks on wall street were nothing worked. >> nothing at all, for good reason, we had two big eve

shake-up with one of the leaders in the artificial intelligence industry, why san francisco-based openaiditching its nonprofit model. >>> plus chilling new details emerging in the deadly shooting of a vta employ >>> a major shake-up with the leader of artificial intelligence. openai is looking to switch from a nonprofit to a for-profit company and while the maker chatgpt already has a nonprofit or for-profit division, it hopes to fully convert itself into a corporation with shareholders. this comes after three top leaders resigned yesterday, including the chief technology officer. ceo sam altman says the departures from executives were not related. >>> san francisco mayor london breed and other city leaders celebrating the return of the el taraval muni metro line. construction has been ongoing since 2019 and the city has been working to make pedestrian crossings safer and the line more reliable. the line runs from the embarcadero station to the san francisco zoo. for the past several years, though, passengers have had to make due with time consuming bus transfers. >> we're here today to

openai and chatgpt what they're capable of, it's a open-ended world. is up too high i'm not a shareholder. it's not a world i specifically play in, but you've got a company that, i believe, $2 billion in revenues. pretty astronomical in itself, since it was at ago, so how high is up? >> well, that's the question, alan you've seen this -- you've seen various movies before, and with various endings, and i think there's a question in the secondary market whether people are going to buy into this by the way, there will be some big mutual funds and others who may try to get a piece of this before it goes public. would you, if you could? >> i wouldn't. that's not the game, andrew, that i want to play, and i think it's -- i have seen this movie before, and as i've said previously, there's going to be a winner or two winners or several winners. there are going to be a lot of losers we've already seen some of the losers developing and merged into other companies, and i think it's a game for speculators, and you know, a lot of investors, lot of investment funds,

that's using openai's technology, they are a huge seller of openai.nai pays them $3 billion a year. so at some point all of this capex will slow and starting to see it already so all these stocks will come down but will create a great opportunity to buy them for the real ai trade that's going to happen i in '25, '26. they pulled forward too much of that performance. >> that ai might be totally different at that point. nvidia bounced around the round number, big fat number of 100. if you look at the 200-day moving average it's 89.11 so if you're taking a risk now, you're pretty close there, right, within 10% of where that foundational price could be, but for mere i'm going to wait because i think if dan's right and these things are going to all sell off but for me semiconductors, worst month, i'm not pooh-poohing it. i'll stay on the sidelines until i get a better entry. >> it wasn't a pooh-pooh. it was a smackdown. >> i didn't even know you said that. >> i didn't take it that way. >> he doesn't listen. [ laughter ] >> really quick, i mean, what's inte

openai is releasing a new model capable of performing human tasks.strawberry it can handle problems. let's bring in annabelle jewelers. what does this tell us about competition? annabelle: this will give it an edge but stiff competition, anthropic, google saying advance models have some reasoning capability but this is the next level so it is known as strawberry or bow one. it can perform reasoning tasks. it's humanlike intelligence, considering different inputs, using reasoning so how that will function, be prepared to take a beat. it might take longer to respond because it has background processes, a step forward for the company because we know they've been trying to carry out multi step actions and it's not rolled out to all users. just some of them. the company using experiences to advance the tool. tom: annabelle jewelers in hong kong on openai. we will see how well received that is. lenny moore coming up, insights driving gold to record levels, this is bloomberg. ♪ >> welcome back, happy friday. let's reflect on the prices that came through. cp

openai led the way with this. they have a free version, and then they have a premium version, $20 a month, that's been the model now that gemini uses, microsoft is adopting a similar approach. apple is going to do a lot of the same thing. the functionality that people are going to use, the paradigm shift that i'm talking about is going to be available in october and november for u.s. users. and that's just going to im impact -- that will be free, that will be free if upgrade your phone, your hardware, your mac, your ipad. and so i think that's one piece to it. the pricing strategy. the other is, of course, as more of these rich features come out, and that's where there's a new business model. there's a lot of questions, like, what is beyond and iphone upgrade one or two-year cycle mean for apple and a.i.? and they can have these more rich products they can sell openai with a premium version that apple takes a 15% cut of. i think it's going to be a tiered pricing model, and i think there's just so much talk about a

what openai's sam altman tells oprah when she asks him if it's moving too fast.ut first, a check on the weather with drew. >> hey there, 539 this morning. we'll take a look at the next several hours this morning and you notice we are fog free in most areas. just some patchy cloud cover along the coast this morning. that sun's up here shortly after 630 and we will have plentiful sunshine today. temperatures do warm pretty quickly already into the 70s in spots by 10 a.m. so the forecast today. today is the warmest day of the week. we'll go into the 70s and 80s across the board. just a light breeze out there. it's just looking like a very nice end to the week. so look at the inland forecast first. today we'll go into the upper 80s lower 90s. you notice a lot of sunshine today. it will feel quite comfortable this morning before we heat up later on this afternoon around the bay shoreline. it is warm upper seconds lower. 80s you notice this morning we're not dealing with any fog around the bay shoreline. we have a lot of sunshine in store and mild temperatures along th

the news comes after openai's chief technology officer meera marathi, said she's leaving the company. she was named interim ceo last year after openai's board briefly ousted allman, and tesla is sending out invitations for its robo taxi event on october 10th with the tagline we robot now! the event was originally scheduled for august, but it was pushed back and not much is known about the robo taxi other than speculation. it won't have a steering wheel or pedals, and it will be like the cybertruck in terms of design. laura and ginger, my son, will love it. yeah interesting. i know that's what i said to him. no steering wheel, no pedals. wow. yeah. we. robot. i guess i'm scared. yeah, a little bit. tell us if you've got a plus one. thanks savannah. well, trending this morning. this weekend marks a milestone in tv history. the 50th season of saturday night live officially kicking off and fresh off her sixth emmy win. host jean smart is getting ready to celebrate. that is, if she can get a word in edgewise. 50 years memories from new york. it's saturday night. and now it is my turn. this

the news comes after openai's chief technology officer, mira murati, says she's leaving the company. she was named interim ceo last year after open ai's board briefly ousted altman. new at six. ai no doubt reshaping the classroom experience, but one texas school using it to teach students about the role of a traditional teacher. students at the alpha school spend just two hours a day learning math, science, reading, and writing, all with the help of an ai tutor. administrators say the technology transforms lessons into games and monitors progress using apps, and there are no teachers in the classroom at al, only guides to monitor the children. guides who are unaware of the curriculum. it's okay that our guides aren't experts in physics or math or whatever they're doing. they are experts in their students. it almost sounds like the guides here are told you're here to lead the kids to ai. our guides are not allowed to teach. they are coaching students to become self-driven learners. the co-founder says ai tutor personalizes lessons to each student, and there's no homework. tuition runs

openai changes direction. the chatgpt creator is reportedly abandoning its not—for—profit status.h targets on track. welcome to business today, i'm tadgh enright a big shake up is underway at openai — the company behind chatgpt which is at the forefront of the artificial intelligence revolution. it's reportedly planning to abandon the not—for—profit status of its core business in a move that the financial newswire reuters reports, is designed to make it more attractive to investors. the finer details of the shake up have not been confirmed but leadership changes have already been announced with its chief technology officer abruptly resigning late on wednesday. its chief executive sam altman would also receive a stake in the company for the first time, which could be worth as much as $150bn. yonah welker is a technologist and algorithm expert. thank you forjoining us.