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Halfway to the weekend! I hope you never face a layoff scare, but if you do we've got some help. A 20-year HR professional offered advice on what to do when the rumors of cutbacks start swirling. (Save those personal docs!)
In today's big story, we're looking at the latest controversy to embroil OpenAI amid a difficult few months for the startup.
What's on deck:
- Markets: Hedge funds' May report cards are in, and an industry juggernaut faced a setback.
- Tech: This isn't your annoying aunt's Facebook; it's now pitching Gen Z.
- Business: A certain group of Americans believe renting over buying is the way to go.
But first, oh how the tables have turned.
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The big story
Up in arms over OpenAI
The world's most high-profile startup has also become one of its most controversial.
A small group of current and former OpenAI employees signed an open letter to tech companies asking for more transparency and not to retaliate against workers who raise concerns about AI's power.
While there was a sprinkling of Google DeepMind and Anthropic signees, the majority of the group were past and present OpenAI-ers. It marks another controversy for the startup that's been grabbing headlines for all the wrong reasons.
From public spats with Scarlett Johansson and Elon Musk to salty executive exits, Business Insider's Madeline Berg has a full rundown on the chaos at OpenAI this year.
At the center is CEO Sam Altman, whose act is wearing thin in certain tech circles.
Much of the outrage stems from a lack of guardrails around artificial general intelligence, or the idea that tech could ultimately outperform humans at various tasks and capabilities.
OpenAI and Altman have long sought to achieve AGI, but experts warn it could ultimately lead to humanity's extinction.
But how did things turn so quickly for OpenAI?
I asked one venture investor who's spoken to multiple high-profile AI experts. Their takeaway was simple: OpenAI wants to have it both ways regarding how it's perceived about safety and commercialization.
On the one hand, safety is built into the core of the startup. It's structured as a "capped-profit" company governed by a nonprofit, and Altman doesn't hold equity directly in OpenAI. The idea was for OpenAI to pursue building AGI that "is safe and benefits all of humanity."
But the startup's commercial aspirations are clear. It's aggressively pushed out new models to compete with rivals and is reportedly considering adjusting its structure to become a full-blown, for-profit company. It also disbanded the team responsible for mitigating AI risks.
The result, the VC told me, is people feel OpenAI is talking out of both sides of its mouth. In reality, they said, the split between OpenAI's focus on commercialization versus safety feels like it's more 95/5, respectively.
It doesn't help that some OpenAI employees joined when that split was closer to 80/20 and favored safety over business, they added.
The impetus for the increased focus on business isn't entirely clear. But the failed ouster of Altman, which included concerns over safety, does seem like a turning point for the startup.
Whatever the case, OpenAI can't keep trying to sit on both sides of the fence, according to the VC. The tensions are too high between commercial and safety aspirations to straddle the line and not expect more issues, they said.
3 things in markets
- All the top executives at Millennium Management. Izzy Englander's $64 billion hedge-fund behemoth has grown its leadership ranks considerably over the past decade. BI mapped out Millennium's 47 top executives across its 17 primary offices.
- Turns out Ken Griffin's Citadel is human after all. The $63 billion hedge fund's flagship fund was down 0.8% last month, several people told BI. Meanwhile, two of Schonfeld's funds enjoyed a strong month. Check out how the top multistrategy managers performed.
- Maybe we shouldn't celebrate GameStop's comeback. The resurgence in meme stocks is a bad sign for markets, according to JPMorgan strategist Marko Kolanovic. He took issue with how valuations have remained so elevated and reiterated his gloomy stock view.
3 things in tech
- Hello, youngs. Mark Zuckerberg would like a word. In an attempt to reach Gen Z, Facebook is leaning into TikTok-like discovery, and away from friends and family. It's a strategy that might just work.
- Elon Musk diverted $500 million in AI processors from Tesla to X. The move, first reported by CNBC, could delay Tesla's development of autonomous vehicles and humanoid robots. It highlights Musk's decision to "build products outside of Tesla" until he has 25% of voting control at the company.
- Major Google exec makes a shock exit. Google's chief privacy officer, Keith Enright, is leaving the company after 13 years, and the company has no plans to replace him. His move comes as Google's privacy policies have faced scrutiny.
3 things in business
- Welcome to the golden age for rich renters. It's hard to buy a home right now, but some renters don't care. They've found that instead of buying, they can rent a place with comped parking, boxing gyms, and rooftop pools. And compared to a down payment, the apartments feel like a bargain.
- Meet the rising stars of sports betting and gaming. As the industry evolves and more states legalize gambling, new roles are being created to meet its growing demands. We profiled 16 people who are driving growth in the field, from responsible gaming to micro betting.
- No more free internet for Shopify workers. Shopify said it will soon stop reimbursements for employees' internet costs and some other expenses, according to internal docs seen by BI. The expense was introduced during the pandemic, but unlike some of its peers, the company is still remote-first.
In other news
- John Oliver warns India is 'sliding towards authoritarianism' as Modi declares victory in tighter-than-expected election.
- The Great Concert Ticket Bust.
- The 15 companies US business students most want to work for.
- Exclusive: AI video generator Pika is seeking a valuation as high as $700 million in new funding round.
- Ad agency BENlabs has laid off staffers and named a new CEO as the company restructures.
What's happening today
- SpaceX will attempt its fourth suborbital test launch of its prototype Starship vehicle.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Jack Sommers, deputy editor, in London. George Glover, reporter, in London. Annie Smith, associate producer, in London.