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Sam Altman to return to OpenAI as CEO with new board of directors. (00:27) Nvidia (NVDA) slips as Q3, guidance blow past expectations. (02:58) Elon Musk, Tesla (TSLA) engineers were aware of Autopilot defect – judge. (03:58)
This is an abridged transcript of the podcast.
And just like that….He’s back. Sam Altman is returning to OpenAI as CEO.
When we left this story on Monday it seemed like it wasn’t really complete. There had to be an alternate ending or those coveted scenes after the credits for a movie.
And if you sensed the same thing, you were right.
Overnight we got word on X, the social media network formerly known as Twitter, from OpenAI, Sam Altman and Greg Brockman that the team was together again but changes had been made to the board.
According to the statement, the new initial board of OpenAI will feature former Salesforce co-CEO Bret Taylor as chairman, former Treasury Secretary Larry Summers, and Quora co-founder and CEO Adam D’Angelo. D’Angelo was a member of the board that voted to get rid of Altman less than a week ago.
So, yes this means that Altman and Brockman will not be leading the new AI team at Microsoft (MSFT) but even after Microsoft CEO Satya Nadella tweeted that update on Sunday there were still reports swirling that even that move was up in the air.
The mood at OpenAI had clearly shifted with reports that nearly all of OpenAI’s more than 700 employees had signed a letter threatening to quit if things did not return to normal.
In this latest move, OpenAI wrote on X, “We are collaborating to figure out the details. Thank you so much for your patience through this.”
Altman wrote in response, “i love openai, and everything i’ve done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya’s support, i’m looking forward to returning to openai, and building on our strong partnership with msft.”
Brockman tweeted a team pic and said he’s already getting back to work. That tweet received mad love from MC Hammer. Yes, that one.
Reaction from Microsoft (MSFT) CEO Satya Nadella: “We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners.”
Premarket Microsoft is up 0.5%.
Nvidia (NASDAQ:NVDA) is down 1% in premarket action even as the semiconductor giant posted third-quarter results and guidance that beat expectations by a wide margin.
Looking ahead, Nvidia (NVDA) expects fourth-quarter revenue to be between $20B, plus or minus 2%, above the $17.9B that analysts had expected.
However, the company said it expects sales in China to decline “significantly,” citing the recent export curb controls from the Biden Administration. But Nvidia added that the decline will be offset by growth in other regions.
For the third-quarter, Nvidia (NVDA) earned $4.02 per share on $18.12B in revenue. Analysts expected the company to post earnings per share of $3.39 on revenues of $16.11B for the quarter.
Regarding the Chinese export curb controls, which were expanded in October, Nvidia (NVDA) said there was no “meaningful impact” to the quarter.
A judge ruled that “it would be reasonable to conclude that Tesla (TSLA) through its CEO and engineers was acutely aware of the problem with the ‘Autopilot’ failing to detect cross traffic.”
The case relates to Stephen Banner, who died in 2019 after his Model 3, which was on Autopilot mode, crashed into an 18-wheeler. This accident happened in Florida, north of Miami.
According to a Reuters report, the judge wrote that the plaintiff – Banner’s wife – can proceed to trial and file punitive damage claims against Tesla (TSLA) for gross negligence and intentional misconduct. A trial that was set for Oct. had been delayed and is yet to be rescheduled.
Other articles to look out for on Seeking Alpha:
Tim Cook discusses Apple’s ‘very detailed’ CEO succession plans
Best quality stocks with highest return on capital, according to Nasdaq
HP CEO: Growth in PC segment likely to double next year
On our catalyst watch for the day,
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Executives from Mercedes-Benz AG (OTCPK:MBGAF), Volkswagen (OTCPK:VLKAF), and Vitesco Technologies (OTCPK:VTSCY) will participate at the Bernstein Electric Revolution Conference.
U.S. stocks on Tuesday ended in the red after the latest Federal Reserve meeting minutes showed that all officials saw restrictive interest rates for some time.
The Nasdaq (COMP.IND) slipped 0.59%. The S&P 500 (SP500) retreated 0.20%. The Dow (DJI) fell 0.18%.
Of the 11 S&P sectors, seven ended in negative territory, led by Tech and Real Estate. Health Care topped the gainers.
The 10-year treasury yield (US10Y) was down 1 basis point to 4.41%. The 2-year yield (US2Y) was down 2 basis points to 4.89%.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.1%, the S & P 500 is up 0.2% and the Nasdaq is up 0.3%. Crude oil is down 1% at just shy of $77 per barrel. Bitcoin is down 1.5% and less $37,000.
In the world markets, the FTSE 100 is up 0.02% and the DAX is up 0.5%.
The biggest movers for the day premarket: VinFast Auto (NASDAQ:VFS) is up 10% after Wedbush Securities began coverage of the Vietnamese electric vehicle maker with an Outperform rating and assigned a price target of $12 to represent upside potential of over 120%.
On today’s economic calendar:
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