Sam Altman participates in a discussion during the APEC CEO Summit, in San Francisco, Calif., on Nov. 16.Eric Risberg/The Associated Press
Microsoft MSFT-Q snapped up Sam Altman and another architect of OpenAI for a new venture after their sudden departures shocked the artificial intelligence world, leaving the newly installed CEO of the ChatGPT maker to paper over tensions by vowing to investigate Altman’s firing.
The developments Monday come after a weekend of drama and speculation about how the power dynamics would shake out at OpenAI, whose chatbot kicked off the generative AI era by producing humanlike text, images, video and music.
It ended with former Twitch leader Emmett Shear taking over as OpenAI’s interim chief executive and Microsoft announcing it was hiring Altman and OpenAI co-founder and former President Greg Brockman to lead Microsoft’s new advanced AI research team.
Despite the rift between the key players behind ChatGPT and the company they helped build, both Shear and Microsoft Chairman and CEO Satya Nadella said they are committed to their partnership.
Microsoft has invested billions of dollars in the startup and helped provide the computing power to run its AI systems. Nadella wrote on X, formerly known as Twitter, that he was “extremely excited” to bring on the former executives of OpenAI and looked “forward to getting to know” Shear and the rest of the management team.
In a reply on X, Altman said “the mission continues,” while Brockman posted, “We are going to build something new & it will be incredible.”
OpenAI said Friday that Altman was pushed out after a review found he was “not consistently candid in his communications” with the board of directors, which had lost confidence in his ability to lead the company.
In an X post Monday, Shear said he would hire an independent investigator to look into what led up to Altman’s ouster and write a report within 30 days.
“It’s clear that the process and communications around Sam’s removal has been handled very badly, which has seriously damaged our trust,” wrote Shear, who co-founded Twitch, an Amazon-owned livestreaming service popular with video gamers.
He said he also plans in the next month to “reform the management and leadership team in light of recent departures into an effective force” and speak with employees, investors and customers.
After that, Shear said he would “drive changes in the organization,” including “significant governance changes if necessary.”
He noted that the reason behind the board removing Altman was not a “specific disagreement on safety.” It was likely a reference to the debates that have swirled around OpenAI’s mission to safely build AI that is “generally smarter than humans.”
OpenAI last week declined to answer questions on what Altman’s alleged lack of candor was about. Its statement said his behaviour was hindering the board’s ability to exercise its responsibilities.
A key driver of the shakeup, OpenAI’s co-founder, chief scientist and board member Ilya Sutskever, expressed regrets for his participation in the ouster.
“I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company,” he said Monday on X.
OpenAI didn’t reply to emails Monday seeking comment. A Microsoft representative said the company would not be commenting beyond its CEO’s statement.
After Altman was pushed out, he stirred speculation about coming back into the fold in a series of tweets. He posted a selfie with an OpenAI guest pass Sunday, saying this is “first and last time i ever wear one of these.”
Hours earlier, he tweeted, “i love the openai team so much,” which drew heart replies from Brockman, who quit after Altman was fired, and Mira Murati, OpenAI’s chief technology officer who was initially named as interim CEO.
It’s not clear what transpired between the announcement of Murati’s interim role Friday and Shear’s hiring, though she was among several employees Monday who tweeted, “OpenAI is nothing without its people.” Altman replied to many with heart emojis.
One of OpenAI’s safety-focused researchers, Jan Leike, called on the OpenAI board to resign, saying he had been working all weekend with the company’s leadership team “to help with this crisis.”
The board consists of Sutskever, Quora CEO Adam D’Angelo, tech entrepreneur Tasha McCauley and Helen Toner of the Georgetown Center for Security and Emerging Technology.
Shear said he “took this job because I believe that OpenAI is one of the most important companies currently in existence.”
On a podcast in June, Shear said he’s generally optimistic about technology but has serious concerns about the path of artificial intelligence toward building something “a lot smarter than us” that sets itself on a goal that endangers humans.
“If there is a world where we survive … where we build an AI that’s smarter than humans and survive it, it’s going to be because we built smaller AIs than that, and we actually had as many smart people as we can working on that, and taking the problem seriously,” Shear said in June.
It’s an issue that Altman consistently faced since he helped catapult ChatGPT to global fame. In the past year, he has become Silicon Valley’s most sought-after voice on the promise and potential dangers of artificial intelligence.
He went on a world tour to meet with government officials earlier this year, drawing big crowds at public events as he discussed the risks of AI and attempts to regulate the emerging technology.
“If Microsoft lost Altman he could have gone to Amazon, Google, Apple, or a host of other tech companies craving to get the face of AI globally in their doors,” Daniel Ives, an analyst with Wedbush Securities, said in a research note.
Microsoft is now in an even stronger position on AI, Ives said. Its shares rose nearly 2 per cent before the opening bell and were nearing an all-time high Monday.
The Associated Press and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP’s text archives.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
