Sam Altman has issued a “code red” for OpenAI to enhance ChatGPT amid strong competition from other chatbots.
In a recent report from the technology news site Information, the CEO of the San Francisco-based startup informed staff in an internal memo: “We are at a critical time for ChatGPT.”
OpenAI is feeling the pressure from the success of Gemini 3, Google’s latest AI model, and is allocating additional resources to improve ChatGPT.
Last month, Altman informed employees that the launch of Gemini 3 had outperformed competitors. According to various benchmarks, this could result in “temporary economic headwinds” for companies. He added, “I expect the global atmosphere to remain stormy for some time.”
While OpenAI’s flagship product boasts 800 million weekly users, Google benefits from a profitable search business along with vast data and financial resources for its AI initiatives.
Sam Altman. Photo: Jose Luis Magaña/AP
Marc Benioff, CEO of the $220bn (£166bn) software company Salesforce, stated last month that he plans to switch to Gemini 3 and “never look back” after testing Google’s newest AI release.
“I’ve been using ChatGPT every day for three years. I just spent two hours on Gemini 3. I’m not going back. The leap is insane. Reasoning, speed, images, video… everything is clearer and faster. I feel like the world has changed again,” he remarked on X.
OpenAI is also scaling back its advertising efforts on ChatGPT as it prioritizes improvements to the chatbot, which recently celebrated its third anniversary.
Nick Turley, the head of ChatGPT, marked the anniversary with a post on X, committing to further innovations for the product.
“Our focus now is to further enhance ChatGPT’s capabilities, making it more intuitive and personal while continuing to grow and expand access worldwide. Thank you for an incredible three years. We have much work ahead!”
Despite not having the same cash flow support as rivals like Google, Meta, and Amazon, who fund competitor Anthropic, OpenAI has garnered substantial investments from firms like SoftBank Investment Group and Microsoft. At its latest valuation, OpenAI reached $500 billion, a significant increase from $157 billion last October.
OpenAI is currently operating at a loss but anticipates annual revenue to surpass $20 billion by year’s end, with Altman projecting that it will “grow to hundreds of billions.” The startup plans to allocate $1.4 trillion in data center costs over the next eight years to develop and maintain AI systems, aiming for rapid revenue growth.
“Considering the trends in AI usage and demand, we believe the risk of insufficient computing power at OpenAI is more significant and likely than the risk of excess computing power,” Altman stated last month.
Apple has also reacted to rising competitive pressure in the sector by appointing a new vice president of AI. John Gianandrea will be succeeded by Microsoft executive Amar Subramanya.
The company has been slow to integrate AI features into its products, while competitors like Samsung have been quicker to upgrade their devices with AI capabilities.
Subramanya comes to Apple from Microsoft, where he last served as vice president of AI. He previously spent 16 years at Google, including as head of engineering for the Gemini assistant.
Earlier this year, Apple announced that enhancements to its voice assistant Siri would be postponed until 2026.
It’s a staggering $1.4 trillion (£1.1 trillion) dilemma. How can a startup like OpenAI, which is currently operating at a loss, afford such enormous expenses?
A positive answer to this question could significantly ease investor worries about potential bubble bursts in the burgeoning artificial intelligence sector, including the high valuations of tech companies and a global expenditure of $3 trillion on data centers.
The firms behind ChatGPT require extensive computing resources (or “compute”) to train their models, generate responses, and develop even more advanced systems going forward. OpenAI’s computing obligations (AI infrastructure such as chips and servers supporting its renowned chatbots) are projected to reach $1.4 trillion over the next eight years, overshadowing its annual revenue of $13 billion.
Recently, this disparity has appeared to be a significant concern, leading to market unease regarding AI expenditures and remarks from OpenAI leaders who have not sufficiently clarified these issues.
OpenAI CEO Sam Altman initially attempted to address the situation during a somewhat awkward discussion with Brad Gerstner of Altimeter Capital, the company’s leading investor, but concluded with Altman’s assertion that “enough is enough.”
On his podcast, Gerstner articulated that the company’s capacity to cover more than $1 trillion in computing expenses while yielding only $13 billion in annual revenue is an issue “plaguing the market.”
Altman countered by stating, “First of all, we’re generating more than that. Secondly, if you want to sell your stock, I can find you a buyer; I’ve had enough.”
Last week, OpenAI’s Chief Financial Officer Sarah Friar suggested that some of the chip expenses could be offset by the U.S. government.
“We’re exploring avenues where banks, private equity, and even governmental systems can help finance this,” she mentioned to the Wall Street Journal, noting that such assurances could significantly lower financing costs.
Was OpenAI, which recently declared itself a full-fledged for-profit entity valued at $500 billion, implying that AI companies should be regarded similarly to banks during the late 2000s? This led to a quick clarification from Friar, who denied on LinkedIn that OpenAI was seeking federal reassurance while Altman aimed to clarify his stance on X.
“We neither have nor want government guarantees for OpenAI data centers,” Altman wrote in an extensive post, adding that taxpayers shouldn’t be responsible for rescuing companies that make “poor business choices.” Perhaps, he suggested, the government should develop its own AI infrastructure and provide loan assurances to bolster chip manufacturing in the U.S.
Tech analyst Benedict Evans remarked that OpenAI is trying to compete with other major AI contenders supported by substantial existing profit models, including Meta, Google, and Microsoft, who are significant backers of OpenAI.
“OpenAI aims to match or surpass the infrastructure of dominant platform companies that have access to tens of billions to hundreds of billions of dollars in computing resources. However, they rely on cash flow from current operations to afford this, something OpenAI lacks, and they’re working to gain entry into that exclusive circle independently,” he noted.
Altman is confident that the projected $1.4 trillion can be offset by future demand for OpenAI products and ever-evolving models. Photo: Stephen Brashear/AP
There are also concerns surrounding the cyclical nature of some of OpenAI’s computing agreements. For instance, Oracle is set to invest $300 billion in developing new data centers for OpenAI across Texas, New Mexico, Michigan, and Wisconsin, with OpenAI expected to reimburse almost the same amount in fees for those centers. According to its agreement with Nvidia, a primary supplier of AI chips, OpenAI will purchase chips for cash, while Nvidia will invest in OpenAI as a non-controlling stakeholder.
Altman has also provided updates on revenue, stating that OpenAI anticipates exceeding $20 billion in annual revenue by the year’s end and reaching “hundreds of billions of dollars” by 2030.
He remarked: “Based on the trends we’re observing in AI utilization and the increasing demand for it, we believe that the risk of OpenAI lacking sufficient computing power is currently more pressing than the risk of having excess capacity.”
In essence, OpenAI is confident that it can recover its $1.4 trillion investment through anticipated demand for its products and continually enhancing models.
The company boasts 800 million weekly users and 1 million business customers, deriving income from consumer ChatGPT subscriptions – which accounts for 75% of its earnings – in addition to offering enterprises a specific version of ChatGPT and allowing them to leverage its AI models for their own products.
A Silicon Valley investor, who has no financial ties to OpenAI, emphasizes that while the company has the potential for growth, its success hinges on various factors like model improvements, reducing operational costs, and minimizing the expenses of the chips powering these systems.
“We believe OpenAI can capitalize on its strong branding and ChatGPT’s popularity among consumers and businesses to create a suite of high-value, high-margin products. The crucial question is: how extensively can these products and revenue models be able to scale, and how effective will the models ultimately prove to be?”
However, OpenAI currently operates in the red. The company contends that figures regarding its losses are misrepresented, such as claims of an $8 billion loss in the first half of the year and about $12 billion in the third quarter, yet it does not dispute these losses or provide alternative figures.
Altman is optimistic that revenue may stem from multiple sources, including heightened interest in paid ChatGPT versions, other organizations utilizing their data centers, and users purchasing the hardware device being crafted in collaboration with iPhone designer Sir Jony Ive. He also asserts that “substantial value” will emerge from scientific advancements in AI.
Ultimately, OpenAI is banking on needing $1.4 trillion in computing resources, a figure far from its current income, because it is convinced that demand and enhancements to its product lineup will yield returns.
Karl Benedict Frey, author of “How Progress Ends” and an associate professor of AI at the University of Oxford, casts doubt on OpenAI’s aspirations, citing new concerns and evidence of a slowdown in AI adoption in the U.S. economy. Recently, the U.S. Census Bureau reported that companies with 250 or more employees have experienced a decline in AI adoption.
“Multiple indicators reveal that AI adoption has been decreasing in the U.S. since summer. While the underlying reasons remain unclear, this trend implies a shift where some users and businesses feel they aren’t receiving the anticipated value from AI thus far,” Frey stated, adding that achieving $100 billion in revenue by 2027 (as suggested by Altman) would be impossible without groundbreaking innovations from the company.
OpenAI claims that its enterprise ChatGPT version has grown ninefold year-over-year, accelerating business acceptance, with clientele spanning sectors, including banking, life sciences, and manufacturing.
Yet, Altman acknowledges that this venture might not be a guaranteed success.
“However, we could certainly be mistaken, and if that’s the case, the market will self-regulate, not the government.”
TTake a look at Sam Altman. Seriously, check Google Images, and you’ll notice an abundance of photos featuring the endearing Lost Puppy from Silicon Valley, showcasing the OpenAI chief sporting a clever grin. Yet, I suggest hiding the lower half of his face in these images. Suddenly, Sam’s expression takes on the haunting gaze of the boyfriend of a missing woman, pleading for her return: “Please come home, Sheila. We’re worried about you, and we just want you back.”
Don’t be alarmed if the humor feels misplaced, crude, or somewhat manipulative. I rely on OpenAI’s guiding principle: reciprocity. Content creators must formalize and painstakingly select subjects for use in generated content. outside to be utilized in any manner users see fit. I haven’t received any word from Sam, leading me to believe I know precisely where he is because I placed Sheila there. After all, he seems to fit the archetype that often accompanies the term “visibly.”
For Sam, the past fortnight has revolved around the debut of the AI video generator Sora 2 (a remarkable enhancement from the Sora of just ten months prior) and his entanglement in issues surrounding copyrighted content. Additionally, there were announcements about further interconnected transactions involving OpenAI and chip manufacturers like: Nvidia and AMD. This has led to the OpenAI frenzy, with total transaction volume surpassing $1 trillion just this year. While you can enjoy videos showcasing meticulously designed characters manipulated into digital puppets by uncreative, bigoted individuals, it also means that with OpenAI, you could lose your home in a disastrous financial collapse if the bubble bursts.
I don’t wish to offend the creators of Sora. I’ve strolled through art galleries and realized that if I were to deface an artwork with a ridiculous doodle, it would surprisingly add value; hence, if I didn’t want it, I wouldn’t have exposed it to the public. Moreover, none of the tech giants seem to lead a civilized life, so they probably cannot fathom any creative value worth preserving from being tarnished for profit. If you’ve followed Sam’s frequent reading lists, you’ll see it’s akin to the “Business Philosophy” section of a mediocre airport bookstore. This week, they mainly wanted to convey that Sora 2 is about being cool and fun. “Seeing your feed filled with memes about yourself isn’t as bizarre as you might think,” Sam assured us. So all is well! Though, I think it’s beneficial to note that while you’re inundated with simulated revenge content in a modern-day version of Byzantium, you’re also one of the most influential individuals globally profiting immensely from it. confuse “guardrail.”
I’ve heard people propose that OpenAI’s motto should be “It’s better to ask for forgiveness than permission,” but that misplaces the priority. Its real motto appears to be, “We do what we wish, and you simply deal with it.” Consider Altman’s recent political trajectory. “For those familiar with German history in the 1930s” Sam forewarned back in 2016, reflecting on Trump’s actions. It seems he has reconciled this concern in time to join. Donald Trump’s second inauguration. Perhaps, to extend his well-crafted analogy, it’s due to him being among the entrepreneurs welcomed into the Prime Minister’s office to claim their portion of the gains. “Thank you for being such a pro-business, pro-innovation president,” Sam effused to Trump at a recent White House dinner for tech executives. “It’s a refreshing change.” Unsurprisingly, the Trump administration has chosen to evade AI regulation entirely.
On the flip side, recall what Sam and his skeptical comrades stated earlier this year when it was suggested that the Chinese AI chatbot DeepSeek might have leveraged some of OpenAI’s work. His organization issued a concerned statement, asserting, “We are aware of and investigating indications that DeepSeek may have improperly extracted our models. We will provide further details as we learn more.” “We are taking proactive and assertive measures to safeguard our technology.” Interestingly, OpenAI appears to be the only entity on earth with the ability to combat AI theft.
This week, Hollywood talent agencies took the initiative to coax some form of temporary silence from Altman. I posted flannel—if not in riches, then certainly in striving to establish a “new kind of engagement” with those he has openly referred to as “rights holders.” Many of us remember just a short while ago, when rights holders held all the power. Those who possess rights. In other words, the hint lies within the terminology. However, Sam embodies the post-light era. The question arises: if he is bestowing creative rights, can we genuinely believe he’s not also conferring other types of rights?
OpenAI desires what all nurturing platforms ultimately aim for: users to remain within their realm indefinitely. It is clearly poised to become the new default homepage of the internet, much like Meta once was. Are childhood privacy catastrophes, election manipulation controversies, and child exploitation crises not far off?
Because, incredibly, we have already traversed this life cycle. But I suppose we must revisit it, right? Or more accurately, since Sam’s company is advancing at an unprecedented pace, we have already done it again. Initially, we admire the enigmatic engineer Pied Piper as a brilliant and unconventional altruist, only to later uncover that he is not as he appears and that his technology poses greater risks than we comprehended, leading to our failure to regulate it, rendering us the victims. In many ways, this mirrors a poor AI reinterpretation of a film we’ve already witnessed. If Altman’s model can learn, why can’t we?
Marina Hyde is a columnist for the Guardian
A year at Westminster: John Crace, Marina Hyde, and Pippa Crellard On Tuesday, December 2nd, Crace, Hyde, and Crellard will reflect on this remarkable year alongside special guests. It will be streamed live from the Barbican in London and available worldwide. Reserve your ticket here or on guardian live
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Elon Musk has threatened to take legal action against Apple on behalf of the AI startup Xai, alleging that the iPhone manufacturer is favoring OpenAI and breaching antitrust laws regarding App Store rankings. This statement drew a sharp response from OpenAI CEO Sam Altman and ignited a feud between the two former business associates at X.
“Apple is operating in a manner that prevents non-OpenAI AI companies from achieving the top position on the App Store. This clearly violates antitrust regulations. Xai is prepared to take swift legal measures,” Musk declared in a post on X.
In another post that day, he stated:
Currently, OpenAI’s ChatGPT occupies the top spot in the “Top Free Apps” category of the US App Store, while Xai’s Grok sits in fifth place. Apple has partnered with OpenAI to integrate ChatGPT across iPhone, iPad, and Mac. Neither Apple nor Xai provided any comments.
Altman replied to Musk on X, saying, “This is an unexpected claim considering we’ve heard Elon is attempting to manipulate X for his own benefit and to undermine his competitors, including those he dislikes.” Reports indicate that Musk has tweaked X’s algorithm to favor his own posts.
Altman and Musk co-founded OpenAI in 2015, but Musk departed the startup in 2018 and withdrew his funding after proposing they take control. Musk has since filed two times for a planned shift to commercial entities, alleging “Shakespeare’s proportional deception ceit.” Altman has characterized Musk as a bitter and envious ex-partner, resentful of the company’s achievements post-departure.
Musk responded to Altman’s tweet, stating, “You got 3 million views for dishonest posts. You’re a liar; despite having 50 times your followers, my engagement has far exceeded yours!”
Altman retorted to Musk several times, initially calling the lack of views a “skill issue” or “bot-related” before posing legal questions.
Users on X highlighted through the Community Notes feature that several apps, aside from OpenAI, have claimed top positions on the App Store this year.
For instance, the Chinese AI app Deepseek reached the No. 1 position in January, while Perplexity ranked first in the App Store in India in July.
One user inquired about Grok, X’s native AI. The chatbot replied: “Based on confirmed evidence, Sam Altman is correct.”
Musk’s remarks come as regulators and competitors heighten their scrutiny of Apple’s App Store dominance.
Earlier this year, an EU antitrust regulator ordered Apple to pay a fine of 500 million euros ($581.15 million).
In early 2024, the U.S. Department of Justice filed an antitrust lawsuit against Apple, accusing the iPhone manufacturer of establishing and maintaining “broad, persistent, and illegal” monopolies in the smartphone market.
On his recent visit to Washington, OpenAI CEO Sam Altman articulated a stark vision of a future dominated by AI, where entire job sectors could vanish. The President has embraced ChatGPT’s guidance, leveraging artificial intelligence as a potential tool for mass disruption.
Addressing the Capital Framework meeting during a substantial gathering of banking executives at the Federal Reserve, Altman asserted that advancements in AI will lead to the complete eradication of certain jobs.
“I believe some roles will be entirely obsolete,” he stated. “That’s the category I’m referring to. When you reach out for customer support, you’re interacting with AI. That’s acceptable.”
During the discussion, Altman conveyed his thoughts to Michelle Bowman, the Federal Reserve’s Vice Chairman for Oversight, saying, “As the founder of OpenAI, I have already seen a significant transformation in customer service.”
He shifted the conversation to healthcare, proposing that the diagnostic abilities of AI surpass those of human doctors, although he cautioned against considering AI as the sole provider of medical care.
“Today, ChatGPT can outperform many doctors in diagnostics. However, patients still seek out physicians. I may not be the only one concerned, but I wouldn’t want to risk my health to an AI without a human doctor involved,” he remarked.
Altman’s visit coincided with the Trump administration’s unveiling of the “AI Action Plan,” aimed at clarifying and easing various regulations while advocating for more data centers. His recent engagement aligns with a federal government under Donald Trump that has embraced an accelerated approach, especially in contrast to the past few years. Despite the technological shifts over the years, under the Biden administration, OpenAI and its competitors have called for more robust AI regulations, while discussions under Trump focus on outpacing China.
In an informal discussion, he expressed that one of his main concerns is the rapidly advancing destructive potential of AI, suggesting that it could be weaponized to target the U.S. financial system. Despite being impressed by developments in voice cloning, Altman cautioned the audience regarding the same advancements that could enable sophisticated fraud and identity theft.
OpenAI and Altman are clearly making significant strides in Washington, ready to engage in the discourse where Elon Musk once held prominence. With plans to establish his company’s first office in the capital next year, Altman appeared before the Senate Commerce Committee for his inaugural Congressional testimony since his high-profile appearance that catapulted him onto the global stage in May 2023.
Immerse yourself in the vibrant ethos of San Francisco, where the future of cyberpunk is already unfolding. Self-driving vehicles? Boring. A venture aiming to resurrect woolly mammoths? Absolutely, why not! Summoning a god-like AI capable of eradicating humanity? Why not.
Just like you did on Wednesday evening, you might find yourself in a bustling venue in the Marina district, gazing at a luminous white sphere, commonly referred to as an orb, as it scans your eyes in exchange for your cryptocurrency and World ID.
The event was organized by World, a startup based in San Francisco, co-founded by the enterprising Sam Altman, known for his ambitious (or depending on your perspective, unsettling) technological initiatives.
This is essentially the core proposition of the company. The internet is on the brink of being overwhelmed by a multitude of realistic AI bots, making it nearly impossible to discern real individuals on social networks, dating platforms, gaming sites, and other digital realms.
To address this issue, World developed a program called World ID, akin to Internet clearance or TSA Precheck, enabling users to authenticate their humanity online.
To sign up, users gaze into the orb, which captures their iris scans. Following that, they complete a few prompts on a mobile app to attain a unique biometric identifier, stored on their device. The system includes built-in privacy features, assuring that no iris images are retained, only a numeric code linked to the user.
In return, participants earn a cryptocurrency named WorldCoin. (As of Wednesday night, the sign-up bonus was estimated to be valued at around $40.)
During the event, Altman framed the initiative as a response to a dilemma he termed “trust in the AGI era,” as artificial general intelligence is on the horizon and increasingly human-like AI systems are coming to fruition.
“We wanted to ensure that humans remain unique and pivotal in a landscape brimming with AI-generated content online,” Altman explained.
Ultimately, Altman and World’s CEO Alex Blania contend that a solution like WorldCoin is essential for redistributing wealth generated by powerful AI systems to humans, potentially in the form of a universal basic income. They delved into varied methods for establishing a “real human network,” merging proof-of-human verification with financial systems enabling validated individuals to transact with one another.
“Our initial concept seemed quite radical,” Altman remarked. “Then we embraced our craziness and evolved into World.”
Launched globally two years ago, the project initially gained traction in developing regions such as Kenya and Indonesia, where individuals queued for ORB scans in exchange for cryptocurrency incentives. The company has secured about $200 million from investors, including Andreessen Horowitz and Khosla Ventures.
However, challenges arose. The global collection of biometric data has drawn criticism from privacy advocates and regulatory bodies, leading to the company being banned or investigated in locations like Hong Kong and Spain. Reports of fraud and worker exploitation tied to the project’s crypto-based reward mechanism have also surfaced.
Despite these issues, the venture appears to be expanding swiftly. According to Blania, approximately 26 million individuals have signed up for the app worldwide since its debut, with more than 12 million undergoing ORB scans to confirm their humanity.
Initially, the world was kept separate from the US due to regulatory concerns, but the Trump administration’s crypto-friendly policies created an opportunity.
On Wednesday, World announced plans to launch in the US, with retail outlets slated to open in cities like San Francisco, Los Angeles, and Nashville. They aim to install 7,500 orbs across the country by year-end.
The company also unveiled a new version of the ORB, dubbed the Orb Mini. This device resembles a smartphone, yet performs the same function as the larger orb. World has established partnerships with gaming company Razer and the dating conglomerate Match Group.
Uncertainty lingers about the potential for profitability, or whether privacy-conscious Americans are inclined to share their biometric data for cryptocurrency, as many in developing regions have done.
Moreover, it remains to be seen if the world can overcome the inherent skepticism surrounding the peculiar and foreboding aspects of the initiative.
For my part, I recognize the necessity for a method to distinguish bots from humans. However, the proposed solution—a global biometric registry sustained by volatile cryptocurrencies and monitored by private entities—might resemble a “Black Mirror” episode that struggles to achieve widespread acceptance. Even during Wednesday’s event, I observed numerous attendees hesitating to approach the orb amidst a crowd of eager early adopters.
“You can’t easily discard your personal data. It’s essentially your eyeball data at stake,” remarked one tech worker.
Altman’s global affiliations are also under scrutiny. Attendees noted that, through his role at OpenAI, he might be perpetuating the very issue World aims to rectify (an internet flooded with engaging bots).
Nevertheless, Altman’s connections could potentially accelerate World’s growth, especially if collaborations with OpenAI come to fruition or if it becomes integrated with an AI product. Perhaps OpenAI is planning a social network feature with a “Verified Humans Only” setting. Additionally, users who contribute beneficially to OpenAI’s products might one day earn WorldCoin.
(Note: The New York Times has filed a lawsuit against OpenAI and Microsoft, claiming copyright infringement regarding news content related to AI systems, a claim which both companies deny.)
Furthermore, societal norms regarding privacy may shift in favor of the initiative, and what seems unusual today could become the norm tomorrow. (Think back to when seeing an airport biometric kiosk felt bizarre—did you vow to never share your biometric details?)
When my turn arrived to approach the orb, I removed my glasses, opened the World app, and adhered to its instructions (Look this way, adjust my position). The orb’s camera recorded the details of my iris and paused for a moment. The rings surrounding the orb glowed yellow, accompanied by a cheerful chime.
Minutes later, I had secured WorldCoin Tokens alongside a World ID and had around 39.22 tokens (valued at $40.77 at current rates). If I manage to transfer them from my phone, I will donate to charity.
My ORB scan was swift and painless, but I felt a subtle sense of vulnerability throughout the night. Conversely, many attendees appeared unfazed.
“What’s the big deal? What am I concealing?” remarked social media influencer Hannah Stocking as she prepared for her orb scan. “Who really cares? I’m all in.”
The sister of OpenAI CEO Sam Altman has filed a lawsuit alleging that he sexually abused her on a regular basis over several years as a child.
The lawsuit, filed Jan. 6 in the U.S. District Court for the Eastern District of Missouri, alleges the abuse began when Ann Altman was 3 years old and Sam Altman was 12. The complaint alleges that the last abuse occurred after he was an adult, but his sister, known as Annie, was still a child.
The CEO of ChatGPT Developers posted: Joint statement on X”, he signed alongside his mother Connie and brothers Max and Jack, denying the allegations and calling them “totally false.”‘
“Our family loves Annie and is extremely concerned about her health,” the statement said. “Caring for family members facing mental health challenges is incredibly difficult.”
It added: “Annie has made deeply hurtful and completely untrue allegations about our family, especially Sam. This situation has caused immeasurable pain to our entire family.”
Ann Altman previously made similar allegations against her brother on social media platforms.
In a court filing, her lawyer said she had experienced mental health issues as a result of the alleged abuse. The lawsuit seeks a jury trial and more than $75,000 (£60,000) in damages and legal fees.
A statement from the family said Anne Altman had made “deeply hurtful and completely false allegations” about the family and accused them of demanding more money.
He added that they offered her “monthly financial assistance” and “attempted to receive medical assistance,” but she “refused conventional treatment.”
The family said they had previously decided not to publicly respond to the allegations, but chose to do so following her decision to take legal action.
Sam Altman, 39, is one of the most prominent leaders in technology and the co-founder of OpenAI, best known for ChatGPT, an artificial intelligence (AI) chatbot launched in 2022.
The billionaire temporarily stepped down as chief executive in November 2023 after being ousted from the company’s board for “failing to consistently communicate openly.” Although nearly all employees threatened to resign, he returned to his job the following week. Altman returned to the board last March following an external investigation.
Elon Musk has submitted a motion to dismiss a lawsuit against ChatGPT developer OpenAI and its CEO Sam Altman, claiming that the startup has deviated from its original goal of developing artificial intelligence for the betterment of humanity.
Musk filed the lawsuit against Altman in February, and the legal process has been progressing slowly in a California court. Up until Tuesday, Musk had not shown any intention of dropping the case. Just a month ago, his legal team filed an objection, leading to the presiding judge stepping down.
Musk’s motion to dismiss the lawsuit did not provide any rationale. A San Francisco Superior Court judge was set to consider arguments from Altman and OpenAI on Wednesday to have the lawsuit thrown out.
The dismissal brought an abrupt end to the legal dispute between two influential figures in the tech realm. Musk and Altman co-founded OpenAI in 2015, but Musk resigned from the board three years later following disagreements over the company’s governance and direction. Their relationship has become increasingly strained as Altman’s prominence has grown in recent years.
Musk’s lawsuit centered on his assertion that Altman and OpenAI breached the company’s “foundation agreement” by collaborating with Microsoft, transforming OpenAI into a predominantly profit-driven entity, and withholding its technology from the public.
OpenAI and Altman contested the existence of such an agreement, citing messages that appeared to show Musk supporting the shift towards a for-profit model. They vehemently denied any wrongdoing and published a blog post in March suggesting Musk’s motivations were rooted in jealousy, expressing regret that a respected figure had taken this course of action.
Musk’s lawsuit raised eyebrows among legal experts, who pointed out that certain claims, such as OpenAI achieving artificial intelligence equivalent to human intelligence, lacked credibility.
On the morning of March 28th, in a downtown Manhattan courtroom, Sam Bankman Freed, a tech genius turned con artist who remained unrepentant despite his trial and conviction, finally learned his fate.
Bankman Fried, who founded the virtual currency exchange FTX, was found guilty on November 2, 2023, of seven counts of wire fraud and money laundering conspiracy.
Fallen Bitcoin booster was found to have siphoned billions of dollars in customer funds to FTX’s sister hedge fund Alameda Research to stay solvent – His pockets were then stuffed with money from unlucky customers, precipitating the organization’s collapse.
“Sam Bankman Freed carried out one of the biggest financial frauds in American history, a multi-billion dollar scheme to make him the king of cryptocurrencies. However, the crypto industry was new and Sam Bankman Players like Bankman Fried may be new, but this type of corruption has been around for a long time,” Manhattan U.S. Attorney Damien Williams said after the conviction. “This case has always been about lies, deceit and theft, and we have no patience for that.”
Prosecutors then asked Judge Lewis Kaplan to impose a prison sentence of 40 to 50 years. They emphasized the “extremely serious nature of the harm to thousands of victims” and said:[prevent] Defendant shall not commit fraud again; [send] This sends a strong signal to those who attempt to engage in financial misconduct that the consequences will be severe. ”
In order to seek a heavier sentence, prosecutors submitted victim impact statements, revealing how individual and institutional investors were harmed by Bankman Freed’s actions.
“In 2022, at the age of 24, I lost all my life savings, which amounted to more than $20,000,” said one person who did not even try to invest in cryptocurrencies, but simply took advantage of the interest rate operated by FTX. I wrote that it was for a reason. – Bearing Savings Account.
Another victim, who said she had “invested a significant portion of her savings in FTX,” said she was staring at an uncertain future, adding: “Immense anxiety, stress and uncertainty about how I'm going to support myself and my family.” “It's causing sex,” he said.
The “disbelief and fear” the victim described upon learning of FTX’s financial crisis reflected the widespread shock at the exchange’s collapse. Bankman Fried has long been a rising star in the crypto world, attracting both investors and politicians with his trading platform.He argued that exchange was safer. – and less risky – than any other such platform. FTX rose to fame on the back of his advocacy, boosting Bankman Freed’s profile and lining his pockets.
FTX is a huge success: SBF became a millionaire before he was 30 years old
Before Bankman Fried turned 30, his fortune was in the billions. FTX and its biggest competitor, Binance, used to process most crypto transactions around the world.
All the while, with his uniform of T-shirts and shorts and lofty philosophical pronouncements, Mr. Bankman-Fried developed the persona befitting the next tech impresario. His parents, both law professors at Stanford University, studied utilitarianism (in effect, the concept that moral actions are those that achieve the greatest good for the greatest number of people), and it was through this context that he learned about commerce. declared that it would evaluate.
Bankman-Fried said he believes in effective altruism. This is a philanthropic endeavor beloved by big tech leaders who believe strategic giving to achieve the greatest number is a virtue. Some proponents of effective altruism promote an “earn to give mentality.” This means that accumulating extreme wealth is moral because it can be donated.
The former mogul's enthusiasm for contributing to society has also permeated politics. He has donated more than $40 million to the 2022 election.
Most of Mr. Bankman Fried’s donations went to the Democratic Party and related committees, but he also poured large sums of money into “dark” contributions to Republican candidates. According to CBS NewsBankman Fried wondered if she might have been the “second or third-largest” donor to the 2022 midterm elections.
While at the top, Bankman Freed chatted with celebrities including Bill Clinton and Tony Blair at the 2020 Cryptocurrency Conference in the Bahamas. He moved FTX to Caribbean countries because it employs a trading mechanism that is prohibited in the United States. new york times report.
Among Bankman Fried’s closest friends was Alameda Research CEO Caroline Ellison. Although their business relationship was complicated, Ellison and Bankman Freed continued an on-and-off romantic relationship over the years.
Like Bankman Freed, Ellison made lofty declarations. “Nothing makes us realize how stupid the normal unmedicated human experience is like regular amphetamine use,” she said in the paper. bomb tweet.
The FTX team's life in the Bahamas seemed to reflect the quirkiness that the tech industry loves. Bankman Freed, Ellison, and eight other members of his entourage lived together in the penthouse. reportedly Access to stimulants – Our in-house clinic will be happy to prescribe it for you.
Everything goes wrong: FTX goes bankrupt, SBF goes to court
Bankman Fried’s fortunes reversed in November 2022. That month, crypto industry publication CoinDesk report He reportedly held billions of dollars in FTT, FTX’s own cryptocurrency. There was a problem because the CEO was using FTT as collateral for a huge loan. When news broke about Binance’s FTT holdings, Binance CEO Changpeng Chao said that the company would dispose of its $500 million FTT holdings due to “recently revealed facts.” FTT plummeted, creating a virtual bank run among customers. FTX, like Alameda Research, sought bankruptcy protection.
It became clear to the outside world that there was an $8 billion hole in FTX’s budget. In December, the U.S. Attorney’s Office in Manhattan charged Bankman Freed with financial crimes for allegedly using customer and investor funds to make risky trades and assist Alameda Research.
At Bankman Freed’s trial in late 2023, the prosecution alleged that Bankman Freed was involved in a malicious fraud from 2019 until November 2022, when FTX went bankrupt. They claim Bankman Freed “misappropriated and misappropriated” FTX customers’ deposits and funneled “billions of stolen dollars” to bloat wallets and fund high-risk investments. did.
Prosecutors also said Bankman Freed shuffled funds to pay for his expensive lifestyle. They say the “exorbitant expenditures” unrelated to FTX covered Mr. Bankman Freed’s personal expenses, including more than $200 million in real estate in the Bahamas, speculative investments and repayments to Alameda’s lenders. said.
During Mr. Bankman-Fried’s month-long trial, his aides took the stand against him. Some of the most damning testimony came from his ex-girlfriend Ellison, who served as the prosecution’s star witness.
“Did you commit any crimes while working in Alameda?” Ellison was asked. She answered: “Yes, I did…” [Bankman-Fried] directed me to commit these crimes. ”
Despite numerous revelations about FTX’s questionable internal affairs, Bankman Fried made the shocking decision to testify in his own defense. “I made a lot of little mistakes and I made a lot of big mistakes,” Bankman Freed told jurors. “There was a serious oversight.”
Bankman Freed made management errors, including failing to establish a dedicated risk management team. But when attorney Mark Cohen asked if he had defrauded his clients or stolen their money, Bankman Fried responded, “No, I didn’t.”
When it came time for the prosecution to cross-examine Bankman-Fried, the lawyers questioned him on everything from his character. Mr Ellison told jurors that his appearance as limp and bedridden was an act and that he drove a Toyota Corolla as part of his branding. – Discrepancies between FTX’s public and private announcements.
“Mr. Bankman Freed, do you agree that you know how to tell a good story?” asked prosecutor Daniel Sassoon. “I don’t know. It depends on what metrics you use,” he said, without giving a direct answer.
Mr. Sassoon asked about his colleague’s comments. new york timesIn it, Ms. Bankman-Fried claimed that she considered cutting her hair to have negative value because, “I think it’s important that people think I’m crazy.“ From.“ “I don’t think I meant that,” Bankman Fried said.
“Do you consider yourself an intelligent man?” Sassoon pressed.
“Not in all respects, but in many respects,” Bankman-Fried said.
“As CEO of FTX, did you think highly of yourself?”
“Hooray.”
Unrepentant SBF faces decades in prison
During Bankman Freed’s trial, his lawyers pressed him to portray him as a “math nerd who doesn’t drink or party” and is crazy. Prosecutors pushed back against the baby-in-the-woods argument during sentencing submissions, pointing out that he hardly led a life of hardship.
“With all the advantages afforded by a comfortable upbringing, an education at MIT, a prestigious start to a career in finance, and a worthy idea for a start-up business, Bankman Fried was able to achieve the rewards he envisioned.“ “He could have pursued a productive and altruistic life,” they said.
“Rather, his life in recent years has been one of unparalleled greed and arrogance: ambition and rationalization, risk-seeking and repeated gambling with other people’s money.”
In response, Bankman Fried’s team painted him as a victim, writing that prosecutors presented their version of him as a “depraved supervillain.” [with] Dark and megalomaniac motives. ”
“The government seeks to complete the sentence of 32-year-old Sam Bankman Freed,” his attorneys wrote in a statement regarding prosecutors’ 40 to 50-year sentence. “There’s no need to crush Sam like this.”
They, too, suggested a sentence ranging from 63 to 78 months, citing his elite education.
“Offenders with no criminal history, like Sam, are the least likely to reoffend,” they said. “And college-educated offenders are less likely to reoffend.”
In a February petition seeking a reduced sentence, Bankman Fried said there was “zero harm to customers, lenders and investors…The company was solvent at the time of the bankruptcy filing…The money was there.” “It is not lost.”
John Ray, who was appointed FTX CEO to oversee the bankruptcy, denounced Bankman Freed’s claims in a court filing.
“Mr. Bankman Freed continues to live a life of delusion. The ‘business’ he left on November 11, 2022 was neither solvent nor secure. “A large amount of money was stolen by Mr. Bankman Freed,” Ray wrote.
It seems unlikely that they will receive lenient treatment.
Neema Rahmani, president of the West Coast Trial Lawyers Association and a former federal prosecutor, said Bankman Freed “will serve a significant prison term.”
“He refused to accept responsibility and tried to shift the blame onto others. This is one of the greatest
After OpenAI’s launch in December 2015, co-founder Sam Altman spoke to Vanity Fair about the company’s mission to save the world from a dystopian future. Altman discussed the vision of keeping artificial intelligence safe and widely accessible, highlighting his strong relationship with co-chairman Elon Musk, CEO of Tesla.
Nearly a decade later, Musk and Altman find themselves in a public disagreement and facing a legal battle. Musk filed a lawsuit against OpenAI in California court, alleging that Altman and other executives deviated from the company’s original mission by pursuing private commercial interests. The lawsuit questions the direction of OpenAI, now valued at $80 billion, and the shift towards profitability.
The legal dispute highlights the tension between Musk and Altman, two prominent figures in the AI field. Allegations of breach of contract and divergence from OpenAI’s founding principles have escalated the conflict, with Musk accusing Altman of changing the company’s course towards commercial success.
In response to Musk’s lawsuit, OpenAI published a detailed blog post defending its actions and countering Musk’s claims. The post addresses the history of OpenAI, Musk’s involvement, and the evolution of the organization into a for-profit entity.
As the legal battle unfolds, Musk has publicly criticized OpenAI and Altman on social media, fueling further controversy surrounding the dispute. Legal experts question the grounds of Musk’s lawsuit and its implications for OpenAI’s future.
The feud between Musk and Altman traces back to their initial collaboration and shared vision for AI’s role in shaping the future. However, diverging interests and strategic decisions have led to a breakdown in their relationship, culminating in a legal confrontation over OpenAI’s direction and objectives.
Despite their past camaraderie, Musk and Altman now find themselves at odds, each defending their beliefs and actions in the realm of artificial intelligence innovation.
The origins of Musk and Altman’s feud
Prior to their discord, Musk served as a mentor to Altman, fostering a relationship based on shared aspirations for AI advancement. Their dialogue on AI’s societal impact led to the creation of OpenAI, but differences in approach and strategic direction strained their partnership over time.
The evolution of their feud sheds light on the complexities of navigating the ethical, commercial, and technological landscapes of artificial intelligence. Musk and Altman’s diverging viewpoints encapsulate the broader debates surrounding AI governance and responsibility.
As former FTX CEO Sam Bankman Fried's sentencing date approaches, an unexpected source has emerged: a plea for clemency from his own family. In a recent filing in the U.S. District Court for the Southern District of New York, SBF's attorneys submitted 29 letters of support, including heartfelt nominations from his mother, father, and siblings.
Barbara Freed, Joseph Bankman, and Gabriel Bankman Freed, the 31-year-old former CEO's mother, father, and brother, all wrote a letter to Judge Lewis Kaplan, expressing SBF's background, personality, and Shedding light on contributions to society. FTX. SBF was convicted of seven felonies, but his family has fervently asked for a lenient sentence, stressing that his life behind bars could have been wasted.
In the letter, Gabriel Bankman Freed said, “Sam made a mistake, but his life will be wasted if he goes to prison. He has a great gift to offer the world.” The family's petition is based on the belief that SBF's talents and abilities could be better utilized outside of prison.
Unlike a trial, the sentencing stage allows personal appeals by friends and family. Judge Lewis Kaplan is scheduled to decide Bankman-Fried's prison term on March 28. Speculation about the possible sentence varies, with experts suggesting a range of 15 to 25 years. However, unless there are special circumstances, it is unlikely that he will be sentenced to a maximum of around 110 years in prison.
SBF's father, Joseph Bankman, expressed concern about the physical danger his son could face in prison and warned of a “draconian sentence”. He highlighted the difficulty of SBF in responding to societal demands and urged courts to consider alternative sentencing options. Joseph Bankman said SBF prioritized repaying investors and minimizing allegations of lavish spending before his arrest.
In a comprehensive letter, Barbara Freed detailed SBF's desire to help others from her childhood to her time in prison. She highlighted his commitment to coaching his fellow inmates for the GED exam. Fried urged Judge Kaplan to consider his son's poor response to social cues and expressed that his son has been “stricken with remorse” since the incident. The collapse of FTX In November 2022.
Reactions regarding Bankman Freed's family seeking pardon
The letter written by Bankman's family downplays the impact of FTX's collapse on investors and Bankman Freed's role in the fraud. Reaction on social media was mixed, with some users criticizing the plea for leniency and comparing it to other lawsuits, including: billy mcfarland A scene from the fire festival.
One user, Kyle Gibson, said: “Those who are writing letters asking for leniency in the SBF sentence are wondering what Fyre Festival's Billy McFarland is doing now and how he is in prison. You should look at how much rehabilitation he has undergone.” Mr Gibson expressed skepticism about SBF's rehabilitation potential and suggested he would return to his previous activities upon release.
Bankman Fried's defense team has recommended a sentence of 63 to 78 months, and prosecutors are scheduled to present their recommendation on March 15. Bankman Freed will celebrate his 32nd birthday on March 6, which will be his first birthday in prison since he was released on bail. The impending sentencing remains a pivotal moment for the former FTX CEO and those following the case closely.
Sam Altman on Monday threatened to walk away from his struggling AI startup, even as employees and major investors alike threatened to walk away from the struggling AI startup following the board’s shock move to oust him from the company. He insisted that he and OpenAI are “still one team” and have “one mission.”
Altman is now set to lead Microsoft’s new AI division, despite saying in an open letter that nearly all of OpenAI’s 770 employees will leave the company unless the entire board resigns. He insisted. Greg Brockman is back.
“We’re all going to collaborate in some way. We’re very excited,” Altman said.
“[Microsoft CEO Satya Nadella] My top priority is to ensure that OpenAI continues to thrive, and I am committed to providing full operational continuity to our partners and customers. The partnership between OpenAI and Microsoft makes this very possible. ” he added.
Mr. Altman’s remarks were met with a degree of skepticism, given the apparent chaos that followed one of the most unexpected and surprising coup attempts in Silicon Valley history.
The board announced late Friday that it “no longer has confidence in Altman’s ability to continue to lead OpenAI” because he “has not been consistently candid in his communications.”
We are more united, committed and focused than ever before.
We’re all going to collaborate in some way, and I’m very excited.
His firing comes just a few of the announcements that despite having pumped more than $13 billion into OpenAI’s operations, he has blindly fired investment firms such as Thrive Capital and Khosla Ventures, as well as key partners including Microsoft. I found out a minute ago.
Investor Vinod Khosla slams OpenAI board of directors In a scorching column for “The Information.”its members wrote, had made a “serious miscalculation” and “set back the promise of artificial intelligence.”
Sam Altman said OpenAI will continue to operate as “one team.”Reuters
“Every problem has a solution,” said Josh Kushner, founder of Thrive Capital. His company will be the lead buyer in the planned OpenAI stock sale, which values the company at about $86 billion and is expected to close by the end of the year.
The battle over OpenAI’s future is getting stranger by the minute, with speculation mounting in the private market that a planned stock sale may fall through.
Ken Smythe of private capital advisor Next Round Capital told the Post that OpenAI’s funding plans are likely over, given the turmoil behind the scenes.
As of Monday, some major investors were “considering reducing the value of their holdings in OpenAI to zero.” reported by bloombergThis was reported by a person familiar with the matter. The newspaper said the possible move “appears to be aimed at putting pressure on the board to resign and encourage Mr. Altman to return.”
Satya Nadella Reuters
Altman’s departure is a “material change in circumstances” and puts Thrive’s participation in the stock sale in doubt, although a sale could occur if Altman is reappointed as OpenAI’s CEO. Gender is still there. Sources told the Financial Times.
Thrive did not immediately respond to The Post’s request for comment.
Despite Altman’s public statements indicating he has stepped down, Altman himself reportedly has not yet closed the door on returning to his previous role as OpenAI CEO – people familiar with the matter said. The Verge He said he and Brockman are still open to returning, provided all remaining board members agree to resign.
Officials told the media that Altman’s comments about “work”[ing] “Together in some way” was “intended to indicate that the fight continues”.
Meanwhile, Microsoft has emerged as the big winner, having secured Altman’s services, and likely most of OpenAI’s employees, at a fraction of the valuation it would have been valued at last week.
Altman himself reportedly hasn’t closed the door on returning to his previous role as CEO of OpenAI just yet, with sources telling The Verge that he and the aforementioned Greg Brockman are still open to returning. Told.Getty Images for SXSW
“Microsoft just pulled off one of the biggest coups in recent history, acquiring not only OpenAI’s technology but its employees within 48 hours,” Smythe said.
Nadella said Altman and Brockman will “join Microsoft to lead a new advanced AI research team.”
“We look forward to moving quickly to provide them with the resources they need to succeed,” Nadella said. He added that Microsoft remains “committed to our partnership with OpenAI.” [has] We are confident in our product roadmap. ”
In a scathing open letter, OpenAI staffers accused the board of lacking “competence, judgment, and consideration for our company’s mission and our people,” and said, “If they decide to… has ensured that all OpenAI employees will have a position in this new subsidiary.” stop.
OpenAI’s board of directors has named Emmett Shea, co-founder of the popular video game streaming platform Twitch, as interim CEO.Reuters
The workers are demanding that OpenAI appoint two new lead independent directors, including former Twitter board chairman Brett Taylor and former U.S. congressman Will Hurd, who resigned from OpenAI’s board earlier this year. (Republican, Texas) emerged as a candidate.
At this time, the OpenAI board has named Emmett Shear, co-founder of the popular video game streaming platform Twitch, as interim CEO.
Mr. Shear is already scrambling to reassure employees and investors. In a lengthy statement posted to Company X, Mr. Shear pledged to reform the company’s management and conduct an independent investigation into the circumstances that led to Mr. Altman’s unexpected departure.
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