Monday need to know - Business Wave
Pretty much the whole newsletter is about OpenAI collapse...
Hi all,
last week in short:
Sam Altman OpenAI case! š
Ok, we prepared some other news, but Sam Altman drama was dominating last week so we prepared a detailed timeline of it.
Also, we squeezed a poll about the whole case as well, would love to know your opinion about all that!
If you are new here, feel free to subscribe š
The newsletter starts with startup news, and after that comes the āSam Altman caseā
Startup news
3d printing + AI = $230 in funding
Divergent Technologies, raised a massive $230 million Series D to accelerate the commercialization of its digital manufacturing system that uses generative AI and 3D printing. Divergentās system uses in-house-developed AI-driven generative design software and 3D printing to create the products and structures used in a variety of industries, including automotive, aerospace and defense sectors.
$100 million in funding for vet software
Petvisor, locked up a big $100 million-plus round led by Apax Digital Funds to help make veterinariansā lives a little easier. The software startup equips veterinary practices with mobile-enabled tools which help with communication and client retention. Petvisorās tools are used by more than 10,000 veterinary clinics and 400 grooming facilities.
Going to doctor while shopping?
Forward, San Francisco-based health tech startup Forward raised $100 million in funding. The startup has created āCarePods,ā a self-contained, AI-powered doctorās office which will be located in malls and office buildings.
Former WeWork C-level exec raised $75 million for his startup
New York-based Imprint, a provider of co-branded credit cards for brands, locked up a $75 million Series B led by Ribbit Capital.
Living in Europe and thinking about solar?
Otovo, Oslo-based residential solar and battery installations marketplace has raised ā¬40 million in a private shares placement. Otovo has sold and completed over 20,000 solar energy projects across Europe and is active in 13 markets. It uses proprietary technology to analyse a home and then finds the best price and installer for the job, all based on an automatic bidding process.
Supermarket startup that can actually stay afloat?
Crisp, an Amsterdam-based supermarket app, has raised ā¬35 million in a Series C funding round. What is so special about Crisp?
As for the USP, rather than off-the-shelf products available at the corner shop, Crisp has built a software and operations system specifically targeting local and seasonal products and getting them from farm to fork in the shortest time and route possible.
Andā¦they are growing 30% š
Interesting news
Letās be honest here!
Several things were happening last week but the most important is Sam Altman leaving OpenAI. So, we decided to go deep dive into the whole thing and make a timeline for you š
The history of OpenAI collapse
You most likely heard that Sam Altman, CEO of OpenAI (ChatGPT is their most famous product) has been fired and that there have been a lot of things going on.
To help you understand, here is the timeline of the events. Before we go to the timeline, here are the important people involved in it.
November 16th & 17th
According to a post on X from Greg Brockman, Ilya Sutskever, the chief scientist at OpenAI and a co-founder, texted Altman on Thursday evening about scheduling a Friday noon call. So, we can say that the whole thing started on November 16thā¦
The full post bellow š
Apart from this, itās interesting to read the OpenAI blog post on Sam's departureā¦you can do that HERE
The reason for firing Sam is š
Mr. Altmanās departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.
But of course, there is moreā¦
That Friday (November 17th) was super interesting because OpenAI held an all-hands meeting Friday afternoon during which Ilya Sutskever defended Altmanās ouster. He dismissed suggestions that pushing Altman out amounted to a āhostile takeover,ā and claimed that it was necessary to protect OpenAIās mission of āmaking AI beneficial to humanity.ā
You might be wondering who is sitting on the OpenAI board š
1ļøā£ Ilya Sutskever, OpenAIās chief scientist
2ļøā£ Adam DāAngelo, Quora CEO
3ļøā£ Tasha McCauley, Former GeoSim Systems CEO
4ļøā£ Helen Toner, the director of strategy at Georgetownās Center for Security and Emerging Technology.
Unlike traditional companies, the board isnāt tasked with maximizing shareholder value, and none of them hold equity in OpenAI. Instead, their stated mission is to ensure the creation of ābroadly beneficialā artificial general intelligence, or AGI.
Now, Greg Brockman decided to quit the company full on š
He was not the only one though. Three senior OpenAI researchers resigned after Brockman, including the director of research Jakub Pachocki, and head of preparedness Aleksander Madry.
OpenAI is too big of a story, and many, many top level companies/executives are involved in the company. One of them is Satya Nadella, the CEO of Microsoft. He had something to say as well š
His full press release you can read HERE (itās really short)
The most important part from it is this š
And weāre extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team. We look forward to moving quickly to provide them with the resources needed for their success.
As you can see, Sam and Greg are super hirable people š
In case you like this edition, why not help us and share it with your network? š
November 18th & 19th
Now, the things are just getting interestingā¦
COO Brad Lightcap sends an internal memo where he stated š
Management had āmultiple conversations with the board to try to better understand the reasons and process behind their decision.ā Discussions were ongoing as of Saturday morningā¦
andā¦
āWe can say definitively that the boardās decision was not made in response to malfeasance or anything related to our financial, business, safety, or security/privacy practices,ā Lightcap added. āThis was a breakdown in communication between Sam and the board ā¦ We still share your concerns about how the process has been handled, are working to resolve the situation, and will provide updates as weāre able.ā
More about the memo HERE
Btw, imagine this š
The planned sale of OpenAI employee shares that would value the startup at about $86 billion could be in jeopardy. The Information, speaking to three sources formerly with the company, reports that they no longer expect the sale ā led by Thrive Capital ā to happen, or, if it does, to come with a lesser valuation because of the recent turn of events.
(if someone from OpenAI is reading this, we feel you!)
Investors were super, super angry with OpenAI board and they are pushing to revert the decision on Sam leaving the companyā¦
Story about investors applying pressure HERE
And it looks like they succeded in it?
The OpenAI board is in discussions with Sam Altman to return to the company as its CEO, according to multiple people familiar with the matter. One of them said Altman, who was suddenly fired by the board on Friday with no notice, is āambivalentā about coming back and would want significant governance changes.
Full information about it HERE
However, there was another twist hereā¦if Sam Altman was to come back as a CEO, then the OpenAI board would have to leaveā¦
Bloomberg reports that Lightcap and Murati, among others, are pushing the board to reinstate Altman. But unsurprisingly, the directors are resisting. As of midday Sunday, the board hadnāt resigned out of concern over who could replace them, and were vetting candidates. One possible new addition could be Salesforce co-CEO Bret Taylor.
Since they couldnāt fire themselves and find replacement candidates for their board seats fast enough, the whole Sam Altman return didnāt happen in the end.
Altman wonāt be returning as CEO, according to a report in The Information citing an internal memo sent by Sutskever. As the search for a new permanent CEO continues, OpenAI has appointed Emmett Shear, the co-founder of video streaming site Twitch, as interim CEO ā replacing Murati.
So, now you know the āwhole storyā, at least the part we are allowed to knowā¦how do you feel about this, are you team Sam or team board?
And, to finish the interesting news sectionā¦crypto is not dead?
Fidelity, BlackRock and other financial firms want to list BTC and ETH ETFs, which could make it easier for investors to invest in crypto.
More info HERE
X gems
Microsoft is the real winner here š
The real reason for OpenAI breakdown š”š”š”
What is the future like for OpenAI? š¤
Delta Airlines is in league of its own š±