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Markets are settling into holiday mode, with stock futures slightly down on the last full trading day before Christmas. Here’s where things stand today: * Nasdaq-100: +0.37% * S&P 500: +0.04% (flat) * Dow Jones: -0.22% On Friday, the S&P 500 rose 1.1%, recovering
Quantum computing stocks are taking off in 2024. Is this the start of something big? Let’s take a closer look Google’s Chip Changes the Game Google’s new Willow chip, a 105-qubit processor, hit a big milestone: * Fixed Errors: It solved a 30-year problem by cutting down error
Government surveys that track the economy are failing. Budgets are shrinking, people are skipping surveys, and economic data we rely on is becoming less trustworthy. This is a big deal—because when the numbers are wrong, decisions that affect markets, businesses, and everyday life go wrong, too. Here’s what’
The S&P 500 Value Index just dropped 3.7%, marking its longest losing streak on record. Meanwhile, Bitcoin smashed past the $100,000 mark, and the Nasdaq climbed to 20,000. To me, it seems that value stocks have been left in the dust, and investors chasing bigger
Almost $10 billion has poured into Bitcoin ETFs since the US election, pushing Bitcoin past the $100,000 mark for the first time. The momentum is crazy, with Bitcoin posting its best winning streak since 2021. With investors pouring in, knowing the risks are more important than ever. Bitcoin’s
Remember when OpenAI was all about building AI for the benefit of humanity? Well, things are getting a little more... complicated.
OpenAI is now considering turning into a for-profit company, and the implications could be huge.
So, why does this matter? Let’s break it down.
1. OpenAI Is Spending Billions—and It’s Not Enough
OpenAI’s technology isn’t cheap. Just this year, they’re expected to spend $7 billion on training models like ChatGPT. That’s crazy, right? Even though they’re pulling in an estimated $2 billion in annual revenue, it doesn’t come close to covering those costs. They have 1 million+ business users, including big names like Moderna and Morgan Stanley, but there’s still a giant gap to fill.
So what’s their plan? They’re thinking about raising $6.5 billion in funding, which would push their valuation to $150 billion. If this happens, OpenAI would become the most valuable startup in the world. That’s a wild leap for a company that started as a nonprofit.
2. Price Hikes are on the Horizon
Here’s where things get interesting for businesses: OpenAI might start charging up to $2,000 a month for its enterprise services. Right now, companies pay way less for AI tools, but these potential price hikes could really shake things up.
Let’s do the math. If just 20% of OpenAI’s business customers sign on at that price, they’re looking at $4.8 billion in revenue. And if 50% of them go for it? That’s a whopping $12 billion annually. The numbers are insane, and this could mark a massive shift in how companies budget for AI.
For companies that rely heavily on AI, this could mean big budget changes. Larger corporations like Moderna might absorb the cost, but for others, the increased pricing might be prohibitive, reshaping how businesses use AI in the future.
3. Leadership Shifts Show a Changing OpenAI
As if that wasn’t enough, OpenAI’s leadership is in chaos mode. Their CTO, Mira Murati, and their Chief Research Officer, Bob McGrew, both recently left the company. Meanwhile, there are discussions about giving OpenAI’s CEO, Sam Altman, a 7% equity stake, which could make him $10 billion richer.
This isn’t the same OpenAI from just a few years ago. With these leadership changes and potential profit-driven goals, it’s clear the company is evolving.
What Does This Mean for the Future?
OpenAI might be on its way to becoming a public benefit corporation, which is their way of balancing profit with purpose. At the same time, OpenAI’s move could drive faster innovation, with the company licensing patents and finding new ways to monetize AI. That could be huge for the AI market overall, but it might come at the cost of accessibility for businesses that can’t afford to keep up
9/27 Update from CNBC: At an all-hands meeting Thursday, OpenAI CEO Sam Altman denied that there are plans for him to receive a “giant equity stake” in the company, calling that information “just not true,” according to a person who was in attendance.
Want to read more on how AI will impact the market? Check out this post