Elon is shedding the light on OpenAI:
Through 2023 & 2024, I had two opportunities to invest into OpenAI, one within their last round and two in their secondaries through an Angel Syndicate, I passed on both opportunities due to numerous reasons, such as legal structure, and direction of the organisation and with Elon’s recent attack… it looks like my worries were warranted. Let’s dive into the points I have been looking at during this rocky legal time -
Transition of IP & Employees: Recent shifts in intellectual property (IP) and employee allocations from the non-profit sector to the for-profit structure have prompted attention and questions about OpenAI's direction. The organisation assures its community that decisions are made with the mission of advancing AI for societal benefit at the forefront, yet have now closed their source.
Wealth Transfer’s: Reports circulating about substantial wealth transfers through secondary exits have raised concerns about the monetisation of the non-profit organisation.
Ownership Structure: Skepticisms about the complicated ownership structure of the for-profit LLC have brought scrutiny around the honesty of OpenAI. While Microsoft has disclosed ownership of 49% of the for-profit entity, further examination reveals a complex ownership matrix involving the holding company, the non-profit entity, employees, and investors…It is clear they are trying to avoid something, but what that is isn’t yet clear.
Charitable Work and Mission Alignment: Doubt has emerged regarding the charitable initiatives undertaken by OpenAI's non-profit arm and their alignment with the organisation's mission to keep everything open source - yet they ahve now closed this.
Never try innovate legal structure, as you will always create problems
Google’s Headwinds:
For over two decades, Google has stood as the undisputed champion of internet search, boasting unparalleled market dominance and enviable profit margins. However, the tides shifted abruptly in November 2022 with the emergence of Large Language Models (LLMs) like ChatGPT, claimed a top spot in the new era in global information retrieval.
While Bing and other competitors may not pose an immediate threat to Google's crown, the rise of LLMs presents a large challenge. These models offer a more sophisticated approach to search, capable of addressing complex queries with unparalleled precision, thereby encroaching upon Google's traditional turf.
Yet, Google's primary hurdle lies not in its technological prowess but in its organisational culture. The botched launch of Gemini - its venture into LLMs - underscored a troubling trend: a culture more focused on risk mitigation than on true innovation.
To regain its footing, Google must pioneer an LLM that eclipses competitors in speed, comprehension, and accuracy. However, this feat requires more than just technical innovation; it demands a fundamental shift in organisational culture, which seems rooted deep.
Despite the challenges, Google can still turn this around and claim it’s top position, but will they do it in time, that is the question!
Quick Public Market Update with frothy times ahead: (Taken From ETORO)
In recent moves that have caught my attention this past month, some popular figures have made significant sales of their company stocks. Jamie Dimon, the CEO of JPMorgan Chase, selling $150 million worth of stock, marking his first sale in 18 years. Meanwhile, Jeff Bezos, the founder of Amazon, has unloaded a substantial $2.4 billion worth of amazon shares since the beginning of 2024. Similarly, Mark Zuckerberg, the CEO of Meta, has divested $428 million worth of stock over the past five months.
Furthermore, amidst the market's upwards trajectory, I have been paying a close eye to sellers and who they are (Insiders). The V 0.00%↑ Fear & Greed Index is nearing extreme greed levels, which could be prompting the above large sellers. In response to these warning signs, I've begun to trim high-risk positions within my portfolio’s, locking in market beating profits.