Author: openjargon

  • Woodside shares hit a multi-year low this week, should you buy?

    sad looking petroleum worker standing next to oil drill

    The Woodside Energy Group Ltd (ASX: WDS) share price hit a 52-week low this week, dropping to $26.99 on Tuesday. It could be a contrarian buy when resource and cyclical businesses hit lows. The Woodside share price is down around 20% in the past year, as shown on the chart below.

    It’s common for share prices of companies in sectors like iron ore or retail to be volatile over the years as investors react to what’s happening.

    As reported by my colleague Bernd Struben, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) will lift production in October, with current production cuts removed by June 2025. Higher supply could result in lower prices.

    But, Struben also reported earlier this week that energy prices are rebounding, with the Brent crude oil price up to around US$82 per barrel (up from US$79.62 on Friday).  

    Is the Woodside share price a buy?

    Sometimes, the best time to buy a cyclical share is when there are numerous negatives which are expected to stick around the foreseeable future. It’s under those conditions where the share price can reach the most appealing low, making it the best time to invest.

    The company is one of the region’s biggest oil and gas businesses, so its scale provides it with several benefits, including solid profit margins and a sturdy balance sheet.

    I like the moves by the company to improve its balance sheet further. In the last few months, the company has completed the sale of a 10% stake in the Scarborough joint venture to LNG Japan for US$910 million, and it announced the sale of a 15.1% stake in the Scarborough joint venture to JERA for US$1.4 billion.

    We can’t know what energy prices will do in the short term, but unlocking some of the value of its projects is wise, in my opinion. It gives the company more funding for existing projects such as Trion while also giving it a cash pile for future projects, acquisitions and/or shareholder returns.

    Another recent positive for the business was that its Sangomar project achieved ‘first oil’, which will soon generate another stream of earnings for the company.

    My verdict

    With the lower Woodside share price, prospective investors can receive a larger dividend yield. The broker UBS currently projects that Woodside could pay an annual dividend per share of US$1.05, which translates into a grossed-up dividend yield of approximately 8%.

    If investors are interested in Woodside shares, this could be a good time to consider investing because of its lower valuation, the high projected dividend yield and the first oil achievement at Sangomar. But, some investors may not like the company because of the fossil fuel element.

    The post Woodside shares hit a multi-year low this week, should you buy? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woodside Petroleum Ltd right now?

    Before you buy Woodside Petroleum Ltd shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • 5 things to watch on the ASX 200 on Thursday

    On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped into the red. The benchmark index fell 0.5% to 7,715.5 points.

    Will the market be able to bounce back from this on Thursday? Here are five things to watch:

    ASX 200 expected to jump

    The Australian share market looks set to jump on Thursday following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 53 points or 0.7% higher this morning. In the United States, the Dow Jones was down 0.1%, but the S&P 500 rose 0.85% and the Nasdaq jumped 1.5%. The S&P 500 and Nasdaq indices both climbed to new record highs overnight.

    Oil prices rise

    ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 0.85% to US$78.57 a barrel and the Brent crude oil price is up 0.8% to US$82.60 a barrel. Summer fuel demand optimism has given oil a boost this week.

    US inflation report

    Investors were celebrating on Wall Street overnight after US inflation came in softer than expected. According to CNBC, the consumer price index (CPI) showed no increase in May. This compares to expectations of a 0.1% increase according to economists surveyed by Dow Jones. Following the release of the CPI data, futures traders lifted the chances of the US Federal Reserve cutting interest rates in September. This would be the first move lower since the early days of the pandemic.

    Gold price rises

    It could be a positive session for ASX 200 gold miners such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 1.2% to US$2,353.9 an ounce. The precious metal rose after the US inflation report sparked hopes that interest rates could fall this year.

    WiseTech rated as a hold

    The WiseTech Global Ltd (ASX: WTC) share price could be almost fully valued according to analysts at Bell Potter. This morning, the broker has reaffirmed its hold rating on the logistics solutions company’s shares with an improved price target of $100.00. This implies just 3.2% upside from current levels. It said that the price target “is a modest premium to the share price so we maintain the HOLD. Potential catalysts for the stock include a beat in the FY24 result – most likely at EBITDA – and strong guidance for FY25 consistent with or ahead of consensus.”

    The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Beach Energy Limited right now?

    Before you buy Beach Energy Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • We blind-tested AirPod dupes. Here are the ones we liked

    AirPod competitors are pouring into the wireless earbud industry, challenging Apple’s seat on the throne. We tried out cheaper AirPod dupes to see how they stack up against the real thing.

    Read the original article on Business Insider
  • Why it can cost millions to win America’s biggest horse race

    The Kentucky Derby is the biggest horse race in America, and preparing for it takes millions of dollars and thousands of people. We went to Churchill Downs days before the big race to see what it takes to train the winning horse and prepare the century-old track for 400,000 fans.

    Read the original article on Business Insider
  • Ukraine’s Azov Brigade, a unit with a controversial past, can now use American weapons to fight the Russians

    Azov Battalion Ukraine
    New volunteers of self-defence battalion "Azov" take an oath of allegiance to the country during a ceremony before leaving for regions of eastern Ukraine in Kiev, June 23, 2014.

    • The US lifted a ban on Azov Brigade, allowing it to receive American weapon shipments.
    • The Azov Brigade, part of Ukraine's National Guard, has faced scrutiny for its past far-right ties.
    • The State Department found no evidence of human rights violations after vetting the brigade.

    The US State Department announced Monday that it has lifted a ban on the Azov Brigade, a former Ukrainian militia group with an ultranationalist history, allowing the current National Guard unit to receive American weapon shipments and training.

    A State Department spokesperson told BBC on Tuesday that following a vetting of the brigade, there was "no evidence of gross violations of human rights."

    The group was established in 2014 as the Azov Battalion by a figure linked to far-right hate groups in Ukraine. The unit's members' alleged far-right ties led the US to bar the group from receiving assistance.

    Now known as the Azov Brigade, the unit became part of the Ukrainian National Guard in 2015. The unit sought to distance itself from its checkered past, yet it has also been banned from receiving US assistance for years, since the passing of a 2018 congressional spending bill.

    The State Department has dismissed the congressional ban and said the Azov Brigade "passed Leahy vetting," referring to Leahy Law, which prevents the US from supporting foreign entities that have committed major human rights violations.

    Azovstal steel plant
    A Ukrainian soldier inside the ruined Azovstal steel plant stands under a sunlight ray in his shelter in Mariupol, Ukraine, on May 7, 2022.

    "Understanding by our allies how important it is to help each of these units is another important step on the way of our struggle for independence," Ukrainian National Guard spokesperson Ruslan Muzychuk told The Washington Post following the State Department announcement.

    The Kremlin has used the Azov Brigade as a talking point in justifying Russia's invasion of Ukraine, as President Vladimir Putin has previously stated that his objectives of the war include the "demilitarization and de-Nazification of Ukraine."

    The Azov Brigade has claimed that it has evolved from its problematic past and that its leadership has changed since its inception.

    In a response to the decision on Instagram, the unit wrote that "obtaining Western weapons and training from the United States will not only increase the combat ability of Azov, but most importantly, contribute to the preservation of the lives and the health of personnel."

    "This is a new page in our unit's history," the brigade said, adding that "Azov is becoming even more powerful, even more professional and even more dangerous for occupiers."

    The brigade is closely associated with its significant, albeit costly, defense of Mariupol in 2022 at the start of Russia's full-scale invasion of Ukraine, where it was eventually forced to surrender its fight from the Azovstal steel mill. The unit's soldiers have been celebrated as heroes and symbol of Ukrainian resistance.

    Read the original article on Business Insider
  • This ASX ETF has soared almost 40% in a year! Should you buy?

    A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares

    The Japanese share market has generated significant returns over the past year. The Betashares Japan-Currency Hedged ETF (ASX: HJPN) is an exciting investment to consider.

    On the Tokyo Stock Exchange, we can find some of the leading Asian companies, including Toyota, Sony, Mitsubishi, Hitachi, Nintendo, Honda, Daikin Industries, Canon and Bridgestone.

    I think there are a few good reasons to consider the HJPN ETF beyond just its past performance.

    Diversification

    The Japanese share market can provide exposure to under-represented sectors in the ASX share market.

    Looking at the sector allocation, five industries have a weighting of more than 10% in the HJPN ETF: consumer discretionary (24.3%), industrials (23.4%), IT (17.9%), financials (10.4%), and healthcare (10.1%). Meanwhile, around half of the S&P/ASX 200 Index (ASX: XJO) is weighted to just two sectors, ASX bank shares and ASX mining shares.

    Plenty of the leading Japanese businesses generate a “substantial portion” of their revenue outside of Japan, according to BetaShares, which is good underlying diversification of their earnings. A lot of the profit generated by large ASX blue-chip shares is generated within Australia (and New Zealand).

    It’s currently invested in around 150 businesses, which is ample diversification in terms of holdings, in my opinion.

    Improving situation for Japanese stocks

    In the 12 months to 31 May 2024, the HJPN ETF delivered a net return of 37.47% and I think it could keep performing solidly. Remember, past performance is not a reliable indicator of future performance with this ASX ETF.

    New rules and disclosures by the Tokyo Stock Exchange are targeting companies with “poor capital efficiency, asking them to disclose plans for how they will realise corporate value for shareholders”, according to investment outfit Alliance Trust.

    Japan may be breaking from the shackles of its deflationary situation, which has affected its economy for decades. ‘Real’ wage growth – where wages rise faster than inflation – could keep deflation at bay.

    Japan’s biggest union recently agreed to its first “significant” pay rise for its workers in 33 years.

    Alliance noted that WTW economists believe wage growth and easing inflation could increase domestic consumption, benefiting Japanese shares, particularly domestic-focused Japanese stocks.

    Reasonable fee

    It’s not the cheapest ASX ETF, with an annual management fee of 0.56%. There are plenty of cheaper ASX ETFs out there, but I think it’s a fair cost for the specific Japanese allocation it can give to an Aussie’s portfolio. Active managers would typically charge at least 1% to invest in Japanese shares.

    This fund also has currency hedging for the Japanese yen exposure, reducing the effect of currency fluctuations on portfolio performance.

    Foolish takeaway

    I think it’s a compelling ASX ETF to consider with actions that are supporting the Japanese economy and stock market. I don’t know what the short-term returns will be, but I’m optimistic about the longer term as companies better utilise their capital for growth and/or improve shareholder returns.

    The post This ASX ETF has soared almost 40% in a year! Should you buy? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Betashares Japan Etf – Currency Hedged right now?

    Before you buy Betashares Japan Etf – Currency Hedged shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Betashares Japan Etf – Currency Hedged wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has positions in Alliance Trust Plc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • The man Clarence Thomas raised ‘as a son’ arrested on drug and weapons charges

    Clarence Thomas took in his grandnephew and raised him like a son. Mark Martin now faces more than 25 years on drug and weapons charges. The Thomas' guardianship is part of the scandal surrounding the Supreme Court justice's failure to disclose gifts from billionaire Harlan Crow.

    Read the original article on Business Insider
  • The Fed now expects just one interest rate cut this year — but there’s still time for that to change, Powell says

    fed chair against trending line background
    Federal Reserve Bank Chair Jerome Powell.

    • The Federal Reserve held interest rates steady in its latest decision on Wednesday.
    • Its Summary of Economic Projections also penciled in just one interest rate cut for 2024.
    • Still, Powell cautioned that could change and left the door open for a rate cut in September.

    The odds of an interest rate cut this year just got slimmer.

    On June 12, the Federal Open Market Committee announced that it would hold interest rates steady as the nation's central bank continues to work to lower inflation to its 2% target.

    Notably, alongside the Federal Reserve's interest rate decision, the FOMC also released its Summary of Economic Projections — and the committee now has just one interest rate cut penciled in for 2024, with further cuts expected in 2025.

    Fed Chair Jerome Powell said during the Wednesday press conference that when looking at the FOMC's projections, they should be viewed as just that: projections. There's still time for them to change based on upcoming economic data, he said, and it's "plausible" that a rate cut could happen as soon as September.

    "We want to gain further confidence. Certainly, more good inflation readings will help with that," Powell said.

    "It's going to be the totality of the data, what's happening in the labor market, what's happening with the balance of risks, what's happening with the forecast, what's happening with growth," he added. "You look at all of that, and you ask, 'Are we confident? Have we reached an appropriate level of confidence that inflation is moving down sustainably to 2%, or alternatively, do we see really unexpected signs of weakness in the labor market?'"

    The Consumer Price Index, which measures inflation, rose 3.3% year over year in May, a slight decrease from April's 3.4% reading, showing the economy is headed in the right direction. While Powell said the latest reading is a positive sign, it's not sufficient to allow the Fed to loosen its restrictive monetary policy.

    However, some Democratic lawmakers have urged Powell to cut rates sooner rather than later, given the financial strains Americans continue to face under high inflation. Powell acknowledged those pains but reiterated that it's most important for the Fed to hold off on cutting until it gets more data rather than cutting too soon and having to raise rates again at a later date.

    "In the meantime, it's going to be painful for people, but the ultimate pain would be a long period of high inflation," Powell said. "It is people who have lower incomes, people at the margins of the economy who have the worst experience, who experience the most pain from inflation. So you know, it's for those people, for all Americans, but particularly for those people, that we're doing everything we can to bring inflation back down under control."

    Read the original article on Business Insider
  • I bought my last Starbucks drink 4 years ago. I pay more for coffee now, but the benefits are worth it.

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Author Rachel Chang smiling and giving a thumbs down in front of a Starbucks location
    I haven't had Starbucks in years.

    • Without realizing it, I became addicted to visiting Starbucks around the world.
    • In 2020, I abruptly stopped, challenging myself to explore more local options.
    • Constantly searching for new coffee shops has taught me how to better trust my instincts.

    When I first started drinking coffee, I was intimidated by every café that had its own long menu with unique drink names and too many ways to personalize a drink.

    Soon, I found comfort in Starbucks: No matter where in the world I was, I could order the exact same thing and know what to expect.

    As a travel journalist, I began searching for the familiar logo everywhere, from Bali and Morocco to Barcelona and Buenos Aires. It wasn't hard — Starbucks is the largest coffee chain in the world, on track to have 55,000 stores by 2030.

    But about four and a half years ago, I was on my way to claim my free Starbucks birthday drink when a lightbulb went off in my head.

    I was in San Francisco, and as I passed one adorable little coffee shop after another, I wondered why I was overlooking so many small businesses so I could get coffee from a megacorporation that netted $36 billion in the 2023 fiscal year.

    That day, I sipped my last drop of frozen coffee through a green straw (OK, technically a sippy top since the chain had stopped offering plastic straws by then) and quit Starbucks.

    It was a challenging transition that meant spending more money on coffee

    A coffee cup at a small coffee shop with artwork on the walls
    Smiles written on a Starbucks cup don't bring me as much joy as a meaningful interaction with a local barista does.

    Though I live a block from a Starbucks, I started forcing myself to walk past it in search of local options.

    My self-imposed ban began in 2020 during the peak days of the coronavirus pandemic, so I quickly realized the spending power I had with my daily coffee.

    Many independent coffee shops closed during or shortly after the height of the pandemic. Even now, smaller cafés depend on every customer's support.

    Starbucks doesn't need my money as much, even though it had actually been cheaper for me. At the time, I'd been spending $3 to $5 for my Starbucks drinks. At local shops, my drinks were closer to $4 to $7.

    After happily paying extra for milk substitutes and gratuity at small businesses, the cost of my typical coffee order eventually started inching closer to double digits. Still, I felt better knowing the dollars were going back to my community.

    I also turned grabbing coffee into an adventure

    Giving up Starbucks also meant I'd have to break some old habits.

    Instead of rotely going to the closest Starbucks, I began to pull up Google Maps to search for a new coffee shop every time. In the beginning, I often landed at mediocre cafés.

    But as I started traveling again, I realized what felt like a chore at home started to feel like a delight when I was abroad. After all, traveling is all about discovering new finds.

    Every coffee shop has its own menu, system, and style. Instead of being an old pro in a familiar place, I became the constant newbie in a strange setting, asking for WiFi passwords and bathroom keys.

    Eventually, trying new spots became a mini daily adventure stirred up into my coffee break.

    Now I'm more than 4 years Starbucks-free — and won't go back

    Author Rachel Chang on laptop at coffee shop
    I spend more money on coffee now, but I don't mind.

    The bottom line is that my coffee budget has gone up — I recently paid $12.69 for a vanilla oat latte at a local shop, about $5 more than it would've cost at Starbucks — but now I see more than a cup of joe.

    I see coffee time as an experience, a moment to connect with a slice of a community that I wouldn't normally have been immersed in.

    Plus, at local coffee shops, I'm one of few customers instead of one of many in a long line. I'm more likely to get doted on with top-notch service instead of just feeling like a name on a cup.

    Sometimes, I still end up at coffee chains — but my self-imposed ban means I'll opt for smaller ones like Blank Street or Gregory's Coffee instead of mega-global franchises.

    I still feel like a bit of a jerk when I have business meetings scheduled at a Starbucks and ask to go somewhere else. But it's a pretty good conversation starter, and I've even had colleagues tell me they're also steering away from the chain.

    I don't have a personal vendetta against Starbucks. It's just that by quitting, my coffee world has opened up beyond the limitations of one company — and forever hunting for a new coffee shop has become my ultimate pick-me-up.

    Read the original article on Business Insider
  • Elon Musk and Sam Altman founded OpenAI together, but now trade barbs. Here’s the history of their working relationship and feud.

    OpenAI CEO Sam Altman and Elon Musk
    OpenAI CEO Sam Altman and Elon Musk

    • Elon Musk helped found OpenAI, but he has frequently criticized it in recent years.
    • Though he recently sued OpenAI and CEO Sam Altman, he has since dropped the lawsuit.
    • Here's a history of Musk and Altman's working relationship.

    Elon Musk and Sam Altman lead rival AI firms and now take public jabs at each other — but it wasn't always like this.

    Years ago, the two cofounded OpenAI, which Altman now leads. Musk departed OpenAI, which created ChatGPT, in 2018 and recently announced his own AI venture, xAI.

    Their was enough bad blood that Musk even sued OpenAI and Altman, accusing them in the suit betraying the firm's founding principles, before dropping the lawsuit.

    Here's a look at Musk and Altman's complicated relationship over the years:

    Musk and Altman cofounded OpenAI, the creator of ChatGPT, in 2015, alongside other Silicon Valley figures, including Peter Thiel, LinkedIn cofounder Reid Hoffman, and Y Combinator cofounder Jessica Livingston.
    OpenAI CEO Sam Altman and Elon Musk
    OpenAI CEO Sam Altman and Elon Musk

    The group aimed to create a nonprofit focused on developing artificial intelligence "in the way that is most likely to benefit humanity as a whole," according to a statement on OpenAI's website from December 11, 2015.

    Source: Business Insider

    At the time, Musk said that AI was the "biggest existential threat" to humanity.
    Elon Musk, the owner of Twitter, is pushing for a harder-driving culture at the company.
    Elon Musk is CEO of Twitter.

    "It's hard to fathom how much human-level AI could benefit society, and it's equally hard to imagine how much it could damage society if built or used incorrectly," a statement announcing the founding of OpenAI reads.

    Source: BBCOpenAI

    Musk stepped down from OpenAI's board of directors in 2018.
    Elon Musk greets onlookers with both hands waving, at the 2022 Met Gala

    "As Tesla continues to become more focused on AI, this will eliminate a potential future conflict for Elon," OpenAI said in a blog post at the time, adding that Musk would continue to provide guidance and donations.

    With his departure, Musk also backed out of a commitment to provide additional funding to OpenAI, a person involved in the matter told The New Yorker.

    "It was very tough," Altman told the magazine of the situation. "I had to reorient a lot of my life and time to make sure we had enough funding."

    Source: Business Insider, The New Yorker, Business Insider

    In 2023, it was reported that Sam Altman and other OpenAI cofounders had rejected Musk's proposal to run the company in 2018.
    OpenAI's Sam Altman

    Semafor reported that Musk wanted to run the company on his own in an attempt to beat Google. But when his offer to run the company was rejected, he pulled his funding and left OpenAI's board, the news outlet reported.

    Source: Semafor, Business Insider

    In 2019, Musk shared some insight on his decision to leave, saying one of the reasons was that he "didn't agree" with where OpenAI was headed.
    Elon Musk
    Elon Musk.

    "I had to focus on solving a painfully large number of engineering & manufacturing problems at Tesla (especially) & SpaceX," he tweeted. "Also, Tesla was competing for some of same people as OpenAI & I didn't agree with some of what OpenAI team wanted to do. Add that all up & it was just better to part ways on good terms."

    Source: Business Insider

    Musk has taken shots at OpenAI on several occasions since leaving.
    Elon Musk making a grimace and pointing a finger.

    Two years after his departure, Musk said, "OpenAI should be more open" in response to an MIT Technology Review article reporting that there was a culture of secrecy there, despite OpenAI frequently proclaiming a commitment to transparency.

    Musk also added that his "confidence in Dario for safety is not high," referring to Dario Amodei, who led OpenAI's strategy at the time.

    Source: Business Insider

     

    In December 2022, days after OpenAI released ChatGPT, Musk said the company had prior access to the database of Twitter — now owned by Musk — to train the AI chatbot and that he was putting that on hold.
    ChatGPT

    "Need to understand more about governance structure & revenue plans going forward. OpenAI was started as open-source & non-profit. Neither are still true," he said.

    Source: Twitter

    Musk was reportedly furious about ChatGPT's success, Semafor reported in 2023.
    Elon Musk
    When asked about the future of AI and work, Elon Musk says he has to have a “deliberate suspension of disbelief in order to remain motivated.”

    In November 2022, the chatbot took off and garnered millions of users for its ability to do everything from write essays to craft basic code.

    Source: Semafor, Business Insider

    In February 2023, Musk doubled down, saying OpenAI as it exists today is "not what I intended at all."
    L-R) Tesla Motors CEO and Product Architect Elon Musk and Y Combinator President Sam Altman speak onstage during "What Will They Think of Next? Talking About Innovation" at the Vanity Fair New Establishment Summit at Yerba Buena Center for the Arts on October 6, 2015 in San Francisco, California.

    "OpenAI was created as an open source (which is why I named it "Open" AI), non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft. Not what I intended at all," he said in a tweet.

    Source: Twitter

    Musk repeated this assertion a month later.
    OpenAI logo displayed on a phone screen and Elon Musk's Twitter account displayed on a screen in the background

    "I'm still confused as to how a non-profit to which I donated ~$100M somehow became a $30B market cap for-profit. If this is legal, why doesn't everyone do it?" he tweeted.

    Source: Twitter

    Musk turned his complaints into a lawsuit but has since dropped it.
    Elon Musk Sam Altman
    Elon Musk and Sam Altman

    He sued OpenAI, Altman, and cofounder Greg Brockman, alleging that the company's direction in recent years has violated its founding principles.

    His lawyers alleged OpenAI "has been transformed into a closed-source de facto subsidiary of the largest technology company in the world" and is "refining an AGI to maximize profits for Microsoft, rather than for the benefit of humanity."

    In response, OpenAI called the lawsuit "incoherent" and "contradictory," suggesting Musk was jealous of the company's success without him.

    A few months later, Musk withdrew the lawsuit, a day before a judge was set to consider the future of the case in a hearing.

    Altman has addressed some of Musk's gripes about OpenAI.
    Sam Altman speaks at TechCrunch Disrupt NY 2014 - Day 1 on May 5, 2014 in New York City.

    "To say a positive thing about Elon, I think he really does care about a good future with AGI," Altman said last year on an episode of the "On With Kara Swisher" podcast, referring to artificial general intelligence.

    "I mean, he's a jerk, whatever else you want to say about him — he has a style that is not a style that I'd want to have for myself," Altman told Swisher. "But I think he does really care, and he is feeling very stressed about what the future's going to look like for humanity." 

    In response to Musk's claim that OpenAI has turned into "a closed source, maximum-profit company effectively controlled by Microsoft," Altman said on the podcast, "Most of that is not true, and I think Elon knows that."

    Source: "On With Kara Swisher", Business Insider

    Altman also referred to Musk as one of his heroes despite the fact Musk is "obviously attacking" OpenAI on Twitter.
    Sam Altman, president of Y Combinator and co-chairman of OpenAI, attends the annual Allen & Company Sun Valley Conference, July 8, 2016 in Sun Valley, Idaho. Every July, some of the world's most wealthy and powerful businesspeople from the media, finance, technology and political spheres converge at the Sun Valley Resort for the exclusive weeklong conference.

    In a March 2023 episode of Lex Fridman's podcast, Altman said, "Elon is obviously attacking us some on Twitter right now on a few different vectors."

    Nonetheless, he called Musk one of his heroes, adding, "I believe he is, understandably so, really stressed about AGI safety."

    Source: Lex Fridman Podcast, Business Insider

    Altman says he's learned some "super valuable" lessons from Musk.
    Sam Altman

    In a May 2023 talk at University College London, Altman was asked what he's learned from various mentors, according to Fortune. He answered by speaking about Musk.

    "Certainly learning from Elon about what is just, like, possible to do and that you don't need to accept that, like, hard R&D and hard technology is not something you ignore, that's been super valuable," he said.

    Musk was one of more than 1,000 people who signed an open letter calling for a six-month pause on training advanced AI systems.
    Elon Musk attends The 2022 Met Gala.

    The letter, which also received signatures from several AI experts, cites concerns of AI's potential risks to humanity.

    "Powerful AI systems should be developed only once we are confident that their effects will be positive and their risks will be manageable," the letter says.

    But while he was publicly calling for the pause, Musk was quietly building his own AI competitor, xAI, The New Yorker recently reported.

    Source: Future of Life Institute, Business Insider, The New Yorker, Business Insider

    Musk since briefly unfollowed Altman on Twitter before following him again; separately, Altman later poked fun at Musk's claim to be a "free speech absolutist."
    sam altman wearing a black t shirt, black jacket, grey pants and sunglasses

    Twitter recently took aim at posts linking to rival Substack, forbidding users from retweeting or replying to tweets containing such links, before reversing course. In response to a tweet about the situation, Altman tweeted, "Free speech absolutism on STEROIDS."

    Musk has called himself a "free speech absolutist" before and said it's one of the reasons he bought Twitter.

    Source: Big Tech Alert on Twitter, Twitter, Business Insider

    Altman joked that he'd watch Musk and Mark Zuckerberg's rumored cage fight.
    Sam Altman
    Sam Altman is CEO of ChatGPT maker OpenAI

    "I would go watch if he and Zuck actually did that," he said at the Bloomberg Technology Summit in June, though he said he doesn't think he would ever challenge Musk in a physical fight.

    Altman also repeated several of his previous remarks about Musk's position on AI.

    "He really cares about AI safety a lot," Altman said at Bloomberg's summit. "We have differences of opinion on some parts but we both care about that and he wants to make sure we, the world, have the maximal chance at a good outcome."

    Separately, Altman recently told The New Yorker Musk has a my-way-or-the highway approach to issues more broadly.

    "Elon desperately wants the world to be saved. But only if he can be the one to save it," Altman said.

    Source: Bloomberg, Business Insider, The New Yorker

    Read the original article on Business Insider