Here’s the thing about asking investors for money: they want to see returns.
Technology
OpenAI was a research lab — now it’s just another tech company
OpenAI launched with a famously altruistic mission: to help humanity by developing artificial general intelligence. But along the way, it became one of the best-funded companies in Silicon Valley. Now, the tension between those two facts is coming to a head.
Weeks after releasing a new model it claims can “reason,” OpenAI is barreling toward dropping its nonprofit status, some of its most senior employees are leaving, and CEO Sam Altman — who was once briefly ousted over apparent trust concerns — is solidifying his position as one of the most powerful people in tech.
On Wednesday, OpenAI’s longtime chief technology officer, Mira Murati, announced she’s leaving “to create the time and space to do my own exploration.” The same day, chief research officer Bob McGrew and VP of post training Barret Zoph said they would depart as well. Altman called the leadership changes “a natural part of companies” in an X post following Murati’s announcement.
“I obviously won’t pretend it’s natural for this one to be so abrupt, but we are not a normal company,” Altman wrote.
But it follows a trend of departures that’s been building over the past year, following the failed attempt by the board to fire Altman. OpenAI cofounder and chief scientist Ilya Sutskever, who delivered Altman the news of his firing before publicly walking back his criticism, left OpenAI in May. Jan Leike, a key OpenAI researcher, quit just days later, saying that “safety culture and processes have taken a backseat to shiny products.” Nearly all OpenAI board members at the time of the ouster, except Quora CEO Adam D’Angelo, have resigned, and Altman secured a seat.
The company that once fired Altman for being “not consistently candid in his communication” has since been reshaped by him.
No longer just a “donation”
OpenAI started as a nonprofit lab and later grew a for-profit subsidiary, OpenAI LP. The for-profit arm can raise funds to build artificial general intelligence (AGI), but the nonprofit’s mission is to ensure AGI benefits humanity.
In a bright pink box on a webpage about OpenAI’s board structure, the company emphasizes that “it would be wise” to view any investment in OpenAI “in the spirit of a donation” and that investors could “not see any return.”
Investor profits are capped at 100x, with excess returns supporting the nonprofit to prioritize societal benefits over financial gain. And if the for-profit side strays from that mission, the nonprofit side can intervene.
We’re way past the “spirit of a donation” here
Reports claim OpenAI is now approaching a $150 billion valuation — about 37.5 times its reported revenue — with no path toward profitability in sight. It’s looking to raise funds from the likes of Thrive, Apple, and an investment firm backed by the United Arab Emirates, with a minimum investment of a quarter-million dollars.
OpenAI doesn’t have deep pockets or existing established businesses like Google or Meta, which are both building competing models (though it’s worth noting that these are public companies with their own responsibilities to Wall Street.) Fellow AI startup Anthropic, which was founded by former OpenAI researchers, is nipping at OpenAI’s heels while looking to raise new funds at a $40 billion valuation. We’re way past the “spirit of a donation” here.
OpenAI’s “for-profit managed by a non-profit” structure puts it at a moneygrubbing disadvantage. So it made perfect sense that Altman told employees earlier this month that OpenAI would restructure as a for-profit company next year. This week, Bloomberg reported that the company is considering becoming a public benefit corporation (like Anthropic) and that investors are planning to give Altman a 7 percent stake. (Altman almost immediately denied this in a staff meeting, calling it “ludicrous.”)
And crucially, in the course of these changes, OpenAI’s nonprofit parent would reportedly lose control. Only a few weeks after this news was reported, Murati and company were out.
Both Altman and Murati claim that the timing is only coincidental and that the CTO is just looking to leave while the company is on the “upswing.” Murati (through representatives) declined to speak to The Verge about the sudden move. Wojciech Zaremba, one of the last remaining OpenAI cofounders, compared the departures to “the hardships parents faced in the Middle Ages when 6 out of 8 children would die.”
Whatever the reason, this marks an almost total turnover of OpenAI leadership since last year. Besides Altman himself, the last remaining member seen on a September 2023 Wired cover is president and cofounder Greg Brockman, who backed Altman during the coup. But even he’s been on a personal leave of absence since August and isn’t expected to return until next year. The same month he took leave, another cofounder and key leader, John Schulman, left to work for Anthropic.
When reached for comment, OpenAI spokesperson Lindsay McCallum Rémy pointed The Verge to previous comments made to CNBC.
And no longer just a “research lab”
As Leike hinted at with his goodbye message to OpenAI about “shiny products,” turning the research lab into a for-profit company puts many of its long-term employees in an awkward spot. Many likely joined to focus on AI research, not to build and sell products. And while OpenAI is still a nonprofit, it’s not hard to guess how a profit-focused version would work.
Research labs work on longer timelines than companies chasing revenue. They can delay product releases when necessary, with less pressure to launch quickly and scale up. Perhaps most importantly, they can be more conservative about safety.
There’s already evidence OpenAI is focusing on fast launches over cautious ones: a source told The Washington Post in July that the company threw a launch party for GPT-4o “prior to knowing if it was safe to launch.” The Wall Street Journal reported on Friday that the safety staffers worked 20-hour days and didn’t have time to double-check their work. The initial results of tests showed GPT-4o wasn’t safe enough to deploy, but it was deployed anyway.
Meanwhile, OpenAI researchers are continuing to work on building what they consider to be the next steps toward human-level artificial intelligence. o1, OpenAI’s first “reasoning” model, is the beginning of a new series that the company hopes will power intelligent automated “agents.” The company is consistently rolling out features just ahead of competitors — this week, it launched Advanced Voice Mode for all users just days before Meta announced a similar product at Connect.
So, what is OpenAI becoming? All signs point to a conventional tech company under the control of one powerful executive — exactly the structure it was built to avoid.
“I think this will be hopefully a great transition for everyone involved and I hope OpenAI will be stronger for it, as we are for all of our transitions,” Altman said onstage at Italian Tech Week just after Murati’s departure was announced.
Technology
Artificial flavours released by cooking aim to improve lab-grown meat
Lab-grown meat could get a flavour boost thanks to aromatic chemicals that activate when cooked, releasing a meaty smell – or if you prefer, that of coffee or potatoes.
Meat grown from cultured cells can already be created in various forms that resemble slaughtered meat, including steak and meatballs, but matching the taste has proven more challenging. Traditional meat flavours are extremely complex and volatile and don’t survive the lengthy laboratory process.
One key component of the taste of cooked meat is the Maillard reaction, named after a French chemist who discovered that unique flavours are created in cooked food at between 140 and 165°C (280 to 330 °F). Jinkee Hong at Yonsei University in Seoul, South Korea, and his colleagues say they have worked out a way to simulate the Maillard reaction by adding “switchable flavour compounds” (SFCs) into a 3D gelatine-based hydrogel, called a scaffold, that remain stable while the meat is cultured.
Once heated to 150°C, the chemicals “switch on” and release their flavours, improving the cultured protein’s palatability. “We actually smelled the meaty flavour upon heating the SFCs,” says Hong, though he wouldn’t confirm whether the team had actually eaten the meat.
These SFCs can also be used to create different flavour profiles. For example, the researchers tested three compounds and say they produced flavours simulating roasted meat, coffee, roasted nuts, onions and potatoes. “We can diversify and customise the flavour compounds released from the SFC,” says Hong.
One big issue is that the chemicals involved aren’t currently seen as safe for human consumption. “Because the materials and culture medium are not approved as edible materials, we cannot ensure the safety of it,” Hong says. “However, we think that our strategy can also be applied to conventional edible materials, which would be safer than the materials used in this study.”
Johannes le Coutre at the University of New South Wales in Sydney, Australia, says he is sceptical of the work for numerous reasons, including that the flavour tests predominantly used an electronic nose to assess the chemicals being released, rather than human judgement of whether they smelled appetising.
“You cannot nourish human beings with this type of material,” says le Coutre. “While cell-based meat is a promising technology concept, this particular way of adding flavour will never provide safe and sustainable protein for low and middle-income communities that need food.”
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Servers computers
Cara Merakit Rack Server 42U Perforated Door
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Technology
GTA V for PlayStation 5 is only $20 today — normally $40
Best Buy has cut the price of Grand Theft Auto V by 50% and if you don’t already own it, you really need to buy it right now.
Servers computers
Slimming down to 2U! SFF Rackmount Gaming PC
HUGE thanks to Micro Center for sponsoring this build! Here are links for their offer:
New Customer Exclusive – $25 Off ALL CPU’s: https://micro.center/yww
Shop Micro Center’s February BYO Deals: https://micro.center/fbi
Check out Micro Center’s Custom PC Builder: https://micro.center/b9o
Submit your build to Micro Center’s Build Showcase: https://micro.center/0jn
Parts used in this build (some links are affiliate links):
– MyElectronics’ 2U Mini ITX case: https://www.myelectronics.nl/us/19-inch-2u-mini-itx-case-short-depth.html
– Intel i5-13400 CPU: https://amzn.to/3K5bgJ1
– ASRock Z790M-ITX WiFi Motherboard: https://amzn.to/3YOnLwF
– CORSAIR Vengeance DDR5-5200 RAM with XMP: https://amzn.to/3lDqzi3
– LIAN LI SP 750 SFX PSU: https://amzn.to/3lGtUg4
– PNY Nvidia RTX A2000 12GB graphics card: https://amzn.to/3YobvmV
– be quiet! Pure Wings 80mm BL044 Case fans: https://amzn.to/3S23mCd
– Noctua NH-L9i-17xx Low-Profile CPU cooler: https://amzn.to/3EaWKMi
– 3.5mm Keystone Audio Jack: https://amzn.to/3YRPIUA
– Nanxudyj 3.5mm 1ft Audio Cable: https://amzn.to/3Ea26HD
– KIOXIA XG8 NVMe SSD: https://americas.kioxia.com/en-us/business/ssd/client-ssd/xg8.html
And here’s a link to the build from Micro Center (excluding the things I bought separate): https://www.microcenter.com/site/content/custom-pc-builder-intel.aspx?load=fe3f5ada-d5a2-4773-a2f3-28a25a21f8c5
Also mentioned in this video:
– LTT Personal Rig Update (Late 2021): https://www.youtube.com/watch?v=TgRXE9mUHJc
– LTT Heating my pool with computers: https://www.youtube.com/watch?v=4ozYlgOuYis
– It BROKE! LTT Screwdriver 6-month review: https://www.youtube.com/watch?v=uwoc6c4PMfU
Support me on Patreon: https://www.patreon.com/geerlingguy
Sponsor me on GitHub: https://github.com/sponsors/geerlingguy
Merch: https://redshirtjeff.com
2nd Channel: https://www.youtube.com/c/GeerlingEngineering
#Sponsored #MicroCenter #Homelab
Contents:
00:00 – Too much power?
00:48 – Short-depth 2U rackmount case
01:19 – Micro Center!
01:58 – SFF ask the expert
04:07 – Case closed… and opened!
05:08 – Assembling the motherboard
08:37 – I actually showed the thing!
09:00 – It’s coming together
10:35 – Front panel USB and a GPU to see
12:43 – It’s a lot heavier for its first boot
13:46 – No case is perfect
14:52 – Quieter AND faster!
15:34 – Gaming at 1080p
16:20 – Other SFF options and another build .
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Technology
The US might blacklist the main iPhone SE 4 display supplier
Apple has been trying to reduce the production cost of its iPhones for some time now. To achieve this, they have tried to turn to alternative suppliers for certain key components, such as displays. However, a new move by the US government could put Apple’s plans in jeopardy. A US representative requested that display suppliers from China, such as BOE and Tianma, be blacklisted. BOE would be the main OLED display supplier of the iPhone SE 4.
BOE is a Chinese display supplier that works with multiple big brands in the smartphone industry. Apple has been in talks with the company to use its panels in iPhone devices. According to reports, BOE has failed Apple’s quality tests for high-end iPhone displays, but the Cupertino giant would commission them to produce the majority of the iPhone SE 4’s displays.
US representative suggests blacklisting display suppliers from China
Apple may have to reconsider its plans regarding the displays of the next budget iPhone following a request from John Moolenaar, the Chairman of the House Select Committee on the Chinese Communist Party. Moolenaar requests the addition of BOE to the US trade blacklist in a letter to Defense Secretary Lloyd Austin. The letter also mentions Tianma Microelectronics, another Chinese display supplier.
The representative cites national security concerns as the main reason for the BOE’s potential blacklisting. The letter cites Chinese suppliers’ outsized market share growth in the LCD and OLED segment thanks to Chinese government funding. These suppliers have gone from 1% of the global OLED market share in 2014 to more than 52% today. They have also taken over 72% of the LCD market. Chinese suppliers have reportedly taken advantage of government funding to sell displays at cost, affecting competitors.
Previous reports suggested that BOE would manufacture 70% of the iPhone SE 4’s displays. Samsung was among the companies vying to supply the component. However, the deal fell through because Apple was willing to pay too little per unit. Indeed, reports suggest that Apple requested BOE to reduce the specifications of the “display candidate” to secure a lower price. There are no details on which specs would be reduced to save costs. However, we can imagine things like maximum brightness or resorting to older OLED technologies.
LG would be another candidate for the iPhone SE 4’s OLED screens
According to reports, Apple has also negotiated with LG to supply the displays for the iPhone SE 4. Reports suggest that the company is seeking to pay a maximum price of $40 per unit. The iPhone SE 4 would hit the market in 2025 for a price of $499. The possibility of a BOE blacklisting would force Apple to turn to more expensive suppliers, potentially increasing the estimated price for the next-generation budget iPhone.
Technology
VR hit Walkabout Mini Golf is getting a mobile edition
Walkabout Mini Golf has been filled with players ever since it launched around the same time as the Meta Quest 2. Now the multiplayer mini-golf game is making the jump to iOS devices.
The developer Mighty Coconut is currently beta testing its mobile mini-golf game and plans to release a full version on the App Store on October 10.
The Pocket version may be on mobile devices but the miniature version of the mini-golf game isn’t straying away from its virtual interface. The iOS Walkabout game can be played in two different modes: “Touch-to-Putt” mode in which you use the touch screen to tap and drag your shot and “Swing-to-Putt” mode in which you hold your iPhone like a putter and take your swing the same way you would in the VR version.
Walkabout Mini Golf is one of the most popular multiplayer VR games for the Meta Quest series. The virtual mini-golf game has an extensive series of stylized courses including some based on movies, TV shows and games like Jim Henson’s Labyrinth, the puzzle game Myst and the animated clay characters Wallace & Gromit. Mighty Coconut also designed a golf course with the immersive art company Meow Wolf and a series of courses based on the works of Jules Verne.
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