Business

OpenAI Has ‘Full Confidence’ In CEO Sam Altman After Investigation, Reinstates Him To Board

Published

8 months ago

2024-03-10

OpenAI has reinstated CEO Sam Altman to its board of directors and stated that it has “full confidence” in his leadership following the completion of an outside review into the company’s troubles.

The ChatGPT creator hired the law firm WilmerHale to investigate what caused the company to abruptly fire Altman in November, only to rehire him days later. After months of research, it discovered that Altman’s dismissal was a “consequence of a breakdown in the relationship and loss of trust” between him and the previous board, according to an OpenAI summary of the conclusions released Friday. The whole report still needs to be released.

OpenAI also announced that three women have joined its board of directors: Dr. Sue Desmond-Hellman, former Bill & Melinda Gates Foundation; Nicole Seligman, former Sony general counsel; and Fidji Simo, CEO of Instacart.

OpenAI Has ‘Full Confidence’ In CEO Sam Altman After Investigation, Reinstates Him To Board

The moves are an attempt by the San Francisco-based artificial intelligence startup to demonstrate to investors and consumers that it is working to overcome the internal tensions that nearly wrecked it last year and made global headlines.

“I’m pleased this whole thing is over,” Altman told reporters Friday, adding that he has been dismayed to see “people with an agenda” releasing material to hurt the firm or its goal and “pit us against each other.” At the same time, he stated that he has learnt from the experience and apologized for a disagreement with a former board member that could have been handled “with more grace and care.”

In a parting shot, two board members who voted to remove Altman before being forced out themselves wished the incoming board well but emphasized the importance of accountability when developing technology “as potentially world-changing” as OpenAI.

“We hope the new board does its job in governing OpenAI and holding it accountable to its mission,” ex-board members Helen Toner and Tasha McCauley said in a joint statement. “As we told the investigators, deception, manipulation, and resistance to thorough oversight should be unacceptable.”

For over three months, OpenAI provided scant information about what prompted its then-board of directors to remove Altman on November 17. A declaration that day stated that Altman was “not consistently candid in his communications” in a way that hampered the board’s ability to carry out its duties. He was also removed from the board, along with its chairman, Greg Brockman, who resigned as the company’s president.

Much of OpenAI’s disagreements have stemmed from its unconventional governance structure. Founded as a nonprofit to securely develop futuristic AI to benefit humanity, it is today a fast-growing major business run by a nonprofit board dedicated to its original mission.

The investigation determined that the preceding board operated within its authority. However, it also concluded that Altman’s “conduct did not mandate removal,” according to OpenAI. It stated that Altman and Brockman remained the appropriate leaders for the company.

“The review concluded there was a significant breakdown in trust between the prior board and Sam and Greg,” the board’s chair, Bret Taylor, told reporters on Friday. “And similarly concluded that the board acted in good faith, that the board believed at the time that its actions would mitigate some of the challenges that it perceived and didn’t anticipate some of the instability.”

The founders and leaders of OpenAI have long debated the threats posed by stronger AI systems. However, citing the law firm’s conclusions, Taylor stated that Altman’s firing “did not arise out of concerns regarding product safety or security.”

Taylor stated that it was not about OpenAI’s money or representations made to investors, customers, or business partners.

OpenAI Has ‘Full Confidence’ In CEO Sam Altman After Investigation, Reinstates Him To Board

Days after his surprise dismissal, Altman and his supporters, with support from the majority of OpenAI’s workforce and close business partner Microsoft, orchestrated a comeback that returned Altman and Brockman to executive positions while forcing out board members Toner, a Georgetown University researcher; McCauley, a scientist at RAND Corporation; and another co-founder, Ilya Sutskever. Sutskever retained his position as chief scientist and publicly regretted his involvement in dismissing Altman.

“I think Ilya loves OpenAI,” Altman said Friday, expressing hope that they will continue to collaborate. However, he declined to comment on Sutskever’s present status at the business.

When Altman and Brockman returned to the company in November, they were not reinstated on the board. However, an “initial” new board of three men was constituted, led by Taylor, a former Salesforce and Facebook executive who previously chaired Twitter’s board before Elon Musk took over. Former US Treasury Secretary Larry Summers and Quora CEO Adam D’Angelo, the sole remaining member of the previous board, are the others.

(Quora and Taylor’s new business, Sierra, has AI chatbots that use OpenAI technology.)

After hiring the law firm in December, OpenAI stated that WilmerHale interviewed dozens of the company’s previous board members, current executives, advisers, and other witnesses. The corporation also stated that the law firm examined thousands of documents and other corporate acts. WilmerHale did not immediately reply to a response request on Friday.

The board also announced that it will make “improvements” to the company’s governance structure. It stated that it would implement new corporate governance principles, enhance the company’s procedures against conflicts of interest, establish a whistleblower hotline that would allow workers and contractors to submit anonymous reports, and form more board committees.

The company still faces difficulties, such as a lawsuit Musk filed against it. Musk co-chaired OpenAI’s board after its founding in 2015 and contributed to funding its early years. Musk claims that the corporation is abandoning its founding objective of chasing profits.

OpenAI Has ‘Full Confidence’ In CEO Sam Altman After Investigation, Reinstates Him To Board

Legal experts have doubt that Musk’s arguments, which rely on an alleged breach of contract, will hold up in court.

However, it has already sparked internal debate within the company about its unusual governance structure, how “open” it should be about its research, and how to pursue what is known as artificial general intelligence, or AI systems that can perform as well as — or better than — humans in a wide range of tasks.

Taylor said Friday that OpenAI’s “mission-driven nonprofit” structure will remain unchanged as it pursues its aim of artificial general intelligence that benefits “all of humanity.”

“Our duties are to the mission, first and foremost, but the company — this amazing company that we’re in right now — was created to serve that mission,” said Taylor.

source – (ap)

Kiara Grace

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Business

Subsidies for Electric Vehicles Cut as Consumer Interest Fades

Published

4 days ago

2024-11-04

Geoff Thomas

Electric vehicles (EVs) are still considerably more expensive than traditional alternatives.

Pressure is building on Canada’s electric vehicle manufacturers, and several are rethinking their stance on E.V.s in favor of plug-in hybrids. Automobile manufacturers are now bracing themselves for an even more challenging era in the Canadian market for electric vehicles (E.V.s).

President Kristian Aquilina of General Motors Canada claims that support and expectations are misaligned because the Canadian government is reducing subsidies for electric vehicles while trying to phase out gas-powered cars.

Manufacturers find pushing for an all-electric future in Canada increasingly difficult due to fewer consumer financial incentives and increasingly strict sales targets.

With subsidies totaling up to C$12,000 (about $8,500), Canadian consumers may save a tonne of money on electric automobiles. The federal government offers a rebate of up to $5,000 Canadian, and the provinces of Quebec and British Columbia provide further incentives of up to $7,000 and $4,000, respectively.

Ford lost about 2,000 US for every EV it sold in the first three months of the year.

Ford lost about $132,000 US for every E.V. it sold in the first three months of the year.

Ontario, which eliminated rebates in 2018, had the lowest market share for electric vehicles compared to Quebec and British Columbia, two regions that offered bigger incentives and thereby drove E.V. adoption in Canada.

Although this backing is dwindling, the province of Quebec has now declared that all subsidies will end in 2027. In June, the British Columbia government restricted incentives to a smaller subset of E.V. purchasers for “available funding” and higher-than-expected E.V. sales growth.

These reductions indicate a larger pattern: provincial governments reevaluate the sustainability of taxpayer-financed incentives for E.V.s as budget deficits widen.

With lofty goals to cut pollution from gas-powered cars and increase sales of electric vehicles, the Canadian government has reduced subsidies for these vehicles. Electric or plug-in hybrid vehicles will be mandatory for all new light-duty vehicle sales in Canada by 2035.

B.C. needs to step up with incentives for consumers to buy used EVs, some opposition critics say.

Some opposition critics say that B.C. needs to step up with incentives for consumers to buy used E.V.s.

To meet our intermediate goals, 20% of new sales must be electric vehicles (E.V.s) by 2026 and 60% by 2030. Car companies are already under a lot of pressure due to dwindling incentives and increasing demands, and the clock is ticking faster by the second.

In addition, these rules impose new forms of responsibility. Automakers that do not reach their provincial sales targets may be subject to financial fines imposed by provinces such as British Columbia.

Canadian manufacturers are already under financial pressure from federal compliance credit system standards, which they must meet or face deficits. This system gives them credit for electric vehicle sales and infrastructure improvements, but it’s not without its challenges.

“The timing is not necessarily lining up very well, in that the purchase incentive support comes off just as mandates and regulations start to bite,” GMC Canada President Kristian Aquilina told Bloomberg. “It must make a difference.

Therefore, we must consider that. Despite the cutbacks, Aquilina argued that the government’s investment in enhancing the charging infrastructure could benefit E.V. sales.

Tesla Sales Fall As More Electric Vehicles Crowd the Market

Tesla Sales Fall Again As More Automakers Crowd Electric Vehicle Market

Geoff Thomas

Geoffrey Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Business

Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Published

1 week ago

2024-10-30

Kiara Grace

Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.

According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.

Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.

Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.

SOURCE | AP

Kiara Grace

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Business

Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee

Published

1 week ago

2024-10-30

Geoff Thomas

Catherine Tait won't rule out taking bonus once she leaves CBC/Radio-Canada

Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.

The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.

Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.

MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.

Catherine Tait Exit Package

Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.

She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.

Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.

He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.

“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.

The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.

Defunding CBC News Canada

The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.

“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.

“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”

During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.

She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”

If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.

Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.