OpenAI is disbanding its “AGI Readiness” team, which advised the company on OpenAI’s own capacity to handle increasingly powerful AI and the world’s readiness to manage that technology, according to the head of the team.
On Wednesday, Miles Brundage, senior advisor for AGI Readiness, announced his departure from the company via a Substack post. He wrote that his primary reasons were that the opportunity cost had become too high and he thought his research would be more impactful externally, that he wanted to be less biased and that he had accomplished what he set out to at OpenAI.
Brundage also wrote that, as far as how OpenAI and the world is doing on AGI readiness, “Neither OpenAI nor any other frontier lab is ready, and the world is also not ready.” Brundage plans to start his own nonprofit, or join an existing one, to focus on AI policy research and advocacy. He added that “AI is unlikely to be as safe and beneficial as possible without a concerted effort to make it so.”
Former AGI Readiness team members will be reassigned to other teams, according to the post.
“We fully support Miles’ decision to pursue his policy research outside industry and are deeply grateful for his contributions,” an OpenAI spokesperson told CNBC. “His plan to go all-in on independent research on AI policy gives him the opportunity to have an impact on a wider scale, and we are excited to learn from his work and follow its impact. We’re confident that in his new role, Miles will continue to raise the bar for the quality of policymaking in industry and government.”
In May, OpenAI decided to disband its Superalignment team, which focused on the long-term risks of AI, just one year after it announced the group, a person familiar with the situation confirmed to CNBC at the time.
News of the AGI Readiness team’s disbandment follows the OpenAI board’s potential plans to restructure the firm to a for-profit business, and after three executives — CTO Mira Murati, research chief Bob McGrew and research VP Barret Zoph — announced their departure on the same day last month.
Earlier in October, OpenAI closed its buzzy funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and big tech companies. It also received a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion. The company expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC confirmed with a source familiar last month.
And in September, OpenAI announced that its Safety and Security Committee, which the company introduced in May as it dealt with controversy over security processes, would become an independent board oversight committee. It recently wrapped up its 90-day review evaluating OpenAI’s processes and safeguards and then made recommendations to the board, with the findings also released in a public blog post.
News of the executive departures and board changes also follows a summer of mounting safety concerns and controversies surrounding OpenAI, which along with Google, Microsoft, Meta and other companies is at the helm of a generative AI arms race — a market that is predicted to top $1 trillion in revenue within a decade — as companies in seemingly every industry rush to add AI-powered chatbots and agents to avoid being left behind by competitors.
In July, OpenAI reassigned Aleksander Madry, one of OpenAI’s top safety executives, to a job focused on AI reasoning instead, sources familiar with the situation confirmed to CNBC at the time.
Madry was OpenAI’s head of preparedness, a team that was “tasked with tracking, evaluating, forecasting, and helping protect against catastrophic risks related to frontier AI models,” according to a bio for Madry on a Princeton University AI initiative website. Madry will still work on core AI safety work in his new role, OpenAI told CNBC at the time.
The decision to reassign Madry came around the same time that Democratic senators sent a letter to OpenAI CEO Sam Altman concerning “questions about how OpenAI is addressing emerging safety concerns.”
The letter, which was viewed by CNBC, also stated, “We seek additional information from OpenAI about the steps that the company is taking to meet its public commitments on safety, how the company is internally evaluating its progress on those commitments, and on the company’s identification and mitigation of cybersecurity threats.”
Microsoft gave up its observer seat on OpenAI’s board in July, stating in a letter viewed by CNBC that it can now step aside because it’s satisfied with the construction of the startup’s board, which had been revamped since the uprising that led to the brief ouster of Altman and threatened Microsoft’s massive investment in the company.
But in June, a group of current and former OpenAI employees published an open letter describing concerns about the artificial intelligence industry’s rapid advancement despite a lack of oversight and an absence of whistleblower protections for those who wish to speak up.
“AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this,” the employees wrote at the time.
Days after the letter was published, a source familiar to the mater confirmed to CNBC that the Federal Trade Commission and the Department of Justice were set to open antitrust investigations into OpenAI, Microsoft and Nvidia, focusing on the companies’ conduct.
FTC Chair Lina Khan has described her agency’s action as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.”
The current and former employees wrote in the June letter that AI companies have “substantial non-public information” about what their technology can do, the extent of the safety measures they’ve put in place and the risk levels that technology has for different types of harm.
“We also understand the serious risks posed by these technologies,” they wrote, adding the companies “currently have only weak obligations to share some of this information with governments, and none with civil society. We do not think they can all be relied upon to share it voluntarily.”
OpenAI’s Superalignment team, announced last year and disbanded in May, had focused on “scientific and technical breakthroughs to steer and control AI systems much smarter than us.” At the time, OpenAI said it would commit 20% of its computing power to the initiative over four years.
The team was disbanded after its leaders, OpenAI co-founder Ilya Sutskever and Jan Leike, announced their departures from the startup in May. Leike wrote in a post on X that OpenAI’s “safety culture and processes have taken a backseat to shiny products.”
Altman said at the time on X he was sad to see Leike leave and that OpenAI had more work to do. Soon afterward, co-founder Greg Brockman posted a statement attributed to Brockman and the CEO on X, asserting the company has “raised awareness of the risks and opportunities of AGI so that the world can better prepare for it.”
“I joined because I thought OpenAI would be the best place in the world to do this research,” Leike wrote on X at the time. “However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point.”
Leike wrote that he believes much more of the company’s bandwidth should be focused on security, monitoring, preparedness, safety and societal impact.
“These problems are quite hard to get right, and I am concerned we aren’t on a trajectory to get there,” he wrote at the time. “Over the past few months my team has been sailing against the wind. Sometimes we were struggling for [computing resources] and it was getting harder and harder to get this crucial research done.”
Leike added that OpenAI must become a “safety-first AGI company.”
“Building smarter-than-human machines is an inherently dangerous endeavor,” he wrote on X. “OpenAI is shouldering an enormous responsibility on behalf of all of humanity. But over the past years, safety culture and processes have taken a backseat to shiny products.”
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
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Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets : There was an ugly reversal in the market Thursday. Stocks soared for most of the morning in reaction to Nvidia ‘s strong quarter, bullish outlook on AI spending, and pushback that customers weren’t generating a sufficient return on their investment. Nvidia shares climbed as high as $196 on Thursday — a roughly 5% gain — and its gravitational pull helped lift other technology and AI-adjacent industrial stocks. The market’s gains pushed the S & P 500 into positive territory for the week. However, around 11 a.m. ET, the market began to fall rapidly, with technology and industrial names leading the decline. Nvidia gave up all of its gains and dropped 2%. Bitcoin hit its lowest level since late April. Notable defensive stocks like consumer staples held onto their gains, though. That resilience reinforces our decision to diversify further, which we did earlier this week , by adding Procter & Gamble to the portfolio. The S & P 500’s decline has pushed the index back toward the lows of its recent downturn, marking a roughly 5% pullback from its high. It remains to be seen whether Thursday’s reversal is a sign of investors continuing to retreat from risk assets or simply a retest of the recent downdraft. But Nvidia’s earnings report gave zero indication of a slowdown in demand for AI compute. Interest rate cut: Expectations for a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in December continue to fluctuate. One month ago, a rate cut seemed like a sure thing with a 98.8% probability, according to the CME FedWatch Tool . But the odds dropped to about 50% a week ago after a slew of hawkish commentary from Federal Reserve members. On Wednesday, the odds of a cut plummeted to 30% after the release of the October Fed minutes, which showed that the central bank was hesitant to lower rates again this year. But after the long-delayed September jobs data finally came out Thursday, the probability of a 25-basis-point reduction jumped to 40%. Although the economy added 119,000 jobs in September, more than double the forecasted figure, the unemployment rate ticked higher. The Fed is in a bind, trying to balance a softening labor market against the risk that a rate cut could reignite inflation. Up next: Gap, Ross Stores , Intuit , and Veeva Systems report after the closing bell. BJ’s Wholesale Club will post results Friday morning. On the economic data side, tomorrow we’ll get November’s S & P Global Flash PMI for Manufacturing and Services, along with the University of Michigan’s consumer sentiment survey. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Bitcoin dropped on Thursday to levels not seen in more than six months, as investors appeared to pull back exposure to riskier assets and weighed the prospects of another Federal Reserve rate cut next month.
The flagship digital currency fell to as low as $86,325.81, its lowest level since April 21. It last traded at $86,690.11.
The release of stronger-than-expected U.S. jobs data raised questions about whether the central bank would lower its benchmark overnight rate. The U.S. economy added 119,000 in September, well above the 50,000 economists polled by Dow Jones expected.
That report sent the probability of a December rate cut to around 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s pullback formed part of a broader cryptocurrency market decline. XRP was last down 2.3% on the day, and is below $2.00, while ether shed more than 3% to trade well below $3,000. Dogecoin was unchanged.
The world’s oldest crypto also led stocks lower, even after a blockbuster Nvidia earnings report. Traders who are heavily invested in AI-related stocks tend to also hold bitcoin, linking the two trades.
Bitcoin’s price has largely slid since a rash of cascading liquidations of highly leveraged crypto positions in early October.
