OpenAI CEO Sam Altman spoke to an engaged crowd of about 60 lawmakers at a dinner Monday about the advanced artificial technology his company produces and the challenges of regulating it.
The wide-ranging discussion that lasted about two hours came ahead of Altman’s first time testifying before Congress at a Senate Judiciary subcommittee on privacy and technology hearing on Tuesday. IBM Chief Privacy and Trust Officer Christina Montgomery and New York University Professor Emeritus Gary Marcus will also testify at the hearing, which is focused on AI oversight.
The dinner discussion comes at a peak moment for AI, which has thoroughly captured Congress’ fascination. On Tuesday, at the same time as the meeting where Altman will testify, the Senate Homeland Security and Governmental Affairs Committee is hosting a separate hearing on artificial intelligence in government. And on Wednesday, the House Judiciary Subcommittee on Courts, Intellectual Property and the Internet will hold yet another hearing focused on AI and copyright law.
About half a dozen members who spoke with CNBC outside of the dinner on Capitol Hill described a wide-ranging and informative discussion with Altman that spanned the many fears and hopes for opportunities that come with AI.
Altman received high praise from several members.
“I thought it was fantastic,” said Rep. Ted Lieu, D-Calif., vice chair of the House Democratic Caucus who co-hosted the dinner with GOP Conference Vice Chair Mike Johnson, R-La. “It’s not easy to keep members of Congress rapt for close to two hours. So Sam Altman was very informative and provided a lot of information.”
“He gave fascinating demonstrations in real time,” Johnson said. “I think it amazed a lot of members. And it was a standing-room-only crowd in there.”
One of the demonstrations, Johnson said, was having ChatGPT, OpenAI’s generative AI chatbot, write a bill dedicating a post office to Lieu. After, he had it write a speech for Johnson to deliver in introducing the bill on the House floor.
“It was a beautiful speech,” Lieu quipped.
“It kind of also freaked us out,” Johnson said.
Rep. Haley Stevens, D-Mich., said that despite being in her third term in Congress, she’s “never been to a meeting like this,” and praised Lieu and Johnson for bringing together “a total cross-section of our entire Congress to engage in a topic that is transforming our world.”
Rep. Anna Eshoo, D-Calif., who co-chairs the Congressional AI Caucus, called Altman very “forthcoming” and “wonderful to have a thoughtful conversation.”
“There isn’t any question where he pulls back on anything,” she said, adding that lawmakers had very thoughtful things to ask.
Eshoo said she had invited Altman to speak to the caucus, but that Speaker Kevin McCarthy, R-Calif., and Minority Leader Hakeem Jeffries, D-N.Y., insisted it be open to the entire chamber. Eshoo said she welcomed the opportunity.
“You have to understand something before you can accept or reject it,” Eshoo said. “But then, it’s like getting socks on an octopus, because it covers everything.”
One of those tentacles has to do with copyright law, something House Judiciary Subcommittee on IP Chair Darrell Issa, R-Calif., has been thinking a lot about.
Issa said he’s “very interested in fairly quickly providing additional guidelines for the copyright office,” adding that even if entirely AI-generated content can’t be covered by copyright, there needs to be guidance about when material that was created with the assistance of AI can be copyrighted.
As for Altman, Issa said that in general, “He made it clear that this can’t go forward without some legislative and regulatory action, and at the same time, it would be adverse to shut down the momentum. So it’s, how do you develop guardrails without sideswiping it or taking it off the road?”
Rep. Jay Obernolte, R-Calif., who has a graduate degree in artificial intelligence and sits on the congressional AI caucus, said he discussed with Altman the potential to regulate the precursors to the technology, much like is done with the raw materials needed to make nuclear weapons. Obernolte suggested this might take the form of an international registry that keeps track of which entities have enough computing power to create advanced AI.
Rep. Ro Khanna, D-Calif., whose district spans part of Silicon Valley, said Altman made two important points to members in the room.
“One is that AI is a tool, not a creature,” he said. “This is something that is going to assist human beings not replace human beings. Second, that it will do tasks, not jobs. This is something that’s going to help people with the jobs they have, not displace those jobs. And so I think it’s been a sober conversation that’s helping members understand what the tool actually does and help refute some of the hype.”
Still. there are unanswered questions about the vast capabilities of AI, where Congress should step in, and OpenAI’s approach to harnessing the technology. For example, some experts have critiqued the company for choosing to be less forthcoming about what went into making its latest large language model, GPT-4, something its executives have defended as an important competitive and safety move.
Khanna said the question of openness of the model is something he’s discussed with Altman before, though not at Monday’s dinner.
“The challenge and the value we have to contemplate is the value of having this be open source so other non-incumbents can participate,” Khanna said. “But the danger of open source is they could get into the wrong hands. And there’s a trade off between that.”
Nvidia CEO Jensen Huang arrives at the launch of the supercomputer Gefion, at the Vilhelm Lauritzen Terminal in Kastrup, Denmark, Oct. 23, 2024.
Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters
Nvidia reports fiscal third-quarter earnings Wednesday after the market closes.
Here’s what Wall Street is looking for, per LSEG consensus estimates:
Revenue: $33.16 billion
Earnings per share: 75 cents, adjusted
How Nvidia sees the current quarter shaping up is even more important than the results. Investors want to see if the chipmaker can continue to grow at a fierce rate, even as the artificial intelligence boom enters its third year. Wall Street expects Nvidia to forecast 82 cents per share on $37.08 billion in sales.
Much of that future growth will have to come from Blackwell, its next-generation AI chip for data centers currently shipping to customers Microsoft, Google and Oracle.
Analysts will listen carefully to comments from CEO Jensen Huang to hear what he says about the demand for Blackwell. The company could also address reports that some of the systems based on Blackwell chips are experiencing overheating issues.
In August, Nvidia said it expected about “several billion” in Blackwell sales during the January quarter.
Nvidia stock has nearly tripled since the start of 2024.
The company reported a 122% growth in sales in the most recent quarter, but that was a slowdown from the 262% year-over-year growth it reported in the April quarter and the 265% growth in the January quarter.
Bitcoin advanced past $94,000 on Wednesday for the first time as traders continued to monitor President-elect Donald Trump’s transition back to the White House and weighed early options trading on bitcoin ETFs.
The price of the cryptocurrency was last higher by more than 1% at $94,461.75, according to Coin Metrics. Earlier, it traded as high as $94,834.33.
Coinbase shares rose 2%. Meanwhile, MicroStrategy jumped 8%, bringing its week-to-date gains to 36%.
Bitcoin has been regularly hitting fresh records since the election, though in smaller increments since the postelection rally faded last week, on hopes that Trump will usher in a crypto-friendly era for the industry that includes a more supportive regulation and a potential national strategic bitcoin reserve or stockpile.
Bitcoin continues its climb toward $95,000
Traders this week are keeping a close eye on Trump’s appointments for Treasury Secretary and the Securities and Exchange Commission chair.
“We’re still very much in a phase of kind of pricing in the Trump trade,” said Joel Kruger, market strategist at LMAX Group.
He also pointed to the “mainstream, institutional adoption that we’re getting by way of the approval of the bitcoin and ETH spot ETFs this year” and options trading on those ETFs going live beginning Tuesday, which he called “another reflection of the maturation of the crypto market.”
Elsewhere, traders are looking forward to Nvidia earnings after the bell, which could impact bitcoin’s price. The cryptocurrency often benefits from moves in risk assets broadly, more so this year as institutional investors have become more comfortable with it thanks to bitcoin ETFs.
Don’t miss these cryptocurrency insights from CNBC PRO:
Fabien Pinckaers, CEO of Belgian-based enterprise software startup Odoo.
Odoo
Odoo, a startup taking on SAP in the realm of enterprise software, boosted its valuation to 5 billion euros ($5.3 billion) in a secondary share round led by Alphabet‘s venture fund and Sequoia Capital.
The Belgium-based company develops open-source enterprise resource planning software, with over 80 applications available on its platform offering businesses tools for accounting, customer relationship management, human resources and e-commerce and website building.
Fabien Pinckaers, CEO and co-founder of Odoo, told CNBC in an interview this week that his company didn’t have a need to raise any primary capital as it is “cash profitable” and growing revenue at a rate of 50% year-over-year. Enterprise resource planning, he said, is “still a very fragmented market.”
“The reason everybody [has] failed [in this market] is that it’s quite complex,” Pinckaers told CNBC. “Small companies have complex needs from accounting to inventory, to website, e-commerce, point-of-sale. It’s a lot and they don’t have budget, and they need something that is simple and affordable.”
“Nobody succeeded to get both,” he added. “You have complex products like SAP that run well for large companies. But it’s complex and expensive.”
Andrew Reed, partner at Sequoia Capital, added that the market Odoo is addressing “just requires more gestation time than most startups both because the core system is very complex, and making it simple to use for small businesses and various countries is no small feat.”
Humble beginnings
Odoo “is not your traditional Silicon Valley tech story,” according to Reed.
Pinckaers opened the company’s first-ever office 22 years ago on a farm in Belgium. That was all he could afford at the time. Later, as the company started bringing in revenue, Odoo opened two additional offices in Belgium, home to the firm’s research and development, support and technical teams.
Today, Pinckaers resides in India with his family. He’s lived there for a year now, working to expand the company’s presence there, hiring more people, increasing marketing and broadening Odoo’s overall partner network.
Odoo had billings of 370 million euros last year and is on track to top 650 million of billings in 2025 — after that, the company is hoping to top the 1 billion-euro billings milestone by 2027. Billings — or the total sum of all invoices for a given year — is Odoo’s preferred metric for tracking annual revenue performance.
Around 80% of Odoo’s business today accounts for open-source software, with the remaining 20% coming from software licensed for a fee, Pinckaers said. Open source refers to a type of software that allows users to access the underlying code — most often free of charge — which they can then modify and adjust.
In no rush to IPO
Despite Odoo now being at the scale of an IPO-ready business, Pinckaers said he’s in no rush to take the company public. If anything, remaining private has given Odoo flexibility to stay focused on investing for the long term, he said.
Odoo’s private backers aren’t in a rush for the firm to go public, either. Alex Nichols, partner at Alphabet’s CapitalG, told CNBC that he’s not worried about “IPO timing,” adding that factors like public market conditions are ultimately “out of our control.”
Pinckaers built the business to the size it is today primarily by bootstrapping — that is, growing without raising external funding. Odoo hasn’t had to raise primary capital from investors in a decade, opting instead to let early investors and employees sell shares in secondary sales.
The last time Odoo secured primary funding was in 2014, when it raised $10 million in a Series B round. Prior to the latest secondary round, Odoo was most recently valued by investors at 3.2 billion euros.
Odoo’s other backers include the likes of private equity firms Summit Partners, Noshaq, and Wallonie Entreprendre, which all sold a portion of their shares to CapitalG and Sequoia as part of the 500-million-euro investment announced on Wednesday.
Even after selling a portion of its shares, Summit remains Odoo’s largest institutional shareholder. Pinckaers himself has never sold his own personal shares.