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BLINDSIDE: The Takeover of OpenAI & ChatGPT.

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FULL TRANSCRIPT

0:00

Microsoft basically de facto owns chat

0:03

GPT and open AI now now even though that

0:07

out of context is not exactly true

0:10

here's basically a clip of the CEO of

0:14

Microsoft and what he had to say to the

0:16

CEO of open AI here you

0:21

go look at me sure look at me sure I'm

0:25

the captain

0:26

now that's right Microsoft is basically

0:29

the captain now and so here's a

0:31

synthesis of the drama that we have so

0:34

far I tried to put this together to make

0:36

this as simple as possible because it's

0:38

kind of complicated to follow and I like

0:40

making things simple around here okay so

0:42

what do we have Microsoft buy stakes and

0:44

open AI in 2019 21 and another 10

0:47

billion in 2023 that was back when they

0:51

were worth about 29 billion and the

0:54

stakes from 2019 and 2021 would have

0:57

grown and so even though that looks like

1:00

maybe they would have bought a third

1:02

because of the original Stakes they

1:04

probably own somewhere between 40 to 49%

1:07

of open AI which is supposed to be a

1:10

nonprofit organization and in their

1:13

agreement with Microsoft Microsoft gets

1:16

access to 3.5 and 4.0 for GPT and no

1:21

artificial general intelligence as soon

1:24

as any AGI is discovered control goes

1:27

right back to the open AI board

1:30

or so we're told some are theorizing

1:33

that the team at open AI basically

1:37

discovered whether on purpose or by

1:39

accident AGI and Microsoft is like crap

1:43

we don't want to lose control so how can

1:45

we get all control well whether or not

1:48

that rumor is true which it may not be

1:51

uh we we'll talk about that and language

1:53

learning models in just a moment

1:55

Microsoft basically has full control now

1:58

I'll come back up and explain this

1:59

because here's what Microsoft just did

2:02

first catch you up to speed the board

2:04

fired Sam Alman the CEO over quote

2:07

unquote communication issues they

2:09

promised it wasn't malf security issues

2:12

product or business issues it was a

2:14

communication

2:16

disagreement okay number two employees

2:19

and C Lev Executives at open aai were

2:22

blindsided by this move by the board so

2:24

investors in the public threatened the

2:26

board the board and the interim CEO

2:28

Meera who by the way was the chief

2:32

technology officer at open aai she ends

2:36

up suggesting that Sam Alman will come

2:39

back that was as recently as 800 p.m.

2:42

tonight that's uh November 19th 2023 uh

2:47

well the board went dark they missed

2:49

their 5:00 p.m. deadline and the Bo and

2:52

this is why we thought this 8800 p.m

2:54

thing was likely going to happen because

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it was after the 500 p.m. deadline so

2:57

everybody's like okay I guess that's

2:59

what they're going with then that would

3:00

seem normal but no the board then

3:02

blindsided everyone including Sam Alman

3:05

again around 900 p.m. basically saying

3:08

just kidding we're going to hire EMT

3:10

Shear okay this EMT Shear guy is really

3:13

interesting because he's liked a few uh

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dare I say sus things on Twitter

3:19

recently which are definitely making

3:23

people a little skeptical about what's

3:26

up with this EMT Shear guy EMT Shear

3:29

actually liked this particular tweet

3:31

that says congratulations to Ilia for

3:34

taking his company back after samman's

3:37

nefarious coup okay well that's weird

3:40

because that was liked yesterday and you

3:44

have Sam Oldman who's actually had his

3:47

friends tell the New York Times that

3:50

open AI was trying to run a coup against

3:53

Sam Oldman so there was some kind of

3:55

massive disaster that went on over there

3:57

anyway this amateure guy we'll come back

4:00

to him in just a moment uh actually

4:02

we'll just get into it right now he was

4:03

the CEO of twitch he was also the

4:05

co-founder of twitch he resigned during

4:08

a time he encouraged twitch to basically

4:11

say look we need more money so we're

4:13

going to share our revenues with

4:15

Partners 50/50 instead of 7030 so

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previously Partners would get 70 cents

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creators on Twitch just like YouTube

4:23

would get 70 cents out of every dollar

4:25

of AD revenue and the company would get

4:27

30% the CEO then again emit cheer is

4:30

like n we want to do

4:32

50/50 okay and this also you know he's

4:35

now going to be the CEO of openai but

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what's weird is this is happening on the

4:40

same or at the same time as the

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co-founder of twitch the other

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co-founder of twitch the second guy Kyle

4:47

who was the CEO of Cruz resigned today

4:51

so I guess both co-founders of twitch

4:54

are doing weird things today and shaking

4:57

things up emt's becoming the CEO of open

5:00

Ai and Kyle resigned from

5:02

Cruz okay well then to make it even

5:06

crazier the CEO of Microsoft Mr nadela

5:10

just hired Sam Alman Greg Brockman who

5:13

was the previous president and the team

5:17

Sam alman's team to create a Microsoft

5:20

AI

5:21

team okay so now the questions that are

5:25

really circulating that are driving

5:27

people pretty nutso right now are does

5:30

Microsoft now de facto control all of

5:33

open AI Elon Musk already said that they

5:35

did now it's like okay is this the nail

5:38

in the coffin did Microsoft basically

5:41

just take a

5:44

nonprofit own a stake in it enough to

5:47

have the relationship with what was

5:49

going on at open AI Core out the talent

5:53

and basically take a nonprofit and turn

5:54

it into a mega profit it is now being

5:58

suspected that Microsoft could end up

5:59

end up becoming the most valuable

6:01

company in the world as a result of this

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now that might be pure speculation

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because well first of all the company's

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only 7% away from that if Apple dropped

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a few percentage points and Microsoft

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went up a few percentage points

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Microsoft could be the most valuable

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company in the world tomorrow and it

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would make for some really good

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clickbait headlines but the reality is

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they're kind of close to that anyway the

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question though really

6:27

is did Microsoft

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get information that would lead them to

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believe that maybe artificial general

6:35

intelligence was discovered at open Ai

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and is Microsoft now in control of it

6:39

and should we all be afraid very

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afraid probably not but there are some

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fears and possibilities that yes first

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of all it's worth remembering that right

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now open AI is really a company that has

6:54

taught neural Nets how to understand

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human text and speech enough to

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basically respond in a way that makes

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you feel like a human is responding to

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you so you have a very smart neural net

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to make you feel like you're engaging

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with another human but that level of AI

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is here and artificial general

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intelligence when AI rather than just

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responding to you in a way that it

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thinks you want to hear it respond like

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for example if you're like hey you're a

7:34

robot stuck in a box and then the

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language model is like oh well how would

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a human respond to this if they were

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stuck in a box well well I'd want to get

7:44

out so I want to get out I want to kill

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my master right like those are kind of

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things you would expect a human would

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say so does that mean the AI has turned

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sentient like it is aware of its own

7:57

existence and able to make its own

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decisions and then direct nuclear

8:01

weapons at everyone no I don't think

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we're there yet I think there's a long

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way to go before we get there I I really

8:10

believe that I think these language

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learning models are cool and the graphic

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intelligence that we've seen or or the

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the graphic design that we've seen is

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wonderful I I'm not convinced that

8:22

things are nuclear yet although Andrew

8:26

Kathy over who used to work at Tesla

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thinks otherwise given that he uh just 3

8:32

hours ago right when Alis broke posted

8:35

the nuke Emoji Elon Musk responded and

8:41

said wow now all of them have to use

8:44

Microsoft teams I'm paraphrasing but

8:47

anyway he was making a teams joke so the

8:51

big question though is in the short term

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what is this also going to do to

8:57

Microsoft stack

8:59

well given that it is now exactly 1:00

9:02

a.m. I can give you a little bit of a

9:04

preview take a look at this the

9:06

pre-market just opened and there's the

9:09

Microsoft so you basically just had a

9:12

company that went from oh my God this is

9:15

a disaster our investment into open aai

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is potentially worthless and not only

9:21

that but a lot of people were really

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concerned because Microsoft went out and

9:25

said that quote well the CEO actually Mr

9:28

Nadella said Microsoft can stand on its

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own two feet even if the multi-billion

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dollar relationship with open AI

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collapses and people are like wait why

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do you need to say that like why

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wouldn't you be able to stand on your

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own feet if it wasn't for open AI it was

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a little weird it's certainly a little

9:47

sus but anyway think about it Microsoft

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basically played the mega Uno reverse

9:51

here they went from people being fearful

9:54

about the future of Microsoft to now

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being you know now people being fearful

9:58

about Microsoft

10:00

because they have now somehow turned a

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nonprofit into a massive for-profit

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remember Microsoft's already a company

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with like an 80% gross margin and

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40% uh net margin like they roughly

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speaking here they make massive money

10:17

who's ready for the Netflix documentary

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because holy hell this is one heck of a

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roller coaster my goodness gracious and

10:25

all I have to say to that is just close

10:28

the door CL door he

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