Microsoft CEO on Sam Altman and OpenAI Drama; Hostage Talks Progress Between Israel and Hamas
On today's podcast:
1) OpenAI said it’s in “intense discussions” to unify the company after another tumultuous day that saw most employees threaten to quit if Sam Altman doesn’t return as chief executive officer.
2) Microsoft Chief Executive Officer Satya Nadella signaled that he’d be open to Sam Altman going back to OpenAI, rather than joining his company as part of a surprise move announced over the weekend.
3) The leader of Hamas said his group was close to reaching a “truce agreement” with Israel via Qatari mediation in rare public comments that suggest talks over freeing some hostages held by the Gaza-based group are progressing.
4) Nvidia’s quarterly results could still exceed sky-high investor expectations thanks to strong demand for generative artificial intelligence.
Good morning. I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the controversy surrounding open Ai. A day after the founder, Sam Altman left for Microsoft, the firm says it is in quote intense discussions to unify the company. In an internal memo reviewed by Bloomberg News, Vice president of Global Affairs, Anna Macanju says open Ai management is also in touch with Aldman. In an interview with Bloomberg News, Microsoft CEO Satia Nadella signaled he would be open to Aldman going back to open ai. We really want to partner with open ai, and we want to partner with Sam. And so you respect to where Sam is. He's working with Microsoft, and that is the case on Friday, and that'll be that's the case today, and we will I absolutely believe that'll be the case tomorrow. Microsoft CEO Satia Nadella says, no matter what happens, open ai needs governance changes. Microsoft shares closed at a record high yesterday. Nearly all of open AI's employees threatened to quit and follow Altman to Microsoft unless the current board resign. Gene Munster managing partner at deep Water Asset Management thinks Altman will land back at open AI. The board's going to be gone. So when if Altman goes back, by the way, that is my prediction what happens here. I think he's actually going to return to open AI. If he goes back to open AI, they're going to be more aggressive at opening these models up. And if he stays with Microsoft, they're going to be more aggressive. And I think at the end of the day, you're probably going to see faster adoption of AI features. It's been coming at a neck break speed, but I think it's going to be even faster based on everything that's happened here. This is really allowing Altman to take his gloves off and probably do what he's wanted to do for the last eight years, and that's deep Water Asset Management's Gene Munster speaking to Bloomberg. Now, let's get to the latest from the Middle East. The leader of Hamas Ismail Hania says his group is close to reaching a truce agreement with Israel through talks mediated by contract President Biden has said both sides are near a deal to free some of the two hundred and forty hostages Hamas seized in the October seventh attack. White House National Security spokesman John Kirby says there would need to be a pause in the fighting if you're going to secure the release of hostages, and we certainly hope we're going to be able to do that soon. You got to make sure they can get from where they are to safety and do that as safely as possible, which means you're going to have to have at least a temporary, localized stop in the fighting. White House spokesman John Kirby says it's been difficult getting information on the hostages because Hamas has control of that access. Meantime, Israeli forces continue to engage in heavy fighting in the Northern Gaza Strip. Israel's taking control of much of the Alshifa Hospital, which it says Hamas used as a command and control center. Well Nathan, the White House is open accounts on Meta's social media platform as threads for the President and Vice President, and Bloomberg said Baxter has the details. The White House says it's just another way to meet people where they are. It says it's been using different forms of media since the beginning of the administration, and this has been in motion for several weeks now, but the timing does come in the wake of Elon Musk's endorsement of antisemitic content, and according to sources, the White House is not considering ending its use of ex accounts because of that, although they do say the Musk post angered Biden and his aides Ed Baxter Bloomberg Radio OK, thank you. A new front's opening in the US China chip conflict. President Biden is shifting focus to an emerging area of the contest for technological supremacy, the process of packaging semiconductors that has increasingly seen as a path to achieving higher performance. The US isn't alone though, in recognizing the potential of so called advanced packaging. China too is capitalizing on an area that is not subject to sanctions, capturing global market share and achieving progress that it was denied in manufacturing high end chips well staying with ships. Nathan Nvidia reports earnings after the bill. The high flying semiconductor stock is up two hundred and forty five percent so far this year year. Mandy Singh, senior technology analysts for Bloomberg's and Video shares closed at an all time high yesterday, and Karen was staying on the earnings front. Zoom reported better than expected revenue on strong enterprise sales. The company who signature video software became the essential communications tool for home bound Americans during the pandemic, has now turned its focus to business customers, as Zoom has added features for those clients, including word processing, and stepped up the use of artificial intelligence to buttress its main video conferencing service. Nathan Investors also have their eyes on US treasuries, wondering if the world's deepest dead market will suffer a third straight year of losses, and we get more in this live report from Bloomberg's John Tucker. John, Good morning, Karen. Investors who anticipated twenty twenty three would be the year of the bond were instead hit by waves of turmoil, but the year may have a happy ending, as treasury sore this month, traders now bet the Fed is done with hiking interest rates and in fact will cut rates of the first half of next year. You hope that happy narrative gets support when the Fed today releases minutes of its last policy meeting. The surgeon bond price has also got a green light to continue yesterday after an auction of twenty year debt went off without a hitch. US treasuries have gained two point six percent this month through Friday, cutting the loss for the year to merely two tenths of a percent, according to data compiled by Bloomberg John Tucker Bloomberg Radio, All right, John, thank you. Finally, as we approach the Thanksgiving holiday, Black Friday and Cyber Monday, spending are projected to hit new highs. Consumers plan to spend an average of five hundred and sixty seven dollars during those two shopping events. That would be a thirteen percent increase from last year. That result is a record for Deloitte's annual Black Friday Cyber Monday survey. About eighty four percent of shoppers say they feel confident enough to stick with the budgets they set in September four and ten say they will finish their holiday shopping during this long holiday weekend, futures pointing to a month honestly hire open this morning on Wall Street. This is Bloomberg sor Ry Nathan. Thanks. It's time now for a look at some of the other stories making news around the world. For that were joined by Bloomberg's Amy Morris Amy, Good Morning, Good morning, Karen. Police in Ohio see a shooter opened fire at a Walmart, wounding four people before apparently killing himself. The attack took place last night out of Walmart and Beaver Creek in the Dayton metropolitan area. Beaver Creek Police Captain Scott Molnar says the four victims are currently being treated for their injuries. Centured four victims. The conditions of the victims right now is unknown, as they were all transported to area hospitals for treatment. Police did not immediately release the name of the gunman or a possible motive for the attack. Meanwhile, in Colorado, another mass shooting, police say three people are dead and fourth is in critical condition after a gunman opened fire in Custer County. Police say that gunman is on the run. They believe he was in a civil dispute with one of the victims over property lines. Donald Trump's gag order our hearing is over a panel of three federal appeals witnesses appeared reluctant to give Trump a green light to resume public attacks on witnesses, prosecutors, and court staff, but they did signal that they would be open to narrowing the scope of the gag order. Judge Patricia Millett, we certainly want to make sure that the criminal trial process and its integrity as truth finding function are protected. Use a careful scalpel here and not step into really sort of skewing in the political arena, don't we. The DC Circuit put the case on a fast track rather than a typical appeal, but did not say when it plans to rule. Trump's lawyers have already said they'll ask the Supreme Court to intervene if the Appeals Court doesn't lift the full order. Thanksgivings just two days away, but t