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Microsoft had no official say with the board when Altman, the company’s key contact, was fired. That is partly as a hedge for the fact it has no control over the start-up’s board. It involves the holy grail of OpenAI’s work: achieving artificial general intelligence, or A.G.I. Scott Syphax, a corporate governance expert, told DealBook that the deal could raise red flags with regulators if it threatens the nonprofit’s tax-exempt status. Another area Syphax is watching: the valuation that Microsoft placed on OpenAI after its investment and whether it acquired the I.P.

Persons: Altman, Nadella, Kara Swisher, Brockman, ”, Microsoft’s, Scott Syphax, DealBook, Bill Gurley, Satya Organizations: Microsoft, Times Locations: “, Grubhub

of OpenAI, the leader in commercializing generative A.I. By Monday, he had not only been fired by his board — he had also joined Microsoft, the start-up’s biggest backer. A recap:OpenAI’s board fired Altman for not being “consistently candid.” Greg Brockman, another co-founder, was stripped of his chairman title and quit. Talks to bring Altman back broke down, with OpenAI’s board eventually naming Emmett Shear, the former C.E.O. (Some OpenAI employees workers wrote on X that “OpenAI is nothing without its people,” posts that Altman liked.)

Persons: Sam Altman, Altman, Greg Brockman, OpenAI —, —, Emmett Shear, Mira Murati, Brockman, Ilya Sutskever, Elon Musk, Geoffrey Hinton Organizations: Microsoft, up’s, OpenAI Locations: OpenAI, ChatGPT

Social media’s antisemitism problemThe rise in antisemitism since the outbreak of war in the Middle East has ignited a clash between Wall Street donors and universities, and divided some workplaces. Now, the pressure is building on social media platforms, particularly Elon Musk’s X and TikTok, with advertisers, celebrities and influencers pulling spending and confronting executives about the proliferation of hate speech. He posted to X his support for white nationalist conspiracy theories that Jewish communities were spreading hatred. Yaccarino was brought in to win back advertisers after Musk bought Twitter last year and culled many content moderators. More than a dozen Jewish celebrities and creators, including the actors Sacha Baron Cohen, Debra Messing and Amy Schumer, confronted TikTok executives this week.

Persons: Elon Musk’s, Adolf Hitler, Musk, X’s, Linda Yaccarino, Yaccarino, “ Linda, ” Martin Sorrell, DealBook, TikTok, Sacha Baron Cohen, Debra Messing, Amy Schumer, “ Hitler, Anne Frank ”, Cohen, ”, Osama bin, bin Laden, —, Alex Haurek, George Santos, Biden, Xi Jinping, Doug McMillon, Walmart’s, “, ” Brian Cornell, ’ Organizations: IBM, Media, America, Nazi Party, Apple, Oracle, Defamation League, Twitter, S4 Capital, House, Big, General Motors, Hyundai, Republican, Justice Department, Business, APEC, West Texas Intermediate, Consumers, Depot, Walmart Locations: TikTok, New York, Hong Kong, China, San Francisco, Beijing, Washington, U.S

Biden and Xi try direct diplomacyThe mood music was upbeat but pragmatic after the first face-to-face meeting in a year between President Biden and his Chinese counterpart, Xi Jinping. There was no joint communiqué after Wednesday’s talks, but both sides issued positive statements trumpeting where they found common ground, including on tackling climate change and improving communications. The leaders agreed to restart military communications that were suspended last year after Nancy Pelosi, then speaker of the House, visited Taiwan. Larry Fink of BlackRock and Steve Schwarzman of Blackstone reportedly sat at the Chinese leader’s table. The measure would keep the federal government funded through early next year, clearing the way for President Biden to sign the legislation.

Persons: Biden, Xi, Wednesday’s, Nancy Pelosi, —, Larry Fink, BlackRock, Steve Schwarzman, Blackstone, Tim Cook, Albert Bourla, Ray Dalio, ” Richard McGregor, DealBook, “, they’re, Kamala Harris, Elon Musk, Jensen Huang, Nelson, Trian Organizations: Hyatt Regency, Apple, Pfizer, Bridgewater Associates, Lowy Institute, SpaceX, Tesla, Nvidia, Disney, ValueAct Capital, 13D, Microsoft Locations: San Francisco, U.S, Taiwan, China, Beijing, Iran, Israel, Australia, Ukraine

Good news for global marketsYesterday’s impressive rally in U.S. stocks and bonds has gone worldwide this morning, as investors see central banks making gains in their fight against inflation. Adding to the good news was a breakthrough in the House last night that could avert a government shutdown. The question now is whether this represents a false dawn on inflation, or the start of a durable decline in rising costs — and interest rates. President Biden, whose poll ratings have been hurt by inflation, also cheered the numbers. And consumer spending and industrial output in China rebounded last month, a hopeful sign for the world’s No.

Persons: Biden Locations: Britain, China

What to watch for in Tuesday’s inflation numberThe markets have rebounded from their fall swoon — with the S&P 500 up more than 7 percent over the past two weeks — as investors grow more optimistic that the Fed is done raising interest rates. That conviction will be put to the test with a new batch of inflation data this week, starting with Tuesday’s Consumer Price Index data at 8:30 a.m. Eastern. It arrives amid deep divisions on Wall Street over the Fed’s next move, and as inflation weighs heavily on President Biden’s poll numbers. Tuesday’s figure could signal that progress on inflation is slowing. That’s no better than the September figure, and well above the Fed’s 2 percent target.

Persons: Biden’s Organizations: Tuesday’s, Wall, Deutsche Bank

The summit won’t end the standoff between the world’s biggest economies. But it’s a sign that Biden and Xi want to maintain ties, despite trade tensions, tit-for-tat sanctions and questions about the future of Taiwan — and business leaders will be hoping for some sign of a thaw. Officials have been at pains to emphasize that the U.S. and China are competitors rather than zero-sum rivals. “We have a $700 billion trading relationship with China. The vast majority — 99 percent of that — has nothing to do with export controls,” Gina Raimondo, the commerce secretary, told CNN this weekend.

Persons: Biden, Xi Jinping, Xi, —, ” Gina Raimondo, Jake Sullivan, Janet Yellen, ” Xi, ” Organizations: CNN Locations: China, Washington, Beijing, San Francisco, Taiwan

Stock futures this morning are pointing to another weak open. The subdued jobs report released last week led many on Wall Street to predict that the Fed would stop increasing borrowing costs. Not so fast, the central bank’s chief suggested at an event hosted by the International Monetary Fund in Washington. He called out the “head fakes” posed by fluctuating inflation data, and reiterated that the door remained open for further interest rate increases. (Speaking of doors: Powell appeared to lose his cool when climate change protesters disrupted his speech, issuing a profanity as they were escorted off the stage.)

Persons: Jay Powell, —, Powell hasn’t, ”, Powell Organizations: Stock, International Monetary Fund Locations: Ukraine, Washington

The White House is seen at dusk on September 30, 2023 in Washington, DC. Moody's Investors Service on Friday lowered its ratings outlook on the United States' government to negative from stable, pointing to rising risks to the nation's fiscal strength. The ratings agency has affirmed the long-term issuer and senior unsecured ratings of the U.S. at Aaa. Moody's move to cut its outlook arrives as Congress faces the looming threat of a government shutdown once more. "Moody's decision to change the U.S. outlook is yet another consequence of Congressional Republican extremism and dysfunction," White House press secretary Karine Jean-Pierre said in a statement.

Persons: Moody's, Wally Adeyemo, Mike Johnson, Karine Jean, Pierre, Fitch Organizations: Moody's, Aaa, United States, Republican, White, Democratic, AAA Locations: Washington ,, United States, Washington, United, American, Jan, U.S

Hollywood is poised to get back to workAfter months of strikes that shut down most of Hollywood, the end appears in sight. The SAG-AFTRA union that represents some 160,000 members tentatively agreed to a new contract with media giants that, if approved, will reinvigorate the $134 billion American movie and television business. Union members are hopeful that the deal will bring significant financial concessions that made SAG-AFTRA’s longest-ever strike worth it. But the changing economics of Hollywood may temper some gains, echoing the dilemma facing resurgent unions elsewhere in the country. Led by the actress Fran Drescher, of “The Nanny” fame, SAG-AFTRA took a maximalist negotiating approach that involved accusing studios of plutocracy and belittling their bosses.

Persons: Fran Drescher, ”, AFTRA Organizations: Hollywood, SAG, Writers Guild of America Locations: Hollywood, plutocracy

Investors await news on deals, cuts and moreOn Wednesday, Bob Iger will deliver one of the most consequential earnings reports for Disney since returning as C.E.O. He has had to confront many problems, including a slumping share price, strikes that have crippled much of Hollywood, the wrenching transformations wrought by streaming and renewed pressure from the activist investor Nelson Peltz. Progress on potential deals and asset sales: Since Iger opened the door to selling Disney’s declining but profitable traditional TV business and bringing in an investor for ESPN, investors have eagerly awaited what’s next. (Disney, which last month began breaking out financial results for ESPN, has concluded that any deal should be with a sports league or leagues.) Cost cuts: Months of Hollywood strikes — talks between studios and the actors’ on Wednesday will resume on Wednesday — may have saved Disney money on production costs.

Persons: Bob Iger, Nelson Peltz, Iger, what’s, —, ’ Organizations: Disney, ESPN, Hulu Locations: Hollywood

Biden’s troubles stem in large part from negative perceptions about the economy, even as several indications show that it is performing strongly. Here’s a deeper look at what “Bidenomics” has, and hasn’t, accomplished. Since Biden took office, employers have created 14 million jobs, and the unemployment rate has been hovering around a 50-year-low for months. “Bidenomics is just another way of saying the American dream,” he said in a speech. The economy grew last quarter at nearly 5 percent, belying a global slowdown.

Persons: Biden, Donald Trump —, ”, Bidenomics, It’s Organizations: Infrastructure Investment, Jobs Locations: America

(That’s despite Trump being nearly as unpopular and fighting multiple legal battles; he is taking the stand on Monday in one of them. And, on PredictIt, which is watched by political experts, Biden holds a six-point lead on Trump.) Just 2 percent of voters said the economy was excellent, the poll found. Worryingly for Biden, that discontent is being reflected in demographics crucial to his re-election: 48 percent of Black voters in the Times/Siena poll rated the economy as poor, as did 59 percent of voters under 30. Zero respondents in that age group in Arizona, Nevada and Wisconsin rated the economy as excellent.

Persons: Biden, Donald Trump, Trump, Worryingly Organizations: Trump, White, Biden, Times Locations: Siena, PredictIt, Arizona , Nevada, Wisconsin

The rule, de minimis, exempts packages shipped into the United States from duties and fees if they are worth less than $800. U.S. retailers want that rule changed. Over six years, that amounted to about $100 million in duties that could have been invested in modernizing the business, he added. Temu and Shein most likely account for 30 percent of packages shipped daily under the provision, according to a report from the House Select Committee on the Chinese Communist Party. A Shein spokeswoman said de minimis “is not critical to the success of our business,” and in July, Shein’s executive vice chairman said the company was “eager” to work with lawmakers to help change the rule.

Persons: de, minimis “, David Bridal’s, Jim Marcum, DealBook, Marcum, ” Organizations: Customs, Chinese Communist Party Locations: United States

From crypto wunderkind to felonIt took jurors just four-and-a-half hours yesterday to reach a verdict in the monthlong fraud trial of Sam Bankman-Fried, the founder of the fallen cryptocurrency exchange FTX. The result was unanimous: guilty on all counts. Bankman-Fried has now completed a narrative arc from whiz-kid founder of a crypto empire to fraudster who stole billions in customer funds. Prosecutors moved to paint the FTX founder — who appeared on magazine covers and hobnobbed with former world leaders — as a scammer who repeatedly lied about his business and profited from illegal use of investor and customer funds. “This was a fraud that occurred on a massive scale,” Nicolas Roos, a prosecutor, said in closing arguments.

Persons: Sam Bankman, Fried, fraudster, —, ” Nicolas Roos Organizations: Stanford, Prosecutors

Elite law firms send a messageWith universities across the United States grappling with a rise in antisemitism since the start of the Israel-Hamas war, elite law firms are putting schools on notice. In a letter to some of the nation’s top law schools obtained by DealBook, about two dozen major Wall Street firms warned that what happens on campus could have corporate consequences. The letter follows a series of recent antisemitic episodes at universities. Kathy Hochul of New York sought this week to reassure Jewish students at Cornell after online posts threatening violence against them. Students at other schools have said they feel increasingly unsafe amid rallies and other acts that, in some instances, have become violent.

Persons: Moore Debevoise, Plimpton Kirkland, Ellis Paul, Weiss, Garrison Simpson Thacher, Bartlett Skadden Wachtell, Lipton, Davis Polk, Israel, Kathy Hochul Organizations: DealBook, Rosen, Katz, Wardwell, Gov, New York, Cornell Locations: United States, Israel, Rifkind, Wharton, New

Waiting on the Fed and TreasuryThe Fed hasn’t budged on interest rates since July, and it’s expected to stand pat again today. Still, an anxious Wall Street will be closely watching for any change in the central bank’s higher-for-longer strategy on rates, including the possibility of a new increase as soon as next month. Before Jay Powell, the Fed chair, speaks this afternoon, the Treasury Department will take center stage. But this Treasury update comes against a backdrop of big tensions in the bond market. Yields on 10-year Treasury notes jumped to a 16-year high last month as investors dumped bond holdings, sending borrowing costs higher for consumers and businesses.

Persons: Wall, Jay Powell Organizations: Fed, Treasury, Treasury Department

The biggest involved Alameda Research, the sister hedge fund he controlled that’s at the heart of a collapse that has cost investors, business partners and customers billions. Under questioning, he conceded that he played a larger role at Alameda before it imploded. His decision to testify was long seen as risky, and that became clearer yesterday. The 31-year-old, who faces nearly a lifetime in prison on fraud and money-laundering charges, delivered curt “yep,” “no” and several “I’m not sure” responses, the latter drawing rebukes from the judge. The lead prosecutor used Bankman-Fried’s own words against him.

Persons: Sam Bankman, Fried, curt “ yep, I’m, Danielle Sassoon, Antonin Scalia, Bankman Organizations: Alameda Research, Supreme, Twitter Locations: Alameda

rules in governments’ sightsPresident Biden is set to issue an executive order on artificial intelligence on Monday, in his first effort to regulate how U.S. companies develop it and how regulators oversee the technology. The order will create standards for American companies and public agencies. Biden will invoke the Defense Production Act, which lets the president mobilize U.S. industry to support national defense. The order will require companies developing A.I. that “poses a serious risk to national security, national economic security, or national public health and safety” to notify the government when training their systems.

Persons: Biden

In reaching a tentative contract with the U.A.W., Ford has moved to make peace with restive employees, one of the most costly problems it has faced in recent years. With that in mind, investors are weighing how much this week’s preliminary deal might weigh on the automaker as it deals with a different major issue: slower-than-expected demand for electric vehicles. The new contract could cost Ford up to $2 billion annually over four years, according to Barclays analysts, or about 1 percent of sales. Employees were jubilant about the preliminary deal, which includes a 25 percent pay increase over the life of the contract and improvements on job security, pensions and more. “This is the best contract I have seen in my 30 years with Ford,” one worker, Robert Carter, told The Times.

Persons: Ford, Robert Carter Organizations: Ford, Barclays, Employees, Times

Wall Street’s real-life “Succession” has endedOne of Wall Street’s most closely watched succession races is over as Ted Pick prepares to become Morgan Stanley’s next chief executive. The path laid out by Gorman has made Morgan Stanley the envy of the financial world and helped it outpace its longtime rival, Goldman Sachs. Morgan Stanley’s board selected him over Andy Saperstein, who leads wealth management, and Dan Simkowitz, who oversees asset management. But Pick, a Morgan Stanley lifer who oversees investment banking and trading, is familiar with the most complex parts of the firm, making him in some ways the safest option. (Morgan Stanley is seeking to keep Saperstein and Simkowitz, making both co-presidents and giving them expanded portfolios.)

Persons: ”, Ted Pick, Morgan Stanley’s, James Gorman, Gorman, Morgan Stanley, Goldman Sachs, Pick, Andy Saperstein, Dan Simkowitz, Morgan Stanley lifer Organizations: HBO

A cloudy forecast for Big Tech and A.I. The verdict so far, based on quarterly earnings reports released on Tuesday: Only one of them is showing early progress. The company reported $56.3 billion in sales, largely on the strength of its Azure cloud business. Satya Nadella, Microsoft’s C.E.O., told analysts that more than 18,000 organizations were using Azure OpenAI, including new customers. (The Information reported on Tuesday that some early OpenAI customers were switching to cheaper alternatives … including Microsoft.)

Persons: Satya Nadella, Microsoft’s Organizations: Big Tech, Microsoft

Meanwhile, Meta has struggled with applying its content policies fairly across its platforms, including Facebook and Instagram, according to The Wall Street Journal. Experts say companies often find themselves out of their depth in talking about the knotty topic and that sometimes there’s little benefit to rushing out a statement. Some companies, especially those without operations in the Middle East, have chosen not to speak. In related news: How diplomats from the U.S., Qatar and elsewhere helped free two Americans taken hostage by Hamas. The two were far apart earlier this month on issues including streaming payouts and the use of artificial intelligence.

Persons: Dave Chappelle sparred, driller, Hess Organizations: U.S, Social, Israel, Meta, Facebook, Wall Street, ” Employers, Corporate, Web, Creative Artists Agency, Hamas, Exxon Mobil’s, Natural Resources, Republicans, SAG, . Tax, Big Tech Four, Microsoft, Apple, Nvidia, Nasdaq Locations: Israel, Gaza, U.S, Qatar, Ukraine, Chevron’s, Guyana, Texas, New Mexico

☆ Web Summit Chief Steps Down Over Israel Remarks
▼ + stars: | 2023-10-21 | by ( Michael J. De La Merced | More About Michael J. De La Merced | ) www.nytimes.com time to read: +2 min

The chief executive of Web Summit, one of Europe’s biggest technology conferences, stepped down on Saturday after major sponsors and speakers withdrew from the event, set for next month, following backlash over his public criticism of Israel’s response to the Hamas attacks. “I sincerely apologize again for any hurt I have caused.”A spokeswoman for Web Summit said that the organization aimed to appoint a new chief executive as soon as possible. Web Summit said on Friday that it expected about 70,000 people to attend, about the same as last year. Among those to drop out were Ravi Gupta, a partner at Sequoia Capital, and Garry Tan, the chief executive of the technology incubator Y Combinator. But by Tuesday, he published an apology on Web Summit’s site in which he said he defended “Israel’s right to exist and to defend itself.”

Persons: Paddy Cosgrave, —, ”, “, Cosgrave’s, Ravi Gupta, Garry Tan, Cosgrave Organizations: Web, Google, Intel, Meta, Siemens, Web Summit, Western, Sequoia Capital Locations: Irish, Lisbon, Israel

Worries are growing about how much the turmoil could cost the global economy. Brent crude, the global oil benchmark, hit a three-week high this on Fridayfears that a military escalation could disrupt already tight supplies. In a speech largely focused on inflation, interest rates and economic growth, Jay Powell, the central bank’s chair, warned on Thursday that “geopolitical tensions are highly elevated and pose important risks to global economic activity.”The Middle East is becoming a wild card for the global economy. That would probably sap growth but might also slow the economy enough to negate the need for an additional interest-rate increase. The measures were announced days after the U.S. imposed tighter restrictions on sales of more advanced semiconductors to China.

Persons: Biden, —, Brent, Jay Powell, Powell, ” Powell, Kamala Harris, Jay Monahan, David Zaslav, Jim Jordan, Patrick McHenry, Jordan, there’s, Fran Drescher, George Clooney, ” Drescher, Sidney Powell, Donald Trump’s Organizations: Gaza, Israel, U.S . Navy, Intel, Siemens, European Commission, Digital Services, PGA, Warner Bros, Hollywood, SAG, Trump Locations: Mideast, Israel, Ukraine, Lebanon, U.S, Iran, Yemen, Syria, Iraq, Lisbon, Ohio, Trump . China, Beijing, China

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