WEBVTT - How the ChatGPT co-founder got fired

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<v Speaker 1>My name is Lily Maddon and I'm a proud Arunda

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<v Speaker 1>Bungelung Cargoton woman from Gadigol Country. The Daily oz acknowledges

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<v Speaker 1>that this podcast is recorded on the lands of the

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<v Speaker 1>Gadighl people and pays respect to all Aboriginal and Torres

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<v Speaker 1>Strait Island and nations. We pay our respects to the

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<v Speaker 1>first peoples of these countries, both past and present.

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<v Speaker 2>Good morning and welcome to the Daily os It's Tuesday,

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<v Speaker 2>the twenty first of November. I'm Sam, I'm Zarah. It's

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<v Speaker 2>nice to be back on the podcast. Sarah. It is

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<v Speaker 2>nice to be a week away. You and I are traversing

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<v Speaker 2>across the world doing some.

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<v Speaker 3>Interesting I look forward to this month being our next

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<v Speaker 3>best month of podcast listeners, now that we also haven't

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<v Speaker 3>been here for a week.

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<v Speaker 2>Yes, the myth of listens going up when you and

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<v Speaker 2>I are not here and a half years ago. Okay,

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<v Speaker 2>what are we going to talk about today?

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<v Speaker 3>So last week one of the biggest names in artificial intelligence,

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<v Speaker 3>arguably the only name I know in artificial intelligence, Sam Altman.

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<v Speaker 3>He was removed as CEO of open Ai, the tech

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<v Speaker 3>company behind chat GPT.

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<v Speaker 2>If this technology goes wrong. It can go quite wrong,

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<v Speaker 2>and we want to be vocal about that. We want

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<v Speaker 2>to work with the government to prevent that from happening. Now.

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<v Speaker 2>Oltman co founded the company with Elon Musk. Might have

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<v Speaker 2>heard of him, and news of the board's decision to

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<v Speaker 2>dump him as CEO has taken many in tech and

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<v Speaker 2>business by surprise.

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<v Speaker 3>There are plenty of questions surrounding his departure. So in

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<v Speaker 3>the deep Dive today, I want to take you through

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<v Speaker 3>what we know about why Oltman was ousted. Before we

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<v Speaker 3>get there, though, Sam, what is making headlines.

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<v Speaker 2>The CEO of Optus, Kelly Bayo Rosemarin, has resigned after

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<v Speaker 2>a mass network outage earlier this month, which left ten

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<v Speaker 2>million Aussies without phone services. The outage occurred due to

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<v Speaker 2>a software upgrade, and over two hundred and twenty calls

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<v Speaker 2>to Triple zero failed to get through. During a Senate

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<v Speaker 2>hearing on Friday, rosemarn denied rumors that she was down,

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<v Speaker 2>but in a statement from Singtel, which is Optus's parent company, yesterday,

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<v Speaker 2>she said, having now had time for some personal reflection,

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<v Speaker 2>I have come to the decision that my resignation is

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<v Speaker 2>in the best interests of optis moving.

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<v Speaker 3>Forward, gender affirming procedures could be subsidized by Medicare. The

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<v Speaker 3>Medical Services Advisory Committee is considering an application that would

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<v Speaker 3>subsidize gender affirming surgery procedures, including facial and genital procedures,

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<v Speaker 3>chess surgery, and voice surgery. That's in a bid to

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<v Speaker 3>improve the quality of life of transgender people. The Committee

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<v Speaker 3>is an independent body that assesses and advises the government

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<v Speaker 3>on whether a new medical service should be publicly funded.

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<v Speaker 2>Over three thousand fires have broken out in Brazil this month,

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<v Speaker 2>destroying nearly seven hundred and seventy thousand hectares of the

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<v Speaker 2>largest tropical wetlands in the world. In the same period

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<v Speaker 2>last year, there were fewer than seventy fires in the area.

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<v Speaker 2>Endangered jaguars and more than one hundred and fifty other

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<v Speaker 2>mammal species are at risk from the destruction of habitat

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<v Speaker 2>caused by the blazers.

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<v Speaker 3>And the Good News. Gases produced by landfill in the

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<v Speaker 3>Act will be used to power over ten thousand homes.

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<v Speaker 3>The new gas expansion project at the Canberra Landfill Facility

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<v Speaker 3>will reduce carbon emissions by using methane from landfill to

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<v Speaker 3>then generate power. Once it's completed, the site should be

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<v Speaker 3>able to generate fifty thousand megawatt hours of energy. All right, Sam,

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<v Speaker 3>tell me, are you planning to set up a globally

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<v Speaker 3>defining tech company in the future.

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<v Speaker 2>No, globally defining media company would be nice. But it's

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<v Speaker 2>nice to be talking about Sam again. However, I am

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<v Speaker 2>noticing that every time there is a Sam on the podcast,

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<v Speaker 2>it's not for great reasons.

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<v Speaker 3>No, And I mean, if this is the first episode

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<v Speaker 3>you've listened to, we did an episode a week before

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<v Speaker 3>last about Sam Bankman free who was the founder of FTX,

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<v Speaker 3>and he was a tech founder who is now in jail.

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<v Speaker 3>This story is not following the same trajectory, but indeed

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<v Speaker 3>is another story I guess of the uber powerful like

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<v Speaker 3>very well known, very successful founder's named Sam, who are

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<v Speaker 3>having a bit of a fall from grace.

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<v Speaker 2>So why don't we start off with a bit more

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<v Speaker 2>information about Sam Altman? What do we need to know

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<v Speaker 2>about him as a founder?

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<v Speaker 3>So? Sam Altman is a thirty eight year old co

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<v Speaker 3>founder of the company that owns chat GPT. Now that

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<v Speaker 3>parent company is called open Ai, And though we've only

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<v Speaker 3>really been speaking about it recently, it actually was founded

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<v Speaker 3>in twenty fifteen, I thought I would ask the product

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<v Speaker 3>of Sam Altman's brain chat GPT exactly who Sam Altman is,

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<v Speaker 3>and here's what it said. Sam Altman is a well

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<v Speaker 3>known entrepreneur and investor and has been involved in various

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<v Speaker 3>projects and organizations, including co chairing open Ai. So that's

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<v Speaker 3>what the free version of chat GPT told me. But

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<v Speaker 3>because we don't pay for it, we don't have any

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<v Speaker 3>info past January twenty twenty two, so it doesn't actually

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<v Speaker 3>involve any news of his sacking in that summary. But

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<v Speaker 3>his backstory is I guess exactly what we've come to

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<v Speaker 3>expect from a tech quiz. In an interview with a

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<v Speaker 3>New Yorker, he said he disassembled a Macintosh computer when

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<v Speaker 3>he was eight years old. Another Sam trade the most

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<v Speaker 3>serifying MI is, I actually could see you doing that.

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<v Speaker 2>I would love that. I think of it as like

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<v Speaker 2>really complex lego.

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<v Speaker 3>Yeah right, what all eight year olds are doing there? Definitely,

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<v Speaker 3>And that was actually around the same time that he

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<v Speaker 3>started to get into computer programming.

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<v Speaker 2>Very cool.

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<v Speaker 3>In two thousand and five, when he was at Stanford University,

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<v Speaker 3>Altman turned to his friend and said, wouldn't it be

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<v Speaker 3>great if I could open my mobile phone and see

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<v Speaker 3>a map of where all my friends are. I know

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<v Speaker 3>that that idea doesn't seem so wild now that iPhones

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<v Speaker 3>and other tech we regularly engage with can do that,

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<v Speaker 3>but in the early two thousands that was still a

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<v Speaker 3>long way off. So Altman became inspired by the idea

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<v Speaker 3>of launching an app with some and he ended up

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<v Speaker 3>dropping out of UNI to do just that. Altman has

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<v Speaker 3>also got his own cryptocurrency called world Coin, currently has

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<v Speaker 3>millions of users around the world.

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<v Speaker 2>So it does seem like, even from a tender age

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<v Speaker 2>of age, he was destined for this career in tech.

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<v Speaker 2>How did he end up though, not just being another

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<v Speaker 2>tech whiz, but actually a really defining AI whiz.

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<v Speaker 3>Well, Oltman was involved in what's now called as effective

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<v Speaker 3>altruism for many years before he got into AI.

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<v Speaker 2>What do you mean by that.

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<v Speaker 3>Well, in the business world, it's basically all about building

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<v Speaker 3>a company that's focused on improving the welfare of society.

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<v Speaker 3>So investors like Altman wanted to put money into these

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<v Speaker 3>sorts of businesses. And hang in here because it actually

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<v Speaker 3>explains how we got to the point of a co

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<v Speaker 3>founder being kicked out of his own company. So just

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<v Speaker 3>put a pin in that we will come back to

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<v Speaker 3>that later. Pin put in, Yeah, okay, but the whole

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<v Speaker 3>point of effective altruism is to keep focused on promoting

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<v Speaker 3>a vision rather than being purely focused on profit. In

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<v Speaker 3>twenty fifteen, Altman launched open ai with Elon Musk who Yep,

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<v Speaker 3>no background needed. But the company's mission was to quote

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<v Speaker 3>advanced digital intelligence in the way that is most likely

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<v Speaker 3>to benefit humanity as a whole, unconstrained by a need

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<v Speaker 3>to generate a financial return. Very lofty ambition there, i'd say,

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<v Speaker 3>and at the outset, which I think is really interesting.

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<v Speaker 3>Open ai was actually listed as a non profit organization.

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<v Speaker 2>Wow, so basically a charity pretty much.

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<v Speaker 3>It was initially relying on donations to do its work

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<v Speaker 3>and was governed by the same laws as charities would be.

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<v Speaker 3>About three years later, though the company changed its structure.

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<v Speaker 3>It kept the nonprofit side of things and then launched

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<v Speaker 3>a subsidiary company called open ai Global, where it could

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<v Speaker 3>raise some money and could hire world leading talent. Because unfortunately,

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<v Speaker 3>Silicon Valley tech bros. Don't come for free.

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<v Speaker 2>So they basically split off the company and made a

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<v Speaker 2>nonprofit BIT and then a for profit.

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<v Speaker 3>Bit exactly and They also got huge backing from investor

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<v Speaker 3>The biggest one that we know of was from Microsoft,

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<v Speaker 3>obviously tech giant. They announced a big partnership with open

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<v Speaker 3>Ai earlier this year, and that was estimated to be

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<v Speaker 3>worth around ten billion dollars. So what you end up

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<v Speaker 3>with is quite an interesting company, and also a board

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<v Speaker 3>that's made up of six people, none of them are

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<v Speaker 3>investors in the company, which I'd say is pretty rare.

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<v Speaker 2>Yeah, very rare.

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<v Speaker 3>Yeah. What was also quite unusual was that Altman actually

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<v Speaker 3>admitted he didn't have any shares in his own company.

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<v Speaker 3>I have no equity in OPENINGI.

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<v Speaker 2>You need a lawyer or an agent. I'm doing this

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<v Speaker 2>because I love it. Interesting because he was really passionate

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<v Speaker 2>about that not for profit bit, but it was the

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<v Speaker 2>for profit bit that had the shareholders because they were

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<v Speaker 2>the ones that put money into the company.

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<v Speaker 3>It's so interesting and it's suddenly unorthodox. Under this new structure,

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<v Speaker 3>Sam Altman was appointed CEO, and he was also made

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<v Speaker 3>one of the six board members. Three of them worked

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<v Speaker 3>for open Ai, and three of them were directors of

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<v Speaker 3>other companies. And that brings us up to speed on

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<v Speaker 3>open Ai. That is, until a board meeting last.

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<v Speaker 2>Week really interesting situation. You have this company that's quite

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<v Speaker 2>literally developing something with the whole world watching, and we're

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<v Speaker 2>all tingering around with it.

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<v Speaker 3>The only thing people were talking about it like the

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<v Speaker 3>first six months of this year.

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<v Speaker 2>It's very rare that a company comes across the world

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<v Speaker 2>and changes the ways that we could work and we

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<v Speaker 2>could live right. This one did it. But all of

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<v Speaker 2>this is now for sam Oltman at least come crumbling down.

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<v Speaker 3>What's happened, basically, sam Oltman was fired as CEO by

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<v Speaker 3>his own company, so late last week, open AI released

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<v Speaker 3>a statement saying that board members had lost confidence in

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<v Speaker 3>Altman because he was not quote consistently candid with them.

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<v Speaker 3>I don't fully know what that means, but it clearly

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<v Speaker 3>has something to do with transparency or honesty or something

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<v Speaker 3>of that nature. A statement from the board of directors

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<v Speaker 3>said that open AI was grateful for Altman's contributions to

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<v Speaker 3>the founding and the growth of the company. The chair

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<v Speaker 3>of the board, Greg Brockman, was also removed and said

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<v Speaker 3>he was excluded from the vote to oust Altman as CEO.

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<v Speaker 3>A joint statement from Altman and Brockman said they were

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<v Speaker 3>shocked and saddened by the decisions.

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<v Speaker 2>So I have to reiterate, this is a really strange

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<v Speaker 2>situation to have a founder being sacked by his own

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<v Speaker 2>company but he doesn't even have shares in his own company.

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<v Speaker 2>It's just a very odd structure.

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<v Speaker 3>It is. But it's not the first time we've seen

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<v Speaker 3>something like this.

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<v Speaker 2>There have been some other high profile ones, right, Yeah.

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<v Speaker 3>So Steve Jobs was fired by Apple in nineteen eighty

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<v Speaker 3>five after he had a tiff with the company's board

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<v Speaker 3>of directors. I remember when we were writing our book

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<v Speaker 3>because we have a section on tech, I went really

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<v Speaker 3>deep into this because I was so intrigued by it because.

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<v Speaker 2>He returned, he got brought back to Yeah.

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<v Speaker 3>And I just can't imagine the egos and what actually

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<v Speaker 3>happens with like personality politics to be kicked out and

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<v Speaker 3>then re enter. Anyway, that's an aside. So there was Apple,

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<v Speaker 3>and then there was also Eduardo Saverron who was a

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<v Speaker 3>co founder of Facebook. He had his shares diluted in

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<v Speaker 3>an effort to reduce his power of the company, which

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<v Speaker 3>you may remember from the pivotal scene in the Social network.

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<v Speaker 2>I think we were going to let you parade around

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<v Speaker 2>in your ridiculous suits, pretending you were running the.

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<v Speaker 1>Summary my brothers at the cleaners, along with my honey

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<v Speaker 1>and my fuck you flip flops.

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<v Speaker 2>You pretentious douchebag securities here. You'll be leaving now.

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<v Speaker 3>And recently, the board of directors of Uber forced co

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<v Speaker 3>founder Travis Kalanik to resign in twenty seventeen after allegations

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<v Speaker 3>of sexual harassment at the company.

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<v Speaker 2>So that's clearly a different situation to what we have

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<v Speaker 2>on our hands here, but nonetheless the same result. Altman

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<v Speaker 2>is gone. What's going to happen with the company now?

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<v Speaker 3>So the board announced an interim CEO, But there has

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<v Speaker 3>been a lot of speculation over the weekend that Altman

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<v Speaker 3>could actually somehow get.

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<v Speaker 2>Back into the company Steve jobstyle.

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<v Speaker 3>He posted on x saying I love the Open Ai

0:11:51.280 --> 0:11:54.400
<v Speaker 3>team so much, and the new CEO shared it with

0:11:54.559 --> 0:11:57.000
<v Speaker 3>a blue love heart emoji. This is truly a sign

0:11:57.040 --> 0:12:01.199
<v Speaker 3>of the times when you know, major kaida well defining

0:12:01.280 --> 0:12:07.280
<v Speaker 3>companies are having their through half heart energies. But there

0:12:07.280 --> 0:12:09.840
<v Speaker 3>are reports in the media that Altmand went to open

0:12:09.840 --> 0:12:12.760
<v Speaker 3>Ai headquarters over the weekend to have talks about returning

0:12:12.800 --> 0:12:15.120
<v Speaker 3>as CEO, and he has the support of some big

0:12:15.160 --> 0:12:18.000
<v Speaker 3>investors and senior figures at the company. We don't know

0:12:18.040 --> 0:12:20.400
<v Speaker 3>for sure what the discussions with the board have been about,

0:12:20.440 --> 0:12:22.920
<v Speaker 3>but Altman did leave us a clue. On social media.

0:12:23.440 --> 0:12:26.520
<v Speaker 3>He posted a selfie wearing a guest lanyard that read

0:12:26.840 --> 0:12:29.320
<v Speaker 3>first and last Home I ever wear one of these.

0:12:29.440 --> 0:12:32.559
<v Speaker 2>This is a very odd It's all very odd, this situation.

0:12:33.400 --> 0:12:34.959
<v Speaker 3>It's just like a TV show.

0:12:35.240 --> 0:12:36.960
<v Speaker 2>But I just think it will be a TV show.

0:12:37.200 --> 0:12:39.720
<v Speaker 3>But I think, you know, this is an interesting one

0:12:40.120 --> 0:12:42.840
<v Speaker 3>of you know, we often speak about whether something is

0:12:42.920 --> 0:12:46.600
<v Speaker 3>news or noise at the daily I was like, this

0:12:47.080 --> 0:12:50.360
<v Speaker 3>is talking about this meaningful? Is it important that we

0:12:50.360 --> 0:12:52.280
<v Speaker 3>talk about or is it just you know, big tech

0:12:52.360 --> 0:12:55.199
<v Speaker 3>leaders and their ego. And I do think that this

0:12:55.280 --> 0:12:59.640
<v Speaker 3>one especially is really important to discuss because at least

0:12:59.640 --> 0:13:04.040
<v Speaker 3>in our industry, something like chatchipt has the power to

0:13:04.320 --> 0:13:08.160
<v Speaker 3>literally change from the bottom up how this industry works.

0:13:08.240 --> 0:13:10.680
<v Speaker 2>I agree, And I think who is leading chat ChiPT

0:13:11.080 --> 0:13:11.960
<v Speaker 2>is news.

0:13:11.920 --> 0:13:14.840
<v Speaker 3>Like whoever's hands that ends up in Yeah, Like, you know,

0:13:15.160 --> 0:13:18.520
<v Speaker 3>just as we saw Elon Musk's ownership of X really

0:13:18.640 --> 0:13:21.720
<v Speaker 3>changed the game, there is something to be said about

0:13:21.720 --> 0:13:26.360
<v Speaker 3>who is taking the reins of these platforms, and especially

0:13:26.360 --> 0:13:29.040
<v Speaker 3>with such little regulation because it's such a new thing.

0:13:29.440 --> 0:13:32.200
<v Speaker 3>I do think this is a really interesting story in

0:13:32.240 --> 0:13:34.400
<v Speaker 3>and of itself, but then also of course in the

0:13:34.440 --> 0:13:38.160
<v Speaker 3>broader kind of pattern of these big tech leaders just

0:13:38.280 --> 0:13:39.439
<v Speaker 3>falling like dominos.

0:13:39.640 --> 0:13:41.280
<v Speaker 2>And just in the quick update to this story that

0:13:41.400 --> 0:13:45.600
<v Speaker 2>only broke late last night here in Australia, Microsoft has

0:13:45.720 --> 0:13:50.360
<v Speaker 2>hired Sam Altman to lead their advanced AI research team.

0:13:50.559 --> 0:13:54.640
<v Speaker 2>They've actually hired him and Greg Brockman, and it's come

0:13:55.040 --> 0:13:59.679
<v Speaker 2>almost immediately after the pair left Open AI. So Microsoft's

0:13:59.720 --> 0:14:03.599
<v Speaker 2>chief executive announced the surprise move and basically said that

0:14:03.640 --> 0:14:06.880
<v Speaker 2>they still believe in the products that Sam Moltman and

0:14:07.280 --> 0:14:10.439
<v Speaker 2>Greg Brockman have to make and that they want them

0:14:10.480 --> 0:14:14.400
<v Speaker 2>to do it at Microsoft instead. Has this interesting subplot

0:14:14.559 --> 0:14:18.880
<v Speaker 2>of what is happening with the way that these founders

0:14:19.480 --> 0:14:22.600
<v Speaker 2>are setting up their companies and how do you end

0:14:22.680 --> 0:14:25.280
<v Speaker 2>up in a position where something like that being ousted

0:14:25.360 --> 0:14:28.840
<v Speaker 2>is even possible. And surely, after some of the examples

0:14:28.840 --> 0:14:32.200
<v Speaker 2>that we ran through, someone as smart you know, he

0:14:32.360 --> 0:14:34.040
<v Speaker 2>was making computers at that years old, someone of the

0:14:34.120 --> 0:14:37.120
<v Speaker 2>smartest Sam Moltman would have put some safeguards in place

0:14:37.160 --> 0:14:39.680
<v Speaker 2>to not get kicked out. But turns out he didn't.

0:14:40.960 --> 0:14:43.800
<v Speaker 2>That's all for today's episode of The Daily Os. We'll

0:14:43.800 --> 0:14:46.640
<v Speaker 2>be back again tomorrow. If you enjoyed this episode, would

0:14:46.680 --> 0:14:48.680
<v Speaker 2>love you to leave a rating on Spotify or even

0:14:48.720 --> 0:14:50.680
<v Speaker 2>comment on Apple. It really helps us get in front

0:14:50.720 --> 0:14:54.200
<v Speaker 2>of more people and helps us keep our job as founders.

0:14:54.520 --> 0:15:05.359
<v Speaker 2>For now Thinking appealed to Don the peace and comment