How Involved Were Sam Bankman Fried's Parents?

Elon Musk filed a lawsuit last week against OpenAI and its CEO Sam Altman, alleging the company’s deal with Microsoft compromised the start-up’s original mission.  Musk is seeking disgorgement, additional unspecified damages and specific performance. 

Let’s go through these claims one by one, see what legal experts have been saying about the case. We will also discuss the Open AI memo saying that the claims in this lawsuit suit stem from Elon’s regrets about not being involved with the company today and the emails OpenAI released showing that Musk initially supported the plan to create a for-profit entity and wanted a merger that would make Tesla its "cash cow." 

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle on YouTube

Papers Mentioned:
Copy of the Legal Complaint: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rYCUmwA4Xxpw/v0
Ann Lipton Blog: https://lawprofessors.typepad.com/business_law/2024/03/spins-roulette-wheel-moelis-and-openai.html
Jeremy Tilman Blog: https://lawprofessors.typepad.com/contractsprof_blog/2024/03/musk-v-altman-the-breach-of-contract-claims.html
Matt Levine Article: https://www.bloomberg.com/opinion/articles/2024-03-01/openai-isn-t-open-enough-for-elon
Nilay Patel Article: https://www.theverge.com/2024/3/1/24087937/elon-musk-suing-openai-nightmare-1l-contracts-exam

Office mortgage default rates are rising around the world which could mean problems for the banks, insurance companies and pension funds who lent money to real estate investors.

Let’s discuss the distressed sales of office buildings that have been happening over the last few months, why New York Community Bancorp is down more that 65% year to date, what banking regulators are saying about loan portfolios at large US banks and how banks are hedging their loan books.

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle
Patrick Boyle on YouTube

Papers Mentioned:
Monetary Tightening, Commercial Real Estate Distress, and US Bank Fragility: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4413799
The Secular Decline of Bank Balance Sheet Lending: https://www.nber.org/papers/w32176

A new Harvard Business School study analyzed the impact of giving AI tools, to white collar workers at Boston Consulting Group.

In the study, management consultants who were told to use Chat GPT when carrying out a set of consulting tasks were far more productive than their colleagues who were not given access the tool. Not only did AI-assisted consultants carry out tasks 25 per cent faster and complete 12 per cent more tasks overall, but their work was also assessed to be 40 per cent higher in quality than their unassisted peers.

In today's video we look at the pros and cons of using AI at work.

This Week's Sponsor:
Get Magical AI for free and save 7 hours every week: https://getmagical.com/patrick

Papers Mentioned:
Harvard Paper: https://www.hbs.edu/ris/Publication%20Files/24-013_d9b45b68-9e74-42d6-a1c6-c72fb70c7282.pdf
Nicholas Carlini Blog: https://nicholas.carlini.com/writing/2024/my-benchmark-for-large-language-models.html
Nicholas Carlini Quiz: https://nicholas.carlini.com/writing/llm-forecast/
Effects of AI on Employment Paper: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4527336

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

As the global fight over manufacturing share and exports heats up, with surplus economies doubling down on exports, and deficit economies discussing protectionist strategies, the policies of the largest global economies are in clear conflict. Are trade wars likely, how do they work, and can the global economy regain balance?

Michael Pettis Books:
The Great Rebalancing: https://amzn.to/4bDIGKf
Trade Wars Are Class Wars: https://amzn.to/3I2xHMH

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

Adam Neumann has been trying to buy WeWork - the company he cofounded out of bankruptcy — allegedly with the help of the hedge fund manager Dan Loeb of Third Point.

Neumann’s new real estate company "Flow" has sent a letter to WeWork requesting that they consider its takeover approach. Flow has already raised $350 million from the venture capital firm Andreessen Horowitz, disclosed in the letter that Loeb’s Third Point would help finance a transaction. 

The Financial Times contacted Third Point to verify their involvement in the deal and were told that the fund had only held “preliminary conversations with Flow and Adam Neumann about his ideas for WeWork.” They went on to say that they have made “no commitment to participate in any transaction.”

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

A Delaware court this week voided Elon Musk’s $55.8 billion dollar pay deal with Tesla. The voiding of these stock options erases about a quarter of Musk’s current wealth.
The judgement came in response to a shareholder lawsuit launched by Richard Tornetta who owned nine shares in the company.  Judge Kathaleen McCormick found Tesla directors, who negotiated the pay package, were "perhaps starry eyed" due to Musk's "superstar appeal" and did not adequately inform shareholders.

Elon Musk announced after the judgement that he would seek to reincorporate Tesla in Texas, a state that he believes could be more hospitable to his way of doing business than Delaware. We’ll dig into whether that would work near the end of the video.

Roger Lowenstein - Origins of the Crash: https://amzn.to/3Ou3OIQ

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

Jesse Lauriston Livermore was a famed American stock trader known for his huge successes and devastating failures in the early 20th century. Starting as a "chalkboard boy" in a Boston brokerage, he became hugely wealthy as a trader first in "bucket shops" and then on the exchange in New York.  Livermore made millions in the Panic of 1907, the roaring 20's and in the 1929 market crash. His experiences are chronicled in the classic "Reminiscences of a Stock Operator" by Edwin Lefèvre.

Despite his legendary wins, Livermore went bankrupt numerous times and faced personal challenges, culminating in his tragic suicide in 1940. His legacy endures as an influential figure in financial history.

Books:
Jesse Livermore – The Man Who Sold America Short by Tom Rubython: https://amzn.to/3vWOrCA
Jesse Livermore – Worlds Greatest Stock Trader by Richard Smitten: https://amzn.to/47QO3Tm
Jesse Livermore – Speculator King by Paul Sarnoff: https://amzn.to/47R9jIv
Reminiscences of a Stock Operator by Edwin Lefèvre: https://amzn.to/496874U
How to Trade in Stocks by Jesse Livermore: https://amzn.to/4baKom1

Online Sources
New York Times Time Machine: https://timesmachine.nytimes.com/browser
Time Magazine Archives: https://content.time.com/time/subscriber/article/0,33009,847596-2,00.html
Wikipedia: https://en.wikipedia.org/wiki/Jesse_Livermore

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

Big startups are shutting down. More than 3000 private venture backed startups failed in the last year.  Of the startups raising money, 19% were funded at a lower valuation than in prior funding rounds. 38% of VCs disappeared from dealmaking last year and more than a quarter of a million workers at tech companies lost their jobs over the same period. US corporate bankruptcy filings closed out 2023 with the most filings since 2010. The year has been described as a mass extinction event for startups in the press.

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

How much do you need to earn per year to be in the top 1%?  The answer to this question varies depending on if you are asking about the 1% in a given country or globally?

In today's podcast we discuss how much you have to earn and how wealthy you have to be to be considered in the top one percent.  We discuss the careers and lifestyles of the one percent.  We look at inequality research to understand if inequality is actually growing as much as researchers like Thomas Piketty say it is.

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle

How is China able to sell European drivers so many cheap cars? Customs data shows that Chinese EV shipments to the European Union have increased by 361% since 2021.

All over the world, Chinese automakers are taking market share which is threatening European automakers. 

Patrick's Books:
Statistics For The Trading Floor:  https://amzn.to/3eerLA0
Derivatives For The Trading Floor:  https://amzn.to/3cjsyPF
Corporate Finance:  https://amzn.to/3fn3rvC

Patreon Page: https://www.patreon.com/PatrickBoyleOnFinance
Buy Me a Coffee: https://buymeacoffee.com/patrickboyle

Visit our website: www.onfinance.org
Follow Patrick on Twitter Here: https://twitter.com/PatrickEBoyle