💸 OpenAI's motivations

Thursday ✅.

Today's newsletter is 676 words, a 2½-minute read.

🔔 The dashboard: The S&P 500 closed up 0.4%.

• Biggest gainer? Micron Technology (+14.7%), the memory chipmaker, cited AI-driven demand in forecasting higher-than-expected Q1 revenue.
• Biggest decliner? Super Micro Computer (-12.2%), the server maker, is reportedly being probed by the DOJ following a short-seller report.

It turns out that OpenAI's status as a nonprofit might've been the most artificial thing about it.

Why it matters: A potential plan to move the generative-AI pioneer into the control of a fully independent for-profit outfit would remove any uncertainty over whether financial motivations are at the core of the ChatGPT maker's ambitions.

Catch up fast: The company's board is weighing the controversial moves as OpenAI tries to close a massive new investment round, but neither the governance changes nor the funding have been finalized, Axios' Ina Fried and Scott Rosenberg reported.

• The board is also considering whether to award equity to OpenAI CEO Sam Altman, who does not now have a stake in it.

Between the lines: Without nonprofit oversight — which was originally established to ensure OpenAI's products benefited humanity — the company will be "more attractive to investors," Reuters reported.

• It's currently raising about $6.5 billion at a $150 billion pre-money valuation, Axios' Dan Primack reported last week.

What they're saying: An OpenAI spokesperson told Ina and Scott yesterday that the nonprofit "is core to our mission and will continue to exist."

• The WSJ reports that the company would become a public-benefit corporation, "meaning its mission is to create social good and operate in a sustainable manner."

💭 Nathan's thought bubble: The issue here is the cultural divide between what Silicon Valley believes is good for humanity and what AI watchdogs believe is potentially problematic.

The other side: Elon Musk, who co-founded and partially funded OpenAI before splitting with its leaders, ripped Altman, comparing him to a manipulative character from "Game of Thrones."

Southwest Airlines just delivered its "most transformational plan" ever to investors, promising to juice its profits over the next three years.

Driving the news: Southwest predicts the three-year plan will add $4 billion to its earnings before interest and taxes in 2027.

• It's built around new revenue streams, such as charging for perks and new partnerships with international carriers, and new ways to lower and manage costs.

A couple of other crowd pleasers were disclosed as well:

• The airline raised its forecast for RASM (a measure of how much revenue an airline generates for each available seat) in Q3 to 2%–3% growth, from its prior estimate of flat to down 2%.
• It also disclosed a new $2.5 billion share repurchase program.

The impact: Shares closed up 5.4% today, to $29.93.

Yes, but: Activist investor Elliott Management was not impressed, calling the investor day "another promise of a better tomorrow from the same people who have created the problems we face today."

• It's expected to call a special meeting for Southwest shareholders to vote on its own slate of directors as soon as next week.

🛢️ Saudi Arabia is reportedly set to give up on $100-per-barrel oil. (Financial Times)

☢️ Amazon expects to retain status as the largest corporate buyer of renewable energy for "several years to come." (Axios)

💳 Visa is acquiring AI tech firm Featurespace, which focuses on fraud detection. (Reuters)

New sectors, such as large-scale data processing and advanced manufacturing, require significant energy resources.

The impact: This growing demand highlights the need for modernized infrastructure to ensure energy can be delivered efficiently and sustainably across the country.

Learn more.

Longtime NBC anchor Hoda Kotb will be departing the "Today" show early next year after 17 years with the franchise.

Why it matters: Kotb was named co-anchor of "Today" alongside Savannah Guthrie in 2017 after the ouster of Matt Lauer. She brought stability to the show during a turbulent time.

• Not only did Kotb co-anchor heavier news segments during the earlier hours of "Today," but she's also hosted the softer hour of the program at 10am ET first with Kathie Lee Gifford and currently with Jenna Bush Hager.

What they're saying: Noting on this morning's show that she had children later in life, Kotb said, "I was thinking that they deserve a bigger piece of my time pie that I have. I feel like we only have a finite amount of time."

Read more

America's modern economy with advanced manufacturing practices and new data-intensive sectors is demanding more and more energy.

Okay, but: The country isn't building the infrastructure to move energy where it's needed.

Discover four steps policymakers must take. Read more.

Today's newsletter was edited by Pete Gannon and copy edited by Sheryl Miller.

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