OpenAI proposes major changes to their corporate structure

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A new study suggests AI could affect 60 million jobs in North America within a year. Generative AI’s environmental impact may be greater than previously thought. Intel lands a $3.5 billion deal with the U.S. military for advanced semiconductors. OpenAI plans a shift away from its non-profit structure. And Elon Musk’s companies face legal challenges in Brazil over content moderation

Welcome to Hashtag Trending. It’s Monday, and I’m your host, Jim Love.

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A recent study from the Inter-American Development Bank highlights how AI might impact the job market in North America. According to their AI-Generated Index of Occupational Exposure, artificial intelligence could affect 60 million jobs in the United States and Mexico within just one year

In the U.S., 43 million jobs may be influenced by AI within a year, rising to 60 million over five years.

In Mexico, 16 million jobs could be impacted initially, increasing to 22 million over five years.

Globally, nearly a billion jobs, or 28% of the world’s workforce, might be affected by AI in the next year.

Jobs most susceptible to AI impact include telephone operators, telemarketers, credit evaluators, machine operators, and travel agency workers. On the other hand, professions like firefighters, athletes, teachers, and certain medical specialists such as psychologists and surgeons are less likely to be replaced by AI.

It’s important to note that these figures don’t necessarily equate to job losses but indicate roles that will undergo significant changes due to AI integration. The study points out that women and low-skilled workers might be more vulnerable, emphasizing the need for education and training to adapt to this new reality.

This aligns with other research suggesting AI could automate up to 30% of hours worked in the U.S. by 2030. While there are concerns, organizations like the World Economic Forum highlight that AI will also create new opportunities, particularly in areas like sustainability and education.

It certainly makes you think about how we can prepare for these changes in our own industries.

Sources include: El País, Inter-American Development Bank, McKinsey, IMF, World Economic Forum

A new report from Morgan Stanley raises concerns about the environmental impact of generative AI. The rapid development and increasing demand for these technologies are accelerating greenhouse gas emissions from data centers.

Data center emissions are projected to reach 2.5 billion tons by 2030, tripling previous estimates that didn’t account for generative AI.

Emissions are expected to rise from 200 million tons this year to 600 million tons by 2030.

About 60% of these emissions will come from data center operations, while 40% will result from manufacturing construction materials and infrastructure.

To put this into perspective, the additional 400 million tons of CO2 emissions by 2030 is equivalent to the annual emissions of about 87 million passenger vehicles—roughly one-third of all the cars in the United States.

The tech industry already accounts for a significant portion of annual emissions in the U.S., and this increase poses challenges to net-zero targets. Companies are exploring solutions like carbon dioxide removal technologies, water-cooling systems for data centers, and reforestation projects.

However, these solutions come with their own challenges, such as high investment costs and potential conflicts with conservation efforts.

As the AI revolution continues, balancing technological advancement with environmental responsibility will be a critical challenge.

Sources include:Tech Radar

Intel has secured a $3.5 billion deal with the U.S. military to produce advanced semiconductors. This initiative, known as the “Secure Enclave” program, aims to establish domestic production for chips used in military and intelligence applications.

The agreement involves multiple manufacturing facilities, including one in Arizona, to ensure a secure and reliable supply chain for strategic defense needs. This program is part of a broader U.S. effort to bolster domestic semiconductor manufacturing and reduce reliance on foreign suppliers.

Funding for this deal may be tied to the CHIPS and Science Act, which seeks to support chipmakers in enhancing the U.S. semiconductor industry. This development comes at a crucial time for Intel, which has faced some real challenges – many of which we’ve covered in previous stories – quality challenges, financial losses and increased competition from Nvidia, AMD, ARM and others.

This contract provides a significant boost to the company’s efforts to establish a strong position in defense chip production.

Sources include: Bloomberg, EconoTimes, Tom’s Hardware

 

CEO Sam Altman has informed staff that the company will move away from its current non-profit model to a more traditional for-profit structure in 2025.

This move comes as OpenAI’s revenue has reportedly almost doubled, largely due to the subscription version of ChatGPT.

Currently, OpenAI’s structure is very complex: a non-profit entity controls its for-profit arm, which in turn controls a holding company for investments. This setup forces OpenAI to cap profits allocated to investors, with excess funds going to its non-profit division.

It was that non-profit board that ousted Sam Altman as CEO and while they did relent, as a not for profit, they didn’t have shareholders to report to, so Microsoft, who had given the firm almost 10 billion dollars, couldn’t exercise the type of control they would have, had they been shareholders with that kind of investment.

The new structure is expected to align more closely with traditional for-profit companies, though details are not yet clear. OpenAI says it will still maintain a non-profit division, stating it remains “core to [its] mission.”

We’ll all be watching closely to see how this change impacts OpenAI’s operations.

Sources include:Fortune, The Information

In the latest development of the ongoing situation between Elon Musk and Brazilian authorities, Brazil’s top judge has lifted restrictions on the bank accounts of Musk’s companies, Starlink and X (formerly Twitter), but only after more than $3 million in fines were transferred.

Justice Alexandre de Moraes, whom Musk has previously criticized, lifted the bank account freeze. However, access to X remains blocked in Brazil due to the company’s failure to appoint legal representation in the country.

This standoff stems from broader conflicts over misinformation and freedom of speech on social media platforms in Brazil. Earlier, a Brazilian judge had announced he was investigating Musk for obstruction of justice after the billionaire vowed to defy a court order blocking certain accounts on his platform claiming that they were spreading misinformation. X was banned from operations in Brazil for not appointing a legal representative by a court-imposed deadline, a ruling upheld by a Brazilian Supreme Court panel.

So, although this is a step forward for Musk, there are still legal challenges and potentially more conflicts ahead.

Sources include: Axios, Reuters

And that’s our show for today. You can find show notes at our news site technewsday.com or .ca—take your pick.

Thanks for listening. I’m your host Jim Love. Have a marvelous Monday.

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