• How OpenAI so royally screwed up the Sam Altman firing and joining Microsoft

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    https://edition.cnn.com/2023/11/19/tech/sam-altman-open-ai-firing-board/index.html

     

    https://www.cnn.com/2023/11/18/tech/openai-sam-altman-shakeup-what-happened/index.html

     

    https://edition.cnn.com/2023/11/20/tech/sam-altman-joins-microsoft/index.html

     

     

    A company’s board of directors has an obligation, first and foremost, to its shareholders. OpenAI’s most important shareholder is Microsoft, the company that gave Altman & Co. $13 billion to help Bing, Office, Windows and Azure leapfrog Google and stay ahead of Amazon, IBM and other AI wannabes.

     

    So a day later, the board reportedly asked for a mulligan and tried to woo Altman back. It was a shocking turn of events and an embarrassing self-own by a company that its widely regarded as the most promising producer of the most exciting new technology.

     

    The board angered a powerful ally and could be forever changed because of the way it handled Altman’s ouster. It could end up with Altman back at the helm, a for-profit company on its nonprofit board – and a massive culture shift at OpenAI.

     

    https://www.bbc.com/news/technology-67474879

     

    But Microsoft, OpenAI’s biggest investor, has decided not to take a chance on Mr Altman taking this tech elsewhere. He will be joining the Seattle-based tech giant, it has been announced, to lead a yet-to-be-created AI research team. His co-founder Greg Brockman goes with him, and judging from the number of staff members posting on X today, it looks like he’ll be taking some of OpenAI’s top talent too.

     

    Many OpenAI staff members are sharing the same post on X. It reads: “OpenAI is nothing without its people”.

     

    Is that a warning to Mr Shear that he might have some hiring to do? A BBC colleague outside OpenAI’s headquarters just told me at 0930 in San Francisco, there were no signs of people arriving for work.

     

    https://edition.cnn.com/2023/11/20/tech/openai-employees-quit-mira-murati-sam-altman/index.html

     

    “Your actions have made it obvious that you are incapable of overseeing OpenAI,” wrote the employees. “We are unable to work for or with people that lack competence, judgement and care for our mission and employees.”

     

    The employees also warned that they would “imminently” follow Altman to Microsoft unless the board resigns and reinstates Altman and Greg Brockman, the former OpenAI president who was also removed by the board on Friday.

  • What the Boeing 737 MAX’s crashes can teach us about production business – the effects of commoditisation

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    newrepublic.com/article/154944/boeing-737-max-investigation-indonesia-lion-air-ethiopian-airlines-managerial-revolution

     

     

    Airplane manufacturing is no different from mortgage lending or insulin distribution or make-believe blood analyzing software (or VFX?) —another cash cow for the one percent, bound inexorably for the slaughterhouse.

     

    The beginning of the end was “Boeing’s 1997 acquisition of McDonnell Douglas, a dysfunctional firm with a dilapidated aircraft plant in Long Beach and a CEO (Harry Stonecipher) who liked to use what he called the “Hollywood model” for dealing with engineers: Hire them for a few months when project deadlines are nigh, fire them when you need to make numbers.” And all that came with it. “Stonecipher’s team had driven the last nail in the coffin of McDonnell’s flailing commercial jet business by trying to outsource everything but design, final assembly, and flight testing and sales.”

     

    It is understood, now more than ever, that capitalism does half-assed things like that, especially in concert with computer software and oblivious regulators.

     

    There was something unsettlingly familiar when the world first learned of MCAS in November, about two weeks after the system’s unthinkable stupidity drove the two-month-old plane and all 189 people on it to a horrific death. It smacked of the sort of screwup a 23-year-old intern might have made—and indeed, much of the software on the MAX had been engineered by recent grads of Indian software-coding academies making as little as $9 an hour, part of Boeing management’s endless war on the unions that once represented more than half its employees.

     

    Down in South Carolina, a nonunion Boeing assembly line that opened in 2011 had for years churned out scores of whistle-blower complaints and wrongful termination lawsuits packed with scenes wherein quality-control documents were regularly forged, employees who enforced standards were sabotaged, and planes were routinely delivered to airlines with loose screws, scratched windows, and random debris everywhere.

     

    Shockingly, another piece of the quality failure is Boeing securing investments from all airliners, starting with SouthWest above all, to guarantee Boeing’s production lines support in exchange for fair market prices and favorite treatments. Basically giving Boeing financial stability independently on the quality of their product. “Those partnerships were but one numbers-smoothing mechanism in a diversified tool kit Boeing had assembled over the previous generation for making its complex and volatile business more palatable to Wall Street.”

    (more…)