Situational Awareness, an AI -focused hedge fund founded by a former OpenAI researcher, has sold all of its public equities portfolio to Ken Griffin's Citadel, a source tells Axios. Why it matters: This comes amidst a recent sell-off in AI stocks, particularly chipmakers. - News of a sale was first reported by the WSJ . Catch up quick: Former OpenAI researcher Leopold Aschenbrenner founded Situational Awareness after being fired from OpenAI in 2024, over an alleged information leak that he disputes. It recently reported around $20 billion in assets under management. - Early investors included Stripe cofounders Patrick and John Collison, plus former GitHub CEO Nat Friedman, and ex-Apple employee Daniel Gross. Zoom in: Just yesterday, the…
AI appears to improve workers' efficiency in a number of sectors. The U.S. has experienced a surge in economy-wide productivity in the last couple of years. But the former isn't necessarily driving the latter. The big picture: Companies are achieving more output per person-hour of labor because they are making better use of existing capital, a provocative new analysis finds — not, at the moment at least, by making major use of AI. - AI advances may be generating substantial micro-level gains in some sectors, but so far are not the driver of one of the most important macro trends of the last couple of years, finds Ernie Tedeschi, chief economist at Stripe. State of play: A surge in labor productivity — after a couple of decades of…
The Trump administration is close to allowing Anthropic to restore access to its powerful Fable 5 model, which has been offline for 15 days because of security fears by the government, a source close to the situation tells Axios. - Insiders expect the administration's limits on Fable 5 could be lifted as soon as this coming week, the source said. - A second source said conversations are expected to continue over the weekend, and Anthropic expects to restore Fable access soon. Why it matters: For developers and even non-technical early adopters, Fable 5's blackout was unprecedented and deeply jarring — a top-tier model, already in users' hands, pulled offline due to government intervention. The big picture: The progress toward…
OpenAI CEO Sam Altman's first turn on the witness stand Tuesday sharpened the central fight in Musk's lawsuit: whether either man can be trusted to put AI safety ahead of money and control . Why it matters: The testimony showed how hard it is for any AI leader to claim the moral high ground while also fighting for money, influence and control. Driving the news: Altman rejected Musk's central claim that OpenAI and Microsoft had effectively tried to "steal a charity." - "It feels difficult to even wrap my head around that framing," Altman said. He argued that shifting to a for-profit structure was the only way to raise the amount of money needed to develop safe and powerful artificial intelligence. - Earlier in the trial, Musk offered a…
The Traditional Immigrant Silicon Valley was energized by legal immigrants from all over the world who founded eBay, Google, Nvidia, SpaceX, Stripe, Sun Microsystems, Tesla, […] Source
The AI revolution may be upon us. But nobody knows for sure what it will mean for measures of overall economic well-being like GDP, unemployment, incomes and asset prices. The big picture: Will super-intelligent computing unleash stunning growth in output — or will it be more like some previous big advances that created "ghost GDP" that didn't show up much in the economic statistics? - Will it push millions of workers — especially white-collar professionals with high incomes — onto the unemployment rolls? Or enable them to be far more productive and thus earn more? - Will it push more of the national income toward owners of capital and away from human laborers? If so, what does that mean for the broader perpetual motion machine…