Elon Musk Issues Warning about 'Humanoid Robots' in AI 'Age of Abundance'

Musk was speaking during a conversation with British Prime Minister Rishi Sunak at the end of a world-first AI summit in the UK. Kirsty Wigglesworth / POOL/AFP
Musk was speaking during a conversation with British Prime Minister Rishi Sunak at the end of a world-first AI summit in the UK. Kirsty Wigglesworth / POOL/AFP
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Elon Musk Issues Warning about 'Humanoid Robots' in AI 'Age of Abundance'

Musk was speaking during a conversation with British Prime Minister Rishi Sunak at the end of a world-first AI summit in the UK. Kirsty Wigglesworth / POOL/AFP
Musk was speaking during a conversation with British Prime Minister Rishi Sunak at the end of a world-first AI summit in the UK. Kirsty Wigglesworth / POOL/AFP

The owner of X Elon Musk on Thursday predicted the future with AI would be an "age of abundance" with a "universal high income" instead of a universal basic income but warned of "humanoid robots" that might chase humans.

Musk was speaking during a conversation with British Prime Minister Rishi Sunak following a world-first AI summit at Bletchley Park in the UK, said AFP.

The SpaceX and Tesla CEO said there would come a point when "no job is needed" in the one-to-one with Sunak which was held later in London.

Jobs instead would be just for those who wanted one for "personal satisfaction".

AI was like "a magic genie" that gives you any wishes you want, Musk added, quipping however that those fairy tales rarely end well.

"One of the future challenges is how do you find meaning in life?" he said.

Musk cautioned that "we should be quite concerned" about humanoid robots that "can follow you anywhere".

The tech billionaire stressed the importance of having a physical off switch.

"A humanoid robot can basically chase you anywhere," he said.

"It's something we should be quite concerned about. If a robot can follow you anywhere, what if they get a software update one day, and they're not so friendly any more?"

Sunak responded that "we've all watched" movies about robots that end with the machines being switched off.

The two-day gathering at Bletchley wrapped up Thursday with Western governments and companies involved in so-called next generation "frontier" AI agreeing a new safety testing regime.



Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
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Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo

Investors gave a thumbs-down to Toyota Motor's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc.

Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take the subsidiary private. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries.

While that represents a 23% premium to the price before word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. Shares closed at 16,205 yen on Wednesday.

"To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares, Reuters reported.

When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders".

The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance.

Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value.

Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said.

"There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday.

The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said.

In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said.

It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company.

A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.

Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer.

Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it.

Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.