OpenAI Researchers Warned Board of AI Breakthrough ahead of CEO Ouster, Sources Say

FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
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OpenAI Researchers Warned Board of AI Breakthrough ahead of CEO Ouster, Sources Say

FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Ahead of OpenAI CEO Sam Altman’s four days in exile, several staff researchers wrote a letter to the board of directors warning of a powerful artificial intelligence discovery that they said could threaten humanity, two people familiar with the matter told Reuters.
The previously unreported letter and AI algorithm were key developments before the board's ouster of Altman, the poster child of generative AI, the two sources said. Prior to his triumphant return late Tuesday, more than 700 employees had threatened to quit and join backer Microsoft (MSFT.O) in solidarity with their fired leader.
The sources cited the letter as one factor among a longer list of grievances by the board leading to Altman's firing, among which were concerns over commercializing advances before understanding the consequences. Reuters was unable to review a copy of the letter. The staff who wrote the letter did not respond to requests for comment.
After being contacted by Reuters, OpenAI, which declined to comment, acknowledged in an internal message to staffers a project called Q* and a letter to the board before the weekend's events, one of the people said. An OpenAI spokesperson said that the message, sent by long-time executive Mira Murati, alerted staff to certain media stories without commenting on their accuracy.
Some at OpenAI believe Q* (pronounced Q-Star) could be a breakthrough in the startup's search for what's known as artificial general intelligence (AGI), one of the people told Reuters. OpenAI defines AGI as autonomous systems that surpass humans in most economically valuable tasks.
Given vast computing resources, the new model was able to solve certain mathematical problems, the person said on condition of anonymity because the individual was not authorized to speak on behalf of the company. Though only performing math on the level of grade-school students, acing such tests made researchers very optimistic about Q*’s future success, the source said.



Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
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Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)

Apple's market share in China shrank by two percentage points in the second quarter of 2024, as the tech giant faced intensifying competition from rivals like Huawei, according to data from market research firm Canalys.

The decline underscores the difficulties the US tech giant faces in its third-largest market.

Huawei's smartphone shipments surged 41% year-on-year in the quarter, bolstered by the launch of its new Pura 70 series in April.

The Canalys data, while not providing specific shipment figures for Apple, showed that the company's market share in China dropped to 14% in the second quarter of 2024, a decrease from 16% in the same quarter of 2023.

As a result of this decline, Apple's ranking in the Chinese smartphone market fell from third to sixth place.

Overall, China's smartphone shipments rose by 10% in the quarter, Canalys said. Vivo was the top vendor with a share of 19%, followed by Oppo, Honor and Huawei with 16%, 15% and 15% respectively.

"Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the mainland Chinese market for the first time in history," said Lucas Zhong, research analyst at Canalys.

"On the other hand, Apple faces growth pressure in the Chinese market and is actively focusing on optimizing channel management."

Huawei made a comeback to the high-end smartphone segment last August with the release of a device powered by a domestically-made chip, defying US sanctions that have cut off its access to the global chipset supply chain.

In an effort to boost sales, Apple has ramped up its discounting efforts this year to entice consumers. The US company launched an aggressive campaign in May, doubling the scale of an earlier promotion in February and offering price cuts of up to 2,300 yuan ($318.84) on select iPhone models.

Analysts expect Huawei's strong performance to continue throughout the year. Canadian research firm TechInsights projected earlier this year that Huawei's overall smartphone shipments in China will exceed 50 million units in 2024, with the Pura 70 series accounting for 10 million of those shipments.

That would make Huawei the No. 1 seller with a 19% market share, up from 12% in 2023, TechInsights has said.