E34: Byrne Hobart on Sam Altman, Meta vs Google, and Effective Altruism

In this episode, Erik is joined by Byrne Hobart, author of tech and finance newsletter The Diff, to discuss Sam Altman's ousting from OpenAI, Microsoft's role in the story, and the new competitive landscape for AI companies. -- We're hiring across the board at Turpentine and for Erik's personal team on other projects he's incubating. He's hiring a Chief of Staff, EA, Head of Special Projects, Investment Associate, and more. For a list of JDs, check out: eriktorenberg.com. -- RELATED PODCAST Every week investor and writer of the popular newsletter The Diff, Byrne Hobart, and co-host Erik Torenberg discuss today’s major inflection points in technology, business, and markets – and help listeners build a diversified portfolio of trends and ideas for the future. Subscribe to “The Riff” with Byrne Hobart and Erik Torenberg: https://link.chtbl.com/theriff. -- SPONSORS: Head to Beehiiv, the newsletter platform built for growth, to power your own. Connect with premium brands, scale your audience, and deliver a beautiful UX that stands out in an inbox. 🐝to https://Beehiiv.com and use code "UPSTREAM" for 20% off your first three months. Shopify: https://shopify.com/torenberg for a $1/month trial period Shopify is the global commerce platform that helps you sell at every stage of your business. Shopify powers 10% of all ecommerce in the US. And Shopify's the global force behind Allbirds, Rothy's, and Brooklinen, and 1,000,000s of other entrepreneurs across 175 countries. From their all-in-one ecommerce platform, to their in-person POS system – wherever and whatever you're selling, Shopify's got you covered. With free Shopify Magic, sell more with less effort by whipping up captivating content that converts – from blog posts to product descriptions using AI. Sign up for $1/month trial period: https://shopify.com/torenberg. -- X / TWITTER: @ByrneHobart (Byrne) @eriktorenberg (Erik) @upstream__pod @turpentinemedia -- TIMESTAMPS: (00:00) Episode Preview (01:00) Non-obvious thoughts about governance and legal structures (03:45) Could the board have found out something about Sam? (04:40) Tech’s online coordination and choosing sides (06:25) Why haven’t the OpenAI board shared their reasoning? (12:20) Are they going to bring Sam back? (15:10) What should OpenAI’s pivot be? (17:30) Sponsor: Shopify (20:30) Analyzing Microsoft's moves and the sweetheart deal (23:50) Satya's succession plans (27:15) OpenAI's unique governance structure (30:00) Sponsor: Oracle (32:15) Why Byrne is long Microsoft (40:10) What explains Microsoft's turnaround? (42:15) Meta and Google (48:10) Which of these companies Byrne would short: Apple, Amazon, Google, Facebook, Microsoft (50:20) Was this a coup from the Effective Altruism movement? -- This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at [email protected]. Producer: Sam Kaufman Editor: Graham Bessellieu For guest or sponsorship inquiries please contact [email protected]