TheBRRR’s Thoughts

GM, what a weekend!

Broadly, markets seem to be strong into this coming Holiday week, with the S&P and NASDAQ up before the highly-anticipated NVDA earnings report tomorrow at market close.

Bitcoin currently hovering $37k, and overall our portfolio shows to be up around 40% on the year.

The AI world was shaken and stirred this weekend amid a dramatic ouster of OpenAI’s CEO and founder Sam Altman by the company’s board.

With OpenAI in shambles as over 75% of its employees threatening to quit if the board did not resign and bring back Sam, Microsoft chief Satya Nadella swept into action, hiring Altman directly to create a new AI division within the company and offered all other OpenAI employees roles in the new subsidiary.

Elsewhere we’re witnessing a rare win for freedom in Argentina, as a libertarian economist won its national election with a platform promising to stabilize the fledgling country.

Argentina may see a boost to their economy with the new president proposing to slash government malfeasance, eliminate the country’s central bank that has overseen years of hyperinflation, and revert to a dollar-backed currency.

The win is much to the malaise of left-leaning autocrats that have led the country for decades.

Elsewhere (and unsurprisingly), Treasury Secretary Janet Yellen continues to show off her jack-of-all trades skillset, with a few comments about TikTok showcasing the U.S. government's difficulty in dealing with foreign social media issues.

She has one job, remember.

Moments before we were about to send the newsletter, news broke that the DOJ has proposed a $4b settlement with Binance that would end the criminal probe into the world’s largest crypto exchange.

Bitcoin and BNB both dumped initially but soared in the minutes afterwards. BNB +6.5%, BTC +2.3% over the last 24 hours.

Editor’s Note: We’ve released V1 of our technical analysis chatbot. Premium subscribers can see the link in the premium section at the bottom of the email. I released a preview of what it can do in this post, where I ask it to analyze the daily and hourly bitcoin charts.

AI News

Tech Tectonics: Altman's Ouster Shakes Up AI World

What's New:

Altman and Brockman's Microsoft Move: Sam Altman, ousted from OpenAI, and Greg Brockman, who resigned in protest, are now leading a new AI research team at Microsoft. This follows a failed negotiation for Altman's return to OpenAI.

OpenAI's Leadership and Employee Revolt: Emmett Shear steps in as interim CEO of OpenAI amidst a significant employee backlash. Hundreds of OpenAI staff, including high-profile executives and co-founder Ilya Sutskever, have signed a letter demanding board resignations, threatening to join Microsoft otherwise.

Microsoft's Strategic Recruitment Amidst OpenAI Turmoil: Microsoft, holding a 49% stake in OpenAI and a key investor, is set to absorb a substantial number of OpenAI's talent, including Altman and Brockman, bolstering its AI research capabilities.

Why It Matters:

Shift in AI Industry Dynamics: The movement of key figures like Altman and Brockman to Microsoft, coupled with a potential mass exodus of OpenAI talent, could significantly alter the AI industry's competitive landscape.

OpenAI's Future at Stake: The internal revolt and leadership upheaval at OpenAI raise serious questions about its future direction, stability, and ability to maintain its position at the forefront of AI innovation.

Microsoft's Enhanced AI Trajectory: With the influx of top AI talent and the ongoing partnership with OpenAI, Microsoft is poised to accelerate its AI initiatives, potentially leading to groundbreaking developments and a stronger market position in the AI sector.

Read more and here

World News

Milei's Shakeup: Argentina Braces for Reforms

What's New:

Decisive Victory for Milei: Javier Milei wins Argentina's presidential runoff with a resounding 56% of the vote, signaling a major political shift.

Radical Economic Reforms Promised: Milei, a libertarian economist, pledges to dollarize the economy, abolish the central bank, cut the size of the government in half and privatize the pension system.

Argentina Faces Unprecedented Changes: The election of Milei, a self-described anarcho-capitalist, brings Argentina into uncharted economic territory amidst a severe crisis.

Why It Matters:

Tackling Hyperinflation: The proposed switch to the U.S. dollar is a direct response to Argentina's chronic inflation issue, offering a potential path to economic stability.

Challenges in Economic Transition: Implementing the dollarization, given Argentina's limited access to global capital markets and current financial state, presents significant logistical and economic hurdles.

Impact on Investment and Trade: Milei's policies could lead to a surge in foreign investment and reshape Argentina's trade relationships, with immediate effects seen as Argentine assets like YPF shares rose by 17% and Grupo Financiero Galicia SA by 12% in New York following his election.

Read more

Today’s Reader Poll

Where do you think S&P 500 will land for the year? Price is still roughly unchanged since we opened the poll this past Wednesday.

We asked the same on Friday last week. Still looks like the bull market is back in business:

AI Art of the Day

Got feedback? Follow the writer on Twitter @frank_locascio and send a message.

The BRRR is meant for informational purposes only. It is not investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.