Morning Brew - ☕️ Legal cage match

Why only The Rock gets to say “Jabroni”...
March 02, 2024 View Online | Sign Up | Shop

Morning Brew

Mugsy

Good morning. Your best bet to score a cheap hot dog will probably remain Costco, because the Philadelphia Phillies announced they’re scrapping their famous $1 hot dog night promotion following a wiener-hurtling incident at the game last year.

“It wasn’t just the throwing,” John Weber, SVP of Phillies ticket operations and projects, told the AP. “But obviously, you know, the throwing was a little bit of a tipping point.”

—Sam Klebanov, Cassandra Cassidy, Matty Merritt, Abby Rubenstein, Neal Freyman

MARKETS

Nasdaq

16,274.94

S&P

5,137.08

Dow

39,087.38

10-Year

4.180%

Bitcoin

$62,402.59

NYCB

$3.55

*Stock data as of market close, cryptocurrency data as of 4:00am ET. Here's what these numbers mean.

  • Markets: Stocks were ripping yesterday, with the Nasdaq notching an all-time high and the S&P 500 closing above 5,100 for the first time. Tech stocks led the way, especially Nvidia, which closed with a market cap over $2 trillion. But trouble may be brewing at regional banks: New York Community Bancorp plummeted after swapping out its CEO and revealing it had found weaknesses in its risk controls.
 

AI

Musk sues OpenAI for not benefiting humanity enough

Musk and Altman Illustration: Cameron Abbas, Photos: Getty Images

Anyone still upset that the Musk-Zuck cage match got called off will get a chance to witness a tech billionaire standoff with much higher stakes: a Musk-Altman legal battle. Elon Musk sued OpenAI and its co-founders, CEO Sam Altman and President Greg Brockman, yesterday, alleging that they breached the organization’s founding agreement by letting it become too profit-motivated.

Musk’s beef with OpenAI goes way back: He co-founded it in 2015 as a nonprofit alongside Altman and other tech moguls, and alleges he even gave it $44 million of his own cash. But he left OpenAI’s board in 2018 after feeling that it was straying from its goals, according to the filing.

Musk vs. OpenAI

The lawsuit claims that instead of fulfilling its mission to develop AI for the public benefit, the $80 billion company betrayed its original goals by:

  • Developing advanced AI for profit (the organization now has a for-profit subsidiary but it’s bound to hew to the nonprofit’s mission), and becoming a “de facto subsidiary of the largest technology company in the world: Microsoft.” The tech giant invested $13 billion in OpenAI, buying 49% of its business arm.
  • Improperly licensing its GPT-4 AI model to Microsoft despite having an obligation to create such sophisticated tools for nonprofit ends.

The suit asks the court to require OpenAI's research to be public. But some wonder whether Musk might have an ulterior motive in dragging OpenAI to court. Last year, he founded a rival AI startup, the Grok chatbot-maker xAI.

OpenAI Chief Strategy Officer Jason Kwon said in an internal memo seen by Bloomberg that the company “categorically disagrees” with Musk’s allegations, and a separate memo from Altman said he missed when Musk competed by just making better tech.

Musk vs. AI

Despite developing AI himself and using it to roast World Economic Forum President Klaus Schwab, Musk has long been wary of rushing the development of the tech. In 2018 he said that AI is “far more dangerous than nukes.”

Last year, Musk was among the hundreds of tech luminaries who signed an open letter calling on all AI labs to pause testing of powerful AI systems for six months. Altman pushed back at the time, saying that OpenAI takes safety into account.

It’s been a rough week for Altman…the Musk lawsuit follows a WSJ report that the SEC is probing whether OpenAI misled investors around his brief ouster as CEO last November.—SK

     

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WORLD

Tour de headlines

Humanitarian aid being airdropped to Gaza by Jordan Rizek Abdeljawad/Xinhua via Getty Images

US to airdrop aid to Gaza. With the humanitarian crisis in Gaza growing worse amid the Israel–Hamas war, President Biden said the US would begin airdropping humanitarian aid into the area over the coming days. The decision follows an incident where Israeli troops fired on Palestinians approaching an aid convoy, resulting in a skirmish that killed 115 people. Biden also vowed the US would press Israel to allow more aid to enter by land, saying, “We’re going to insist that Israel facilitate more trucks and more routes to get more and more people the help they need.”

Crowds came out for Alexei Navalny’s burial. The Russian opposition leader, who recently died under mysterious circumstances in a remote arctic prison, was laid to rest in Moscow yesterday. Thousands of mourners gathered around the church, where a rushed Eastern Orthodox funeral service took place under tight police control. Prominent opposition politicians, as well as US, German, and French ambassadors to Russia, showed up to pay their respects. People threw flowers along the route of the hearse as crowds accompanied the funeral cortege to a nearby cemetery, where many were heard chanting anti-Putin slogans. Law enforcement detained at least 128 memorial participants across Russia, according to human rights group OVD-Info.

It’s very snowy in California. Storms with fierce winds began dumping snow on the Sierra Nevada on Thursday and are expected to continue through the weekend, with most of the area under a blizzard warning through Sunday. As much as 12 feet has been predicted in the mountains, and the snowfall is likely to snarl travel and create potentially life-threatening conditions. But it will also help shore up the state’s water supply, since the snowpack was at 80% of its average coming into March before the storm began.

HEALTHCARE

Walgreens, CVS to sell abortion pills in-store

Mifepristone tablets Anna Moneymaker/Getty Images

Two of the biggest pharmacies in the US will soon start filling prescriptions for abortion pills.

Walgreens and CVS announced yesterday that they received certification to sell mifepristone—the first pill in a two-step regimen used to terminate pregnancy—following a regulatory change by the FDA last year to allow sales in pharmacies.

Walgreens said it will provide the pill as early as next week in states where it’s legal, including select locations in New York, Pennsylvania, Massachusetts, California, and Illinois. CVS will sell it Massachusetts and Rhode Island locations in the coming weeks. Neither pharmacy will make the drug available via mail order.

What it means: Medication abortion is the most common method to terminate pregnancy in the US, according to the CDC. Before the FDA changed its regulations last year, mifepristone could only be ordered from a handful of mail-order pharmacies or specially certified clinicians, which made accessing the drug arduous. Now, patients prescribed the drug in states where abortion is legal will be able to obtain it from a pharmacy like any other medication.

But...the future availability of mifepristone will depend on how the Supreme Court rules in a case that challenges this expanded access to the drug. Oral arguments will begin later this month, and a decision is anticipated before the end of June.—CC

     

TOGETHER WITH VEEAM

Veeam

Level up your cyber resilience. Your biz’s finances will thank you. Data breaches aren’t cheap—the average data breach cost $4.35m in 2022. To help you save big, we teamed up with Veeam to create an interactive that spills all the deets on data security and financial success. Take a look.

ENTERTAINMENT

The Rock finally owns his name…and insults

Dwayne "The Rock" Johnson Jared C. Tilton/Getty Images

Incredibly, Dwayne “The Rock” Johnson really does own your “candy ass.” The actor and former WWE superstar was awarded ownership rights to his famous nickname, along with 24 other phrases and popular insults he used in the ring (“candy ass” included).

Johnson, who first became famous for elbowing people in spandex before he was The Scorpion King, joined the board of directors of TKO Group, which owns WWE, earlier this year. The deal came with a pretty sick lineup of IP: He now owns “If you smell what The Rock is cooking,” “The People’s Elbow,” and of course, calling someone a “roody poo,” among other signature verbal abuses.

Big picture: This deal has more significance than just making a buttoned-up corporate lawyer file paperwork for the word “Jabroni.” Celebrities have increasingly applied for trademark registration to protect their names and catchphrases from showing up on bootleg merch. Johnson gets a cut every time products with his IP are sold.

In the age of personal brands, every utterance is valuable. In October, Kansas City Chiefs star Travis Kelce filed to register his name, social media handle, and several of his sayings, including “Alright Nah.” He was catapulted to global fame last year due to his relationship with Taylor Swift, and now he’s reportedly shopping his podcast around for a potential eight-figure deal.—MM

     

GRAB BAG

Key performance indicators

Lucille Bluth on Arrested Development saying Arrested Development/20th Century Fox Television via Giphy

Stat: The price of food these days may be totally bananas, but actual bananas are one of the rare grocery store purchases that don’t induce inflation-driven sticker shock. The average price of bananas hasn’t risen above 80 cents per pound since 2004, IMF data shows, and Axios calculated that at the current inflation rate, it’d take 210 years for the price to hit $10. What’s keeping the price tag so low? It’s a combination of huge plantations with good growing conditions, low labor costs, trade agreements, and the need for sellers to move the fruits fast before they’re brown and only good for banana bread.

Quote: “Disney stories are filled with heroes and villains. We know who the villains are in this story, and we know they cannot be entrusted with protecting this company’s rich legacy or guiding its bright future.”

There’s a battle raging in Mickey’s kingdom between Disney CEO Bob Iger and activist investor Nelson Peltz—whose Trian Fund Management owns ~$3 billion in Disney stock and wants two board seats—and Walt Disney’s grandchildren (and his brother Roy’s grandchildren) have picked their side. The Disney family members sent two letters to shareholders backing Iger in the fight, saying, “Disney is not a company that makes widgets—it makes magic,” and Iger is “faithful” to that. Casting activist investors as the big bad, one letter called them “wolves in sheep’s clothing” who want to tear the company apart.

Read: A tech billionaire is quietly buying up land in Hawaii. No one knows why. (NPR)

NEWS

What else is brewing

  • The CDC says you no longer need to isolate for five days if you have Covid as long as you’re fever-free and your symptoms are improving.
  • Donald Trump’s lawyers asked a Florida federal judge to push back the trial date over classified documents found at Mar-a-Lago until after the election. Meanwhile, a judge in Georgia hopes to decide within two weeks whether to kick the district attorney accusing Trump of election interference in the state off the case over her relationship with a colleague.
  • Boeing is in talks to buy back Spirit AeroSystems, a fuselage maker it spun off in 2005 that’s connected to many of the recent issues with Boeing Max 737 planes.
  • Reddit is reportedly seeking a valuation of up to $6.5 billion in its stonks stock debut.
  • The IRS is going after people who earned between $400,000 and $1 million but failed to file tax returns as far back as 2017.
  • Chick-fil-A says you should toss any packages of its Polynesian Sauce you’ve got shoved in a drawer because it might contain wheat and soy allergens.

RECS

Saturday To-Do List graphic

Be precise: Here’s the difference between historic and historical.

Come for the magic: Take a trip to the cinema this month and you might see an update to the iconic Nicole Kidman ad.

Watch: An expert rates movie snake attacks on how real they are.

Today I learned: There are more golf courses than McDonald’s locations in the US.

First day jitters: Grab BambooHR’s free pre-onboarding checklist to give your employees a seamless first day + beyond. The checklist includes tasks for HR, IT, and even onboarding buddies.*

*A message from our sponsor.

GAMES

The puzzle section

Brew crossword: In today’s puzzle, you’ll learn about America’s smallest national park—and a lot more. Play it here.

Open House

Welcome to Open House, the only newsletter section for billionaire recluses. We’ll give you a few facts about a listing and you try to guess the price.

Arizona compound.Zillow

Today’s compound is in Gilbert, Arizona. The 9,326-square-foot living (and playing) space is situated on 4.35 acres. There’s so much to do on this property you won’t ever need to leave…why would you want to leave—there’s no reason to leave, please stay here. Amenities include:

  • 5 beds, 6 baths
  • Private shooting range and go-kart track (not combined)
  • Covered basketball court with seats for your friends to watch you try to dunk

How much for the desert oasis?

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ANSWER

$20 million

Word of the Day

Today’s Word of the Day is: arduous, meaning “hard to accomplish or achieve.” Thanks to Kevin from St. Louis for the difficult suggestion. Submit another Word of the Day here.

         
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