The skinny on what's happening in AI - straight from the previous live session:
Highlights
💰 OpenAI Completes For-Profit Conversion - Mission Officially Dead?
OpenAI is now officially a for-profit corporation after years of legal wrangling. Microsoft gets 27% stake worth $100+ billion (down from previous 49% profit share deal). Delaware Attorney General approved conversion to a "public benefit corporation."
OpenAI’s spaghetti structure
Kyle's take: The original mission is dead. They were meant to be open, non-profit, purely for humanity's benefit. That's gone.
Realistically Sam Altman needs to incentivise investors, and you can't do that without profit potential. It’s just not feasible to build one of the largest companies on earth with good intentions.
Previously Microsoft could claim 49% of profits but never exercised it because OpenAI wasn't profitable. Now it's a cleaner 27% equity stake. The org chart was already a mess of LLCs and holding companies - now it's even more complicated.
Elon Musk must be furious - he's been fighting this for years. Yes, potentially this aligns with building AI for humanity, but that's not really the driving force anymore. Money is. The restructuring paves the way for easier capital raising, but at what cost to the original vision?
📉 Consulting Industry Faces Extinction: Down 50% While Market Up
Major consultancies are hemorrhaging value: Accenture down 30%, Booz Allen down 52%, Gartner down 50% year-to-date. Accenture cut 11,000 jobs for staff who "couldn't be retrained" on AI.
Kyle's take: Definitely a problem. Clients realise if a project cost them $1M internally, consultants charged $200k, now AI does it for $10k. Why pay McKinsey when they're using ChatGPT anyway? Deloitte's Australian disaster - AU$144k for a report with made-up citations and fictional academics - proves they're just pumping out AI info without checking.
But here's what the article misses: consultants provide CYA (cover your arse) insurance. As an MD, if I hire Accenture and the project fails, I blame them. If it succeeds, I take credit. That's the real service.
📊 Claude Overtakes OpenAI in Enterprise - Excel Integration Launches
Anthropic now leads enterprise API market at 32% (OpenAI drops below 30%). AND Claude launches Excel add-in, financial connectors for S&P, Moody's, Bloomberg, and pre-built finance agent skills.
Kyle's take: OpenAI had 50% market share in 2023, now they're second place. This is how AI companies actually make money - not just our subscriptions but enterprise API usage.
Look at the chart though - Google's accelerating while Claude's growth is slowing. Google might eat everyone's lunch next year, especially with Gemini 3 coming. They're already in lots of enterprises.
FYI The Excel integration is solid - Claude can now read and edit spreadsheets directly, click on referenced cells, pull in market data. They've added DCF models, coverage reports, company analysis.
Perfect timing for me - I'm about to start acquiring micro-SaaS companies and need exactly these tools for due diligence!
Member Question: "Sounds like bad training, not people” - regarding the Deloitte scandal.
Kyle's response: Exactly right. Deloitte staff didn't sense-check anything - they got AI output, stuck it in a report, sent it to the Australian government for $144k without checking.
Anyone who uses AI regularly knows you don't do that. You check citations, verify everything. Use AI for ideation, structuring, interviewing yourself - but you still need to do that final 20-30% yourself.
If they'd used deep research modes, had AI check the AI's work, and then used human-in-the-loop checks they'd have got decent results. Instead they probably just used ChatGPT, grabbed some citations, stuck it in the mail. That's not an AI problem, it's a human problem. Anyone who knows how to use AI properly wouldn't have done that.
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