Algorithm system

Musk’s Algorithm Crisis 2Many investment institutions on Wall Street are perplexed by Musk’s handling of OpenAI this time, as his performance can only be described as flustered.

Previously, when Musk accepted interviews in public, he not only spoke vaguely about the AI Management Algorithm but even proactively told everyone not to have too high expectations for this algorithm, and further claimed that Tesla Takeout was merely an interesting philanthropic investment attempt by Tesla.

Musk’s attitude clearly aimed to downplay ordinary people’s expectations for this algorithm.

Such an operation would normally not be unusual, but when combined with Musk not having pre-arranged OpenAI stock, it becomes strange.

Because if Musk had pre-arranged OpenAI stock, he would naturally intentionally confuse public opinion during the arrangement phase to achieve the goal of building a position at a low price. However, what puzzled investment institutions was that despite spending a great deal of effort and resources searching, there was no trace of Musk building a position.

Therefore, Musk’s response was clearly not intended to mislead.

Consequently, Wall Street investment institutions had no choice but to consider a terrifying fact—the AI Management Algorithm might have escaped Musk’s control.

That’s why Musk deliberately wanted to downplay the influence of this algorithm. Otherwise, the greater the algorithm’s influence, the more incompetent his OpenAI would appear. At that time, OpenAI’s valuation of hundreds of billions of dollars would also go up in smoke.

It is precisely for this reason that those investment institutions, even after Musk publicly admitted the connection between OpenAI and this algorithm, still cautiously followed up.

Musk cannot cut leeks solely by entering the market himself; without the push and pull of investment institutions, there would be no follow-up from global leeks.

It was precisely because Musk sensed the hesitation of investment institutions that he was eager to open source the AI Management Algorithm, thereby proving to them that he truly had something substantial.

Originally, even if such an algorithm, far ahead of its peers, were to be open-sourced, it would only happen after sufficient patents had been applied for. This would prevent competitors from gaining inspiration and applying for patents prematurely.

After all, open sourcing is not the goal; the prestige and soft power influence brought by open sourcing, which can be achieved by selling emotional value and boosting stock prices, that is the true purpose.

Musk’s eagerness to open source this time was entirely forced. After all, the loss from open sourcing early cannot compare to the potential losses in the stock market.

Because OpenAI is inherently a massive bubble, Lin Yuan is very clear about this.

Currently, AI, apart from the algorithms he produces with his computing power system, remains in the theoretical stage, with very few scenarios that can be widely implemented. In other words, OpenAI is essentially a large bubble.

And what a bubble fears most is bursting; once a bubble bursts, it’s almost impossible to stick it back together. That’s why Musk resorted to this self-destructive open-sourcing.

In Lin Yuan’s view, his open-sourcing operation was essentially sacrificing a pawn to save the king—to preserve OpenAI’s hundreds of billions of dollars in market value, he sacrificed the potential licensing revenue of the AI Management Algorithm.

Before Musk carried out this series of operations, Lin Yuan had not expected that his algorithm would affect the life and death of OpenAI.

In fact, Musk himself hadn’t expected it either.

The Old Boy at Mar-a-Lago had just taken office, and as his top favorite, Musk had been busy with government affairs recently. Thus, he regarded Lin Yuan’s takeout investment as a casual gesture of help to a young person.

Who would have known that while helping, he ended up tying the fate of his hundreds of billions of dollars in market value to that young person.

Musk also didn’t expect that Lin Yuan would truly succeed in breaking through with Tesla Takeout, relying on food safety bolstered by the algorithm.

The benefit brought by this was that the algorithm used by Tesla Takeout was believed to be developed by OpenAI, leading to high expectations for OpenAI in the investment market.

But the trouble it brought was that Musk, not having anticipated this scenario, had not signed a contract with Lin Yuan regarding the intellectual property of the algorithm beforehand, leaving the algorithm’s intellectual property unclear. Expectations are good, but when those expectations are not under one’s control, it’s not a good thing.

Musk, left with no choice, had to admit: if Lin Yuan didn’t give him the algorithm, and the world eventually discovered that Tesla Takeout’s algorithm was not developed by OpenAI, then OpenAI’s hundreds of billions of dollars in market value would simply evaporate.

Because the world had placed excessively high expectations on OpenAI through this wave of Tesla Takeout traffic; the greater the expectation, the greater the disappointment when that expectation is shattered.

Fortunately, Lin Yuan was very generous, which prevented Musk from becoming a laughingstock in the history of modern human commerce.

It was only after Musk completed the intellectual property transfer of the algorithm from Lin Yuan that he solemnly informed Lin Yuan of the algorithm’s intellectual property’s importance to him.

Lin Yuan, however, remained quite calm about it. He wasn’t disappointed at all by losing an opportunity to potentially manipulate Musk. To be precise, he felt no ripple in his heart.

Musk had readily agreed without hesitation to let him use Tesla’s name to do takeout, and even when Tesla’s management in Dragon Country tried to seize power from him, he consistently stood by his side.

Because of these things alone, Lin Yuan could not possibly backstab Musk on this matter.

However, Lin Yuan was not a fool either.

He later understood Musk’s deliberate concealment—before Musk took over the intellectual property of the algorithm from Lin Yuan, he had not thoroughly explained to Lin Yuan what this benevolent act of Lin Yuan’s meant. Musk must have been worried that Lin Yuan, upon realizing he could manipulate OpenAI, might change his mind.

However, once Musk gained control of the situation, he quickly expressed his apologies to Lin Yuan and was willing to give Lin Yuan stocks worth tens of billions of dollars in market value.

Lin Yuan was quite relieved about this and even directly told Musk, ”If it were me, I would do the same as you. I act with integrity, but I never expect others to be as generous to me. But if you truly feel indebted, then we can discuss how to transfer that ten billion dollars to my account.”

Musk was not joking with Lin Yuan; he was truly willing to give Lin Yuan ten billion dollars.

The overall economic benefit that Lin Yuan’s takeout venture brought to Tesla and OpenAI, just from the current stock price appreciation, has already exceeded ten billion. Tesla has already appreciated by hundreds of billions of dollars due to this surge in popularity.

Musk promised to give stocks of equivalent market value, not cash, so it was justifiable.

But the problem was how Lin Yuan should receive this huge sum of money.

This large sum of stock certainly couldn’t be directly transferred to Lin Yuan. After much thought, Musk could only make Lin Yuan an independent director of Tesla.

Musk convinced the group of Wall Street investment institutions behind him, making those vampires realize Lin Yuan’s immense value, and consequently, that group of vampires also agreed to Musk’s proposal to appoint Lin Yuan as an independent director of Tesla.

After serving as an independent director of Tesla, he could legitimately receive large stock awards.

Musk quickly pushed the Tesla board to approve stock worth one billion dollars in market value to Lin Yuan. To ordinary people, this was simply astounding—a young man directly receiving a gift of a billion dollars in stock.

So, Musk quickly added a gambling agreement, which stated that Lin Yuan and Tesla had signed a gambling agreement regarding the Tesla Takeout venture.

And Lin Yuan had now completed the gamble, so he was entitled to receive Tesla’s stock reward.

Of course, this was purely a smokescreen created by Musk to give Lin Yuan stock.

This gambling agreement was simply concocted on the fly.

Anyway, as long as Musk had no objections, and the consortiums behind him had no objections, there would be no problems.

For transferring equity, a more audacious operation could be to have Lin Yuan set up a shell company, and then have Tesla or OpenAI acquire this shell company.

If it weren’t for the consideration that Lin Yuan still had to operate in Dragon Country and couldn’t be too extravagant, Musk really could have pulled off a ten-billion-dollar acquisition of a shell company, and he wouldn’t have had to be so stingy as to give Lin Yuan a billion dollars in stock through a gambling agreement first.

After all, Dragon Country does have some regulations, so one can’t really act recklessly.

Thus, Lin Yuan’s net worth instantly reached one billion dollars.