🧪 The results of Sam Altman’s human experiment

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TOP STORY
🧪 The results of Sam Altman’s human experiment

The results of Sam Altman’s human experiment are in.

Since 2019, participants across Illinois and Texas have received monthly cash payments of $1,000 to take part in a project funded by OpenAI’s Sam Altman.

The project? Figuring out whether a UBI (universal basic income) is a smart plan for humanity's future, especially considering AI might take over.

Now it makes sense why Altman was the one behind it.

How’d it go down? 👇

• All 3,000 participants had incomes below $28,000.

• Around 1/3 received $1,000/month for three years, while the remaining control group members received $50 monthly.

What’d they spend the money on? People used the cash primarily for essentials, which makes sense:

• Food

• Rent

• Transportation

Interestingly, though, savings accounts saw the biggest boost from the experiment.

Those who received $1,000 a month increased their savings by nearly 25%, and their average incomes rose from about $30,000 to $45,710.

But the most fascinating part is that people started working less—not because they became a bump on a log, but rather because the extra income gave them more breathing room to find a job they could enjoy.

And if they didn’t find an exciting job, they didn’t take it.

Choosing a job because it's what you actually want to do sounds like a nice life to me.

• Those receiving $1,000 showed a slight drop in employment, improved goal-setting, and focused on spending for basic needs and helping others.

• However, while life satisfaction increased briefly at the start of the study, it didn't last.

The main takeaway is that just giving people money isn't enough. If AI and robots take people’s jobs, we will need a lot more than just cash.

We'll need new ways for people to feel fulfilled in life.

TECHNOLOGY
🤔 Why can’t Google acquire a company?

A few months ago, we learned that Google was interested in acquiring CRM specialist HubSpot, going so far as to meet with investment bankers to help them negotiate a deal.

But things eventually fell apart, and earlier this month, the deal was officially axed. Poor Google.

But try again, right? Soon after the failed HubSpot deal, Google pursued a new company, Wiz.

Rebound much? Nah, not so much.

Acquiring Wiz makes a lot more sense for Google, actually.

• Wiz is a major cybersecurity startup that had raised over $1 billion in funding earlier this year.

• Cybersecurity is one of the fastest-growing industries in the world right now, which is why Google’s interest makes a ton of sense.

• Just last week, we saw how crucial cybersecurity is nowadays, with the faulty software update from CrowdStrike crashing millions of devices worldwide.

Which definitely increased the potential value of companies that offer cloud security features, like Wiz.

A deal just couldn’t be struck, despite “advanced talks,” which we’re starting to think Google just sucks at.

Instead, Wiz will consider a potential IPO and hopes to reach the $1 billion annual recurring revenue mark by then.

Damn, another one bites the dust. It’s not all Google’s fault, though.

Not to be forgotten as a deterrent for both of these deals is the antitrust police, which hates Google and would certainly be looking to punish Google for making themselves even bigger.

AUTOMOBILES
📉 Tesla stumbles again after earnings

For the second straight quarter, Tesla’s profit tumbled.

Some of the biggest misses of Q2:

• Tesla delivered 443,956 vehicles globally, a 4.8% decline from the same quarter a year ago. 📉

• Tesla built 410,831 vehicles, a 14% reduction over the prior year. 📉

• Tesla’s sales in China dropped 24% compared with last year. 📉

• Tesla's market share of EV sales in the U.S. fell to 49.7%, compared to ~60% last year. 📉

What’s gone wrong?

Unfortunately for Tesla, it's not just one issue that needs fixing—it's several:

• Increased Competition: Other carmakers have rolled out numerous new electric models, intensifying competition in the EV market

• Price Reductions: Tesla lowered prices to boost sales, but this strategy led to lower profit margins, affecting overall market performance

• Production and Supply Issues: Tesla experienced production halts and reduced manufacturing output, leading to fewer vehicles being available for sale

Profit seems to be the issue investors are most concerned about, though.

In response, Musk said, "There were quite a few competitor vehicles hitting the market, which haven’t done very well, but they have discounted these vehicles very heavily."

Put simply, while many new EVs have entered the market, they haven't performed very well in terms of sales.

1 point for Tesla.

However, because of their lack of sales, these competitors have begun offering significant discounts to attract buyers, putting pressure on Tesla to lower its prices.

Which explains the deflating profits. But hey, on a good note, the Cybertruck is coming to Fortnite, so there are definitely things to look forward to as a Tesla investor.