Good morning. Today we're talking about OpenAI changing its status, Rightmove’s takeover tussle and Visa’s lawsuit.

Big Stories

OpenAI turns to profit

OpenAI, the AI research laboratory behind ChatCGPT, is planning to restructure from a non-profit to a for-profit entity. This move aims to attract more investment and align with the company's growing commercial ambitions. The transition is expected to significantly increase OpenAI's valuation, which is currently estimated at $150bn. It would also give CEO Sam Altman an equity stake - something he previously avoided because he “loved” what he did — rumoured to be 7%, or roughly $10bn. That would make him one of the richest people in the world. By becoming a for-profit company, OpenAI will have greater flexibility in terms of financial management and investment strategies. However, the decision has sparked concerns among some within the company regarding its commitment to ethical AI development. Several key executives, including the Chief Technology Officer, have resigned following the announcement, raising questions about the potential impact on OpenAI's long-term goals.

Rightmove’s next move

Australian real estate listings company REA Group has made a fourth attempt to acquire Rightmove, the UK's leading property portal. The latest offer, valued at £6.2bn, comes after previous bids were rejected by Rightmove's management. REA Group, which is majority-owned by Rupert Murdoch’s News Corp, is keen to expand its presence in the UK market and believes that Rightmove would be a valuable acquisition. However, Rightmove has so far resisted these takeover attempts, citing concerns about valuation and potential regulatory hurdles. The acquisition of Rightmove could have significant implications for the UK property market, as REA Group has indicated its intention to explore new ways of marketing properties online. This could include shifting the cost of advertising from estate agents to property sellers, which could disrupt the traditional business model. The deadline for REA Group to make a firm offer for Rightmove is today - or it will have to step away for six months – although an extension to the process may be requested.

Visa lawsuit

The US Department of Justice has filed a lawsuit against Visa, accusing the payment network giant of monopolising the debit card market. The DOJ alleges that Visa's anti-competitive practices have led to higher fees for merchants and consumers. The suit is the result of a long running investigation by the government into Visa’s business practices. Visa controls over 60% of the US debit card market and collects more than $7bn in annual fees. The DOJ claims that Visa has used its dominant position to force merchants to route transactions through its network, imposing steep penalties on those who seek to use alternative payment options. The lawsuit seeks to break up Visa's monopoly and increase competition in the debit card market, potentially leading to lower fees for consumers. Visa has denied the allegations and vowed to fight the lawsuit.

Elsewhere...

Cross words: Elon Musk lashed out at the UK after it was reported he had not been invited to a major investment summit because of his social media posts during the summer riots.

Password crackdown: Disney has officially launched its password and account-sharing crackdown, rolling out what it is calling its “paid sharing program” to users.

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