World Street | OpenAI leadership exits; Micron's AI-driven profit surge; China rolls out poverty cash aid; Pakistan secures $7B IMF loan; and more

World Street offers a sneak peek into the world of business and the economy.

OpenAI faces a talent exodus as three top executives, including CTO Mira Murati, announced their departures amid the company’s shift to a for-profit model. Paul Pelosi's sale of Visa shares, timed with a DOJ lawsuit against the company, raised scrutiny. China unveiled cash handouts for the poor. Pakistan secured a $7 billion IMF loan for recovery. All this and more on this edition of World Street.

Talent Exodus

ChatGPT parent OpenAI’s Chief Technology Officer Mira Murati announced her departure from the company on Wednesday after six and a half years. Following her exit, OpenAI CEO Sam Altman revealed that two more key leaders—Research Chief Bob McGrew and Vice President of Research Barret Zoph—are also leaving, as the high-profile AI startup grapples with the loss of top talent.

Shortly after Murati's exit, Reuters reported that OpenAI is restructuring into a for-profit business model, moving away from its non-profit roots. However, the company will retain a non-profit segment. Altman took to X (formerly Twitter) in the afternoon to clarify that McGrew and Zoph’s departures were unrelated and driven by their own individual decisions.

Suspicious Sale

Former Speaker of the House and current Representative Nancy Pelosi, D-Calif., is in the spotlight due to her husband's stock trading. This time, attention centres on Paul Pelosi’s decision to sell 2,000 Visa shares valued at over $500,000 just before the federal government sued the company, accusing the company of maintaining an illegal monopoly in the U.S. debit card market.

In response to previous scrutiny over Pelosi's trades, a spokesperson for Nancy Pelosi emphasized, "Speaker Pelosi does not own any stocks and has no prior knowledge or involvement in these transactions."

Profit Pop

Micron Technology Inc., the largest U.S. producer of computer memory chips, saw its stock surge in late trading after releasing unexpectedly strong sales and profit projections. The boost comes from increased demand for artificial intelligence hardware, reported Bloomberg.

For the fiscal first quarter, Micron anticipates revenue of approximately $8.7 billion, surpassing the average analyst estimate of $8.32 billion. The company expects a profit of $1.74 per share, excluding certain items, exceeding the projected $1.52.

SEC Smackdown

The U.S. Securities and Exchange Commission (SEC) has charged Harvest Volatility Management and Merrill Lynch for breaching clients' predesignated investment limits over a span of two years. Merrill Lynch, owned by Bank of America, and Harvest have agreed to separate settlements, collectively paying $9.3 million in penalties to resolve the claims.

Harvest Volatility Management acted as the primary investment advisor and portfolio manager for the Collateral Yield Enhancement Strategy, which focused on trading options in a volatility index to generate incremental returns.

Cash Lifeline

China announced plans to provide one-time cash handouts to those in extreme poverty before Tuesday, just a day after launching a broader initiative to boost its economy, the second largest in the world.

The Ministry of Finance and Ministry of Civil Affairs will distribute living subsidies to vulnerable groups, including the very poor and orphans, ahead of the National Day holiday next week. The announcement was made by state broadcaster CCTV on Wednesday, though specific details were not provided.

Pakistan Payday

Pakistan has received final approval to commence a $7 billion loan program from the International Monetary Fund (IMF), providing critical financing to support the country’s economic recovery from its ongoing crisis.

On Wednesday, the IMF executive board granted the green light for the 37-month program, as confirmed by both the prime minister’s office and the IMF in separate statements. This approval allows for an immediate disbursement of approximately $1.1 billion, according to Pakistan State Bank Governor Jameel Ahmad.