Larry Summers Asks Harvard Students For ‘Permission’ To Continue Teaching as Epstein Fallout Widens

A former president of Harvard University, Larry Summers, continues to suffer fallout from his relationship with disgraced financier Jeffrey Epstein, with the prominent economist resigning from yet another corporate board position following the release of email correspondence between the two men. Mr. Summers, who served as Treasury Secretary under the Clinton administration and was President Obama’s director of the National Economic Council, announced on Wednesday his departure from the board of directors at the San Francisco-based artificial intelligence company, OpenAI. “In line with my announcement to step away from my public commitments, I have also decided to resign from the board of OpenAI,” Mr. Summers stated. “I am grateful for the opportunity to have served, excited about the potential of the company and look forward to following their progress.” His position at OpenAI is just one of many roles that Mr. Summers has stepped back from in the weeks since the federal government made public more than 20, 000 emails from Epstein’s estate that shed new light on Mr. Summers’ intimate relationship with the convicted sex offender. That includes his role as chairman of the board at the Center for Global Development and his board positions at the Peterson Institute for International Economics, Yale’s Budget Lab, and the Brookings Institution’s Hamilton Project. Mr. Summers was also dropped from the New York Times Opinion section, where he was hired in January 2025 to serve as a contributing writer. The Times’ executive director for media relations stated on Tuesday that the outlet does not intend to renew his contract when it concludes at year-end. The released correspondence showed that Mr. Summers maintained regular contact with Epstein from 2013 through July 2019 years after the financier’s 2008 conviction on charges involving solicitation of prostitution from a minor exchanging messages on topics ranging from personal matters to professional advice. On several occasions Mr. Summers sought romantic counsel from Epstein, including regarding a woman he described as a mentee. “Think for now I’m going nowhere with her except economics mentor,” Mr. Summers wrote in November 2018. “I think I’m right now in the seen very warmly in rear view mirror category.” In one 2018 exchange, Epstein went as far as to refer to himself as Mr. Summers’ “wing man.” Mr. Summers’ was married at the time. The final email between the two was sent just one day before federal authorities arrested Epstein on new sex-trafficking charges in July 2019. Although Mr. Summers shared his plans to retreat from all public commitments, he will continue to teach at Harvard and serve as the director of the Mossavar-Rahmani Center for Business and Government at the Harvard Kennedy School. This semester Mr. Summers is currently teaching five courses, including two large undergraduate economics classes. Mr. Summers, however, opened a Tuesday economics class by apologizing to his students for his association with Mr. Epstein and asking for the class’s “permission” to “go forward and talk about the material” for the course. “Some of you will have seen my statement of regret expressing my shame with respect to what I did in communication with Mr. Epstein and I’ve said I’m going to step back from public activities for a while,” Mr. Summers said in a video taken by a Harvard student and posted to social media. “But I think it’s very important that I fulfill my teaching obligations.” Also on Tuesday the chairman of Harvard’s economics department, Elie Tamer, sent an email to students expressing his regret for “the recent items that you have read about our faculty members.” Mr. Tamer, who refrained from directly naming Mr. Summers, apologized to students who “are hurt, angry or simply exhausted by the news” and emphasized the school’s commitment to creating a community where “students can learn, research, and work without fear of favoritism, coercion, or retaliation.” “We have been through a lot this past year and again, to you our students I say: you belong here,” he added. “You deserve advisors who champion your work and a community that chooses integrity. If you need anything-clarity, or simply a human conversation ask. I will show up.” Harvard, meanwhile, announced its decision to open a new investigation into Mr. Summers, who served as president from 2001 to 2006, and his relationship with Epstein. A Harvard spokesman told the Crimson on Tuesday that “the University is conducting a review of information concerning individuals at Harvard included in the newly released Jeffrey Epstein documents to evaluate what actions may be warranted.” Several other Harvard figures were also featured in the files, including Harvard Law School professor emeritus Alan Dershowitz, who served on Epstein’s legal team in a 2008 criminal case, and Mr. Summers’ wife, professor Elisa New.
https://www.nysun.com/article/larry-summers-asks-harvard-students-for-permission-to-continue-teaching-as-epstein-fallout-widens

OpenAI Now Worth $500 Billion

OpenAI Could Now Be the World’s Most Valuable Startup, Surpassing SpaceX and ByteDance

OpenAI has potentially become the world’s most valuable startup, outpacing Elon Musk’s SpaceX and TikTok’s parent company ByteDance, following a secondary stock sale aimed at retaining employees at the ChatGPT maker.

Current and former OpenAI employees sold $6.6 billion in shares to a group of investors, pushing the privately held artificial intelligence company’s valuation to $500 billion, according to a source familiar with the deal who was not authorized to speak publicly.

### Investors and Valuation

The investors purchasing the shares included Thrive Capital, Dragoneer Investment Group, T. Rowe Price, Japanese tech giant SoftBank, and the United Arab Emirates’ MGX, the source revealed on Thursday. This valuation reflects high expectations for the future of AI technology and continues OpenAI’s remarkable trajectory from its beginnings as a nonprofit research lab in 2015.

### Profitability and Market Concerns

However, with the San Francisco-based company not yet turning a profit, concerns about an AI bubble may intensify. Skeptics worry that if the generative AI products from OpenAI and its competitors fail to meet investor expectations, the billions poured into research and development could be at risk.

OpenAI CEO Sam Altman has recently sought to ease such concerns. During a tour last week of a massive data center complex being built in Abilene, Texas, to run the company’s AI systems, Altman said:

> “Between the ten years we’ve already been operating and the many decades ahead of us, there will be booms and busts. People will overinvest and lose money, and underinvest and lose a lot of revenue.”

He added, “We’ll make some dumb capital allocations and see short-term ups and downs, but over the arc that we have to plan over, we are confident that this technology will drive a new wave of unprecedented economic growth, along with scientific breakthroughs, improvements to quality of life, and new ways to express creativity.”

### New Business Ventures

Just this week, OpenAI launched two new business ventures: a partnership with Etsy and Shopify to enable online shopping through ChatGPT and a social media app called Sora for generating and sharing AI videos.

### Competition and Compensation Challenges

The stock sale marks a first for OpenAI, which has struggled to offer investors and staff the same perks and compensation as other companies. In particular, Facebook parent Meta Platforms has been aggressively hiring top AI engineers and, in June, made a $14.3 billion investment in AI company Scale, which recruited its CEO Alexandr Wang.

### Corporate Structure and Regulatory Scrutiny

OpenAI’s for-profit subsidiary, currently valued at $500 billion, is technically controlled by the board of OpenAI’s nonprofit, with both entities still bound to pursue the nonprofit’s charitable purpose.

The company’s partnerships with major corporations and plans to alter its corporate structure have attracted scrutiny from regulators, including the attorneys general of California and Delaware, who oversee charities operating or incorporated in their states.

### Recent Partnerships and Strategic Moves

In recent weeks, OpenAI has made significant deals with Oracle and SoftBank for a data center venture called Stargate, as well as with chipmaker Nvidia, which supplies the specialized AI chips necessary for these data centers.

At the same time, OpenAI has reduced its reliance on longtime backer Microsoft. In September, the company announced it had reached a tentative agreement with Microsoft regarding the future stake of its nonprofit in its for-profit corporation, though few details were shared.

### Grants to Support AI Understanding and Economic Opportunity

OpenAI also opened applications for nonprofits to apply for $50 million in funding, an initiative launched following recommendations from an advisory board. The grants aim to support projects that increase public understanding of AI, promote the design of AI based on community needs, and boost economic opportunity.

The deadline to apply for these grants closes on October 8.

OpenAI’s rapid growth and ambitious plans highlight the company’s potential to reshape the AI industry and broader economy, even as questions about profitability and market sustainability remain.
https://www.deccanchronicle.com/technology/openai-now-worth-500-billion-possibly-making-it-the-worlds-most-valuable-startup-1907655