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Neuralink’s Value Jump Spurs Employee Interest in Cashing Out

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Neuralink's Value Jump Spurs Employee Interest in Cashing Out

Following a significant increase in Neuralink’s valuation after its first human trial, some employees at Elon Musk‘s brain implant company are preparing to sell their stock, according to insiders.

Stock compensation is a major incentive for employees at startups like Neuralink. Since these shares are not publicly traded, employees wanting to sell them without the company’s approval must use complex private market exchanges.

Sources familiar with the matter revealed that some Neuralink employees and investors are anticipating a tender offer from the company as early as next month. This would allow staff to sell their shares back to the company. Neuralink and Musk have not commented on the situation.

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The valuation boost, evident in secondary market trades, indicates a rise to as much as $8 billion, more than double the previous year’s value. Despite thin trading volumes that don’t provide a definitive valuation, the trend points to a substantial increase.

Neuralink’s first human trial has been declared a success, resolving an initial issue with the implant’s threads retracting from the first patient’s brain. The company is now preparing for more trials in Britain and Canada, with plans to implant a second patient soon.

The exact details of the potential tender offer remain unknown. Last fall, Neuralink’s tender offer for employees was priced at around $19 per share, while some shares traded on the secondary market close to $35, according to Reuters and other sources. It’s common for startups to offer tender prices below secondary market values.

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Musk has a history of creating scarcity for shares in his startups, including SpaceX and artificial intelligence developer xAI, making them exclusive to select investors like Peter Thiel’s Founders Fund. This scarcity has made the shares highly sought after, with investors typically receiving limited information on the startups’ performance. A spokeswoman for Founders Fund declined to comment.

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OpenAI CTO Mira Murati Announces Departure After 6 Years

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OpenAI CTO Mira Murati Announces Departure After 6 Years

OpenAI’s Chief Technology Officer, Mira Murati, has announced her departure from the company after six and a half years. In a memo shared on X, Murati expressed that she had made the “difficult decision” to step away from OpenAI, citing her desire for personal exploration and reflection.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” Murati wrote, emphasizing her commitment to ensuring a smooth transition for the company during this critical time.

Her exit follows other high-profile departures from the company, including co-founder Ilya Sutskever and former safety leader Jan Leike in May, as well as co-founder John Schulman, who left last month to join rival company Anthropic.

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Murati’s departure comes at a time when OpenAI is pursuing a new funding round, potentially valuing the company at over $150 billion, with significant investments anticipated from major players like Thrive Capital, Microsoft, and Nvidia. OpenAI, the company behind ChatGPT, has seen rapid growth since 2022 but has also faced internal controversies and employee turnover, sparking concerns about its ability to scale safely.

Murati became a public figure when she was appointed interim CEO last November after the abrupt ousting of CEO Sam Altman. Despite her departure, she remains focused on supporting OpenAI’s momentum in the coming months.

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

During a congressional hearing, CrowdStrike executive Adam Meyers issued a formal apology for the massive IT outage in July, which affected millions of computers globally. In his opening remarks, Meyers expressed deep regret, stating, “On behalf of everyone at CrowdStrike, I want to apologize. We are deeply sorry this happened and are determined to prevent it from happening again.”

Meyers assured lawmakers that the company is committed to learning from the incident and making significant improvements. This includes enhancing testing and checks on updates, as well as altering how future updates are issued to avoid similar disruptions.

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

Caroline Ellison, the former CEO of Alameda Research and key witness in the criminal case against FTX founder Sam Bankman-Fried, faces sentencing this Tuesday. Despite her involvement in the massive fraud that led to FTX’s collapse, Ellison may avoid significant jail time due to her cooperation with federal authorities.

Ellison admitted to defrauding investors and misappropriating billions of dollars from FTX customers, redirecting funds to Alameda’s speculative trading and debt repayment. Both Ellison and Bankman-Fried face the same serious charges, which carry a potential maximum sentence of 110 years. However, her cooperation with prosecutors has been deemed “extraordinary,” leading the federal Probation Department to recommend “time served” with three years of supervised release.

Her testimony was crucial in portraying Bankman-Fried’s role in the collapse, particularly due to their close personal relationship. This unique insight into his operations helped strengthen the government’s case. While Ellison was involved in fraudulent activities, legal experts believe her lesser control compared to Bankman-Fried will likely result in a lighter sentence, potentially no more than 18 months in prison.

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