WSJ What’s News – Episode Summary: "Altman Pushes Back on Musk’s OpenAI Bid"
Release Date: February 11, 2025
Host: Luke Vargas
Source: The Wall Street Journal

1. Legal Developments: Eric Adams and Rod Blagojevich

NYC Mayor Eric Adams' Bribery Case Dismissed
The Justice Department has instructed federal prosecutors in Manhattan to drop the bribery case against New York City Mayor Eric Adams. The Department claims the indictment hindered Adams' ability to engage in President Trump's immigration enforcement efforts. Adams, who faced charges in September for allegedly accepting illegal campaign contributions from Turkey and $100,000 in travel and hotel perks in exchange for official acts, has maintained his innocence. He labeled the indictment as politically motivated, stating it targeted him due to his criticism of President Biden's handling of the migrant crisis. Adams hinted at the possibility of seeking a pardon, emphasizing his claim of wrongful targeting by former Justice Department officials. (04:43)

President Trump Pardons Rod Blagojevich
In a related development, President Trump has pardoned former Illinois Governor Rod Blagojevich, who was convicted nearly fifteen years ago on corruption charges. This follows Trump's earlier commutation of Blagojevich's 14-year sentence in 2020. Trump reiterated his belief that Blagojevich was unfairly treated by prosecutors, describing the former governor as being "set up by a lot of bad people." (02:34-02:43)

2. Presidential Actions and Policies

Reversal of the Foreign Corrupt Practices Act (FCPA)
President Trump issued an executive order halting the enforcement of the Foreign Corrupt Practices Act, which prohibits U.S. companies from bribing foreign officials. The FCPA has been instrumental in addressing overseas misconduct, impacting major corporations like Goldman Sachs and Glencore. The White House is now seeking to establish new guidelines aimed at eliminating barriers that hinder American firms from competing internationally. (02:43-05:23)

Banning Paper Straws in Favor of Plastic
In another executive order, President Trump endorsed the use of plastic straws over paper alternatives. The administration criticized paper straws as being "non-functional" and attributed their push to "WOKE activists" who prioritize symbolism over scientific practicality. This move reflects Trump's broader strategy to deregulate and reduce perceived unnecessary regulatory burdens. (02:43-05:23)

3. OpenAI and Elon Musk's Bid

Sam Altman Rejects Musk-Led Acquisition Offer
OpenAI CEO Sam Altman has firmly declined a $97.4 billion acquisition bid from a group led by Elon Musk. Musk's unsolicited offer aimed to purchase the nonprofit entity controlling OpenAI. In response, Altman took to social media platform X (formerly Twitter) to dismiss the proposal, stating, "no thank you," while humorously noting, "but we will buy Twitter for $9.74 billion if you want." He further communicated to OpenAI employees via Slack that the company's structure prevents any individual from taking control, labeling Musk's bid as an attempt to "weaken us." (01:03-04:44)

Implications for OpenAI's Independence
Altman's rejection underscores OpenAI's commitment to maintaining its autonomy and resisting external attempts to influence its strategic direction. This move ensures that OpenAI can continue its mission without the potential conflicts of interest that might arise from Musk's involvement.

4. Investment Movements: Elliott Investment in Phillips 66

Elliott Investment Management's Stake in Phillips 66
Activist investor Elliott Investment Management has acquired a substantial $2.5 billion stake in Phillips 66, a major U.S. oil refiner. The firm is advocating for operational changes aimed at enhancing the company's stock performance. Potential strategies include selling or spinning off Phillips 66's midstream business, which encompasses pipelines and terminals crucial for transporting oil and gas. (03:00-05:23)

Impact on BP and the Energy Sector
Elliott has also recently invested in BP, the British oil giant, which reported lower-than-expected earnings and announced a strategic reset to focus on cash flow growth and shareholder returns. Following Elliott's moves, Phillips 66 shares saw an uptick in after-hours trading, while BP's shares remained relatively stable in London. Industry experts suggest that focusing on the midstream segment could unlock significant value for Phillips 66, given the high demand and strategic importance of its infrastructure assets. (03:00-05:23)

5. Super Bowl Viewership and Global Economic Forecasts

Record-Breaking Super Bowl Audience
The Philadelphia Eagles' victory over the Kansas City Chiefs in Sunday's Super Bowl attracted a record-breaking 126 million viewers across Fox and various streaming platforms, according to Nielsen. This marks the third consecutive Super Bowl to set new viewership records, highlighting the event's enduring popularity and significant cultural impact. (05:23)

South Korea Revises GDP Growth Forecast
The Korea Development Institute (KDI), a state-run think tank, has revised South Korea's GDP growth forecast for 2025 downward from 2% to 1.6%. The primary factor influencing this adjustment is the adverse impact of former President Trump's trade policies on the country's export-driven economy. The revised forecast underscores the vulnerabilities in South Korea's economic projections amidst shifting global trade dynamics. (05:23)

6. Federal Reserve and Corporate Earnings

Jerome Powell's Congressional Testimony
Federal Reserve Chair Jerome Powell is set to begin a two-day testimony on Capitol Hill, marking his first congressional appearance since President Trump's inauguration. Topics expected to be addressed include interest rates, inflation, and the potential effects of Trump's policy changes on the Fed's economic outlook and earnings. This testimony is highly anticipated as it will provide insights into the Fed's future monetary policy directions amidst a dynamic economic landscape. (05:23)

Upcoming Corporate Earnings Reports
Several major corporations are slated to report their quarterly results, including Coca-Cola, Marriott, Lyft, and Shopify. Investors and analysts are keenly watching these earnings reports for indications of economic recovery, consumer behavior trends, and the overall health of these diverse sectors.

7. International AI Summit in Paris

Global Leaders Convene to Shape AI's Future
World leaders and top tech executives are gathering in Paris for the final day of a significant international AI summit. French President Emmanuel Macron announced a $109 billion investment in nuclear-powered AI computing, aiming to bolster Europe's position in the global AI race. Additionally, the European Union pledged $200 billion towards AI development, reflecting a concerted effort to enhance AI capabilities and infrastructure across the continent. (07:45-12:38)

Promoting Inclusive AI Benefits
Sam Schechner, Tech Reporter for the Wall Street Journal, highlighted the summit's focus on ensuring that the economic benefits of AI are shared globally, rather than dominated by the U.S. and China. Macron emphasized regulatory adjustments to foster AI innovation within Europe, with a specific push to support European AI companies like Mistral AI. The summit aims to balance AI governance with economic competitiveness, ensuring that a broader range of countries can participate and benefit from AI advancements. (07:45-12:38)

Reaction to China's AI Developments
Discussions at the summit also touched upon China's advancements in AI, particularly DeepSeek's recent generative AI model developed at a fraction of the cost compared to Western counterparts. While some view DeepSeek's efficiency as a positive indicator for increased demand in AI-related hardware, others express concerns about maintaining competitive parity. European stakeholders, including those from Mistral AI, see such developments as both a challenge and an opportunity to showcase their own innovations in efficient AI models. (11:55-12:38)

Key Quotes

• Sam Altman on Musk’s Bid:
  "Our structure ensures that no individual can take control of OpenAI," he stated in a Slack message to employees. (04:44)

• President Trump on Blagojevich:
  "He was set up by a lot of bad people, some of the same people that I had to deal with." (02:34)

• Sam Schechner on AI Summit Goals:
  "We've gone from trying to avert catastrophe to trying to make sure that Europe and frankly, other parts of the world as well, can participate in and catch up in this AI race." (00:53)

Conclusion

This episode of WSJ What’s News provided a comprehensive overview of significant developments ranging from legal battles and presidential policies to major moves in the tech and energy sectors. Central to the discussion was OpenAI CEO Sam Altman's rejection of Elon Musk's acquisition attempt, highlighting the ongoing tensions and power dynamics within the rapidly evolving AI industry. Additionally, the international AI summit in Paris underscored the global race to harness and regulate AI technologies, ensuring inclusive economic benefits and addressing competitive challenges posed by global leaders like China. The episode also delved into impactful corporate investments, record-breaking media events, and anticipated economic forecasts, offering listeners a well-rounded snapshot of the current business and political landscape.