VOLUME 58

Hope everyone is having a great week! Let’s dive in to this week’s biggest stories.

— Jacob Pace

OpenAI CTO and Chief Research Officer Exit 

What happened: OpenAI is undergoing a significant leadership transition with both CTO Mira Murati and Chief Research Officer Bob McGrew announcing their departures. Murati, who joined OpenAI in 2018, and McGrew, who has been with the company since 2017, are the latest in a series of high-profile departures.

For context: These exits arrive at a crucial time as OpenAI is in discussions to shift from a nonprofit-governed entity to a for-profit, which may be influencing internal dynamics.

ByteDance Shuts Down TikTok Music Worldwide

What happened: ByteDance has announced that it is shutting down TikTok Music globally. The move comes unexpectedly, given the rapid growth and the global footprint of TikTok's music service, which was seen as a competitor to Spotify and Apple Music. No specific reasons for the closure have been provided, but sources indicate that operational challenges and regulatory pressure in various markets could be at play.

Industry reaction: Music creators and industry insiders are voicing concern about the impact on artist discovery, as TikTok Music had become a key platform for independent musicians to reach global audiences. Some industry players are wondering if this exit signals ByteDance's shifting priorities away from music​.

Disney Drops Slack After Data Breach

What happened: Disney is phasing out Slack after a major data breach in July 2024, where the hacker group NullBulge accessed 1.1 terabytes of internal communications. The breach exposed sensitive company information, including project details and financial data, from nearly 10,000 Slack channels. Disney has already begun transitioning to Microsoft Teams and plans to complete the switch by the end of Q2 2025.

What they’re saying: Salesforce CEO Marc Benioff defended Slack, emphasizing the Shared Responsibility Model, which places part of the security burden on how companies configure and manage their tools. Disney’s leadership, however, cited the breach as a catalyst for finding more secure alternatives​.

Elon Musk Relocates X Headquarters to Texas

What happened: Elon Musk has officially relocated the headquarters of X (formerly Twitter) from California to Texas. The move is part of Musk's broader strategy to shift operations to states with more business-friendly tax environments. Following in the footsteps of Tesla and SpaceX, Musk cited the regulatory environment and higher operational costs in California as key reasons for the move​​.

The big picture: This move aligns with a larger trend of tech companies leaving California for states like Texas, which offer lower taxes and fewer regulations. X’s relocation reflects Musk’s increasing preference for the Lone Star State.