Singapore Oil Mogul Bankrupts | Trump Pause Tiktok Ban | OpenAI For-Profit Structure

December 28, 2024

Market Update

  • US equity funds receive big inflows on cool inflation, funding bill, and holiday rally.

  • Stocks drop in thin year-end trade amid tax selling, profit taking.

  • Airlines stocks beat market by most in a decade as travel booms.

  • US homelessness rose by record 18% in latest annual data.

Singapore oil mogul declared bankrupt after empire collapsed

Bankruptcy Order: Former oil tycoon OK Lim and his two children have been declared bankrupt by the Singapore High Court.

Debt Amount: The bankruptcy order follows a judgment of US$3.5 billion (S$4.7 billion) against them.

Financial Misrepresentation: The family was accused of concealing losses and overstating profits at Hin Leong Trading.

Legal Consequences: OK Lim was sentenced to 17.5 years in jail for cheating and forgery, and he is currently appealing the sentence. [Learn more]

Trump asks Supreme Court to pause law that could ban TikTok

Legal Challenge: TikTok and its owner ByteDance are fighting to keep the app online in the US after Congress voted to ban it unless sold by January 19.

Free Speech Concerns: Free speech advocates argue that the US law against TikTok evokes censorship regimes.

National Security: The US Justice Department argues that Chinese control of TikTok poses a national security threat.

Political Resolution: Trump seeks time to pursue a political resolution to the issue after taking office. [Learn more]

OpenAI outlines new for-profit structure in bid to stay ahead in costly AI race

New Corporate Structure: OpenAI plans to create a public benefit corporation (PBC) to manage its operations and business.

Capital Raising: The new structure aims to make it easier to raise capital by removing restrictions imposed by its current nonprofit parent.

Nonprofit Role: The nonprofit arm will retain a significant interest in the PBC and focus on charitable initiatives in sectors such as healthcare, education, and science.

Investor Concerns: The transition faces hurdles, including opposition from co-founder Elon Musk, who has filed for an injunction to halt the plan. [Learn more]

Joke of the Day!

What do you call a train carrying bubblegum?

A chew-chew train!

Generative AI Photo of the Day!

Credit: DALL-E 3

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