The Weekly Stack 3rd to 9th December

1. ChatGPT: Friend or Foe?

A friend is born

Artificial intelligence research laboratory OpenAI (Owned by Elon Musk) has announced ChatGPT, which is a dialogue-based AI chat interface which is made of large language models.

ChatGPT is one of those rare moments in technology where you see a glimmer of how everything is going to be different going forward.

The choice to host the World Cup in Qatar has been the source of substantive controversies, regarding the multiple violations of human rights. The budget for the world cup is $200 bn, the highest so far

But will it take your job?

In the AI’s own words -

“My primary function is to provide users with helpful and accurate answers [...]. I do not have personal experiences [...] my responses are intended to be informative and helpful [...] not personal advice or recommendations.”

These are the jobs at risk due to such AI Chatbots

Customer service executives
Receptionists
Proofreading
Retail services

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2. Russia's Oil War

EU hits Russia where it hurts

It's one of the EU’s toughest sanctions yet, designed to drive down the fossil fuel revenues that Vladimir Putin uses to finance his invasion of Ukraine.

Purpose of the G7 Oil Cap

The G7 cap was always intended as a means of trimming Russia’s oil income without causing major disruption to the global market by effectively blocking the export of huge quantities of Russian oil to the world.

1/4th of India’s Oil comes from Russia

"India depends on imported oil to meet 86 per cent of its needs."

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Qatar gets closer to China

Speaking of oil deals, the latest US $60 bn LNG supply deal between Qatar and China takes relations between the two countries to new heights. China will gain an unparalleled hold over the biggest gas reservoir in the world.

Stack’s Verdict: The concern is really what would this oil cap do to the stability and the affordability of the energy markets. The $60 per barrel cap will keep global markets well supplied while "institutionalising" discounts. Indian refiners will continue to look for the best deals in the interest of the country.

3. Adani's Largest FPO in history

Why is everyone talking about Adani?

Gautam Adani briefly reclaimed the second spot on the global billionaires list of Bloomberg and Forbes in September. Adani has a net worth of ₹12.44 lakh crore.

Adani Group has made its presence in petrochemicals, cement, data centres and copper refining, in addition to establishing a renewable energy business with ambitious targets.

So what’s the catch?

In the past five years, the group's overall debt has soared from ₹1 lakh crore to ₹2.2 lakh crores. And the group plans to pump another ₹12 lakh crores ($150 billion!) into its myriad businesses over the next decade.

What’s the difference between FPO & IPO

An FPO is a type of stock offering in which a company that is already listed on a stock exchange offers additional shares to the public to raise additional capital, provide liquidity to existing shareholders, or for new investors to purchase shares.

Adani is planning to launch a follow-on public offering (FPO) to raise Rs 20,000 crore in fresh capital, India’s largest ever!

Benefits of this FPO for Adani

Diversification of funding source so interest is spared.
Opportunities for new investments.
Improve the company’s balance sheet.
Improve the companies trading liquidity.

Stack’s Verdict: This is a well-timed move by the group with the stock price at a record high, as it will hopefully reduce its leverage and increase public shareholding to silence critics. New investors might be intimidated by the huge stock price although since its rally in the last 2 years.