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OpenAI Rolls Out o3-pro: A Reasoning Powerhouse Surpassing Rivals

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OpenAI has unveiled O3-Pro, its most powerful artificial intelligence (AI) model to date, built for advanced reasoning and task execution.

As a significant upgrade to the earlier O1-Pro, the new model is designed to handle complex workflows, such as data analysis, programming, math, and science with remarkable precision and speed.

According to OpenAI, O3-Pro excels in comprehensiveness, instruction-following, and accuracy, outperforming both its predecessor and leading models from competitors like Google and Anthropic.

In internal benchmark tests:

On AIME 2024, a top math benchmark, O3-Pro surpassed Google’s Gemini 2.5 Pro.

On GPQA Diamond, which assesses PhD-level science knowledge, it outperformed Claude 4 Opus from Anthropic.

Expert reviewers rated it significantly higher across multiple domains including education, scientific reasoning, and content generation.

OpenAI wrote,

“In expert evaluations, reviewers consistently prefer o3-pro over o3 in every tested category and especially in key domains like science, education, programming, business, and writing help. Reviewers also rated o3-pro consistently higher for clarity, comprehensiveness, instruction-following, and accuracy”.

Unlike conventional AI models, O3-Pro uses step-by-step reasoning, making it more reliable in technical and academic contexts. It can search the web, analyze uploaded files, execute Python code, understand and reason about visual inputs, and personalize responses using memory. While O3-Pro doesn’t generate images and lacks support for OpenAI’s Canvas workspace feature, it offers what matters most for product builders: clarity, speed, and consistency.

O3-Pro is currently available to ChatGPT Pro and Team users, with Enterprise and Edu users gaining access the following week. It’s also live on OpenAI’s developer API, priced at $20 per million input tokens and $80 per million output tokens—a fraction of the cost of rival models.

Despite a temporary ChatGPT outage during the rollout and some limitations (like disabled temporary chats), O3-Pro is a strong push by OpenAI to make reasoning models the industry standard.

O3-Pro marks a turning point in the AI landscape, emphasizing step-by-step reasoning over simple text generation. This pressures other AI chatbot providers to upgrade their models’ logical thinking, accuracy, and reliability, especially in technical fields like math, coding, and data analysis.

The launch of O3-Pro has no doubt pushed the bar upward with faster reasoning, cheaper API pricing, and deeper tool integration. Chatbot providers must now evolve from simple assistants to powerful reasoning engines or risk being outpaced in performance, utility, and adoption.

OpenAI is once again pushing the market toward the widespread adoption of reasoning models. With an astonishingly low price nearly five times cheaper than rivals, it is becoming the standard for various tasks, from assistants to internal tools. Startups can get to save on infrastructure, and large companies can streamline processes and automate complex workflows.

Notably, a team of three can easily launch a B2B system for legal practice, where each new question is a complex logical chain, without having to spend on API calls or expensive computations. Also, companies can implement automated technical support and analytical modules without needing to connect costly APIs.

With cutting-edge capabilities and competitive pricing, O3-Pro is poised to become the go-to model for developers, researchers, and businesses building intelligent tools and assistants.

OpenAI says it’s released its most “capable” artificial intelligence model yet. The o3-pro reasoning model can analyze files, search online and complete other tasks that made it score especially well with reviewers on “comprehensiveness, instruction-following and accuracy,” the company said. The o3-pro drop came as OpenAI’s ChatGPT suffered a widespread outage on Tuesday. Meanwhile, the company’s CEO, Sam Altman, garnered attention with an essay predicting that by 2026, the world will see AI systems that can generate “novel insights.”

The Gentle Singularity

by Sam Altman

We are past the event horizon; the takeoff has started. Humanity is close to building digital superintelligence, and at least so far it’s much less weird than it seems like it should be.

Robots are not yet walking the streets, nor are most of us talking to AI all day. People still die of disease, we still can’t easily go to space, and there is a lot about the universe we don’t understand.

And yet, we have recently built systems that are smarter than people in many ways, and are able to significantly amplify the output of people using them. The least-likely part of the work is behind us; the scientific insights that got us to systems like GPT-4 and o3 were hard-won, but will take us very far.

AI will contribute to the world in many ways, but the gains to quality of life from AI driving faster scientific progress and increased productivity will be enormous; the future can be vastly better than the present. Scientific progress is the biggest driver of overall progress; it’s hugely exciting to think about how much more we could have.

In some big sense, ChatGPT is already more powerful than any human who has ever lived. Hundreds of millions of people rely on it every day and for increasingly important tasks; a small new capability can create a hugely positive impact; a small misalignment multiplied by hundreds of millions of people can cause a great deal of negative impact.

2025 has seen the arrival of agents that can do real cognitive work; writing computer code will never be the same. 2026 will likely see the arrival of systems that can figure out novel insights. 2027 may see the arrival of robots that can do tasks in the real world.

A lot more people will be able to create software, and art. But the world wants a lot more of both, and experts will probably still be much better than novices, as long as they embrace the new tools. Generally speaking, the ability for one person to get much more done in 2030 than they could in 2020 will be a striking change, and one many people will figure out how to benefit from.

In the most important ways, the 2030s may not be wildly different. People will still love their families, express their creativity, play games, and swim in lakes.

But in still-very-important-ways, the 2030s are likely going to be wildly different from any time that has come before. We do not know how far beyond human-level intelligence we can go, but we are about to find out.

In the 2030s, intelligence and energy—ideas, and the ability to make ideas happen—are going to become wildly abundant. These two have been the fundamental limiters on human progress for a long time; with abundant intelligence and energy (and good governance), we can theoretically have anything else.

Already we live with incredible digital intelligence, and after some initial shock, most of us are pretty used to it. Very quickly we go from being amazed that AI can generate a beautifully-written paragraph to wondering when it can generate a beautifully-written novel; or from being amazed that it can make live-saving medical diagnoses to wondering when it can develop the cures; or from being amazed it can create a small computer program to wondering when it can create an entire new company. This is how the singularity goes: wonders become routine, and then table stakes.

We already hear from scientists that they are two or three times more productive than they were before AI. Advanced AI is interesting for many reasons, but perhaps nothing is quite as significant as the fact that we can use it to do faster AI research. We may be able to discover new computing substrates, better algorithms, and who knows what else. If we can do a decade’s worth of research in a year, or a month, then the rate of progress will obviously be quite different.

From here on, the tools we have already built will help us find further scientific insights and aid us in creating better AI systems. Of course this isn’t the same thing as an AI system completely autonomously updating its own code, but nevertheless this is a larval version of recursive self-improvement.

There are other self-reinforcing loops at play. The economic value creation has started a flywheel of compounding infrastructure buildout to run these increasingly-powerful AI systems. And robots that can build other robots (and in some sense, datacenters that can build other datacenters) aren’t that far off.

If we have to make the first million humanoid robots the old-fashioned way, but then they can operate the entire supply chain—digging and refining minerals, driving trucks, running factories, etc.—to build more robots, which can build more chip fabrication facilities, data centers, etc, then the rate of progress will obviously be quite different.

As datacenter production gets automated, the cost of intelligence should eventually converge to near the cost of electricity. (People are often curious about how much energy a ChatGPT query uses; the average query uses about 0.34 watt-hours, about what an oven would use in a little over one second, or a high-efficiency lightbulb would use in a couple of minutes. It also uses about 0.000085 gallons of water; roughly one fifteenth of a teaspoon.)

The rate of technological progress will keep accelerating, and it will continue to be the case that people are capable of adapting to almost anything. There will be very hard parts like whole classes of jobs going away, but on the other hand the world will be getting so much richer so quickly that we’ll be able to seriously entertain new policy ideas we never could before. We probably won’t adopt a new social contract all at once, but when we look back in a few decades, the gradual changes will have amounted to something big.

If history is any guide, we will figure out new things to do and new things to want, and assimilate new tools quickly (job change after the industrial revolution is a good recent example). Expectations will go up, but capabilities will go up equally quickly, and we’ll all get better stuff. We will build ever-more-wonderful things for each other. People have a long-term important and curious advantage over AI: we are hard-wired to care about other people and what they think and do, and we don’t care very much about machines.

A subsistence farmer from a thousand years ago would look at what many of us do and say we have fake jobs, and think that we are just playing games to entertain ourselves since we have plenty of food and unimaginable luxuries. I hope we will look at the jobs a thousand years in the future and think they are very fake jobs, and I have no doubt they will feel incredibly important and satisfying to the people doing them.

The rate of new wonders being achieved will be immense. It’s hard to even imagine today what we will have discovered by 2035; maybe we will go from solving high-energy physics one year to beginning space colonization the next year; or from a major materials science breakthrough one year to true high-bandwidth brain-computer interfaces the next year. Many people will choose to live their lives in much the same way, but at least some people will probably decide to “plug in”.

Looking forward, this sounds hard to wrap our heads around. But probably living through it will feel impressive but manageable. From a relativistic perspective, the singularity happens bit by bit, and the merge happens slowly. We are climbing the long arc of exponential technological progress; it always looks vertical looking forward and flat going backwards, but it’s one smooth curve. (Think back to 2020, and what it would have sounded like to have something close to AGI by 2025, versus what the last 5 years have actually been like.)

There are serious challenges to confront along with the huge upsides. We do need to solve the safety issues, technically and societally, but then it’s critically important to widely distribute access to superintelligence given the economic implications. The best path forward might be something like:

  1. Solve the alignment problem, meaning that we can robustly guarantee that we get AI systems to learn and act towards what we collectively really want over the long-term (social media feeds are an example of misaligned AI; the algorithms that power those are incredible at getting you to keep scrolling and clearly understand your short-term preferences, but they do so by exploiting something in your brain that overrides your long-term preference).
  2. Then focus on making superintelligence cheap, widely available, and not too concentrated with any person, company, or country. Society is resilient, creative, and adapts quickly. If we can harness the collective will and wisdom of people, then although we’ll make plenty of mistakes and some things will go really wrong, we will learn and adapt quickly and be able to use this technology to get maximum upside and minimal downside. Giving users a lot of freedom, within broad bounds society has to decide on, seems very important. The sooner the world can start a conversation about what these broad bounds are and how we define collective alignment, the better.

We (the whole industry, not just OpenAI) are building a brain for the world. It will be extremely personalized and easy for everyone to use; we will be limited by good ideas. For a long time, technical people in the startup industry have made fun of “the idea guys”; people who had an idea and were looking for a team to build it. It now looks to me like they are about to have their day in the sun.

OpenAI is a lot of things now, but before anything else, we are a superintelligence research company. We have a lot of work in front of us, but most of the path in front of us is now lit, and the dark areas are receding fast. We feel extraordinarily grateful to get to do what we do.

Intelligence too cheap to meter is well within grasp. This may sound crazy to say, but if we told you back in 2020 we were going to be where we are today, it probably sounded more crazy than our current predictions about 2030.

May we scale smoothly, exponentially and uneventfully through superintelligence.

Stakeholders Blame Pay-on-Delivery for Holding Back Nigeria’s E-commerce Growth – But It’s Buoyed By Lack of Trust

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More than a decade after e-commerce began to take root in Nigeria, industry leaders now say one of the sector’s earliest features—Pay-on-Delivery (POD)—has become a major barrier to growth, profitability, and long-term sustainability.

This concern was a central theme at the E-commerce and Payment Forum, hosted by the Lagos Business School, where operators and analysts stated that POD, initially introduced to win over skeptical consumers, is now hindering progress and deepening losses for platforms.

At the heart of the problem is a lack of trust, a long-standing challenge in Nigeria’s digital commerce space. From concerns about delivery delays to fears of receiving counterfeit, damaged, or entirely different products, many Nigerian consumers have embraced POD not just for convenience but as a defensive strategy.

Against this backdrop, POD serves as the only quality-control checkpoint in a market where return policies are often weak or poorly enforced, and customer service systems are not always responsive.

A Legacy Feature That Refuses to Go Away

Dave Omoregie, Chief Operating Officer at Konga Group, said POD was a strategic decision made when e-commerce was still unfamiliar to many Nigerians. But he admitted that the decision has created operational headaches and unsustainable costs.

“At the point when e-commerce was introduced to the Nigerian market, there were some fundamental mistakes, and one of them was putting forward pay-on-delivery,” he said.

“Pay-on-delivery works outside Nigeria, but doesn’t work here because by context, the way we think is very different. Somebody orders a product, and on the day of delivery, you hear excuses like, ‘I was expecting my salary yesterday, and it hasn’t come.’”

Omoregie noted that outside Nigeria, where digital payments and trust are stronger, POD has been phased out. But in Nigeria, even major players like Konga and Jumia have been unable to ditch the model due to competitive pressure and customer expectations.

For stakeholders, eliminating POD is not just a business decision—it is a coordination challenge. Josephine Sarouk, Managing Director of Bayobab Nigeria, argued that one company alone cannot switch it off without risking mass customer loss.

“Turning off Pay-on-Delivery won’t work unless all the players in the industry agree to do it at the same time,” she said.

“The problem is trust. People would rather go to a physical supermarket and hold the product in their hands than take a risk online. And we sometimes underestimate how deeply that distrust runs.”

The issue, Sarouk explained, is not limited to buyers. Even retailers and delivery agents, many of whom operate informally, often lack trust in the platforms themselves or fear not being paid on time.

The problems run deeper than customer psychology. The forum also highlighted how external shocks are compounding pressures on e-commerce businesses. According to Olu Akanmu, Executive in Residence at Lagos Business School, operators are now grappling with the effects of the naira devaluation, which has shrunk consumer purchasing power. Soaring inflation has reduced the size of shopping baskets. Meanwhile, the aggressive entry of global players like Temu is flooding the market with cheap imports and tech-driven logistics.

Akanmu also warned of the increasing commoditization of the sector, where most platforms now sell the same items, focus heavily on price competition, and lose margin strength in the process. This, he said, is weakening the industry’s profitability and placing even more pressure on local e-commerce operators.

Still a Growing Market

Despite these issues, Nigeria’s e-commerce sector continues to expand. A new report by PYMNTS Intelligence projects that business-to-consumer (B2C) online transactions will hit $33 billion by 2026, up from $15 billion in 2023.

While e-commerce accounts for just 6% of Nigeria’s total retail activity, it’s one of the highest rates in Africa and shows strong potential given the country’s young, mobile-first population.

The report notes that Nigeria’s e-commerce payments landscape remains fragmented. Consumers still rely heavily on account-to-account (A2A) transfers, debit and credit cards, and cash on delivery. Although digital wallets and Buy-Now-Pay-Later (BNPL) options are emerging, they haven’t yet gained enough trust or traction to displace more traditional preferences.

While stakeholders say the time to act is now, it is believed that the needed change will require more than abandoning POD. It will demand a full reset in how platforms build trust, manage logistics, and enforce quality assurance as the e-commerce sector braces for more competition and tougher economic conditions.

What Really Drives Stock Market Fluctuations?

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Stock market fluctuations can often seem unpredictable, leaving investors wondering what causes sudden changes in prices. While some movements might appear random, stock market fluctuations are driven by a combination of factors, ranging from economic data and company performance to investor sentiment and global events. Understanding these drivers can help you make better decisions when navigating the market. Keeping an eye on reliable sources, such as ASX today live updates, is a great way to stay informed about the latest developments.

Here’s a closer look at what drives stock market fluctuations and how you can interpret these changes to manage your investments effectively.

1. Supply and Demand

At its core, the stock market operates on the principle of supply and demand. Stock prices rise when more investors want to buy (demand) than sell (supply), and they fall when the reverse is true. This balance is influenced by a variety of factors, including company performance, market sentiment, and broader economic conditions.

Key Factors Influencing Supply and Demand:

  • Company news: Positive news, such as strong earnings or a major partnership, can increase demand for a stock.
  • Investor confidence: When confidence in the market is high, more people are likely to buy stocks, pushing prices up.

2. Economic Indicators

Economic data plays a significant role in shaping market behaviour. Indicators such as GDP growth, unemployment rates, and inflation provide insights into the health of the economy, which can impact investor sentiment and stock prices.

How Economic Indicators Affect Stocks:

  • Interest rates: When central banks raise interest rates, borrowing becomes more expensive, which can lead to lower corporate profits and a decrease in stock prices.
  • Inflation: High inflation can erode the value of future earnings, making stocks less attractive to investors.

3. Corporate Performance

The performance of individual companies has a direct impact on their stock prices. Quarterly earnings reports, revenue growth, and management decisions are closely monitored by investors.

What to Look For:

  • Earnings reports: Strong earnings can boost investor confidence and lead to a rise in stock prices.
  • Guidance: Forward-looking statements from a company’s management about future performance can influence stock movements.

4. Global Events

Global events, such as geopolitical tensions, natural disasters, or pandemics, can create uncertainty in financial markets. This uncertainty often leads to increased volatility, as investors react to changing conditions.

Examples of Global Events:

  • Geopolitical conflicts: Wars or trade disputes can disrupt global supply chains and impact specific industries or markets.
  • Pandemics: The COVID-19 pandemic is a prime example of how global health crises can cause widespread market fluctuations.

5. Investor Sentiment and Psychology

Market movements are heavily influenced by investor sentiment, which is often driven by fear, greed, and speculation. When markets are rising, a sense of optimism can lead to more buying, while fear during downturns can trigger panic selling.

Common Psychological Triggers:

  • Fear of missing out (FOMO): Investors may rush to buy into a rising market, driving prices higher.
  • Panic selling: A sharp market drop can lead to emotional decisions to sell, further amplifying the decline.

6. Market Trends and Technical Factors

In addition to fundamental drivers, market trends and technical factors play a role in stock price fluctuations. These include:

  • Market trends: Bull or bear market trends can influence overall market behaviour.
  • Technical analysis: Traders use charts and indicators to identify patterns and predict price movements, which can contribute to short-term fluctuations.

7. Government Policies and Regulations

Changes in government policies, such as tax reforms or new regulations, can have a significant impact on certain industries or the market as a whole. For example:

  • Fiscal policies: Government spending or tax cuts can stimulate the economy, potentially boosting stock prices.
  • Regulatory changes: New rules affecting specific sectors can create winners and losers in the market.

Understanding the factors that drive stock market fluctuations can help you make more informed investment decisions. By staying informed about economic indicators, company performance, and global events, you can better anticipate market movements and position your portfolio for success. Whether you’re monitoring the latest updates or planning a long-term strategy, keeping these drivers in mind will help you navigate the complexities of the market with greater confidence.

A Look Into U.S.-China Trade Talks In United Kingdom

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Senior U.S. and Chinese officials met in London June 9, 2025, to address ongoing trade disputes. The U.S. delegation includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, while China is represented by Vice Premier He Lifeng. The talks, held at Lancaster House, aim to build on a fragile truce from Geneva in May, focusing on issues like tariffs and China’s restrictions on rare earth mineral exports. Both sides are under pressure to ease tensions, as China’s exports to the U.S. dropped 34.5% in May, and global supply chains face disruptions. However, analysts expect only limited progress due to deep structural issues.

The U.S.-China trade talks in London on June 9, 2025, carry significant implications for global markets, geopolitics, and economic stability, but the deep divide between the two nations makes substantial progress challenging. If the talks yield even modest agreements, such as tariff reductions or commitments to stabilize supply chains, global markets could see a boost. Reduced uncertainty may stabilize commodity prices, particularly for rare earth minerals, semiconductors, and energy.

Failure to reach any agreement could escalate tensions, leading to further tariff hikes or export restrictions. This risks disrupting global trade flows, with China’s 34.5% drop in U.S. exports in May 2025 already signaling strain. Progress could ease bottlenecks in critical industries like technology and automotive, but continued restrictions (e.g., China’s rare earth export curbs) may exacerbate shortages, raising costs for manufacturers and consumers.

The U.S., under the Trump administration, is pushing a hardline stance with tariffs as leverage to address trade imbalances and national security concerns (e.g., tech transfers). A successful negotiation could strengthen U.S. influence in global trade but risks alienating allies if perceived as overly aggressive. China seeks to protect its economic interests and maintain access to Western markets while countering U.S. dominance. Concessions could signal weakness domestically, so Beijing may prioritize symbolic wins or retaliatory measures.

The talks could influence U.S. and Chinese relations with third parties. For instance, Europe, hosting the talks, may push for multilateral frameworks, while countries reliant on Chinese rare earths or U.S. tech may face pressure to align with one side. U.S.: Progress could lower consumer prices by reducing tariffs but risks backlash from domestic industries (e.g., steel, agriculture) reliant on protectionism. Failure could fuel inflation and harm U.S. businesses dependent on Chinese imports.

Stabilizing trade could support China’s economy amid slowing growth, but concessions on issues like state subsidies or tech restrictions may face resistance from hardliners in Beijing. A successful outcome could lay the groundwork for future negotiations, potentially addressing structural issues like intellectual property theft or market access. However, entrenched mistrust suggests any deal will be narrow, focusing on immediate pain points rather than systemic reform.

The U.S.-China trade relationship is marked by deep structural and ideological differences, which complicate negotiations: The U.S. views its trade deficit with China ($279 billion in 2024, per recent estimates) as unsustainable, accusing China of unfair practices like currency manipulation and dumping. The Trump administration’s 25-50% tariffs on Chinese goods aim to force concessions. China sees tariffs as economic coercion, arguing they harm global trade and violate WTO rules. Beijing’s retaliatory measures, like rare earth export restrictions, target U.S. vulnerabilities in tech and defense supply chains.

The U.S. prioritizes restricting China’s access to advanced technologies (e.g., AI, semiconductors) due to national security fears, citing risks of tech transfers to the Chinese military. Export controls and sanctions on firms like Huawei remain contentious. China views these restrictions as attempts to suppress its technological rise. It demands equal access to global markets and resists U.S. pressure to open its tech sector, citing sovereignty.

The U.S. criticizes China’s state-driven economy, including subsidies for industries like solar and electric vehicles, which it claims distort markets. It seeks reforms to level the playing field for private firms. China defends its economic model, arguing it has lifted millions out of poverty. It accuses the U.S. of hypocrisy, pointing to American subsidies (e.g., CHIPS Act) and protectionist policies. Beyond trade, the talks reflect broader U.S.-China competition for global influence. Issues like Taiwan, the South China Sea, and China’s Belt and Road Initiative loom large, making trust scarce.

The U.S. sees China’s growing ties with Russia and Iran as a threat, while China views U.S. alliances (e.g., AUKUS, Quad) as containment efforts. Domestic politics, especially in an election cycle, limit flexibility. The Trump administration faces pressure to appear tough on China while addressing voter concerns about inflation and job losses. Xi Jinping’s leadership prioritizes stability amid economic slowdown and domestic unrest. Concessions could be seen as weakness, especially after recent protests over economic policies.

The London talks are unlikely to resolve these divides due to entrenched positions and domestic constraints. At best, they may produce limited agreements, such as tariff pauses or commitments to resume rare earth exports, to prevent further escalation. However, the structural nature of the U.S.-China rivalry—spanning trade, technology, and ideology—suggests ongoing tensions. Global markets will closely watch for signals, but analysts remain skeptical of a breakthrough.

Join Ndubuisi Ekekwe on Saturday at Tekedia Mini-MBA on the “Mission of Firms”

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Every company is established to fix frictions in the market. To fix those frictions, companies must acquire and accumulate capabilities. Capabilities come via pillars which include tools, processes and people. These three pillars are then used to organize and reorganize factors of production to create products and services that are deployed in the markets, as forces, for customers to purchase, to overcome customers’ frictions.

How companies handle that transmutation of turning ideas and raw materials into products and services will determine their competitiveness in the market. Innovation happens when they maximize the outputs, from the lens of productivity, so that the customers are best served even as the least possible utilization of inputs and resources. The mechanical advantage is solidly positive!

Markets reward companies with revenue, as revenue is what companies are compensated with for creating and releasing the forces of products and services, which have the ability to overcome the frictions customers have. When a company consistently delivers innovatively, the reward increases and that means growth is happening.

In summary: markets have frictions as customers have needs, and companies are established to create products which are special forces with capacity to overcome those frictions. For overcoming their frictions, customers reward companies with revenue. Innovative companies do that overcoming in brilliant ways, and overtime, they get rewarded with tons of revenue, enabling massive growth.

In this lecture, I will explain the Mission of Companies and the very essence of why we have companies, linking market needs, innovation and growth. Tekedia Mini-MBA LIVE Session begins on Saturday. Join us as we have seats for you here.