In a pivotal moment for global economics, the curtains have risen on a new era in international tax policy. This Monday marked the commencement of a groundbreaking reform that heralds the introduction of a minimum global tax for multinational corporations, a watershed development spearheaded by a coalition of 140 countries.

The primary goal? To address long-standing loopholes and pave the way for an estimated $220 billion in additional annual revenue.

After nearly three years of negotiations, major economies have embarked on the implementation of an effective corporate tax rate of at least 15%, marking a substantial shift in the tax landscape. This interconnected system empowers participating countries to impose “top-up” taxes should a multinational corporation’s profits fall below this threshold in any jurisdiction.

The Organization for Economic Cooperation and Development (OECD), the driving force behind these reforms, foresees a potential 9% surge in global tax revenue, translating to a staggering $220 billion annually.

Jason Ward, principal analyst at the Centre for International Corporate Tax Accountability and Research, lauded the reform, asserting that it will significantly curtail the utilization of tax havens by companies and countries, putting a halt to what was once a concerning “race to the bottom.”

“It will reduce incentives from companies to use tax havens and incentives for countries to be tax havens,” he said, adding that it puts “a serious brake on what was a race to the bottom”.

The initial wave of jurisdictions adopting this global minimum tax includes the European Union, the United Kingdom, Norway, Australia, South Korea, Japan, and Canada. These rules will apply to multinational companies with an annual turnover exceeding €750 million. Notably, countries often considered tax havens, such as Ireland, Luxembourg, the Netherlands, Switzerland, and Barbados with its former corporate tax rate of 5.5%, have joined this transformative initiative.

However, two global economic powerhouses, the United States and China, have not yet introduced legislation to enforce this reform, despite initially supporting the agreement back in 2021. Nevertheless, the wide-scale impact of these reforms is anticipated, as the interconnected nature of the system incentivizes further adoption by other nations.

The OECD-led agreement encompasses two key pillars: the first aims to ensure multinational corporations pay taxes where they conduct business, while the second establishes a universal minimum corporate tax rate. Pascal Saint-Amans, the OECD’s former tax chief, emphasized that the successful implementation of the second pillar necessitates a critical mass of countries, creating a scenario where avoiding compliance becomes increasingly challenging.

“Pillar two only needs a critical mass of countries to implement it,” he said. “Nobody has found a silver bullet where you can avoid it.”

Anticipated outcomes of these reforms include a potential redistribution of revenue to countries hosting substantial low-taxed corporate profits, such as Ireland, a consequence not initially envisaged by proponents.

Manal Corwin, head of tax at the OECD, noted that the early stages might offer a mere snapshot of the reforms’ impact, with the future trajectory likely channeling more taxes to where economic activities genuinely transpire.

“This will shift over time,” she told The Financial Times. “The future footprint is the value of what’s being delivered.” Corwin added that through the elimination of distortions in the system, she ultimately expected more taxes to be paid “where economic activities take place”.

Furthermore, the introduction of these reforms is poised to intensify tax competition among jurisdictions, potentially prompting the creation of credits, grants, or subsidies. The OECD confirmed last year that the global minimum tax calculations would offer preferential treatment for specific tax credits, including those within the US’s Inflation Reduction Act, amplifying the potential for altered economic landscapes across the globe.

However, this seismic shift in global tax policy hasn’t gone unchallenged. Recent actions by Nigeria, Ghana, South Africa, and other nations within the United Nations signal a desire to assert a more substantial role in international tax matters. Growing disillusionment with the OECD-led negotiations has prompted these nations to advocate for a greater UN presence in creating a convention on international tax cooperation.

The evolving global tax terrain, where the balance of power and economic influence undergoes a tectonic shift, is expected to wield rippling effects through economies worldwide, ushering in a new paradigm in global fiscal policies.

OpenAI, the AI research organization responsible for the development of ChatGPT, has reported a staggering surge in revenue, reaching a monumental $1.6 billion in annualized income for the year 2023, according to The Information.

This marked a significant increase from $1.3 billion just a few months prior, revealing the company’s meteoric rise in generating income, largely credited to the success of its ChatGPT language model.

OpenAI boasts 24 institutional investors, with notable names such as Microsoft, Y Combinator, and Sequoia Capital among them. Additionally, prominent figures including Peter Thiel and five others serve as Angel Investors for OpenAI. In 2023, Microsoft substantially increased its investment in OpenAI, contributing approximately $13 billion to support the organization’s endeavors.

However, this financial triumph was overshadowed by the dramatic ouster and subsequent reinstatement of CEO Sam Altman, a co-founder of the company. The sequence of events began with Altman’s sudden dismissal by the OpenAI board under ambiguous circumstances, leading to widespread uproar among the company’s staff.

The board’s decision to remove Altman was shrouded in mystery, citing vague allegations of lacking transparency about OpenAI’s work in his communication with the board. This sparked intense speculation and left unanswered questions regarding the true reasons behind his abrupt firing.

Altman, in an exclusive podcast appearance with Trevor Noah, recounted the shocking moment when he received the call notifying him of his termination while in Las Vegas for the Formula 1 Grand Prix. Describing it as surreal and chaotic, Altman confessed to feeling confused and overwhelmed by the sudden turn of events, stating, “It felt like a dream…it was obviously…painful.”

“It felt like a dream,” Altman told Noah. “I was confused. It was chaotic. It did not feel real. It was obviously…painful. But confusion was just the dominant emotion at that point. It was like I was just in a fog, in a haze,” he added.

Following his dismissal, Altman found himself inundated with messages, causing his smartphone to freeze temporarily due to the flood of notifications, including calls from influential entities like Microsoft. Despite the ordeal, Altman swiftly returned to California, showing resilience and determination to move forward.

During the podcast, Altman refrained from making negative remarks about OpenAI, hinting at the toll the dismissal had taken on him. He expressed optimism about bouncing back but acknowledged the undeniable impact the experience had on him, admitting, “I think it’d be impossible to go through this and not have it take a toll on you.”

In tandem with its astonishing revenue surge, OpenAI also witnessed an exponential spike in user growth throughout 2023. The user base for its AI technologies, prominently the ChatGPT language model, expanded at an unprecedented rate, capturing the attention of various industries and users worldwide. Reports suggest a manifold increase in user engagement and adoption, solidifying OpenAI’s foothold of 100 million users within the first quarter of its launch.

Looking ahead to 2024, industry experts and financial analysts project a continued upward trajectory for OpenAI’s revenue generation. Optimistic estimates foresee a substantial climb in revenue, with projections reaching beyond the $2 billion mark. This forecast stems from the company’s consistent innovation and the sustained popularity of its AI models, reflecting the persistent demand for advanced AI solutions across diverse sectors.

Despite this positive revenue outlook, the recent turmoil surrounding the abrupt CEO ouster and subsequent reinstatement of Sam Altman has cast a shadow of uncertainty over OpenAI’s internal stability.

The aftermath of these tumultuous events remains a subject of intense speculation within the tech and AI communities, with stakeholders keenly observing how the company navigates its leadership challenges while maintaining its technological advancements and financial growth in 2024.