Late last year, when ChatGPT faced pressure from competitors, OpenAI CEO Sam Altman went Mountain Dew on everybody and declared “code red” to get the chatbot back on track. After the struggles of this past week and a half, it might be time to declare “baja blast.”

March came in like a lion. The Information reported that OpenAI is moving away from its plan to integrate checkout technology into ChatGPT, instead letting third-party apps do the e-commerce dirty work. The company once believed integrating shopping and travel booking into its platform could make it a power player. Now it seems to realize it actually doesn’t want to get into the customer service business. TD Cowen analysts called the reversal “stunning,” according to Business Insider.

The company also recently announced it would be delaying its “adult mode” feature for a second time, if you’re wondering why your friend is in a bad mood but refuses to talk about it.

A five-sided problem

Although OpenAI emerged with the Pentagon contract once intended for Anthropic late last month, the win did not prove decisive, because it also inherited all the backlash that went with it. According to TechCrunch, the day after the deal was announced:

• US uninstalls of ChatGPT’s mobile app jumped 295%.
• ChatGPT’s US day over day downloads went from being up 14% to down 13%.
• US downloads of Anthropic’s Claude app jumped 51%.

OpenAI-ing a can of worms: The Pentagon deal rankled OpenAI employees, too. Altman acknowledged last Monday that the timing looked “opportunistic and sloppy,” and said he planned to rework parts of the contract. That wasn’t enough to reassure the head of the company’s robotics team, Caitlin Kalinowski, who stepped down on Saturday.

On the bright side: OpenAI is one of the world’s fastest-growing companies, with a $730 billion pre-money valuation and plans for an IPO in Q4. Plus, ChatGPT had more than 900 million weekly active users in February.—BC

Khamenei’s son named new supreme leader as Iran’s president says it “will not bow” to US, Israel. Yesterday, an Iranian clerical council selected Mojtaba Khamenei, the second-born son of Ayatollah Ali Khamenei, to be the country’s new supreme leader, saying, “The name of Khamenei will continue.” Earlier on Sunday, President Trump said in an interview with ABC News that regardless of whom Iran chose, “If he doesn’t get approval from us he’s not going to last long.” Trump warned last week that Mojtaba Khamenei would be “unacceptable.” Bahrain announced that an Iranian drone attack damaged a desalination plant responsible for bringing critical supplies of drinking water to the region. Also yesterday, US Central Command announced that a seventh US service member died as a result of injuries sustained in the war on March 1.

Suspect is in custody after IED thrown outside Gracie Mansion, home of NYC’s mayor. Police confirmed yesterday that an object that was ignited and thrown during an anti-Islam protest outside of Gracie Mansion on Saturday was an improvised explosive device. About 20 protesters organized by far-right influencer Jake Lang stood in front of the mayor’s residence for the event, called “Stop the Islamic Takeover of New York City, Stop New York City Public Muslim Prayer.” Over 100 counterprotesters also gathered. At 12:15pm on Saturday, a protester fired pepper spray at counterprotesters and was arrested, according to NYPD Commissioner Jessica Tisch, who also said that about fifteen minutes later, an 18-year-old counterprotester “lit and threw an ignited device toward the protest area.” That suspect is also in custody. NYC Mayor Zohran Mamdani, who is Muslim, was in the building at the time of the attack. He thanked law enforcement officers and condemned the violence in a statement.

On 12th anniversary of MH370’s disappearance, family members urged Malaysia to extend search. The flight, which departed Kuala Lumpur for Beijing on March 8, 2014, and disappeared shortly thereafter, was carrying 227 passengers and 12 crew members. The Malaysian authorities filed a report in 2018 that drew no conclusions from its own investigations. Yesterday, Voice370, a group of families of those who went missing, asked the Malaysian government to extend a “no find, no fee” contract it has maintained with Ocean Infinity, a marine robotics company based in Austin, TX, that has conducted two search phases for the missing aircraft. The group also urged them to offer contracts to other exploration companies to continue the search. Malaysia’s Air Accident Investigation Bureau said yesterday that it was “committed to keeping the ‌families ⁠informed and will continue to provide updates as appropriate.”—HVL

Hoppers, the animated flick about a girl who puts her mind in an animatronic beaver body to help wildlife, took the No. 1 spot at the domestic box office this weekend, bringing in $46 million. But Pixar’s struggles to make original hits are far from over.

What’s up, Doc?

Pete Docter, the chief creative officer of Pixar since 2018, told the Wall Street Journal that when green-lighting projects early in his tenure, “I probably overindexed on, ‘Do whatever you want.’”

Back it up: Pixar has long been considered a “filmmaker-driven studio,” while its business sibling, Walt Disney Animation Studios, had a reputation of being executive-led. Think: More vibes, less bean-counting.

It didn’t hurt that Docter’s predecessor, Toy Story director John Lasseter, was a renowned tastemaker.

Lasseter resigned in 2018 following a misconduct investigation. And Docter, the introverted director of Monsters, Inc., Up, Inside Out, and other success stories, didn’t exactly hit the C-suite running:

• Pixar’s first original films under him were Luca and Turning Red, which missed out on theatrical releases due to the pandemic.
• Then, in 2022, Lightyear failed at the box office. The following year, Elemental eked out a small profit.
• Last year, Elio became the company’s biggest flop.

Zoom out: There are currently no sequels to Hoppers in the hopper, but Toy Story 5 arrives in theaters this June.—HVL

Inflation fixation: February’s consumer price index report will be released on Wednesday, followed by the personal consumption expenditures reading on Friday. The Federal Reserve will be eyeing both metrics as it faces an interest rate decision next week. Inflation data will be key, since the central bank has been getting mixed signals from the labor market so far this year. While January’s jobs report came in hotter than analysts expected, February made them shiver (h/t Don McLean). The Fed will also have to consider the impact of the Iran war on energy prices.

A look into the future of Oracle: There will be plenty of potential for drama during Oracle’s fiscal Q3 earnings report tomorrow. The tech giant recently became part-owner of TikTok, and Bloomberg reported last week that Oracle plans to lay off thousands of employees as it tries to make good on its big data center bet. Plus, the company’s stock price has been on a bit of a journey lately, doubling and then getting cut in half over the last year.

And the Oscar goes to…: Hollywood’s favorite bald and naked award statue will be handed out on Sunday at the 98th Academy Awards, which will be aired live on ABC and Hulu. Sinners has the best shot at collecting the most hardware, with a record 16 nominations, but One Battle After Another and Marty Supreme could serve up some stiff competition. Conan O’Brien will return to host the ceremony after pulling in strong ratings last year.

But wait, there’s more:

• The Paralympic Winter Games continue through this week.
• Today is the 250th anniversary of Adam Smith’s An Inquiry into the Nature and Causes of the Wealth of Nations.
• Vail Resorts reports earnings today, then Campbell’s and Petco deliver results on Wednesday, followed by Adobe, Ulta Beauty, and Dick’s Sporting Goods on Thursday.
• For the second month in a row, we’ll have a Friday the 13th. It’ll be on Friday…the 13th.
• Beware the Ides of March on Sunday.

The Alphabet CEO’s new pay package was revealed in an SEC filing on Friday, and you could say he stands to make way mo’ thanks to Waymo:

• For the first time, some of Pichai’s compensation will be tied to Alphabet’s autonomous driving project. He could potentially earn up to $260 million just based on how Waymo’s value increases over a three-year period.
• Additionally, he can earn up to $90 million based on the results of Alphabet’s drone delivery unit, Wing, between now and 2029.

Business Insider said the new incentives show that Alphabet considers the robotaxi and drone projects to be “assets representing valuable, scalable businesses” rather than quirky side ventures.

The more things change…the more they stay the same. Pichai’s annual base salary is $2 million, unchanged since 2020, and he will be eligible for stock units again this year based on how the company performs relative to the S&P 500. Those could be worth up to $252 million. If he stays in the role for three more years, he’ll get an additional equity package worth $84 million.—HVL