TechCrunch Daily Crunch OpenAI completes its for-profit recapitalization
4 snips
Oct 29, 2025 Amazon is cutting 14,000 corporate jobs to streamline its operations and intensify its focus on AI and infrastructure. Meanwhile, Apple and Microsoft have both crossed the $4 trillion market cap threshold, with Microsoft's surge benefiting from its partnership with OpenAI. OpenAI has completed its for-profit recapitalization, establishing a new structure where a nonprofit foundation oversees a for-profit entity. Additionally, Access Grid has raised $4.4 million to innovate access control with a cloud-based key fob management system.
AI Snips
Chapters
Transcript
Episode notes
Amazon's 14,000 Corporate Layoffs
- Amazon announced it will cut 14,000 corporate jobs to reduce bureaucracy and invest more in AI strategy.
- The company offers affected employees 90 days to search internally plus severance and benefits if they can't move internally.
Big Tech Valuations Fueled By AI Demand
- Apple and Microsoft each reached roughly $4 trillion market caps, driven by product demand and cloud services supporting AI workloads.
- Microsoft's stake in OpenAI is valued at about $135 billion, highlighting the synergy between cloud providers and AI labs.
Recapitalization Balances Growth And Control
- OpenAI reorganized into a for-profit public benefit corporation controlled by a nonprofit foundation to balance growth with oversight.
- The structure splits ownership: foundation 26%, Microsoft ~27%, and others 47%, enabling outside investment while preserving governance.