AI Applied: Covering AI News, Interviews and Tools - ChatGPT, Midjourney, Gemini, OpenAI, Anthropic OpenAI News, For Profit Changes, Billionaire Beef
Nov 16, 2025
OpenAI's shift to a for-profit model stirs debate over its impact on product development and investor dynamics. The restructuring opens doors for a massive AWS deal, but raises questions about governance and corporate ethics. The hosts discuss whether the transition was necessary or deceitful, while also contemplating the future of AGI promises in a corporate environment. Hilarity ensues as they dissect the Twitter feud between Sam Altman and Elon Musk, showcasing the drama surrounding billionaire ownership issues and the evolving landscape of AI.
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For-Profit Move Enables Big Cloud Deals
- OpenAI's shift to a for-profit structure unlocks large cloud and infrastructure deals that were previously constrained.
- This change lets OpenAI sign the $38B AWS deal and reduces Microsoft Azure's exclusive control over compute choices.
Reputation Costs From The Conversion
- Some listeners see OpenAI's conversion as shady and dishonest, creating a lasting reputational mark.
- Jaeden calls the move slimy but acknowledges practical reasons for the change.
Microsoft's Investment Created Compute Dependency
- Microsoft initially tied its big OpenAI investment to control over compute contracts, creating dependency.
- Jaeden explains that converting to for-profit removed those contractual restrictions, enabling broader cloud partnerships.