Tech Brew Ride Home OpenAI Has Gone For-Profit
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Oct 28, 2025 OpenAI wraps up its for-profit overhaul, striking a significant deal with Microsoft. Meanwhile, Amazon announces a massive job cut, citing AI as a key factor. Elon Musk launches Grokipedia, a competitor to Wikipedia, but it faces scrutiny over content biases. Adobe unveils exciting AI tools, enhancing creative apps like Photoshop and Premiere Pro. Lastly, Anthropic's enterprise success raises questions about its business model compared to OpenAI's broader consumer strategy.
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OpenAI's For-Profit Reorg Is Official
- OpenAI completed a recapitalization creating a for-profit OpenAI Group PBC controlled by an OpenAI Foundation owning ~$130B in equity.
- The deal gives Microsoft a 27% stake and access to models until 2032 while preserving independent verification for any AGI threshold.
Microsoft's Privileges Were Narrowed
- The new agreement limits Microsoft's long-term revenue share and removes exclusive cloud rights after an AGI threshold is independently verified.
- OpenAI can now develop joint products with third parties and is free to seek non-Azure infrastructure under terms.
Amazon Cuts Jobs Citing AI Productivity
- Amazon announced ~14,000 corporate job cuts as it leans on AI to shrink bureaucracy and shift resources to key bets.
- The reductions represent about 4% of Amazon's ~350,000 corporate workforce and follow prior multi-year cuts.