OpenAI Has Gone For-Profit

Oct 28, 2025 23m

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Episode Description

OpenAI has officially done its whole reorg to for-profit thing. Amazon is cutting a metric ton of employees and its blaming AI. Elon launches Grokpedia to take on Wikipedia. And does Anthropic’s success in the enterprise give it a leg up on OpenAI in the one metric that counts? Making money? OpenAI completed its for-profit restructuring — and struck a new deal with Microsoft (The Verge) Amazon to Cut 14,000 Jobs as Jassy Looks to Reduce Bureaucracy (Bloomberg) Elon Musk launches a Wikipedia rival that extols his own ‘vision’ (The Washington Post) Photoshop and Premiere Pro’s new AI tools can instantly edit more of your work (The Verge) OpenAI’s Less-Flashy Rival Might Have a Better Business Model (WSJ) Jimmy Wales on IHP Margit Wennmachers on IHP Fred Wilson on IHP Blog post to post on Hacker News Learn more about your ad choices. Visit megaphone.fm/adchoices

AI-Generated Summary

OpenAI Transitions to For-Profit

OpenAI has made a significant shift by officially completing its for-profit restructuring. The OpenAI Foundation now holds equity valued at approximately $130 billion in the newly formed OpenAI Group PBC, a public benefit corporation. This move, which included a $135 billion investment from Microsoft, has facilitated OpenAI's access to advanced AI models, affirming its strategy to focus on healthcare and AI resilience. Controversy still lingers over the control of AGI development, especially given the past legal tussles with co-founder Elon Musk.

Amazon Job Cuts and AI Blame

Amazon is set to trim its corporate workforce by approximately 14,000 employees due to increased reliance on AI technologies, which CEO Andy Jassy claims could streamline operations that previously required human labor. This is part of a larger trend within Amazon to enhance efficiency and reduce bureaucracy, with these cuts marking the second significant round of layoffs in two years.

Elon Musk Launches Grokpedia

In a bold move, Elon Musk has launched Grokpedia, a competitor to Wikipedia that aims to 'improve' upon the original by offering a more right-leaning perspective. The platform, which debuted with 885,000 articles, has faced criticism for inaccuracies and taking a more simplistic viewpoint on complex topics like gender.

Innovation at Adobe: AI in Creative Tools

Adobe has unveiled new AI capabilities across its creative software suite during the Adobe Max event. Innovations include enhanced tools for Photoshop and Premiere Pro, including a generative fill feature and an AI assistant to streamline editing processes. The company is embracing AI to not only improve efficiency but also to ensure creative prowess is maintained.

Anthropic vs. OpenAI: The Race for Corporate AI

While OpenAI garners mass-market popularity, Anthropic has carved out a stronger niche in corporate environments, reportedly earning 80% of its revenue from business clients. This shift in focus may elevate Anthropic's market share over OpenAI, posing a new competitive dynamic in the AI landscape, especially given the potential for more quantifiable ROI for businesses.