After months of speculation, OpenAI has reorganized as OpenAI Group PBC, a for-profit public benefit corporation valued at about $500 billion and governed by the original nonprofit parent.
The change ends the prior “capped-profit” setup (previous investor returns were limited to 100x) and clarifies ownership questions that emerged during last year’s governance turmoil.
The reorganization coincides with a definitive agreement with Microsoft that gives both parties more flexibility for the “next phase” of their partnership.
Microsoft now owns roughly 27% of the new entity (≈$135 billion), with remaining equity distributed among other investors, employees, and the nonprofit.
The deal extends Microsoft’s IP rights for models and products through 2032 and explicitly covers models developed post-AGI, with AGI status to be adjudicated by an independent expert panel.
In exchange for more predictable access to future model families and the ability to pursue independent AGI paths with potential partners, Microsoft gave up certain veto and right-of-first-refusal privileges.
Internal discussions reportedly target a potential IPO valuing the company up to $1 trillion, with a possible filing in late 2026 and listing in 2027, and plans to raise at least $60 billion.
Microsoft posted a solid quarter with Azure growth beating expectations and continued AI momentum, but the stock fell about 3% as investors focused on rising AI-related CapEx that is compressing operating cash flow.
Meta reported record quarterly revenue (~$51 billion, up ~26% YoY) but net income plunged after a $16 billion one-time tax charge tied to a corporate tax law adjustment.
Excluding that item, heavy spending on R&D, data centers, and AI pushed projected CapEx toward ~$97 billion next year, nearly double the prior year, and EPS fell to around $1.05/share, triggering an ~11% single-day stock drop.
Alphabet hit its first-ever $100 billion revenue quarter, driven by strong ad sales and a booming Google Cloud; cloud was the fastest-growing segment with a backlog near $155 billion.
Apple reported a record September-quarter revenue ($102.5 billion), lifted by an all-time high in Services — the high-margin recurring-revenue engine tied to the installed base of over 2 billion active devices (App Store commissions, licensing, subscriptions, iCloud, payments, etc.) — nudging the stock higher.
The stock jumped more than 13% in after-hours trading as investors rewarded visible AI-cloud momentum and improved operational efficiency following recent layoffs.
At the October 29 meeting the Fed cut the federal-funds rate by 25 bps to a 3.75%–4.00% range and said it will end the reduction of its aggregate securities holdings (QT) on December 1, effectively halting balance-sheet runoff.
The FOMC reiterated its longer-run goals of maximum employment and 2% inflation, noting inflation remains “somewhat elevated” but highlighting a slowing labor market and rising downside risks to employment.
The Committee judged that risks have shifted toward the downside for jobs, signaling greater concern about preventing a labor-market collapse than chasing small changes in inflation.
Chair Powell emphasized that a December cut is not guaranteed and that policy remains data-dependent, with limited visibility due in part to the federal government shutdown and no preset policy path.
After months of speculation, OpenAI has reorganized as OpenAI Group PBC, a for-profit public benefit corporation valued at about $500 billion and governed by the original nonprofit parent.
The change ends the prior “capped-profit” setup (previous investor returns were limited to 100x) and clarifies ownership questions that emerged during last year’s governance turmoil.
The reorganization coincides with a definitive agreement with Microsoft that gives both parties more flexibility for the “next phase” of their partnership.
Microsoft now owns roughly 27% of the new entity (≈$135 billion), with remaining equity distributed among other investors, employees, and the nonprofit.
The deal extends Microsoft’s IP rights for models and products through 2032 and explicitly covers models developed post-AGI, with AGI status to be adjudicated by an independent expert panel.
In exchange for more predictable access to future model families and the ability to pursue independent AGI paths with potential partners, Microsoft gave up certain veto and right-of-first-refusal privileges.
The reorganization closes an early chapter of the AI buildout and opens a path for wider scaling.
Internal discussions reportedly target a potential IPO valuing the company up to $1 trillion, with a possible filing in late 2026 and listing in 2027, and plans to raise at least $60 billion.
Microsoft posted a solid quarter with Azure growth beating expectations and continued AI momentum, but the stock fell about 3% as investors focused on rising AI-related CapEx that is compressing operating cash flow.
Management acknowledged being “short on capacity” in Azure, implying near-term missed revenue until larger buildouts come online.
Meta reported record quarterly revenue (~$51 billion, up ~26% YoY) but net income plunged after a $16 billion one-time tax charge tied to a corporate tax law adjustment.
Excluding that item, heavy spending on R&D, data centers, and AI pushed projected CapEx toward ~$97 billion next year, nearly double the prior year, and EPS fell to around $1.05/share, triggering an ~11% single-day stock drop.
Alphabet hit its first-ever $100 billion revenue quarter, driven by strong ad sales and a booming Google Cloud; cloud was the fastest-growing segment with a backlog near $155 billion.
The stock rose about 2.5% to a new high, showing mature monetization plus AI/cloud bets can be rewarded.
Apple reported a record September-quarter revenue ($102.5 billion), lifted by an all-time high in Services — the high-margin recurring-revenue engine tied to the installed base of over 2 billion active devices (App Store commissions, licensing, subscriptions, iCloud, payments, etc.) — nudging the stock higher.
Amazon beat across total revenue, AWS revenue, and EPS, propelled by robust retail sales, cost efficiencies, and AWS strength.
The stock jumped more than 13% in after-hours trading as investors rewarded visible AI-cloud momentum and improved operational efficiency following recent layoffs.
The week underscored that growth alone isn’t enough; markets are focusing on how growth is achieved, the cost structure, and margin quality.
Firms that combined strong growth with clear execution were rewarded, while others faced scrutiny over costs and strategic clarity.
At the October 29 meeting the Fed cut the federal-funds rate by 25 bps to a 3.75%–4.00% range and said it will end the reduction of its aggregate securities holdings (QT) on December 1, effectively halting balance-sheet runoff.
The decision was not unanimous, with two dissents reflecting differing views on the pace and necessity of the reversal.
The FOMC reiterated its longer-run goals of maximum employment and 2% inflation, noting inflation remains “somewhat elevated” but highlighting a slowing labor market and rising downside risks to employment.
The Committee judged that risks have shifted toward the downside for jobs, signaling greater concern about preventing a labor-market collapse than chasing small changes in inflation.
Chair Powell emphasized that a December cut is not guaranteed and that policy remains data-dependent, with limited visibility due in part to the federal government shutdown and no preset policy path.
OpenAI's shift to a capped profit model and new board feels like pre SPAC grooming, but the go;vernance signals for retail is still muddy :)
yeah, that capped profit shift does scream pre-SPAC vibes, and the governance stuff is definitely murky for us regular folks