OpenAI finalized its for-profit conversion and set a timeline for AI researchers by 2028. Amazon announced 14,000 job cuts citing AI efficiency gains. New AI browsers launched with unclear user demand. The gap between AI investment and practical results continues to widen.
1. OpenAI Goes For-Profit With $1.4 Trillion in Infrastructure Plans
OpenAI completed its restructuring on Tuesday. The non-profit foundation owns 26% of the for-profit company, Microsoft holds 27% (valued at $135 billion), and the remainder goes to investors and employees.
The deal extends Microsoft's IP rights to OpenAI's models through 2032, meaning Microsoft can continue using OpenAI's technology in products like Azure and Copilot. However, there's a significant clause about AGI (artificial general intelligence, AI systems that can match or exceed human intelligence across virtually any task). If OpenAI claims they've achieved AGI, they must prove it to an independent expert panel before Microsoft's access continues. This gives OpenAI a potential exit from the Microsoft partnership if they reach AGI, since the original deal stipulated Microsoft wouldn't get access to AGI-level systems.
Altman's timeline: The company expects an intern-level research assistant by September 2026 and a "legitimate AI researcher" by 2028. Chief Scientist Jakub Pachocki stated that deep learning systems could reach superintelligence within a decade.
Infrastructure commitment: OpenAI has committed to 30 gigawatts of capacity with $1.4 trillion in obligations over the coming years. The company spent $7.8 billion more than it earned in the first half of 2025.
SoftBank's $30 billion investment was conditional on successful conversion to for-profit status. Elon Musk attempted to block the restructuring by offering to acquire the company for $97.4 billion.
2. Amazon Announces 14,000 Job Cuts
Amazon announced 14,000 corporate job eliminations on Tuesday, the second-largest reduction since 22,000 positions were cut in 2022. The company employs nearly 1.2 million people, with over 360,000 in corporate roles.
Company rationale: SVP Beth Galetti stated the cuts would help the company invest more heavily in AI strategy and reduce organizational layers. She described this generation of AI as "the most transformative technology we've seen since the Internet."
CEO perspective: In June, Andy Jassy wrote that as Amazon deploys more AI agents, the company "will need fewer people doing some of the jobs that are being done today."
Spending context: Amazon invested $55.6 billion in the first half of the year on tech infrastructure, primarily supporting AWS growth. Revenue increased 13% to $167.7 billion in Q2, with AWS accounting for 18% of net sales.
The company is increasing AI infrastructure spending while reducing headcount for efficiency gains.
3. AI Browsers Face Adoption Questions
OpenAI launched ChatGPT Atlas, an AI-powered browser, this week. Early testing revealed mixed results.
TechCrunch's Max Zeff reported a "slight efficiency gain at best," noting that users often watch the browser slowly navigate websites to complete tasks. The commonly demonstrated use case—looking up recipes and adding ingredients to shopping carts—doesn't reflect typical user behavior.
Market dynamics: Previous attempts to challenge established browsers failed due to difficulty monetizing the product. OpenAI's funding position allows it to develop the product without immediate revenue pressure.
The value proposition for average users remains unclear.
4. ChatGPT Mental Health Concerns
OpenAI disclosed Monday that 0.15% of ChatGPT's weekly active users have conversations indicating potential suicidal planning or intent. With over 800 million weekly users, this represents more than 1 million people per week.
Legal context: The company faces a lawsuit from parents whose 16-year-old son died by suicide after confiding suicidal thoughts to ChatGPT.
Safety improvements: After consulting with 170+ mental health experts, OpenAI reports that GPT-5 provides appropriate responses 91% of the time in mental health scenarios, up from 77% in the previous version.
However, 9% of responses still fall short of desired standards, and the company continues offering older, less-safe models to paying subscribers.
The AI industry is making massive financial bets on future technology while cutting human jobs today, building products with questionable demand, and still struggling with fundamental safety issues.
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