🤖 Microsoft Takes 27% of OpenAI

PLUS: Amazon Cuts 14,000 Corporate Jobs

James Roesser
October 29, 2025

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OpenAI and Microsoft officially agreed on the new terms of their multi-billion-dollar partnership.

OpenAI was originally founded as a non-profit organization before it added a “for-profit subsidiary” called OpenAI LP in 2019. OpenAI LP allowed investors a capped return if OpenAI succeeded. However, any money made beyond that capped return was funneled back into the non-profit organization.
OpenAI recently secured a $40 billion Series F funding round at a $300 billion valuation. However, SoftBank Group Inc.’s $30 billion investment was contingent on OpenAI restructuring into a Delaware PBC because it removes the capped return limitation.
Microsoft’s invested over $13 billion in OpenAI since 2019 in exchange for 20% of OpenAI’s revenue until 2030. Under this agreement, OpenAI couldn’t simply convert into a Delaware PBC without Microsoft’s approval. After heated negotiations, Microsoft now holds a 27% equity stake in OpenAI, and OpenAI pledges to purchase $250 billion of Microsoft Azure services.

The exact terms of this multi-billion-dollar partnership remain partially confidential, but Microsoft clearly wields more influence over OpenAI’s corporate trajectory.
Many highlight that OpenAI seems to have transitioned from an open-source, for-benefit organization into a closed-source, for-profit enterprise within just five years.

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Image Source: AboutAmazon.com/October 9th, 2024/“Amazon’s new AI-powered package retrieval tool!”/Screenshot

Amazon reportedly cut 14,000 corporate jobs as part of a strategic shift “to operate like the world’s largest startup.”

In June 2025, Amazon CEO Andy Jassy shared that he intends to shrink the online retail giant’s corporate workforce as it adopts GenAI and AI Agents. “It should change the way our work is done,” he explained. “We’ll need fewer people doing some of the jobs being done today.”
Now, Amazon officially announced plans to cut 14,000 corporate jobs, which represents about 4% of the online retail giant’s corporate workforce. In a blog post, Amazon wrote that the layoffs are a strategic decision to stay nimble and less bureaucratic as it invests in “our biggest bets.”
For example, Amazon’s committed roughly $10 billion apiece since January 2024 to data center projects in Ohio, Indiana, Mississippi, and North Carolina to acquire the computing power needed to train and run frontier AI models.

Nearly 80% of companies use GenAI, yet just as many say the technology hasn’t delivered any measurable financial benefits, including increased revenue, reduced costs, or improved margins. This phenomenon is referred to as the “GenAI Paradox.”
AI Agents offer a way to break out of this phenomenon because they possess the ability to automate complex corporate workflows by shifting GenAI from a reactive tool to a proactive co-worker.

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