Apple just scared $80B out of Google

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It's Thursday, and these are the only three AI stories worth your attention this week.

OpenAI backs down: Nonprofit board keeps control

The restructuring that wasn't

OpenAI just scrapped its plan to become a proper for-profit company. Instead, the nonprofit board stays in charge, keeping the power to fire leadership (yes, even Sam Altman) at any time.

The reversal: Altman has been pushing since his 2023 ouster to separate the for-profit arm from nonprofit control. This week, he gave up. The nonprofit keeps majority voting power and a massive stake in the company, while the for-profit entity converts to a public benefit corporation.

What changed their minds:

• Pressure from California and Delaware attorneys general

• Pushback from civic groups about betraying the nonprofit mission

• Regulatory concerns about the original restructuring plan

The funding pressure: SoftBank's $40 billion round required restructuring by year's end. Microsoft's earlier investment demanded changes within two years. Time was running out.

What this means for your business: OpenAI remains a governance experiment that could explode at any moment. The nonprofit board can still fire leadership, block deals, or change direction overnight. If you're building on OpenAI's tech or considering partnership deals, this structural uncertainty isn't going away.

The structure still gives investors uncapped upside through the public benefit corporation, but the nonprofit keeps ultimate control. As Altman says, "OpenAI is not a normal company." The understatement of the year.

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Google's $20 billion Safari deal under threat

Apple hints at AI-powered search future

Google's stock dropped 9.3% Wednesday after Apple hinted it might replace Google Search in Safari with an AI alternative. That's $80 billion in market cap gone in hours.

The bombshell: Apple SVP Eddy Cue testified in federal court that the company is "actively looking at" AI-centric search for Safari. Translation: Google's most lucrative real estate might be up for grabs.

The numbers that matter:

• Google pays Apple $20-23 billion annually to be Safari's default search

• iPhone and iPad traffic represents roughly 25% of Google's search revenue

• That's serious money even for these giants

The contenders: Traditional search only has Microsoft's Bing as an alternative. But AI-native players like OpenAI and Perplexity could leapfrog the competition with Apple's scale behind them. None have Google's ad economics yet, but they don't need to match Google's payments if they offer something Apple values more.

What to watch for: Look for announcements at Apple's WWDC in June or the iPhone launch in September. Every AI search startup now has a shot at tech's richest traffic source, and Google might have to pay significantly more just to keep its position.

For investors: If you own Alphabet stock, this adds real risk. For everyone else: The search landscape might finally get interesting again.

VCs are giving away the store for AI talent

The unprecedented terms founders are getting in 2025

The AI talent war has reached absurd levels. VCs are now offering terms that would have been laughed out of the room five years ago.

The new reality:

• Mira Murati's Thinking Machines Lab got a board "super-vote" that overrides all other directors combined

• Founders are cashing out millions in secondary sales at Series A

• Some lead investors accept zero board seats just to get into deals

• Protective provisions are disappearing from term sheets

Why investors cave: Ex-OpenAI and Anthropic engineers are viewed as "must own" assets. With AI outcomes potentially following extreme power laws, missing one winner could be career-ending for VCs. Capital is plentiful, world-class AI founders are scarce, and the math is simple.

The tactics VCs are using:

• Early secondary sales letting founders cash out at Series A/B

• Rubber-stamping executive comp increases

• Removing standard governance protections

• Accepting non-voting shares

The risk factors: History offers warnings. Bird and WeWork let founders cash out early and maintain control. Both ended badly. Extreme dual-class shares can also deter public market investors or acquirers down the road.

Whether these deals create the next trillion-dollar platforms or just expensive cautionary tales will define this AI cycle. But right now, if you're a top AI researcher thinking about starting a company, you've never had more leverage.