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Ep 646: OpenAI: How can a former nonprofit losing $12 billion a quarter go public at $1 trillion?
Inside OpenAI's $1 trillion IPO dreams, Anthropic’s revenue reportedly booms, Google takes AI chips to space, Amazon and Perplexity fighting and more.
Everyday AI
November 04, 2025
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Outsmart The Future
Today in Everyday AI
7 minute read
🎙 Daily Podcast Episode: How can OpenAI, reportedly losing billions a month, go public at a $1 trillion valuation? We break it down. Give today’s show a watch/listen.
🕵️♂️ Fresh Finds: Microsoft’s AI speed record, half of millennials worried about AI taking their jobs, and NVIDIA-backed agentic launchpad. Read on for Fresh Finds.
🗞 Byte Sized Daily AI News: Anthropic’s revenue reportedly booms, Google takes AI chips to space, Amazon and Perplexity fighting and more. Read on for Byte Sized News.
🧠 Learn & Leveraging AI: OpenAI restructured from a nonprofit and is reportedly going public, yet is bleeding billions. Should you be worried basing your business around their tech? Keep reading for that!
↩️ Don’t miss out: Did you miss our last newsletter? We covered: The Week's top AI news, OpenAI and Amazon enter groundbreaking partnership, Apple taps Google for more AI help, OpenAI internal drama revealed and more.. Check it here!
Ep 646: OpenAI: How can a former nonprofit losing $12 billion a quarter go public at $1 trillion?
OpenAI: reportedly losing $12 billion a quarter. 🥵
Also OpenAI: reportedly going public at a $1 trillion market cap. 🤑
The math aint mathin, right?
Also on the pod today:
• Trillion-dollar IPO ambitions 🚀
• Microsoft’s 27% OpenAI stake 🤝
• Enterprise adoption slow but rising 📈
It’ll be worth your 49 minutes:
Listen on our site:
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Here’s our favorite AI finds from across the web:
New AI Tool Spotlight – Floqer is an AI copilot for data automation, Jinna is an AI invoicing platform and Softr Workflows builds AI automations for your biz.
Salesforce AI — SF Ben released a free and helpful guide on Salesforce’s Einstein AI.
AI Records — Microsoft CEO Satya Nadella shared an AI record from Azure.
1.1M tokens/sec on just one rack of GB300 GPUs in our Azure fleet.
An industry record made possible by our longstanding co-innovation with NVIDIA and expertise of running AI at production scale!
— Satya Nadella (@satyanadella)
1:21 AM • Nov 4, 2025
AI and Jobs — Nearly half of India's millennials think AI could take their jobs within five years. Curious how worried other generations are?
AI Deals — Lambda just landed a multibillion-dollar Microsoft deal to deploy tens of thousands of Nvidia GPUs for AI supercomputers.
Agentic AI — Microsoft and NVIDIA just launched the Agentic Launchpad to help UK AI startups build smarter, autonomous platforms.
AI and Fashion — Perplexity is reportedly rolling on an AI-powered virtual try on avatar to for shopping.
Perplexity seems to have quietly dropped a new feature: a Virtual Try-On avatar. You can upload an image of yourself and try on clothes directly within Perplexity Shopping.
It’s not officially announced yet, but it looks like they’re experimenting with AI fashion try-ons
— Ignacio Montenegro (@Ignaci0m_)
3:17 PM • Nov 4, 2025
AI Music — Udio users are furious after new rules block downloads and personal use of AI-generated songs. The company just settled with Universal Music Group, but what’s next for this music tech?
Agentic AI — Sierra, the AI startup led by OpenAI chairman Bret Taylor, is about to sign one of San Francisco’s biggest office leases this year. See why.
1. Studio Ghibli Fights Back: Group Demands OpenAI Stop Using Its Content ⛔
In a strong move last week, Japan’s leading content trade group CODA, representing Studio Ghibli and other major players, demanded OpenAI halt the use of their copyrighted material to train its Sora 2 video generator. CODA argues OpenAI’s opt-out system clashes with Japanese copyright law, which requires explicit permission before using protected works.
The group insists that AI-generated outputs resembling Japanese content could be considered copyright infringement, raising the stakes for how AI platforms source their training data.
2. Anthropic’s Revenue Rocket: New AI Rivalry Heats Up 🔥
Anthropic is shaking up the AI world this week with projections of $70 billion in revenue and $17 billion in cash flow by 2028, according to The Information. The company’s business-focused AI products are catching fire, and its partnerships with giants like Microsoft, Salesforce, Deloitte, and Cognizant are fueling the momentum.
Anthropic’s profit margins are rebounding dramatically, while OpenAI, its biggest competitor, faces mounting losses despite a massive user base. With Anthropic now valued at $170 billion and eyeing another fundraising round, the battle for AI dominance is entering a high-stakes new phase.
3. Investor from ‘The Big Short’ Bets Against AI Boom 🫧
Michael Burry, famed for predicting the 2008 crash, has placed big wagers against AI giants Nvidia and Palantir, sparking fresh debate over a possible bubble in the booming sector. His cryptic social posts and recent regulatory filings reveal deep skepticism, drawing stark parallels to the dot-com bust and warning of circular dealmaking that could unravel the market.
As AI hype pushes stock prices sky-high, Burry’s moves have rattled executives and investors, fueling fears that the industry may be overbuilt for demand that hasn't materialized. With echoes of past tech crashes, Wall Street is watching closely for any cracks in the AI gold rush.
4. Google Unveils Project Suncatcher: AI Goes Orbital 🧑🚀
Google just announced an ambitious plan to build space-based AI data centers powered by solar energy, aiming for a launch of prototype satellites by 2027. Project Suncatcher would use constellations of compact, networked satellites equipped with advanced TPUs, promising massive compute power while minimizing environmental impact on Earth.
The team revealed promising progress on overcoming hurdles like high-speed satellite links, orbital stability, and chip radiation resistance. If successful, this could shift the future of AI infrastructure off-planet, making solar-powered machine learning a reality above the clouds.
5. Amazon Targets AI Assistants in New Legal Move 🥊
Amazon has fired off a legal warning to Perplexity, demanding its Comet AI assistant stop helping users shop on the retail giant’s site—a first-of-its-kind crackdown on agentic AI.
The dispute spotlights a growing battle over user rights, privacy, and control as AI tools become more like virtual employees than simple software. Perplexity accuses Amazon of protecting ad revenue by blocking innovation and restricting user choice, arguing that assistive AI should work for the consumer, not corporations. This latest clash signals a pivotal moment for how big tech will treat AI agents designed to serve people, not profits.
🦾How You Can Leverage:
Huh?
In recent weeks, there's been no more polarizing story in AI world than OpenAI's groundbreaking moves.
Sam Altman went on the BG2Pod podcast and literally told skeptics to short the stock when they IPO. Satya Nadella jumped in to say OpenAI has never once missed a business projection. Meanwhile OpenAI is reportedly burning cash but also signing $1.4 trillion worth of infrastructure commitments and funding deals.
The math looks insane until you dig deeper.
So on today's show, we unpacked OpenAI's jaw-dropping transformation from nonprofit to potential Wall Street titan.
Even though they're reportedly bleeding billions at a rate that would bankrupt most nations (lolz), they're also simultaneously committing $1.4 trillion in infrastructure spending and prepping for an IPO.
So, will OpenAI be the first bubble to bust? Or, are they foundation for the future AI boom?
1 – The $1.4 Trillion Infrastructure Bet That Changes Everything 🚀
OpenAI just reportedly committed to spending 70 times their projected 2025 revenue.
$1.4 trillion of committed spending with reported 2025 revenue of $20 billion.
Yeah, that’s 70x.
We walked through how this isn't the circular funding scheme critics claim. Last week's conversion from nonprofit to public benefit corporation wasn't some boring paperwork shuffle. It unlocked multi-cloud partnerships OpenAI desperately needed.
Before this change? They were kinda handcuffed to Microsoft exclusivity.
Now?
AWS deal dropped yesterday. Oracle's in. NVIDIA's writing checks. Every tech giant wants a piece. Some people scoff at circular funding or vendor financing.
Our take?
These megacaps have done their homework and are confident the numbers check, in the same way Nadella said that OpenAI keeps hitting business projections.
Case in point: Microsoft put in $13 billion total over the years. And with the OpenAI restructure to a PCC, Microsoft’s stake is now worth $135 billion at OpenAI's current $500 billion valuation. That's a 10x return before even counting the $250 billion Azure contract they secured.
Not bad.
The infrastructure spending makes sense when you understand what we uncovered: OpenAI needs compute to win the AGI race. Whoever gets there first doesn't add billions in revenue. They add trillions.
And the cloud providers all want their piece.
Try This:
Wanna better understand the AI infrastructure arms race? This Guardian article breaks down OpenAI’s record-setting AWS deal, NVIDIA partnerships, and what competitors are scrambling to do.
Use it as a playbook to audit your industry's current spending-to-revenue ratio. Then identify big infrastructure bets that look crazy right now but could let you dominate if they pan out.
2 – Why Losing Money This Fast Is Actually The Strategy 🔥
Critics love pointing to OpenAI's burn rate as proof they'll fail.
Amazon?
Nine years in the red.
Tesla?
17 years of losses before profit.
Uber?
Burned cash for fourteen years. Spotify for eleven. Airbnb for twelve.
Every. Single. One.
The difference is what OpenAI's losses are buying them: 800 million weekly active users growing legit faster than any product in history.
And that 92 of the Fortune 100 already use ChatGPT despite OpenAI barely trying on enterprise features.
They just launched internal knowledge for companies two weeks ago.
Two weeks!
This brings RAG-esque capabilities that enterprises have begged for since ChatGPT launched. Click a button, upload your company docs, and suddenly ChatGPT knows your business. No coding. No complex setup.
Yet OpenAI's marketing is kinda bad and they barely mention this enterprise necessity. But even this one small feature unlocks the enterprise market, which could bring in hundreds of billions more.
Try This:
Ever wonder why investors are fine watching OpenAI torch billions? This recent TechCrunch deep dive unpacks exactly how capturing massive market share now can flip the script later.
Do this: Survey your team to uncover hidden adoption of AI tools, then quantify how much more your company would pay if these tools offered enterprise-grade features. Use that math to justify aggressively pursuing growth, even if it means burning cash short-term.
3 – The Hidden Ad Business That Could Compete With Google ⚡
Nobody's talking about OpenAI's advertising potential.
We did in this episode, that you should peep.
We laid out 9 specific platform changes pointing to ads coming soon. Think about what OpenAI knows that Google doesn't. Google sees what you search. OpenAI knows how you think.
Not keywords. Conversations.
"Help me figure out why my startup is burning too much cash."
"My team keeps missing deadlines, how do I fix this?"
"What CRM should I switch to from Salesforce?"
The targeting potential is terrifying and brilliant. We predicted this could generate tens of billions within a year of launching. That alone justifies the trillion-dollar valuation before touching enterprise revenue or AGI.
But it gets wilder.
Sora launched about 5 weeks ago ago as video generation tool.
It’s spent the majority of the time since launch as the most downloaded iOS app with a built-in social network. We called it "TikTok-style brain rot" on the show, but users are obsessed.
But wait…. there’s more.
OpenAI's also building hardware with Jony Ive.
Launched a browser called Atlas.
Testing "adult mode" by year-end.
Critics see scattered focus. We see ecosystem building that would make Steve Jobs jealous.
When users can soon sign into any app with OpenAI credentials, when every interaction feeds back into their AI understanding, when ChatGPT becomes the login for the entire internet?
Game over.
All of a sudden, that reported $1 trillion IPO valuation starts lookin like a bargain.
Try This:
Map out 5‑10 specific problem phrases actual users are typing into AI tools (e.g., “my team misses deadlines how fix”, “which CRM to switch from Salesforce”), inspired by OpenAI seeing conversations not just keywords.
Create dedicated content or micro‑landing pages answering each phrase directly—use conversational tone and specificity.
Run A/B ad tests targeting those phrases versus traditional broader category keywords; track cost‑per‑lead and conversion.
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