OpenAI's Strategic Pivot: Shifting to a Public Benefit Corporation Amid Legal and Investor Negotiations
Not a single week goes by without an OpenAI update. In Q1 2025, the company made up just 5% of the listed volume on Launchbay — but easily dominates 50% of the conversation. This week’s headline: OpenAI is not spinning off its for-profit arm after all.

The company has reversed course on its plan to move its for-profit subsidiary (which develops ChatGPT and other products) out from under the nonprofit board’s control. That plan, initially proposed after the brief firing and rehiring of CEO Sam Altman in late 2023, had faced growing legal pressure from Elon Musk and potential regulatory pushback from the Delaware attorney general.
Instead, OpenAI will convert the for-profit entity into a Public Benefit Corporation (PBC) — a structure meant to balance profits with social impact. It will also:

• Replace capped-profit investor units with traditional stock
• Remove the cap on investor returns, a foundational limitation since 2019
• Set the stage for a potential IPO in the future

But here’s the catch: Microsoft, OpenAI’s largest outside investor and strategic partner, has not yet signed off on the restructuring. Negotiations are ongoing, particularly over:

• Revenue share: OpenAI wants to cut Microsoft’s take from 20% to 10% by 2030 (on projected revenues of ~$174B that year)
• Intellectual property rights: Microsoft currently holds long-term rights to use OpenAI’s models — but wants assurances that future products and capabilities will also be covered
• Equity: Microsoft’s future stake in the restructured PBC is still being finalized

Meanwhile, OpenAI has already told other investors — like Thrive Capital and SoftBank — that the new setup will meet their expectations, and SoftBank reportedly remains committed to a $30B investment. One investor called it “the best outcome under the circumstances,” especially with regulatory and legal scrutiny still looming.

This compromise keeps OpenAI aligned with its original nonprofit mission (which may help with regulatory and legal risk), while still giving investors the kind of upside — traditional equity, no profit cap, future IPO path — they’ve been asking for. The Microsoft question remains the biggest wild card. If a deal is reached, OpenAI will have found a way to unlock billions in future value without losing its original governance model.

News Supporting the Rise of Agentic Workflows
Visa has launched a suite of tools to enable seamless purchases made by AI agents, aligning with Mastercard’s recent move into agent-native commerce. The new offering, Visa Intelligent Commerce, introduces tokenized payment credentials for agents, securing sensitive data while signaling user authorization to merchants. Additional APIs will personalize agent recommendations using purchase history, enforce user-defined spending limits, validate transaction intent, and streamline fraud resolution. Visa is rolling out these features in partnership with Anthropic, IBM, Microsoft, Mistral AI, OpenAI, Perplexity, Samsung, and Stripe.

Meanwhile, Databricks is reportedly in talks to acquire Neon, a cloud-native database startup, in a ~$1B deal. Neon’s pay-per-second model is tailor-made for AI agents that perform short, high-frequency tasks—like spinning up temporary databases for actions such as returns or trip planning. This move underscores Databricks’ strategy to support agentic applications, following its integration of Claude models via a recent partnership with Anthropic.

eToro Reignites IPO Market Momentum
eToro has officially launched its IPO roadshow, signaling renewed momentum in the listings market after last month’s tariff-driven freeze. The Israel-based trading platform plans to offer 10 million shares priced between $46 and $50, aiming to raise up to $500 million, according to its latest SEC filing. Notably, BlackRock has expressed interest in purchasing up to $100 million worth of shares.
eToro will list on the Nasdaq under the ticker ETOR, positioning itself as one of the first major tech players to test public market appetite in Q2 2025.
📊 All updates on upcoming listings, filings, and signals are tracked in our IPO Barometer.

Cursor Raises $900M at $9B Valuation
As generative AI continues to reshape everything from marketing to sales, one of its most lucrative footholds remains in software development. Cursor, the coding assistant built by Anysphere, has closed its much-anticipated new funding round: $900 million at a $9 billion valuation.

Anthropic Launches $61.5B Employee Share Buyback
Anthropic is conducting its first-ever employee liquidity event, offering to repurchase shares from hundreds of current and former team members. The buyback, which comes just months after its March fundraising round, values the company at $61.5 billion, reaffirming its status as one of the most valuable private AI companies.

Trump Signals Openness to Further TikTok Deadline Extension
President Donald Trump has indicated he’s willing to extend the June 19 deadline for TikTok to secure a U.S. buyer or face a potential ban. This follows a 75-day extension granted in April, as scrutiny over the company’s ownership and data practices continues to drive policy debate.

Hugging Face Launches a $100 3D-Printed Robotic Arm That Could Revolutionize Household Automation
Finally, a robotics product that does exactly what investors have been hoping for: practical, affordable, and scalable. Hugging Face has unveiled the SO-101, a 3D-printable robotic arm priced at just $100, designed to assist with household chores such as picking up dropped objects. This marks a significant step in the evolution of affordable robotic solutions for everyday tasks.
The SO-101 leverages AI reinforcement learning to handle routine chores, making it an ideal entry point for consumers looking for cost-effective automation. What sets this apart is its accessibility — the arm is available as a DIY kit, allowing users to 3D print most of the parts themselves. This approach not only reduces costs but also encourages community engagement and innovation.