Tech
Control Alt delete: Exploring OpenAI's corporate structure, after Sam Altman’s shock dismissal

Control Alt delete: Exploring OpenAI's corporate structure, after Sam Altman’s shock dismissal

David Crowther

Control Alt delete

‍It’s been a chaotic few days for OpenAI, the artificial intelligence giant behind ChatGPT.

In the ~72 hours since our Friday send, co-founder and CEO Sam Altman was shock-fired by the board; a host of high-profile resignations were tendered; chief technology officer Mira Murati was appointed as interim CEO; momentum to reinstate Altman gathered steam; the board reportedly agreed to reverse the decision in principle; negotiations faltered, however, and Emmett Shear — a cofounder of video streaming platform Twitch — is the new interim CEO, with Altman taking a role at Microsoft.

‍And, in the latest twist, 505 out of ~700 OpenAI employees have signed a letter threatening to quit unless the board resigns and Altman is reinstated.

How a generationally-important company like OpenAI could be plunged into such chaos is partly down to its unique corporate model. Following the company's structure from top to bottom — even with a few subsidiaries thrown in — reveals that the board of directors had ultimate control to make decisions over both the nonprofit and for-profit OpenAI entities... leaving anchor investor Microsoft blindsided by Altman’s exit just moments before the public announcement.

The company that launched ChatGPT less than a year ago claims that its structure is designed to develop artificial general intelligence that’s “safe and benefits all of humanity”, with the capped profit arm of OpenAI, first introduced in 2019, able to issue equity and raise capital to further the work of the original nonprofit that was established in 2015.

‍Move slow and make things

‍New CEO Emmett Shear has made a name for himself in the AI world by advocating for industry slowdowns in the name of safeguarding, making him an appealing Altman alternative for the board at OpenAI — even as dozens of OpenAI employees and key board members take to X (formerly Twitter) to show their support for Altman.

‍Related reading: See all of our charts on ChatGPT.

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Jon Keegan

Report: Anthropic cuts off xAI’s access to its models for coding

Competition between the top AI companies is fierce. Top employees are being poached, and companies are training their AI on competitors’ models to stay ahead of the pack.

Anthropic is taking steps to make sure it’s not helping the competition in any way. According to tech reporter Kylie Robison, this week Anthropic cut access to xAI developers who were using its Claude models for coding via the popular Cursor AI coding tool.

Robison reports that xAI cofounder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

Kylie Robison on X: "Scoop: xAI staff had been using Anthropic’s models internally through Cursor—until Anthropic cut off the startup’s access this week.​​​​​​​​​​​​​​​​

Kylie Robison on X: "Scoop: xAI staff had been using Anthropic’s models internally through Cursor—until Anthropic cut off the startup’s access this week.​​​​​​​​​​​​​​​​ Here’s what xAI cofounder Tony Wu sent to staff on Wednesday according to a copy of the internal Slack message I viewed: “Hi" / X

Robison reports that xAI cofounder Tony Wu told his team in an email:
“This is a both bad and good news. We will get a hit on productivity, but it rly pushes us to develop our own coding product / models.”

Rani Molla
1/9/26
Grok has been climbing Apple and Google’s app store rankings amid calls to remove it for sexualized images

Critics have pointed out that Apple and Google have removed other apps for less.

Grok X Ai - Photo Illustration
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Rani Molla

xAI’s revenue is growing, but so are its staggering losses

Good news: xAI’s revenue nearly doubled to $107 million in the third quarter compared to the second.

Bad news: Its net losses grew to $1.46 billion in Q3, up from $1 billion in the first quarter, and more than 13x revenue, Bloomberg reports.

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

Musk’s xAI Burns Almost $8 Billion in Cash, Reveals Optimus Plan

Musk’s xAI Burns Almost $8 Billion in Cash, Reveals Optimus Plan

The company, which is currently worth north of $230 billion, is burning through staggering amounts of cash — nearly a billion dollars a month — in service of building data centers and developing what it calls “self-sufficient” AI that can one day power robots like Tesla’s Optimus. Meanwhile, its revenue still looks more like that of a midsize startup than a tech giant.

Despite receiving more yes than no votes, Tesla’s board didn’t approve a shareholder proposal to invest in xAI, leaving a more formal relationship between the companies unresolved, even as xAI continues to burn cash at a pace that will require steady access to outside capital.

Of course, Elon Musk’s AI company is already deeply financially intertwined with his EV company. In 2024, xAI spent nearly $200 million, largely on Tesla Megapack batteries — a figure that appears to have grown significantly in 2025.

Millie Giles
CHAT-PCP
1/9/26
American patients are increasingly turning to AI for medical advice — so are their doctors

As OpenAI announces the launch of ChatGPT Health, it seems everyday Americans and professional physicians alike are already using the tech to help with healthcare.

Robot hand toy finger holding medical stethoscope on yellow background, AI and smart technologies in medicine and diagnostic concept.
tech
Rani Molla

Apple’s hardware chief is the front-runner to be the next CEO

The New York Times is the latest news organization to cite Apple sources who think the company’s hardware chief, John Ternus, will be the one to fill CEO Tim Cook’s shoes. Citing people close to Apple, the publication reports that Cook is “tired and would like to reduce his workload” and that 50-year-old Ternus is the most likely to take his place, as the company accelerates its succession planning.

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

Apple’s John Ternus Could Be Tim Cook’s Successor as CEO

Apple’s John Ternus Could Be Tim Cook’s Successor as CEO

The Times is in good company. Both the Financial Times and Bloomberg have previously said Ternus is the top pick to succeed Cook at the helm of the tech giant, and Ternus is currently enjoying the top spot on prediction markets. His market-implied odds of being the next CEO are currently above 60% on both Polymarket and Kalshi event contracts.

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