Monday, May 12, 2025

TL;DR 12Apr25 ... 1) Alphabet shares sink 7% after Apple exec says AI will replace search engines, and (2) OpenAI will keep Nonprofit in Control"

Last update: Monday 5/12/25
             Eddy Cue, Apple Senior VP
Welcome to our 
12Apr25 TL;DR summaries by Chat
GPT of the past week's top 2 stories on our "Useful AI News" page ➡  (1) Alphabet shares sink 7% after Apple exec says AI will replace search engines, and (2) 
OpenAI Backtracks on Plans to Drop Nonprofit Control"

Podcast  HERE
TL;DR 
  HERE 

ChatGPT's TL;DR summaries of Top 2 stories  ...

1. Apple | 2. OpenAI 

1) "Alphabet shares sink 7% after Apple’s Cue says AI will replace search engines", -- Kif Leswing, CNBC, 5/7/25 *** 
-- This story also covered by The VergeGizmodoBloombergReutersWSJ
-- But Google's stock rebounded Barron'sYahoo Finance

PROMPT:
Here comes the text for two articles. Each article covers the same event. Provide a combined summary of both articles. Two good articles are provided because one article might omit an important issue; but it is more likely that two good articles will cover all of the important issues. 

Your combined summary should identify the three or four most important issues and should be presented in bullet format for easier reading.Each main point can be accompanied by subordinate bullets that clarify and/or specify the main point. Include the title of the first article as the heading for your summary. Your summary should be understandable by savvy computer users.

RESPONSE:

Alphabet shares sink 7% after Apple’s Cue says AI will replace search engines

Combined Summary of CNBC and The Verge Articles

  • Eddy Cue warns AI could disrupt Google’s dominance in search — and it’s already starting

    • In federal court, Apple SVP Eddy Cue testified that AI services like OpenAI, Anthropic, and Perplexity could soon replace traditional search engines like Google.

    • He cited Apple’s first-ever drop in Safari search volume (April 2025), attributing it to users shifting toward AI-powered tools for information.

    • Cue emphasized this shift as a technological inflection point, suggesting that AI could do more to disrupt Google’s monopoly than any court ruling.

  • Cue defends Apple’s $20 billion annual deal with Google as vital, even as he sees its eventual obsolescence

    • Cue described the financial importance of Google’s payments — up to $20 billion/year — for being the default search engine on Safari.

    • He admitted that Apple is financially disincentivized from building its own search engine and worries about losing the revenue if Google’s deal is revoked.

    • Despite supporting Google in court, he acknowledged AI could “change everything” in the near future, making the current deal less critical over time.

  • The DOJ-Google antitrust case is moving toward remedies, with high stakes for both Google and Apple

    • A U.S. judge previously ruled that Google illegally maintained a search monopoly, partly through its default placement deals like the one with Apple.

    • The DOJ wants structural remedies like spinning off Chrome and syndicating Google’s search index to competitors.

    • Google proposes lighter restrictions that let Apple work with other search engines — but preserve some of the current default payment model.

  • Markets react sharply to Cue’s testimony — signaling that investors see real threat to Google’s core business

    • Alphabet (Google’s parent) stock dropped over 7% after Cue’s remarks, reflecting fears that AI could meaningfully weaken Google’s search ad dominance.

    • Apple stock also fell 2%, as investors weighed the risk of losing billions in annual Google payments if courts invalidate or alter the deal.

This moment marks a convergence of antitrust law, emerging AI capabilities, and platform economics — with potential to reshape how users, companies, and regulators interact with search itself.


2) "OpenAI Backtracks on Plans to Drop Nonprofit Control"
-- Cade Metz, 
NY Times, 5/5/25  
-- This story also covered by WSJReutersCNBCAP News, ... and OpenAI

PROMPT:
Here comes the text for two articles. Each article covers the same event. Provide a combined summary of both articles. Two good articles are provided because one article might omit an important issue; but it is more likely that two good articles will cover all of the important issues. 

Your combined summary should identify the three or four most important issues and should be presented in bullet format for easier reading.Each main point can be accompanied by subordinate bullets that clarify and/or specify the main point. Include the title of the first article as the heading for your summary. Your summary should be understandable by savvy computer users.

RESPONSE:

OpenAI Backtracks on Plans to Drop Nonprofit Control

Combined Summary of NYT and WSJ Articles

  • OpenAI will remain under nonprofit control, abandoning a controversial for-profit restructuring plan

    • OpenAI has reversed its plan to shift control from its nonprofit board to investors, choosing instead to operate as a public benefit corporation (PBC) controlled by the original nonprofit.

    • The decision follows months of criticism from co-founder Elon Musk, legal pressure from attorneys general in California and Delaware, and pushback from AI safety advocates like Geoffrey Hinton.

    • The nonprofit will remain the dominant shareholder and retain authority over board appointments; specific ownership percentages are still being determined.

  • The restructuring aims to balance fundraising needs with OpenAI’s founding mission

    • The move is designed to offer a clearer governance structure while still supporting OpenAI’s ability to raise capital—particularly a major funding deal with SoftBank worth up to $40 billion, contingent on successful restructuring.

    • By shifting from a “capped-profit” LLC model to a PBC, OpenAI joins competitors like Anthropic and X.ai in adopting a hybrid public-good/investor-return model.

    • CEO Sam Altman described the decision as a pragmatic compromise that allows the nonprofit to remain mission-focused while unlocking resources to scale.

  • Critics view the move as either a meaningful course correction—or a “cosmetic” dodge

    • Elon Musk’s legal team called the restructuring a “transparent dodge” that still enables private enrichment while violating OpenAI’s original charitable mission.

    • Musk had previously sued to block the restructuring and even led a failed $97 billion bid to acquire OpenAI’s nonprofit parent.

    • Legal scholars and regulators expressed cautious optimism, but stressed that the definition and enforceability of “control” remain unclear.

  • The debate underscores deep tensions in AI governance and the future of corporate structure

    • OpenAI’s struggle reflects a broader industry challenge: balancing long-term public safety and ethical stewardship with the immense capital demands of cutting-edge AI development.

    • Altman emphasized that AI is a transformative technology and that its governance should evolve to reflect both social responsibility and financial sustainability.

    • This move, if executed as promised, could make OpenAI’s nonprofit one of the largest and most influential charities in the world, with capital to deploy toward public-good initiatives.


This development marks a critical pivot in OpenAI’s identity and signals a deeper industry reckoning over how AI companies should be structured, funded, and held accountable in an era of exponential technological influence.



No comments:

Post a Comment

Your comments will be greatly appreciated ... Or just click the "Like" button above the comments section if you enjoyed this blog note.