Good morning. Allie here, filling in for the inimitable Andrew Nusca.
I’m back home in Los Angeles, still processing last week’s awesomeness that was Brainstorm Tech 2025. I interviewed Wyclef Jean and Jaeson Ma about the music business (huge for this Miami girl), talked with defense tech experts from companies like Anduril and Vannevar Labs, asked Oura CEO Tom Hale about data privacy, and grilled about ten different VCs on AI.
Of course, these days, what conversation isn’t an AI conversation? One question I’ve had recently: Will we see a trillion-dollar AI startup soon? The answer I got, both on the record and in casual conversations, was a resounding yes. Is that a good thing? I’m not sure. But one thing is clear: The AI boom is in full throttle, may get even faster, and for the foreseeable future, AI will still be conversation topic number one at tech conferences. (It will definitely be the case at our own Brainstorm AI in San Francisco, where I’ll be Dec. 8-9. Come hang out!)
And with that, today’s news.
—Allie Garfinkle
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OpenAI’s deal with Microsoft could pave the way for an IPO
OpenAI’s path to a potential IPO may have just got a little clearer.
The AI company said last week that it has reached a preliminary agreement with major investor Microsoft that could allow the startup to restructure and, eventually, go public. Both companies signed a non-binding memorandum outlining “the next phase” of their relationship, with a definitive agreement expected in the coming months.
The announcement was light on details; financial small print was not disclosed, and the companies said they are still finalizing contractual terms. But the deal appears to address the structural and competitive friction that has complicated the relationship between OpenAI and its largest investor, paving the way for the $500 billion startup to convert its for-profit arm into a public benefit corporation (PBC).
OpenAI’s corporate structure is unusual. Originally founded as a nonprofit, it established a capped-profit arm in 2019, which allowed for large investments such as Microsoft’s. The company has been trying to restructure its profit-focused entity into a more conventional corporate model to allow it to raise additional capital, while leaving the nonprofit parent in control of the startup’s operations. A conversion to a more traditional structure, such as a Public Benefit Corporation, could allow the company to combine its public mission objectives with profit generation and possibly go public in the future.
Altman is well aware that speculators want to see OpenAI float on the stock exchange. He told CNBC last month he had “very conflicted” feelings on a potential IPO, explaining: “Whenever we do go public, if we ever go public, I think there will be tremendous upside left in front of the company, but I get why people would love for us to be public or sooner. And I’m sure people also get the reality of like we’re still in a crazy position and it would be very hard for us to be public given just all of the realities of that.” –Beatrice Nolan
Hyundai CEO says ICE raid on Georgia plant set back its opening by months
A raid by Immigration and Customs Enforcement (ICE) on a Georgia battery plant earlier this month pushed its opening date back by months, said Hyundai CEO Jose Muñoz.
Tinder tries to win back Gen Z with ‘modes’ for double dating and college students
Gen Z and dating experts have proclaimed traditional dating apps are doomed. But Tinder is courting the next generation by introducing new “modes” focused on double dating and connecting college students.
Last week, Tinder introduced three new modes for users: a For You Mode, a Double Date Mode, and a College Mode. These each allow users to toggle between different match types based on what they’re looking for on any given day. The For You Mode lets users see all available matches based on a user’s preferences, while Double Date Mode allows users to pair up with a friend to find other match pairs. College Mode narrows down matches to other surrounding users who are also in college.
Modes was built to accommodate changing needs and desires, based on feedback from Gen Z users, and changes in the dating industry at large, Cleo Long, Tinder’s senior director of global product marketing, told Fortune.
Tinder had previously launched the double-dating feature and TinderU (dedicated to college students), but Modes allows users to have a more dedicated space to browse matches.
A recent Forbes survey found more than 75% of Gen Z respondents felt burnt out using dating apps like Hinge, Tinder, and Bumble because they didn’t feel as if they could find a genuine connection with someone despite how much time they spent on the apps.
Match Group and other dating-app companies had been struggling for a while following a boom in the early 2020s. –Sydney Lake
More Tech
—Citymapper app owner Via falls 4.3% after $492.9 million IPO. The transit technology company’s stock opened at $44, below the $46 offer price.
—Ray Dalio calls for wealth ‘redistribution policy’ when AI and humanoid robots start to benefit the 1% to 10% more than everyone else. Dalio described a future where humanoid robots and AI systems could render many current professions obsolete.
—A California bill that would regulate AI companion chatbots is close to becoming law. The bill has passed both the California State Assembly and Senate.
—Apple Watch hypertension alerts cleared by FDA for new and old watches. The next Apple Watches will feature FDA-approved blood pressure monitoring.
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