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🚀OpenAI and Microsoft Reshape Partnership for IPO Path

PLUS: Klarna Rehires Humans, Amazon Retrains Workers, and More!

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Zephyr
May 12, 2025

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Good morning! Today is Monday, May 12, 2025.

We have some exciting AI news today: OpenAI and Microsoft are renegotiating their partnership to pave the way for OpenAI's potential IPO, and Klarna is bringing back human customer service agents after an AI-focused shift.

1. OpenAI and Microsoft Reshape Billion-Dollar Deal to Pave Way for IPO

OpenAI is reportedly renegotiating its multibillion-dollar agreement with Microsoft to enable a potential IPO while ensuring Microsoft retains long-term access to its AI technology. As OpenAI transitions its business arm into a public benefit corporation, talks focus on equity stakes, revenue sharing, and post-2030 tech access. The evolving deal reflects OpenAI’s ambition to scale as a profit-generating company—without straying from its mission to build AI that benefits humanity—while also hinting at growing tensions between the two AI powerhouses.

2. Mastercard Bets on AI Shopping Agents to Fight Fraud and Transform Online Commerce

Mastercard says the future of online shopping lies in AI agents—and they may be the key to solving the industry’s $750 million fraud problem. At Fortune’s Brainstorm Tech event, Mastercard’s Chief Product Officer Jorn Lambert announced Agent Pay, a new system that lets AI agents securely handle purchases on your behalf. As consumers shift from search engines to AI for product discovery and buying, Mastercard is building a trust-first framework that integrates banks, merchants, and AI tools to streamline shopping and detect fraud more accurately through advanced cryptography and tokenization.

3. Klarna Walks Back AI Push, Rehires Humans After Chatbot Backlash

After heavily replacing human staff with AI chatbots, Klarna is reversing course—now hiring humans again to fix its customer service woes. CEO Sebastian Siemiatkowski admitted the AI-first strategy sacrificed quality, leading to frustrated customers who still overwhelmingly prefer talking to real people. Klarna’s new plan includes a human support team with a gig-style, remote setup—but critics say it raises fresh concerns about worker exploitation.

4. Amazon Says AI Bots Will Take the Tough Tasks—But Humans Still Have a Role

As Amazon rolls out its new “feeling” robot Vulcan to handle warehouse picking, the company is also spotlighting what work might look like for humans in a bot-powered future. While robots will take over physically demanding tasks, Amazon says it’s retraining some workers to become robot technicians and maintenance staff. The shift won’t replace every displaced job, but it hints at how blue-collar roles might evolve—think “automation monitors” instead of warehouse pickers.

5. AI Hallucination Insurance? Lloyd’s Now Covers Businesses Hit by Bot Blunders

As AI chatbots cause more costly errors, insurers are stepping in—Lloyd’s of London has launched a new insurance product to cover companies sued over AI malfunctions like hallucinations. Offered through startup Armilla, the policy can cover legal claims when bots mislead users or deliver flawed results, such as Air Canada’s infamous fake discount fiasco. It’s a sign that as AI becomes central to business, guarding against its failures is becoming big business, too.

6. OpenAI Dominates Enterprise AI Market as Rivals Fall Behind

New data shows OpenAI is rapidly becoming the go-to AI provider for U.S. businesses, with 32.4% now paying for its tools—up from just 18.9% in January. Meanwhile, competitors like Anthropic and Google are seeing much slower growth or even declines. As OpenAI adds millions of business users and eyes $12.7 billion in revenue this year, it’s clear the enterprise AI race is turning into a one-horse show—for now.

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Stay tuned for more updates, and have a fantastic day!

Best,
Zephyr