You’ve probably heard a lot about AI — about how it’s revolutionizing how we live, work, and interact. But what few people are ready for is that the revolutionary changes underway behind the scenes at one of the world’s top AI companies, OpenAI, have the potential to lead to substantial layoffs among many top US firms.
This is not a tale of technology; it is a tale of money, power, and jobs.
What is going on with OpenAI?
OpenAI, the company behind ChatGPT, is in the middle of a very complicated and tense situation. They’ve been working with Microsoft, who invested $10 billion in the company last year. That partnership gave Microsoft access to OpenAI’s powerful AI tools—the kind that help businesses save time, cut costs, and in some cases, replace jobs.
Now, OpenAI wants to change the way its business is set up. It was founded as a nonprofit in 2015, so it wasn’t designed to turn a profit—just to do good for humanity with smart technology. But it’s also had a for-profit division since 2019 in order to be supported by investors. And now, OpenAI is trying to restructure again — into a new kind of company known as a public benefit corporation, one that seeks to make a profit but also to help the public.
Why does this concern us?
Because if OpenAI fails to complete this transformation by the end of the year, it could miss out on half of a $40 billion deal—that is a lot of money. But there’s a hitch: Microsoft isn’t fully on board with these changes. And OpenAI can’t move without Microsoft’s consent. Negotiations have become so tense that OpenAI is already considering appealing to government regulators to step in and investigate whether Microsoft is exerting too much influence over the company.
And as these two tech giants battle, companies that depend on their technology may get placed in suspense mode, and they may decide to lay off staff because of the uncertainty or rising costs.
Could this actually lead to layoffs?
Yes, and why? It is the majority of large US companies that utilize AI technology from OpenAI and Microsoft to automate human work, from customer service chatbots to code that helps write code or do math. If those companies start worrying about the future of that technology—or are forced to spend more on it—they would likely look to cut other costs. That typically translates into cutting labor.
And if OpenAI becomes more dominant and less concerned with public interest and more concerned about becoming wealthy, there’s a real concern that they’ll sell more competitive AI products to businesses, ones that will replace still more individuals.
What else is happening?
In addition to all of that, Elon Musk is suing OpenAI and its managers for steering their mission too far off track. That suit could also slow things down or change the outcome. In the meantime, massive projects such as Project Stargate—a massive AI infrastructure project sponsored by OpenAI, Oracle, and SoftBank—illustrate just how competitive and serious the industry has become.
All of this while legislation and regulations around AI are still being implemented. And while companies race to get a head start, the regular worker could be the one paying the price.
What can you do?
It’s something to watch. AI is a powerful force, but its impact on the workplace and society will be determined by how companies like OpenAI and Microsoft decide to use it—and how governments respond. Whether you work in a tech job or not, advances in AI may ultimately affect your career, your community, or even your kids’ future professions.
For the time being, just keep this in mind: the AI revolution isn’t about robots. It’s about human beings, and this new page could turn nasty.
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