OpenAI Eyes $1T Future as Microsoft Spends Big and Trump Strikes Trade Truce

30th October 2025

OpenAI is reportedly preparing for a potential $1 trillion IPO as early as 2026, marking one of the biggest public listings ever. The move follows its restructuring and growing independence from Microsoft, which still holds a 27% stake. Meanwhile, Microsoft is spending heavily to stay ahead in AI, with record $35 billion in quarterly capex fueling cloud growth though investors worry the costs are piling up faster than returns. Elsewhere, startup 1X unveiled Neo, a $20,000 humanoid robot that can help with basic chores, and President Trump and China’s Xi Jinping struck a cautious deal to ease trade tensions, agreeing on tariffs, rare earths, and fentanyl curbs. It’s been a week of big spending, cautious optimism, and a few early glimpses of the AI-powered future. All this and more in today’s Read It and Eat! 

Major News

OpenAI Eyes $1 Trillion Valuation as It Prepares for Potential IPO

OpenAI is quietly laying the groundwork for what could be one of the biggest IPOs in history potentially valuing the ChatGPT maker at up to $1 trillion. According to people familiar with the matter, the company is considering a public listing as soon as late 2026 or early 2027, depending on market conditions and business performance.

While OpenAI insists an IPO “is not our focus,” insiders say the company has discussed raising at least $60 billion from investors ahead of a potential listing. CFO Sarah Friar has reportedly floated 2027 as a target year, though some advisers think it could happen sooner. The move comes just weeks after OpenAI completed a major corporate restructuring that turned it into a for-profit entity with reduced reliance on Microsoft which now owns roughly 27% of the company.

For CEO Sam Altman, going public could unlock massive new funding to support his vision of building out AI infrastructure, a multi-trillion-dollar effort, by his own estimates. OpenAI’s annualized revenue run rate is expected to hit $20 billion by year-end, though mounting losses highlight the capital intensity of the AI race. “It’s fair to say [an IPO] is the most likely path for us,” Altman said during a livestream this week.

A public debut would mark a huge win for investors like SoftBank, Thrive Capital, and Abu Dhabi’s MGX, and it would solidify OpenAI’s place among the world’s most valuable tech firms. The timing couldn’t be more favorable: AI-focused stocks are still surging, with Nvidia recently topping $5 trillion in market value and AI cloud startup CoreWeave tripling in price since its own IPO earlier this year. Reuters

• Microsoft’s AI Spending Spree Worries Investors, Even as the Cloud Business Soars

Microsoft is spending big, really big to stay on top of the AI boom. The tech giant reported a record $35 billion in capital expenditures for its fiscal first quarter, warning that spending will continue to rise throughout the year. That’s a sharp reversal from earlier promises to rein things in, and investors weren’t thrilled; shares fell nearly 4% in after-hours trading.

Like Alphabet and Meta, Microsoft is pouring money into AI infrastructure to ease capacity bottlenecks and meet surging cloud demand. But the scale of the outlay combined with sky-high tech valuations and few visible productivity gains from AI has some investors flashing back to the dot-com bubble days. Adding fuel to the debate: Microsoft’s key AI partner, OpenAI, recently committed to buying more than $1 trillion in computing power, though details on how it plans to fund that remain murky.

Still, the big bet is paying off for now. Microsoft’s Azure cloud unit grew 40% year over year in the July–September quarter, beating expectations. The company also projected 37% growth for the current quarter, slightly above Wall Street’s forecast. CFO Amy Hood said growth could have been even stronger if not for lingering supply constraints issues the company expects to face through mid-2026.

Despite investor jitters, Microsoft continues to deliver strong fundamentals. Quarterly revenue jumped 18% to $77.7 billion, while profits also topped estimates. The company’s revamped deal with OpenAI giving Microsoft a 27% stake worth about $135 billion and continued access to ChatGPT’s underlying models further solidifies its position at the center of the AI ecosystem. With a market value hovering around $4 trillion, Microsoft remains the world’s second-most valuable company, behind only Nvidia. Reuters

• Meet Neo: The $20,000 Humanoid Robot That Can (Sort Of) Help Around the House

For roughly the price of a used Chevy Malibu, you could soon have a 5-foot-6-inch humanoid robot helping with chores. Robotics startup 1X has opened preorders for Neo, which it’s calling the “world’s first consumer-ready humanoid robot.”

Neo can fold laundry, unload the dishwasher, and even water plants all while chatting with you through its built-in large language model. It’s available for $20,000 outright, or $499 a month with a six-month commitment.

Unlike those intimidating, metal-bodied robots that look ready for combat, Neo has a soft frame, moves deliberately, and carries up to 55 pounds. Its battery lasts around four hours before needing a recharge.

But don’t expect a fully independent “Rosie the Robot” just yet. In a Wall Street Journal demo, Neo still relied heavily on human assistance. Complex tasks like cleaning a bathroom require a 1X operator wearing a VR headset to remotely guide the robot and refine its training.

And yes, Neo comes with cameras and a live internet connection, meaning privacy remains a fair question. 1X insists it has safety guardrails in place, but still inviting a camera-equipped, AI-powered roommate into your home is a big step toward the sci-fi future we’ve been promised. MorningBrew

• Trump, Xi Ease Trade Tensions in High-Stakes Meeting in South Korea

U.S. President Donald Trump and Chinese President Xi Jinping made tangible progress in easing trade tensions during a high-stakes meeting in South Korea, their first in five years. Meeting at Gimhae Air Base in Busan as part of Xi’s three-day visit for the APEC summit, the two leaders reached preliminary agreements on tariffs, rare earth minerals, soybeans, and fentanyl. Speaking aboard Air Force One after the meeting, Trump said both sides were “very close” to a deal that could be signed “pretty soon.”

China agreed to take stronger action to curb the export of chemicals used to produce fentanyl, a synthetic opioid fueling the U.S. overdose crisis. In response, Trump said he would cut fentanyl-related tariffs in half from 20% to 10% bringing the overall tariff rate on Chinese goods down to 47%. Beijing also pledged to resume purchases of American soybeans and pause export controls on rare earth minerals, key materials for high-tech manufacturing. “We don’t have too many stumbling blocks now,” Trump said. “All of the rare earth issues have been settled.”

While no official joint statement has been released, Trump called the meeting a “great success,” even rating it “a 12 out of 10.” Taiwan, a frequent point of tension between Washington and Beijing, was notably absent from the discussion, a decision analysts say helped keep talks focused on trade. “I’m relieved Taiwan didn’t come up,” said Sean King, senior vice president at Park Strategies. “But it’s hard to say this represents major progress. It feels like we’re no further along than when the trade war first began.”

Xi, for his part, struck a conciliatory tone, acknowledging that “friction” between the two global powers was normal but emphasizing cooperation. “I believe China’s development goes hand in hand with your vision to make America great again,” he told Trump. After the meeting, Xi traveled to Gyeongju for the APEC Leaders’ Meeting, while Trump wrapped up his South Korea visit with trade talks and a keynote address at a business luncheon signaling a renewed, if cautious, optimism in the U.S.-China relations. Finance.Yahoo

Minor News

• Tech giants double down on AI spending, but investors reward Alphabet’s strong cash flow. Reuters 

• Fed delivers another 25-basis-point rate cut, pushing target down to 3.75%-4%. CNBC 

• Amazon confirms Anthropic to deploy 1 million of its custom AI chips.Finance.Yahoo

  
  

• Tesla to showcase Cybercab’s Asia-Pacific debut at Shanghai Expo in November. Finance.Yahoo

  
  

• Crypto markets hit by $800 million in liquidations as Fed caution triggers “sell-the-news” pullback. Finance.Yahoo

  
  

•  Asian stocks and oil retreat after Trump–Xi meeting. Finance.Yahoo

  
  

• Zuckerberg’s AI push to drive Meta’s spending surge next year. Reuters 

  
  

• Alphabet boosts spending after strong quarter driven by ads and cloud growth. Reuters