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Issue #39: OpenAI Blinks, G42 Builds, & Roblox Breaks Ground

Feat. OpenAI, Gcore, Nebius, Toloka, Hugging Face, SambaNova, G42, Cisco, and Roblox

Author

Ben Baldieri
May 10, 2025

No one wins the AI Game of Thrones cleanly.

Pressure. Capital. Machinations. Scheming. The occasional public backpedal.

This week, OpenAI reversed its plan to become a standard for-profit. The nonprofit retains control. The capped-profit model is dead. And a new PBC will now serve as the vessel for Altman’s trillion-dollar ambitions.

The AI crown still fits.

But the weight is shifting.

I’m Ben Baldieri, and every week I break down the moves shaping GPU compute, AI infrastructure, and the data centres that power it all.

Here’s what’s inside this week:

Let’s get into it.

The GPU Audio Companion Issue #39

Want the GPU breakdown without the reading? The Audio Companion does it for you—but only if you’re subscribed. If you can’t see it below, fix that here.

OpenAI Backs Down On Restructure

OpenAI is backing off its for-profit pivot.

The nonprofit will retain control, even as OpenAI transitions its for-profit arm into a Public Benefit Corporation and scraps its capped-profit model. The reversal follows pressure from regulators and civil society. And, of course, a lawsuit from Elon Musk.

But that’s not all.

The move puts its $40B SoftBank-led round at risk.

The original terms required full conversion. SoftBank could now reduce its commitment by $10B to only $20B. Unless OpenAI can keep them on board under the new structure.

Why this matters:

  • OpenAI trades structural freedom for (possibly the illusion of) political stability.

  • Whether or not SoftBank reduces its commitment remains to be seen, as does the potential impact on the Stargate Project.

  • Even with the restructuring, Musk’s lawsuit is set to continue, with a jury date set for March 2026.

This Could Be You

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Gcore Builds Sovereign AI in Azerbaijan

Gcore and Azerbaijan’s state-owned AzInTelecom have launched a joint venture to build a sovereign AI cloud.

Gcore supplies the infrastructure and software; AzInTelecom contributes spectrum, government backing, and regulatory access. Together, they plan to offer AI-ready compute, storage, and networking across the region. Hosted entirely on local infrastructure. If the above Tweet is anything to go by, this project is a long time in the making.

Why this matters:

  • Azerbaijan joins the growing club of countries betting on sovereign cloud.

  • Yet even with state backing, national AI clouds don’t come with guaranteed usage.

  • Success will depend on developer traction and actual sovereign demand.

Nebius’s Toloka Gets Bezos Backing

Toloka has raised $72M in a strategic round led by Bezos Expeditions.

It’s a big step for the Nebius-born company, long embedded in model pipelines at Amazon, Microsoft, Anthropic, Recraft, and others. Now it’s building AI evaluation and safety tooling around human-AI collaboration, spanning red teaming, agent testing, and domain-specific judgment. The round also sees Shopify CTO Mikhail Parakhin joining as Chairman.

Why this matters:

  • Toloka is aiming to own the “human in the loop” layer for agentic AI.

  • That might be difficult as “aligned data” is a moving target - competition is fierce, and the market for safety-layer startups is crowded.

  • With Nebius still holding equity but relinquishing control, Toloka is now a fully independent Western-facing entity.

Hugging Face Debuts Browser-Based Open Agent

Hugging Face has released Open Computer Agent, a free, web-hosted AI that simulates desktop interactions using a Linux VM.

It’s slow. It breaks on CAPTCHAs. Complex flows still fail. But that’s the point - it’s a public demo of what’s now feasible with open agents. And unlike Devin or Operator, Hugging Face isn’t promising magic. They’re showing the scaffolding and inviting others to help build it.

Why this matters:

  • Hugging Face is the defacto champion of the open source AI movement, and this move is yet another challenge to the closed incumbents.

  • Open Computer Agent reframes agents as OSS primitives, not startup IP or VC bait.

  • Browser agents will become table stakes for enterprise workflows.

SambaNova Cuts Workforce 15%, Focuses on Inference

SambaNova just cut 15% of its workforce as it pivots harder into inference.

The AI chipmaker says it’s chasing enterprise demand and moving away from full-stack foundation model training. With cloud budgets tightening and OpenAI-style R&D off the table for most, SambaNova is following the money. With training being increasingly dominated by both Nvidia and the mega AI labs, this is equal parts a savvy business move and survival strategy.

Why this matters:

  • Training is increasingly no longer the only game in town.

  • Low-latency, inference-ready systems for corporate deployments are where the real returns will come from.

  • If this pivot works, and corporates start engaging en masse, expect more alternative semiconductor companies to follow suit.

G42 and Cisco Sign Pact in the UAE

G42 and Cisco have formalised a deepened partnership to co-develop sovereign AI infrastructure across the Emirates.

The deal was announced in Abu Dhabi at a signing event attended by Crown Prince Sheikh Khaled bin Mohamed bin Zayed. The scope? Co-develop cloud regions, advance AI R&D, and train technical talent. Cisco gets a long-term stake in regional hyperscale. G42 gets another infrastructure ally without further relying on Big Tech incumbents.

Why this matters:

  • With other similar deals already in place with Microsoft, the UAE is going all-in on sovereign/hyperscaler partnerships.

  • Cisco is reinventing itself as a sovereign infrastructure partner, likely trying to avoid being left behind (again) à la Cloud 1.0.

  • However, Cisco’s long-term viability as a hyperscale partner remains unproven, so it’s not clear whether this move will extend beyond ceremonial deals and fantastic PR.

Roblox Breaks Ground in Brazil

Roblox has officially begun construction on its first data centre in São Paulo, Brazil.

The new facility, and its first in LatAm, will serve to support its growing user base across the region, reduce latency, and cut reliance on third-party infrastructure. The project is being developed in partnership with HostDime and is expected to go live in Q4 2025. Roblox says this is part of a broader push to control its infrastructure stack as it scales real-time 3D experiences globally.

Why this matters:

  • Roblox is shifting from hyperscaler dependency toward infra ownership - a signal more companies may follow.

  • São Paulo is becoming a serious regional hub for AI and gaming infrastructure.

  • This is another notch in the decentralisation of infrastructure, and another signal that cloud repatriation is not a fringe movement.

The Rundown

Lots of changes this week.

OpenAI scraps the cap, nonprofit retains control, but needs a PBC to keep raising. Gcore x AzInTelecom launch a sovereign AI cloud in the South Caucasus. Toloka spins out from Nebius with Bezos backing and a high-stakes data mission. Hugging Face drops an open agent to challenge closed incumbents. G42 + Cisco team up for sovereign AI infra in the UAE. SambaNova cuts 15% and doubles down on inference as capital tightens. And Roblox breaks ground on its own facility, and moves from GPU renter to infra owner.

In isolation, these all look like business as usual, but in concert?

These decisions will have a meaningful impact on the direction of travel for years to come.

See you next week.

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Ben Baldieri

Independent insights on GPU compute, AI infrastructure, and data centres. No fluff. Just sharp analysis on the trends shaping AI and digital infrastructure.

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