The Donut
OpenAI’s new corporate structure… ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Wednesday, May 7 2025

View in browser | Shop | Sign up

the DONUT

Sponsored by

sponsor

Good morning. In this edition:

  • 🏗️ Tariff loopholes
  • 🪪 It’s REAL ID time
  • 🚀📭 Missile mail

Ready, Set, Go: Today’s news should be a ~4.70-minute read (1,249 words).

Did someone forward you this email? Subscribe here for free.

💬 Daily Sprinkle

"Decisions are made by those who show up."

–President Jed Bartlett, The West Wing

🗣🌐 Dose of Discussion: A 360° Look at a Hot-Button Issue

OpenAI is closing in on its biggest acquisition to date

Image: Jason Redmond/AFP

First-time homebuyers and those trading up for something with a little more space—you’re in good company. OpenAI is also shelling out for its biggest-ever purchase.

The Chat GPT-maker has agreed to buy AI-assisted coding tool Windsurf for ~$3 billion, per a new Bloomberg report.

  • Analysts say the deal, which hasn’t yet closed, can help OpenAI establish a bigger foothold in the market for AI coding assistants—systems that can write code based on prompts in natural language.
  • Google in late October said over 25% of new company code is now AI-written, while Microsoft last week pegged its share at up to 30%.

It also comes as OpenAI’s financial mission has changed

In a separate announcement Monday, OpenAI officially walked back plans to restructure as a more conventional for-profit business and committed to remaining under control of its founding nonprofit board.

OpenAI’s will also convert its for-profit arm from a "capped-profit" partnership—where investors like Microsoft are capped at 100x returns—to a public benefit corporation, which would serve both investors and a public mission (without capping profits).

The ABCs of PBCs: Public benefit corporations (PBCs) carry a legal obligation to consider profit-making and their specific public benefit mission when making business decisions. PBCs have become a standard for-profit structure for other AI giants, like Anthropic and xAI, along with many purpose driven companies like Patagonia.

  • In OpenAI’s case, its legally binding public benefit mission will be “to ensure that artificial general intelligence (AGI) benefits all of humanity.”
  • The tech giant’s new structure will allow employees, investors, and the controlling nonprofit to own parts of the new PBC.

But…OpenAI’s critics—including xAI founder Elon Musk, who sued OpenAI to stop its for-profit conversion—argue the move is merely a “cosmetic restructuring” that still enables the company to convert formerly charitable assets into billions of dollars in private wealth.

Looking ahead…A lot of decision-makers still need to sign off on OpenAI’s new restructuring plan—most notably Microsoft, which has invested ~$13 billion in the tech giant to date. OpenAI is also facing a deadline of the end of this year to restructure away from its "capped-profit" partnership or risk losing out on funding from Softbank, which led a $40 billion round in late March valuing OpenAI at $300 billion.

📊 Flash poll: In general, what’s your opinion of OpenAI?

See a 360° view of what pundits are saying →
facebooktwitteremaillink

🔥🧘‍♀️ In partnership with OPC

Pilates without boundaries

OPC brings you Lesley Logan, international Pilates instructor, bestselling author, and teacher trainer who studied under Joseph Pilates' protégé. Her unique approach offers busy women self-acceptance and strength through personalized attention.

  • 💪 Experience rotating classes with expert feedback on your form—unlike static libraries
  • 🧑‍🤝‍🧑 Join a supportive community where Lesley and her team of instructors help women prioritize themselves

Elevate your practice with instruction that focuses on your unique needs and goals.

Try 40 Days of OPC for $40 here

⏱💥 Speed Rounds: Quick, Impactful Stories

Businesses are finding legal ways to circumvent the Trump tariffs

Image: Brandon Bell/Getty

For many, tariff loopholes are the friends made along the way.

Businesses that import goods into the US have started to implement above-the-law approaches to avoid paying tariffs sometimes well north of 100%. They fall into two main categories:

Tariff engineering: This involves tweaking a product’s materials to make it align with a different tariff code, which are assigned to categories of imported goods.

Converse, for example, makes its signature All Stars sneakers with a sole that contains felt as opposed to the traditional fully rubber—which may have been by design (pun intended). Foreign-produced shoes with felt bottoms can be classified as “house slippers,” which have significantly lower tariff rates compared to other kinds of footwear (other companies, such as Columbia Sportswear, are a little more brash about their approach).

Bonded warehouses: These enable businesses to store products stateside for up to five years without having to pay tariffs until those products are taken out. Companies utilizing these glorified storage units that share the first four letters of their name with a suave secret agent are betting that rates will go down in the short or medium term…

…while others are just canceling orders entirely. Port data from container software company Vizion showed a 43% drop in containers imported into the US between April 14—28, a level of disruption comparable to summer 2020, Vizion CEO Kyle Henderson told CNBC.

The US government is finally keeping it REAL

Image: Alan Greenblatt/Governing Magazine

After two decades in the making, the US government’s REAL ID Act takes effect today, with major implications for travelers flying within the country.

Moving forward, people aged 18+ will need to present REAL ID-compliant forms of identification when boarding US domestic flights at airports, visiting certain government buildings like federal courthouses, or entering nuclear power plants (everyone’s favorite pastime).

What is a REAL ID? Acceptable forms include state-issued IDs or driver’s licenses that are marked with a star in the upper right corner, US or foreign passports, and permanent resident cards.

  • The new rules are part of a larger federal law aimed at setting “minimum security standards” for identification materials, which was initially approved by Congress in 2005 but experienced several delays.

Overall, the TSA says 81% of travelers at its checkpoints currently present a Real ID-compliant form of identification.

And if keeping it real goes wrongTravelers in the US who don’t own a form of REAL ID will still be able to fly domestically—for now—but should be prepared for extra scrutiny and wait times, Homeland Secretary Kristi Noem said Tuesday.

🔥💚 In partnership with Meru Health

A holistic approach to tackling stress, depression, and anxiety

Tried traditional therapy but didn’t get lasting results? Meru Health's 12-week evidence-based program combines personalized therapy with innovative mind-body techniques validated by Harvard and Stanford researchers.

  • You'll receive daily practices that build resilience, HRV biofeedback technology, unlimited 1:1 support from licensed therapists, and a supportive community—all designed to fit your busy professional life.
  • 94% of members feel better in just 12 weeks.

Your transformation awaits—learn more about Meru Health

🦗 Stat of the Day: The Cicada-pocalypse Has Begun

Another year, another Marvel movie batch of screaming cicadas.

After a historic synchronized hatching event last spring featuring two different insect broods, a new wave of periodical cicadas is set to emerge this May and June.

  • Known as Brood XIV, it marks America’s second-largest periodical cicada brood by area. The insects’ once-every-17-year emergence is typically spread across the eastern and midwest US.
  • Brood XIV is the same one that was first recorded in 1634 by the pilgrims in the Plymouth colony, earning it the nickname of “original brood.”

What to expect: Cicadas are the Type-A personalities of the insect world. Their collective songs can clock in at 100 decibels, similar to a loud lawn mower or motorcycle—but they don’t pose any danger to humans or pets outside of potential hearing damage.

Looking ahead…While cicadas are already appearing in warmer states, the insects might not show up in cooler Midwest or Northeast states until June. Upon emerging from the ground, cicadas live for ~30 days.

🍩 DONUT Holes

BUSINESS & MARKETS

  • 📉 US markets fell across the board (S&P: -0.8%; Dow: -0.9%; Nasdaq: -0.9%).
  • 📺 Comcast’s cable spinoff will be named Versant; it’ll include most of its NBCUniversal cable network portfolio, including USA, MSNBC, and CNBC.
  • 🇨🇳 China's central bank is cutting key interest rates by 10 points and lowering its bank reserve requirement by 50 points in a bid to boost the economy.

SPORTS, MEDIA & ENTERTAINMENT

in partnership with Surfshark

  • 🥇 The 2025 Pulitzer Prizes were announced; winners include Reuters, The Wall Street Journal, The Washington Post, The New York Times, and ProPublica.
  • 🏇 Kentucky Derby winner Sovereignty will miss the Preakness Stakes, forgoing the chance at a Triple Crown.
  • 🎥 Marvel has started rebranding Thunderbolts* under a different name that explains the asterisk: *The New Avengers.

*From our partners: 😎 Hackers can't touch what they can't see…Surfshark VPN makes you invisible online, blocking cybercriminals from accessing your personal data across unlimited devices. Starting at just $1.99/mo. Save 86% on Surfshark VPN and get 3 extra months here.

SCIENCE, SPACE & EMERGING TECH

  • ⚛️ MIT physicists observed solo atoms floating freely and interacting in space for the first time, helping confirm some basic principles of quantum mechanics.
  • 🐙 Cuttlefish appear to communicate with each other by waving their tentacles, according to new research—though what they’re saying remains a mystery.
  • 🚀 A failed Soviet spacecraft that was inadvertently trapped in Earth’s orbit 50+ years ago is expected to finally crash back to our planet’s surface sometime this week.

US, WORLD & POLITICS

in partnership with Your Everyday Heroes

  • 🏛️ Canadian PM Mark Carney met with Trump at the White House yesterday; the two leaders clashed over Trump’s call for Canada to become the 51st state in an otherwise cordial meeting.
  • ⚖️ The Supreme Court ruled the Trump admin’s ban on transgender people serving in the military can take effect while lawsuits against it play out in court.
  • 🌍 India conducted military strikes against nine sites in Pakistan yesterday in retaliation for a deadly April 22 attack on tourists in the Indian region of Kashmir. | Germany elections: Conservative leader Friedrich Merz was elected chancellor by parliament in a second round of voting after failing to win the first secret ballot. | President Trump said the US will suspend airstrikes on Houthi rebels in Yemen after reaching a truce under which the Houthis will stop attacking non-Israeli ships in Middle Eastern waters.

*From our partners: 🖌️🎨 Painting the missing: Chicago’s visual voice…"I do it to raise awareness, to bring honor, to create something beautiful." Chicago muralist Damon Reed transforms city walls into memorials for missing Black women through the "Still Searching Project". See the full story and video here at Your Everyday Heroes.

🧠 Tidbits

Images: Visual Capitalist

☝️ You’re looking at a Visual Capitalist graphic showing the most visited websites in the world, based on November 2024 data from SEMRush.

🤔 Did You Know? In 1959, the US Postal Service conducted an experiment where it delivered mail via a cruise missile shot from a submarine, in a not-so-subtle signal to Cold War adversaries that America possessed state-of-the-art missile guidance systems.

📰 Worth a Read: Rotten tricks: How hot and stinky plants woo pollinators

🖱️ Clickbait: See where home prices are rising and falling the most

🤗 Daily Dose of Positive

🐢 Leonardo the tortoise spent nine months on the run before he was found one mile away from home.

🌀 US Olympic gymnast Frederick Richard broke the world backflip record to raise money for gymnastic equipment for children in Africa (did 1,111 in 24 hours).

🍭 Kentucky resident Holly LaFavers was shocked when 30 cases of Dum-Dum Lollipops showed up on her doorstep. It turns out her second-grade son Liam had accidentally placed the order for 70,000 suckers; thankfully Amazon refunded her $4,200. 

🤔 Trivia

Over/under

How it works: We provide an incorrect stat. Then you guess whether the actual number is over or under the given value.

  • 🌊 10%: Amount of the ocean that’s been explored by humans
  • 🍕 400: Slices of pizza consumed in America each second
  • 📧 100: Average amount of emails an office worker receives each day

k

e

e

p

s

c

r

o

l

l

i

n

g

🤔 Answers

  1. 🌊 Under; ~5% of the ocean has been explored
  2. 🍕 Under; 350 slices/second are consumed in America
  3. 📧 Over; 121 emails/day
thedonut.co

Have feedback? Reply to this email.

facebooktwitterlinkedininstagram

You are receiving this email because you opted in via our website.
unsubscribe|update preferencesunsubscribe