OpenAI revised its Microsoft contract, floated a Qualcomm hardware deal and faced Elon Musk in court — all before lunch.

Why it matters: OpenAI is rewriting the partnership that launched it while defending the legal premise on which it was built.

Driving the news: Microsoft is giving up its exclusive right to sell access to OpenAI's models while remaining the AI giant's primary cloud provider.

• That frees OpenAI to expand its efforts with Amazon, which CEO Andy Jassy indicated today is imminent.
• OpenAI could also sell its models through Google, assuming the two companies strike a deal.
• Under the new agreement, Microsoft will no longer share revenue with OpenAI, but OpenAI will still pay Microsoft 20% of its revenue through 2030, though those payments will now be capped at an undisclosed level.

Meanwhile, OpenAI is reportedly working on a deal with mobile chipmaker Qualcomm as OpenAI continues to plot its expansion into hardware.

• And in California, jury selection began in Elon Musk's lawsuit over OpenAI's founding mission.

Zoom out: OpenAI and rival AI lab Anthropic are locked in a race to define the enterprise AI market and to convince investors they deserve massive IPO valuations.

• Both companies are reportedly eyeing major public listings in late 2026.
• OpenAI's revised deal is widely viewed as IPO-friendly. It reduces perceived dependency risks on Microsoft, clarifies the financial relationship and frees the company to partner more broadly.

The bottom line: OpenAI is trying to make itself less dependent on Microsoft just as Musk is challenging how the company was built in the first place.

Go deeper

The chances of a megamerger in the airline industry appear slim, though a spike in jet fuel prices still has the weakest players scrambling for options.

Driving the news: United Airlines CEO Scott Kirby today said he was giving up hope for a deal with American Airlines, saying American "declined to engage."

• That's one piece of good news for budget airlines, which have already been slumping in competition with the likes of United and American.
• But they're still grappling with the spike in jet fuel prices, and a group of budget carriers are now seeking financing from the federal government.

The latest: "The White House is aware of outreach," WH spokesperson Kush Desai said in a statement, adding that any discussion about federal policymaking at this point "should be regarded as baseless speculation."

Go deeper

Once upon a time, I covered Domino's Pizza as a business reporter in the company's corporate hometown of Ann Arbor, Michigan.

• Which is why I know that when carryout sales are rising and delivery sales are falling, that often means customers are looking to pinch pennies.

Zoom in: Domino's stock plunged today after its sales and earnings fell short of expectations.

• The company's carryout sales rose 2.4% on a comparable basis, while delivery sales fell 0.3%, CFO Sandeep Reddy said on an earnings call.

Yes, but: Part of the trend might be Domino's running carryout specials, aiming to appeal to lower-income consumers looking to save.

• "We have significant runway of growth on the carryout business that we can actually tap into," Reddy said.

The bottom line: Delivery is an easy place to cut back when the economy takes a turn for the worse.

🇨🇳 Chinese regulators ordered Facebook owner Meta to unwind its $2.5 billion acquisition of Manus AI, developer of a general AI agent that it claims can complete real-world tasks. It's an escalation of AI tensions between Beijing and D.C. (Axios)

🏡 The Supreme Court appeared divided during arguments in the RoundUp weedkiller case. (NYT)

🎧 Spotify is partnering with Peloton and launching a new fitness hub with guided workouts, curated playlists and content from wellness creators. (Axios)

This isn't a coming attraction, I'm afraid. $50 movie tickets are here.

• Regal Cinemas recently charged that amount for advance opening night seats at 70-millimeter IMAX screens to see "Dune: Part Three" in December, WSJ reports.

State of play: Nationwide, the average price for an adult ticket on a regular screen is $12.75, according to EntTelligence data.

• But premium screens like IMAX are growing in popularity — and those tickets average $18 nationally.

💭 Nathan's thought bubble: I'm a big believer in the magic of the theatrical experience, but $50 can get you more than five months of Netflix.