☕️ Is OpenAI's and Microsoft's Relationship Growing Even More Dicey?

OpenAI is intensifying its continuously straining relationship with Microsoft by betting $12 billion on CoreWeave, a cloud provider largely dependent on Microsoft's interest. Other key takeaways include:

• Google and its Chrome browser breakup could still be underway as Trump's DOJ revives an old proposal

• DOGE rolls out a custom chatbot to help federal workers with government tasks after massive layoffs

• China's capital commits to an AI future with a recent mandate to bring AI education into schools

Join us at AI Tangle as we untangle this week's happenings in AI!

OpenAI's reported $12 billion placement in AI cloud provider CoreWeave could be more than just acquiring GPU power

According to a report from Reuters, OpenAI has supposedly signed a five-year, $11.9 billion agreement with AI-focused cloud provider CoreWeave in a move to secure itself GPU resources while taking a $350 million equity stake in the company. Separate from CoreWeave's possible $4 billion IPO, this private placement will give OpenAI an ownership stake in the company, but that puts it right in contention with Microsoft, which previously accounted for 62% of CoreWeave's $1.9 billion revenue total in 2024.

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What's the state of OpenAI's and Microsoft's relationship now?

Sam Altman hasn't been shy to admit that OpenAI is "out of GPUs", but going for CoreWeave, a cloud provider that it will now share with Microsoft while having an ownership stake in it, could be seen as a ballsy move regardless of how in need OpenAI is of GPU resources. Microsoft's announcement to develop reasoning models that directly compete with OpenAI, the hiring of one of Altman's bitter rivals, and the end of an exclusive cloud provider settlement - the relationship between the two may be growing more complicated.

Trump's DOJ revises a proposal to break up Google from its Chrome web browser

The US Department of Justice (DOJ) has filed a revised proposal of an attempt made a year ago with federal Judge Amit Mehta, urging the breakup of Google by forcing it to divest its Chrome browser and potentially change its Android practices. The proposal cites Google's monopoly control as the main problem, as the DOJ argues it "denies users of a basic American value - the ability to choose in the marketplace." However, the revised document would allow Google to pay Apple for unrelated services and requires notification before any new AI investments, a notable shift from previous demands.

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Elon Musk's DOGE rolls out an AI assistant to help federal employees after mass firings

The Department of Government Efficiency (DOGE) has rolled out a custom, safe-for-government-use AI chatbot called GSAi to around 1,500 government workers as it continues to slash the federal headcount, according to Wired. An internal memo regarding GSAi, a chatbot that has been in the works for months, suggests employees use it for general tasks like drafting emails, summarizing text, and writing code, though plans to have it analyze contracts and procure data are underway. However, for now, GSAi remains "about as good as an intern" with "generic and guessable" responses, according to some employees.

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Beijing makes AI education mandatory for all students beginning from elementary

Starting this fall, China's capital, Beijing, will require all of its schools, from elementary to high schools, to provide at least eight hours of AI instruction per academic year, according to a report by Business Insider. Announced by the Beijing Municipal Education Commission, the mandate's goal is to foster a "teacher-student-machine" learning model and integrate AI ethics - and China isn't alone on this. California passed a law last year requiring education boards to at least consider AI literacy in school curricula, while Italy began testing AI tools in 15 classrooms to boost students' digital skills.

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Apple confirms fears of its "more personalized Siri" facing delays in a recent blog post

After company insider fears surfaced not long ago, Apple itself confirmed the bad news for Siri, announcing the delay of its "more personalized Siri." Originally unveiled at WWDC last year together with Apple Intelligence, the upgrade was marketed as the "next big step for Apple," aiming to give Siri the ability to understand personal context as a "conversational" chatbot. This delay comes amid growing criticism that Apple, and Siri by extension, is lagging behind modern AI assistants, with some believing that even augmenting it with ChatGPT may not be enough.

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AI coding assistant startup Cursor could be in talks to raise funding at a $10 billion valuation

The developer behind Cursor, Anysphere, is reportedly in talks with venture capitalists to raise funding at an updated valuation of nearly $10 billion, expected to be led by the returning Thrive Capital. This follows a previous round that valued the company at $2.5 billion based on $100 million annualized recurring revenue (ARR), which may now have grown to $150 million, as investors seem more than willing to bet big on AI coding - 66 times ARR by the looks of it. Other AI coding startups, such as Codeium and Poolside, have also been garnering plenty of investor attention.

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Is DeepSeek Making Open-Source Relevant Again? (14-min read)

Mark Hinkle, publisher of The AIE Network, recently took a deep dive into the intricacies of DeepSeek's latest releases. Now that the initial hype of its impact on open source has begun to settle, he believes it may be more complicated than that.