Tensions rise as early week reports put OpenAI's and Microsoft's tightknit partnership on thin ice over potential allegations of anticompetitive behavior and more.
Here are our other key takeaways:
Reports claim Google may sever its relationship with Scale AI following Meta's recent investment in the startup
Amazon pledges a $13 billion investment over a five-year period to expand Australia's AI infrastructure
Reddit unveils two new AI-powered tools to help brands with advertising on the platform
Join us at AI Tangle as we untangle this week's happenings in AI!
6 QUICK HITS
OpenAI's and Microsoft's relationship could be straining further as a report by the Wall Street Journal alleges that OpenAI executives are considering accusing Microsoft of "anticompetitive behavior" displayed throughout their partnership. The focal points are OpenAI's soon-to-be acquisition of AI coding startup Windsurf for $3 billion and whether Microsoft has any rights to Windsurf's IP, Microsoft's stake in the future PBC, and OpenAI's freedom to work with other cloud providers. When asked by the Wall Street Journal, both firms issued a joint statement affirming their current partnership and optimism about future collaboration.
An article from Reuters claims that Google is reportedly planning to drop its $200 million deal with Scale AI this year, potentially joining Microsoft and OpenAI in pulling back relationships with the data labeling startup. This comes off the back of Meta's recent $14.3 billion investment for a 49% stake in the company and the hiring of CEO Alexander Wang, which has allegedly made other partners wary. A Scale AI spokesperson insists that the company's business is robust and independent and that it continues to safeguard customer data amid shifting partnerships.
Amazon announced yet another investment plan earlier this weekend via a statement, this time aiming to commit roughly $13 billion to Australia to build data centers over five years through 2029. To support the infrastructure expansion, Amazon is also investing in three new solar farms in Victoria and Queensland to support the operation with "more than 170 megawatts." Prime Minister Anthony Albanese said that he is looking forward to the "economic opportunity" this investment will bring as Australia's Department of Industry, Science, and Resources expects AI to add up to AU$600 billion annually to its GDP by 2030.
Reddit has recently unveiled two new AI-powered ad tools, namely Reddit Insights and the Conversation Summary Add-on, to help brands better understand and "showcase" its forum conversations. Announced at the Cannes Lions International Festival of Creativity, these tools are powered by what Reddit is calling "Community Intelligence," which is based on the platform's roughly 22 billion posts and comments to offer real-time social listening and ad integration. Reddit's COO, Jen Wong, claims that the company's Community Intelligence will power more tools in the future.
Chinese e-commerce giant Alibaba has partnered with Apple to release new versions of its Qwen3 family of AI models for Apple's latest MLX architecture, which will allow its models to run on-device on a range of Apple hardware, from iPhones to Macs. The move paves the way for Alibaba's Qwen to power the tech giant's Apple Intelligence features, from Image Playground to Writing Tools, on its Chinese devices as mainland regulations have required Apple to look for local partners.
Taiwan's International Trade Administration has recently added Chinese chip giants Huawei and SMIC to the list of companies affected by the country's export controls, as reported by Bloomberg. This means that Taiwanese businesses will require government approval before being allowed to ship anything to either one (or their subsidiaries) as Huawei and SMIC lose access to Taiwan's plant construction tech, equipment, and materials. Huawei and SMIC are just one of many of the "601 entities from Russia, Pakistan, Iran, Myanmar, and mainland China" that the trade administration added to their list on June 10th.
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AI EXTRA WATCH
Mathematical Proofs That Look Flawless (2-min watch)
Terence Tao, one of the modern world's greatest mathematicians, believes today's AI pass the "eye test," generating proofs that look flawless at first glance, but they're plagued by subtle strokes of unreliability. Why is that, and what is AI missing to match true human intelligence?
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