Tech

OpenAI and Microsoft have revised their partnership. OpenAI gains flexibility to deploy its AI models on any cloud provider, while Microsoft secures a capped, predictable revenue stream until 2030. Microsoft retains its IP license but it’s no longer exclusive. This move diversifies OpenAI’s distribution and simplifies their strategic alignment amidst increasing AI industry competition.

Spotify is expanding into fitness, partnering with Peloton to offer over 1,400 classes to Premium subscribers. This move taps into the wellness market, aiming to increase user engagement and monetization. For Peloton, it’s a shift towards broader content distribution, reaching millions of Spotify users without requiring Peloton equipment.

Amazon plans to acquire satellite operator Globalstar for $11.6 billion to bolster its Amazon Leo internet-from-space initiative. This move aims to compete with SpaceX, secure valuable spectrum licenses for direct-to-device services, and integrate satellite connectivity across Amazon’s vast ecosystem, including AWS, retail, and logistics. The acquisition signifies Amazon’s significant investment and commitment to the capital-intensive satellite internet market.

U.S. prediction markets Kalshi and Polymarket are entering the lucrative perpetual futures (perps) market, previously dominated by offshore exchanges. With perps now exceeding 70% of crypto trading volume globally, their U.S. introduction could reshape real-world event trading and challenge established platforms. While analysts view this as a natural extension and potentially defensive move, concerns about increased volatility and regulatory scrutiny loom, especially given recent issues in prediction markets. The CFTC aims to facilitate perps trading with safeguards, potentially paving the way for their expansion beyond crypto.

Ineffable Intelligence, a new AI startup founded by DeepMind’s David Silver, has secured a record-breaking $1.1 billion seed funding round, valuing the company at $5.1 billion. Co-led by Sequoia Capital and Lightspeed Venture Partners, with participation from tech giants like Nvidia and Google, the funding signals strong investor confidence in the pursuit of artificial superintelligence. The company focuses on reinforcement learning, aiming to create an AI that learns through experience rather than just internet data. This marks a significant trend of top AI talent leaving established firms to launch ambitious startups.

Jury selection is underway in Oakland for the Elon Musk v. Sam Altman trial. Musk accuses OpenAI of betraying its nonprofit mission, seeking reversal of its restructuring. The jury will determine liability, with the judge making the final decision. The trial’s outcome holds significant implications for two tech giants valued collectively over $2 trillion.

Customers Bank CEO Sam Sidhu utilized an AI clone during an earnings call to highlight the bank’s significant embrace of artificial intelligence. The bank has partnered with OpenAI to embed engineers, aiming to automate lending and client onboarding. This strategy seeks to drastically reduce loan processing times, scale growth without increasing headcount, and improve efficiency ratios, demonstrating a tangible return on AI investment.

Qualcomm’s stock rose on reports of a partnership with OpenAI to develop advanced smartphone AI chips. The collaboration, also involving MediaTek and Luxshare, aims to create specialized hardware for OpenAI’s hardware ambitions. Analyst Ming-Chi Kuo anticipates mass production in 2028, highlighting smartphones’ crucial role in AI agent services and OpenAI’s potential to build a new AI ecosystem. This move follows OpenAI’s acquisition of Jony Ive’s startup, signaling a focus on novel AI-centric devices distinct from traditional smartphones.

Investors face a pivotal week with major automaker and tech “Magnificent Seven” earnings, a Federal Reserve policy decision, and the Musk vs. Altman legal battle. Geopolitical tensions impact energy markets as Iran talks falter. Political turbulence arose from a White House security incident. Meanwhile, the integration of AI in vehicles presents both convenience and safety concerns. The Federal Reserve Chair’s future role also adds to market uncertainty.

China’s NDRC has ordered Meta to divest its $2 billion acquisition of Singapore-based AI startup Manus, citing national security and regulatory compliance. This move targets the “Singapore-washing” trend of Chinese tech companies relocating offshore and underscores Beijing’s efforts to control its burgeoning AI sector amidst rising geopolitical tensions. The decision signals increased scrutiny on cross-border AI investments.