OpenAI's CFO floated a federal backstop for AI infrastructure, then reversed within hours after White House rejection. The whiplash exposed the core problem: OpenAI needs $1.4 trillion while generating $20 billion. The math doesn't work.
Microsoft declares it's building "humanist superintelligence" to keep AI safe. Reality check: They're 2 years behind OpenAI, whose models they'll use until 2032. The safety pitch? Product differentiation for enterprise clients who fear runaway AI.
Three Stanford professors just raised $50M to prove OpenAI and Anthropic generate text wrong. Their diffusion models claim 10x speed by processing tokens in parallel, not sequentially. Microsoft and Nvidia are betting they're right.
Good Morning from San Francisco, Trump and Xi shook hands Thursday. Tariffs dropped 10%, rare earth controls paused for a
Trump and Xi cut tariffs 10% and paused rare earth controls for a year. Soybean orders resumed. Nvidia's Blackwell speculation collapsed. The one-year truce relieves immediate pressure but sidesteps structural forces driving U.S.-China decoupling.
Good Morning from San Francisco, OpenAI cleared its restructuring hurdle this week. California approved. Altman promised to stay. The nonprofit
OpenAI secured California's approval to restructure after Altman promised to stay. The deal preserves nonprofit control on paper while enabling a $500B+ IPO path. Critics note the governance paradox: the same board oversight that failed once.
OpenAI's restructure puts a $130B nonprofit in control of a $500B for-profit. Microsoft locked in 27% and access through 2032. But a year of regulatory review produced new numbers, not new transparency—and Microsoft's accounting gaps remain unaddressed.
Good Morning from San Francisco, Adobe stopped pretending one AI model will rule them all. The company built a switchboard
Elon Musk launched Grokipedia to replace 'biased' Wikipedia. The site crashed, then returned with articles copied word-for-word from Wikipedia itself. The irony runs deeper: AI-powered alternatives depend on the human knowledge bases they claim to surpass.
Google launched vibe coding tools in October while usage data showed the market had already peaked and crashed. AI code generation works for simple demos but breaks on complex projects—a training distribution wall platforms can't market around.
Good Morning from San Francisco, Microsoft had an interesting week on the transparency front. Australia's competition watchdog sued,
Microsoft buried OpenAI losses in a $4.7B catch-all line without disclosing stake size, fair value, or revenue mechanics—despite a partner now worth $500B. Investors can't map exposure or returns. The gaps are fixable and overdue.
Good Morning from San Francisco, Anthropic just secured a million AI chips from Google in a deal worth tens of
Anthropic secured Google's largest chip deal—up to 1M TPUs worth tens of billions—while keeping Amazon as primary partner. The rare multi-cloud strategy gives the startup leverage both clouds typically demand for themselves. Can neutrality scale?
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