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Good Morning from San Francisco, Microsoft and OpenAI just signed a truce. After months of heated negotiations that nearly triggered
Microsoft and OpenAI end months of toxic negotiations with a deal that gives the nonprofit $100+ billion while clearing OpenAI's path to go public. The agreement reveals how AI partnerships are evolving beyond traditional boundaries.
Explore how DeepSeek's innovative pricing strategy is poised to disrupt OpenAI's market dominance. Stay informed on the latest AI industry shifts.
DeepSeek just cranked up the pressure in the global AI race. The Chinese startup that spooked tech markets last month now offers a 75% discount on its AI models during European and U.S. working hours.
The company's website reveals dramatic price cuts for its R1 and V3 models between 1630 GMT and 0030 GMT. While DeepSeek labels this window as "off-peak" Beijing time, it's prime time for Western developers. The R1 model costs 75% less during these hours, while V3 users enjoy a 50% discount.
This move follows DeepSeek's market-shaking entrance last month, when its powerful yet affordable AI models triggered a massive tech stock sell-off. Their success prompted quick responses from industry giants – OpenAI slashed its prices, and Google's Gemini introduced budget-friendly options.
DeepSeek isn't stopping there. Sources say the company plans to fast-track the release of R2, its next-generation model. This aggressive expansion builds on their track record – last May, DeepSeek sparked China's first AI price war with the release of their V2 model.
These developments highlight a shift in the AI landscape. What started as a domestic price war in China now ripples through global markets, forcing established players to rethink their pricing strategies.
Why this matters:
Microsoft and OpenAI end months of toxic negotiations with a deal that gives the nonprofit $100+ billion while clearing OpenAI's path to go public. The agreement reveals how AI partnerships are evolving beyond traditional boundaries.
OpenAI's nonprofit will control a $500B entity while owning $100B+ in equity—an unprecedented governance experiment. Microsoft formalizes partnership even as both companies hedge through diversification. Regulators hold the keys.
Oracle bets $300B on OpenAI's computing future, but the math is stark: OpenAI generates $10B annually while committing to $60B yearly. The deal either transforms Oracle into an AI infrastructure leader—or becomes a cautionary dot-com tale.
Oracle's stock exploded 40% after revealing a $455B AI contract backlog and projections for $144B cloud revenue by 2030. The surge made Larry Ellison briefly the world's richest person—but can the company turn massive bookings into sustainable margins?
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