OpenAI is nearing a major funding round that would value the company more than $100 billion, with Thrive Capital expected to invest around $1 billion. Sources familiar with the matter have indicated that the fundraising is progressing but has yet to be made public.
Sarah Friar, OpenAI’s CFO, informed employees that the company seeks new capital to cover increasing operational costs and fuel the computing power needed for its AI models. The announcement did not specify exact figures but highlighted the growing need for resources as the company scales.
If the funding round is successful, OpenAI could become one of the world’s most valuable venture-backed startups, underscoring the global demand for generative AI tools like ChatGPT. The rise of OpenAI has also sparked increased competition among tech giants eager to integrate AI into their products.
Friar additionally hinted at plans for a tender event later this year, allowing employees to sell some of their shares. Details of this event are still in the early stages and yet to be confirmed.
California’s contentious AI safety bill, SB 1047, has passed the state legislature and now awaits Governor Gavin Newsom’s decision. The bill mandates safety testing for advanced AI models and requires developers to implement a kill switch, which has sparked intense debate among tech companies and lawmakers. Proponents argue that the legislation is crucial for public safety, while critics, including some major tech firms and Democrats, fear it could stifle innovation and drive AI companies out of California.
Elon Musk, CEO of Tesla and AI firm xAI, supports the bill, while other tech giants like Google, Microsoft-backed OpenAI, and Meta have voiced their concerns. The bill empowers the state attorney general to sue non-compliant developers, particularly if AI threatens critical infrastructure. It also demands third-party audits and whistle-blower protections to prevent AI abuses.
State Senator Scott Wiener, the bill’s author, argues that the legislation is necessary to safeguard the public as AI technology rapidly advances. However, opposition from various quarters, including venture capitalists like Martin Casado of Andreessen Horowitz, highlights the broad and bipartisan concerns surrounding the bill.
Governor Newsom has until 30 September to decide whether to sign the bill into law or veto it, which will have significant implications for AI development in California.
The growing risk of AI regulation is becoming a key concern for US companies, with 27% of Fortune 500 firms citing it in their recent reports. The development of AI rules is seen as a potential threat to innovation and business practices, especially in light of state-level initiatives such as California’s SB 1047. Companies fear that such regulations could hinder AI model development and sharing, with hundreds of similar bills being proposed nationwide.
Businesses like Moody’s have voiced concerns over how AI regulation could increase compliance burdens, while others like Johnson & Johnson are mindful of global efforts, including the EU’s AI Act. Despite the potential for greater oversight, companies like Booking Holdings have acknowledged the benefits of regulating AI models to prevent biases and other risks. The White House’s Executive Order on AI and the rise of state legislation point to a future of tighter regulation.
To manage these risks, some corporations are taking matters into their own hands by implementing internal AI guidelines ahead of new laws. S&P Global has established its own AI policies to anticipate upcoming regulations but remains concerned that new laws could impede competition in the AI space. On the other hand, companies such as Nasdaq have already begun working with regulators on AI-enabled solutions, demonstrating how businesses are navigating the complex regulatory landscape.
Despite these challenges, companies are pressing ahead with AI initiatives as they seek to stay competitive. Despite regulatory uncertainty and varying laws from state to state, businesses are unwilling to slow their AI development, knowing their rivals are likely to push forward. Industry leaders believe thoughtful regulation could eventually benefit AI adoption if it supports responsible and innovative practices.
Lip-Bu Tan, a high-profile board member at Intel, has resigned after disagreeing with CEO Pat Gelsinger and other directors over the company’s workforce size, risk-averse culture, and lagging AI strategy. His departure follows rising concerns that Intel’s turnaround efforts, led by Gelsinger, are hindered by inefficiencies and outdated practices. Tan, a semiconductor industry veteran, had joined Intel’s board to help restore its leadership in the chip industry.
Tan reportedly grew frustrated with Intel’s bloated workforce, which he believed was burdened by excessive layers of middle management. Despite attempts to streamline the company through layoffs, Tan argued that Intel had failed to make the necessary cuts to its bureaucracy. As competition in AI heats up, particularly with Nvidia, Intel has been criticised for falling behind in the race to develop cutting-edge AI chips.
Intel’s challenges are exacerbated by its struggle to build a foundry business that aims to manufacture chips for other companies. Without a bigger customer, the industry has yet to turn a profit. Additionally, a $5.4 billion deal to acquire Israel’s Tower Semiconductor was blocked by China, further complicating Intel’s efforts to expand its contract manufacturing capabilities.
Intel’s future remains uncertain as the company grapples with internal inefficiencies, external competition, and geopolitical obstacles. Tan’s exit has left a significant void on Intel’s board, raising further concerns about its ability to compete in a rapidly evolving semiconductor industry.
Meta Platforms has announced plans to shut down its augmented reality studio, Meta Spark, which allowed third-party creators to design custom effects for Instagram and Facebook. The platform will close on 14 January, removing third-party AR effects such as filters, masks, and 3D objects created using the studio. However, their first-party AR effects will remain on its platforms, including Instagram, Facebook, and Messenger.
The decision aligns with Meta’s broader strategy to prioritise investments in AI and the metaverse, a virtual environment the company views as the future of the internet. In a blog post, the company confirmed that resources would now focus on developing the next generation of experiences, particularly in new factors like AR glasses. The shift in strategy has left many third-party creators, who relied on Meta Spark, searching for alternatives.
Many creators have expressed disappointment at the platform’s closure, with some considering moving to other AR creation tools like Snapchat’s Lens Studio or Unity. Despite the discontinuation, the tech giant reassured users that existing reels and stories featuring third-party AR effects will remain accessible. However, the Meta Spark Hub and studio files will no longer be available after the shutdown.
In recent months, the company has also announced the phasing out of other projects, such as its work-focused Workplace app, which will cease customer operation by June 2026. The company’s strategic focus on AI and emerging technologies reflects its ongoing efforts to redefine its core business in an increasingly competitive tech landscape.
Apple is set to host its fall event on 9 September at its Cupertino headquarters, where it is expected to introduce new iPhones and updates to other devices and apps. The event comes at a critical time as the company looks to counter a slowdown in global sales, particularly in China, and outline its AI roadmap.
At its developers conference in June, Apple announced a series of AI-driven features under the ‘Apple Intelligence’ banner, including improvements to Siri and a ChatGPT integration. However, these features will be available only on the latest Apple devices, with a gradual rollout expected later this year.
Competitors like Samsung and Google’s Alphabet have already released AI functionality alongside their new Galaxy and Pixel smartphones. Apple is under increasing pressure to match these innovations as it faces growing competition in the high-end smartphone market.
While Apple has reported better-than-expected sales in its third quarter, overall iPhone sales have slowed due to fewer significant upgrades and fierce competition from Android-based smartphones offering advanced features at lower prices. In China, sales dropped by 6.5%, largely due to increased pressure from local brands, particularly Huawei.
Vietnam’s Prime Minister Pham Minh Chinh has launched a strategic initiative to enhance the country’s capabilities in semiconductors, AI, and cloud computing. The initiative, outlined in Dispatch No. 83/CD-TTg, aims to develop a skilled workforce through targeted education and training in these critical technology sectors. The initiative calls for collaboration among various government bodies, including ministers and local authorities, to implement measures to drive these industries’ advancements.
The Ministry of Education and Training (MoET) leads this effort by guiding public and private universities to establish specialised units focused on semiconductor technology, AI, and cloud computing. The project includes creating new schools and departments dedicated to advancing research and training. The MoET will also modernise curricula by integrating cutting-edge technologies and AI into teaching methodologies while fostering partnerships with businesses and research institutions.
In addition, the Ministry of Planning and Investment will develop a strategic project for nurturing human resources in the semiconductor industry, with a long-term vision extending to 2050. The plan will also encompass AI and cloud computing, emphasising the establishment of innovation ecosystems. Meanwhile, the Ministry of Science and Technology will prioritise scientific research in these fields and create mechanisms to attract international talent.
Local government leaders are encouraged to attract investments to build semiconductors, AI, and cloud computing ecosystems. Deputy Prime Minister Le Thanh Long will oversee the implementation of this initiative, which aims to position Vietnam as a leader in these technology sectors, leveraging education and innovation to drive economic growth in the digital age.
Chinese AI developers are finding innovative ways to circumvent US export controls on advanced chips by leveraging foreign computing resources. The strategy allows them to access high-performance chips, such as Nvidia’s A100 and H100, which are restricted under US regulations. As the demand for AI capabilities grows, these developers employ various methods to remain competitive in the tech landscape.
One key approach is using cloud computing services from major American providers like Amazon Web Services (AWS) and Microsoft Azure. This method is legally permissible under current US regulations, which focus on directly exporting physical technologies rather than cloud-based computing power.
Additionally, Chinese AI developers are collaborating with brokers and using identity-mapping techniques from the cryptocurrency industry. These brokers help facilitate access to AI servers in countries like Australia, allowing companies to deploy advanced chips without importing them directly into China. For example, entrepreneur Derek Aw has arranged for over 300 servers equipped with Nvidia’s H100 chips to be housed in Australia and utilised by firms in Beijing.
Despite the challenges posed by export controls, many Chinese companies have stockpiled chips and invested in domestic semiconductor manufacturing. While local suppliers often need to catch up to US technologies, this dual approach helps maintain momentum in AI research and development. Legal experts note that as long as technology is not used for military purposes, cloud services to access advanced computing power remain unregulated, highlighting the complexities of enforcing technology trade restrictions.
The ongoing situation illustrates the US government’s challenges in enforcing its trade policies. As Chinese companies continue to adapt and innovate, the US may need to tighten regulations to address emerging loopholes.
A key player in the development of plant-based proteins is generative AI. Paris-based start-up AI Bobby is at the forefront, using AI to enhance protein functionality in meat and dairy alternatives. The company believes this technology can accelerate research, increasing efficiency and accuracy in protein design, which is essential for replicating the qualities of animal proteins.
The functionality of plant-based proteins, such as gelling, nutritional value, and mouthfeel, has often been criticised for falling short of their animal-based counterparts. AI Bobby’s founder, Dominik Grabinski, emphasises that improving these functionalities is crucial to making plant-based products more appealing to consumers. Generative AI, according to Grabinski, has the potential to speed up research by up to ten times and improve the success rate of finding solutions.
One area of focus for AI Bobby is gelation, which is vital for texture and ease of formulation in plant-based meats. By refining this process, the start-up aims to reduce the need for additional ingredients, lowering production costs. AI Bobby aspires to link function to structure in the future, helping producers design proteins that meet specific needs more precisely.
AI Bobby envisions a future where plant-based proteins can surpass animal-derived proteins in functionality. The company aims to empower producers to create alternatives to key animal proteins like collagen, gelatin, and egg white, all through plant-based sources.
BigCommerce is bolstering its AI capabilities through collaboration with Google, aiming to enhance online store performance and drive customer growth. The Austin-based company introduced a suite of new AI-focused solutions during its recent product launch, including tools for personalised product recommendations and AI-generated quote proposal emails, with plans for more features like semantic search and predictive analytics.
These enhancements build on BigCommerce’s partnership with GoogleCloud’s AI technology, which was formed about a year ago. The company is positioning itself against competitors like Shopify and Amazon, which have also integrated AI to improve their platforms. BigCommerce believes these updates will benefit merchants significantly, particularly in terms of efficiency and customer experience.
Despite a challenging journey since going public in 2020, BigCommerce is making substantial investments in AI, and it is already showing positive results. Recent earnings reports indicate an 11% increase in revenue, driven partly by the success of these AI tools, and a reduction in net losses compared to the previous year.
The company remains optimistic that its AI strategy will pay off, helping it compete more effectively in e-commerce. BigCommerce is committed to providing merchants with various AI-powered tools, enabling them to choose the best solutions for their unique needs.
