OpenAI and Microsoft’s collaboration is near breaking point

The once-celebrated partnership between OpenAI and Microsoft is now under severe strain as disputes over control and strategic direction threaten to dismantle their alliance.

OpenAI’s move toward a for-profit model has placed it at odds with Microsoft, which has invested billions and provided exclusive access to Azure infrastructure.

Microsoft’s financial backing and technical involvement have granted it a powerful voice in OpenAI’s operations. However, OpenAI now appears determined to gain independence, even if it risks severing ties with the tech giant.

Negotiations are ongoing, but the growing rift could reshape the trajectory of generative AI development if the collaboration collapses.

Amid tensions, Microsoft evaluates alternative options, including developing AI tools and working with rivals like Meta and xAI.

Such a pivot suggests Microsoft is preparing for a future beyond OpenAI, potentially ending its exclusive access to upcoming models and intellectual property.

A breakdown could have industry-wide repercussions. OpenAI may struggle to secure the estimated $40 billion in fresh funding it seeks, especially without Microsoft’s support.

At the same time, the rivalry could accelerate competition across the AI sector, prompting others to strengthen or redefine their positions in the race for dominance.

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IGF 2025 opens in Norway with focus on inclusive digital governance

Norway will host the 20th annual Internet Governance Forum (IGF) from 23 to 27 June 2025 in a hybrid format, with the main venue set at Nova Spektrum in Lillestrøm, just outside Oslo.

This milestone event marks two decades of the UN-backed forum that brings together diverse stakeholders to discuss how the internet should be governed for the benefit of all.

The overarching theme, Building Governance Together, strongly emphasises inclusivity, democratic values, and sustainable digital cooperation.

With participation expected from governments, the private sector, civil society, academia, and international organisations, IGF 2025 will continue to promote multistakeholder dialogue on critical topics, including digital trust, cybersecurity, AI, and internet access.

A key feature will be the IGF Village, where companies and organisations will showcase technologies and products aligned with global internet development and governance.

Norway’s Minister of Digitalisation and Public Governance, Karianne Oldernes Tung, underlined the significance of this gathering in light of current geopolitical tensions and the forthcoming WSIS+20 review later in 2025.

Reaffirming Norway’s support for the renewal of the IGF mandate at the UN General Assembly, Minister Tung called for unity and collaborative action to uphold an open, secure, and inclusive internet. The forum aims to assess progress and help shape the next era of digital policy.

Track all key moments from the Internet Governance Forum 2025 on our dedicated IGF page.

Android users can identify songs with Gemini

Google has updated its Gemini AI app for Android with a voice-activated song search feature, bringing back a capability once available through Google Assistant. Users can now simply ask Gemini ‘What song is this?’ to trigger the music recognition tool.

Once activated, Gemini launches Google’s Song Search using a full-screen interface that listens to ambient audio and displays a pulsing animation. If a match is found, results are shown via Google Search with the track’s details.

The feature improves on Gemini’s earlier version, which only suggested using external apps for music ID. It offers a streamlined alternative to Shazam for Android users, though the interface resets after each use.

Currently, this feature is exclusive to Android devices and not yet available for iPhone users. By integrating this tool, Google continues to unify useful voice functions under its Gemini AI platform.

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DeepSeek under fire for alleged military ties and export control evasion

The United States has accused Chinese AI startup DeepSeek of assisting China’s military and intelligence services while allegedly seeking to evade export controls to obtain advanced American-made semiconductors.

The claims, made by a senior US State Department official speaking anonymously to Reuters, add to growing concerns over the global security risks posed by AI.

DeepSeek, based in Hangzhou, China, gained international attention earlier this year after claiming its AI models rivalled those of leading United States firms like OpenAI—yet at a fraction of the cost.

However, US officials now say that the firm has shared data with Chinese surveillance networks and provided direct technological support to the People’s Liberation Army (PLA). According to the official, DeepSeek has appeared in over 150 procurement records linked to China’s defence sector.

The company is also suspected of transmitting data from foreign users, including Americans, through backend infrastructure connected to China Mobile, a state-run telecom operator. DeepSeek has not responded publicly to questions about these privacy or security issues.

The official further alleges that DeepSeek has been trying to access Nvidia’s restricted H100 AI chips by creating shell companies in Southeast Asia and using foreign data centres to run AI models on US-origin hardware remotely.

While Nvidia maintains it complies with export restrictions and has not knowingly supplied chips to sanctioned parties, DeepSeek is said to have secured several H100 chips despite the ban.

US officials have yet to place DeepSeek on a trade blacklist, though the company is under scrutiny. Meanwhile, Singapore has already charged three men with fraud in investigating the suspected illegal movement of Nvidia chips to DeepSeek.

Questions have also been raised over the credibility of DeepSeek’s technological claims. Experts argue that the reported $5.58 million spent on training their flagship models is unrealistically low, especially given the compute scale typically required to match OpenAI or Meta’s performance.

DeepSeek has remained silent amid the mounting scrutiny. Still, with the US-China tech race intensifying, the firm could soon find itself at the centre of new trade sanctions and geopolitical fallout.

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Amazon CEO warns staff to embrace AI or face job losses

Amazon CEO Andy Jassy has warned staff that they must embrace AI or risk losing their jobs.

In a memo shared publicly, Jassy said generative AI and intelligent agents are already transforming workflows at Amazon, and this shift will inevitably reduce the number of corporate roles in the coming years.

According to Jassy, AI will allow Amazon to operate more efficiently by automating specific roles and reallocating talent to new areas. He acknowledged that it’s difficult to predict the exact outcome but clarified that the corporate workforce will shrink as AI adoption expands across the company.

Those hoping to remain at Amazon will need to upskill quickly. Jassy stressed the need for employees to stay curious and proficient with AI tools to boost their productivity and remain valuable in an increasingly automated environment.

Amazon is not alone in the trend.

BT Group is restructuring to eliminate tens of thousands of roles. At the same time, other corporate leaders, including those at LVMH and ManPower, have echoed concerns that AI’s most significant disruption may be within human resources.

Executives now see AI as a tech shift and a workforce transformation demanding retraining and redefinition of roles.

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India’s Gen Z founders go viral with AI and robotics ‘Hacker House’ in Bengaluru

A viral video has captured the imagination of tech enthusiasts by offering a rare look inside a ‘Hacker House’ in Bengaluru’s HSR Layout, where a group of Gen Z Indian founders are quietly shaping the future of AI and robotics.

Spearheaded by Localhost, the initiative provides young developers aged 16 to 22 with funding, workspace, and a collaborative environment to rapidly build real-world tech products — no media hype, just raw innovation.

The video, shared by Canadian entrepreneur Caleb Friesen, shows teenage coders intensely focused on their projects. From AI-powered noise-cancelling systems and assistive robots to innovative real estate and podcasting tools, each room in the shared house hums with creativity.

The youngest, 16-year-old Harish, stands out for his deep focus, while Suhas Sumukh, who leads the Bengaluru chapter, acts as both a guide and mentor.

Rather than pitch decks and polished PR, what resonated online was the authenticity and dedication. Caleb’s walk-through showed residents too engrossed in their work to acknowledge his arrival.

Viewers responded with admiration, calling it a rare glimpse into ‘the real future of Indian tech’. The video has since crossed 1.4 million views, sparking global curiosity.

At the heart of the movement is Localhost, founded by Kei Hayashi, which helps young developers build fast and learn faster.

As demand grows for similar hacker houses in Mumbai, Delhi, and Hyderabad, the initiative may start a new chapter for India’s startup ecosystem — fuelled by focus, snacks, and a poster of Steve Jobs.

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Oakley unveils smart glasses featuring Meta technology

Meta has partnered with Oakley to launch a new line of smart glasses designed for active lifestyles. The flagship model, Oakley Meta HSTN, will be available for preorder from 11 July for $499.

Additional Oakley models featuring Meta’s innovative technology are set to launch later in the summer, starting at $399.

https://twitter.com/1Kapisch/status/1936045567626617315

The glasses include a front-facing camera, open-ear speakers, and microphones embedded in the frame, much like the Meta Ray-Bans. When paired with a smartphone, users can listen to music, take calls, and interact with Meta AI.

With built-in cameras and microphones, Meta AI can also describe surroundings, answer visual questions, and translate languages.

With their sleek, sports-ready design and IPX4 water resistance, the glasses are geared toward athletes. They offer 8 hours of battery life—twice that of the Meta Ray-Bans—and come with a charging case that extends usage to 48 hours. Video capture quality has also improved, now supporting 3K resolution.


Customers can choose from five frame and lens combinations with prescription lenses for an added cost. Colours include warm grey, black, brown smoke, and clear, while lens options include Oakley’s PRIZM and transitions.

The $499 limited-edition version features gold accents and gold PRIZM lenses. Sales will cover major markets across North America, Europe, and Australia.

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Publishers lose traffic as readers trust AI more

Online publishers are facing an existential threat as AI increasingly becomes the primary source of information for users, warned Cloudflare CEO Matthew Prince during an Axios event in Cannes.

As AI-generated summaries dominate user queries, search engine referrals have plunged, urgently pushing media outlets to reconsider how they sustain revenue from their content.

Traffic patterns have dramatically shifted. A decade ago, Google sent a visitor to publishers for every two pages it crawled.

Today, that ratio has ballooned to 18:1. The picture is more extreme for AI firms: OpenAI’s ratio has jumped from 250:1 to 1,500:1 in just six months, while Anthropic’s has exploded from 6,000:1 to a staggering 60,000:1.

Although AI systems typically include links to sources, Prince noted that ‘people aren’t following the footnotes,’ meaning fewer clicks and less ad revenue.

Prince argued that audiences are beginning to trust AI summaries more than the original articles, reducing publishers’ visibility and direct engagement.

As the web becomes increasingly AI-mediated, fewer people read full articles, raising urgent questions about how creators and publishers can be fairly compensated.

To tackle the issue, Cloudflare is preparing to launch a new anti-scraping tool to block unauthorised data harvesting. Prince hinted that the tool has broad industry support and will be rolled out soon.

He remains confident in Cloudflare’s capacity to fight against such threats, noting the company’s daily battles against sophisticated global cyber actors.

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Hidden privacy risk: Meta AI app may make sensitive chats public

Meta’s new AI app raises privacy concerns as users unknowingly expose sensitive personal information to the public.

The app includes a Discover feed where anyone can view AI chats — even those involving health, legal or financial data. Many users have accidentally shared full resumes, private conversations and medical queries without realising they’re visible to others.

Despite this, Meta’s privacy warnings are minimal. On iPhones, there’s no clear indication during setup that chats will be made public unless manually changed in settings.

Android users see a brief, easily missed message. Even the ‘Post to Feed’ button is ambiguous, often mistaken as referring to a user’s private chat history rather than public content.

Users must navigate deep into the app’s settings to make chats private. They can restrict who sees AI prompts there, stop sharing on Facebook and Instagram, and delete previous interactions.

Critics argue the app’s lack of clarity burdens users, leaving many at risk of oversharing without realising it.

While Meta describes the Discover feed as a way to explore creative AI usage, the result has been a chaotic mix of deeply personal content and bizarre prompts.

Privacy experts warn that the situation mirrors Meta’s longstanding issues with user data. Users are advised to avoid sharing personal details with the AI entirely and immediately turn off all public sharing options.

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SoftBank plans $1 trillion AI and robotics park in Arizona

SoftBank founder Masayoshi Son is planning what could become his most audacious venture yet: a $1 trillion AI and robotics industrial park in Arizona.

Dubbed ‘Project Crystal Land’, the initiative aims to recreate a high-tech manufacturing hub reminiscent of China’s Shenzhen, focused on AI-powered robots and next-gen automation.

Son is courting global tech giants — including Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung — to join the vision, though none have formally committed.

The plan hinges on support from federal and state governments, with SoftBank already discussing possible tax breaks with US officials, including Commerce Secretary Howard Lutnick.

While TSMC is already investing $165 billion in Arizona facilities, sources suggest Son’s project has not altered the chipmaker’s current roadmap. SoftBank hopes to attract semiconductor and AI hardware leaders to power the park’s infrastructure.

Son has also approached SoftBank Vision Fund portfolio companies to participate, including robotics startup Agile Robots.

The park may serve as a production hub for emerging tech firms, complementing SoftBank’s broader investments, such as a potential $30 billion stake in OpenAI, a $6.5 billion acquisition of Ampere Computing, and funding for Stargate, a global data centre venture with OpenAI, Oracle, and MGX.

While the vision is still early, Project Crystal Land could radically shift US high-tech manufacturing. Son’s strategy relies heavily on project-based financing, allowing extensive infrastructure builds with minimal upfront capital.

As SoftBank eyes long-term AI growth and increased investor confidence, whether this futuristic park will become a reality — or another of Son’s high-stakes dreams remains to be seen.

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