OpenAI

Microsoft and OpenAI revisit investment deal

OpenAI chief executive Sam Altman revealed that he had a conversation with Microsoft CEO Satya Nadella on Monday to discuss the future of their partnership.

Speaking on a New York Times podcast, Altman described the dialogue as part of ongoing efforts to align on the evolving nature of their collaboration.

Earlier this month, the Wall Street Journal reported that Microsoft — OpenAI’s primary backer — and the AI firm are in discussions to revise the terms of their investment. Topics under negotiation reportedly include Microsoft’s future equity stake in OpenAI.

According to the Financial Times, Microsoft is weighing whether to pause the talks if the two parties cannot resolve key issues. Neither Microsoft nor OpenAI responded to media requests for comment outside regular business hours.

‘Obviously, in any deep partnership, there are points of tension, and we certainly have those,’ Altman said. ‘But on the whole, it’s been wonderfully good for both companies.’

Altman also commented on his recent discussions with United States President Donald Trump regarding AI. He noted that Trump appeared to grasp the technology’s broader geopolitical and economic significance.

In January, Trump announced Stargate — a proposed private sector initiative to invest up to $500 billion in AI infrastructure — with potential backing from SoftBank, OpenAI, and Oracle.

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OpenAI and io face lawsuit over branding conflict

OpenAI and hardware startup io, founded by former Apple designer Jony Ive, are now embroiled in a trademark infringement lawsuit filed by iyO, a Google-backed company specialising in custom headphones.

The legal case prompted OpenAI to withdraw promotional material linked to its $6.005 billion acquisition of io, raising questions about the branding of its future AI device.

Court documents reveal that OpenAI and io had previously met with iyO representatives and tested their custom earbud product, although the tests were unsuccessful.

Despite initial contact and discussions about potential collaboration, OpenAI rejected iyO’s proposals to invest, license, or acquire the company for $200 million. The lawsuit, however, does not centre on an earbud or wearable device, according to io’s co-founders.

Io executives clarified in court that their prototype does not resemble iyO’s product and remains unfinished. It is neither wearable nor intended for sale within the following year.

OpenAI CEO Sam Altman described the joint project as an attempt to reimagine hardware interfaces. At the same time, Jony Ive expressed enthusiasm for the device’s early design, which he claims captured his imagination.

Court testimony and emails suggest io explored various technologies, including desktop, mobile, and portable designs. Internal communications also reference possible ergonomic research using 3D ear scan data.

Although the lawsuit has exposed some development details, the main product of the collaboration between OpenAI and io remains undisclosed.

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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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Sam Altman claims OpenAI team rejecting Meta’s mega offers

Meta is intensifying efforts to recruit AI talent from OpenAI by offering signing bonuses worth up to $100 million and multi-million-pound annual salaries. However, OpenAI CEO Sam Altman claims none of the company’s top researchers have accepted the offers.

Speaking on the Uncapped podcast, Altman said Meta had approached his team with ‘giant offers’, but OpenAI’s researchers stayed loyal, believing the company has a better chance of achieving superintelligence—AI that surpasses human capabilities.

OpenAI, where the average employee reportedly earns around $1.13 million a year, fosters a mission-driven culture focused on building AI for the benefit of humanity, Altman said.

Meta, meanwhile, is assembling a 50-person Superintelligence Lab, with CEO Mark Zuckerberg personally overseeing recruitment. Bloomberg reported that offers from Meta have reached seven to nine figures in total compensation.

Despite the aggressive approach, Meta appears to be losing some of its own researchers to rivals. VC principal Deedy Das recently said Meta lost three AI researchers to OpenAI and Anthropic, even after offering over $2 million annually.

In a bid to acquire more talent, Meta has also invested $14.3 billion in Scale AI, securing a 49% stake and bringing CEO Alexandr Wang into its Superintelligence Lab leadership.

Meta says its AI assistant now reaches one billion monthly users, while OpenAI reports 500 million weekly active users globally.

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ChatGPT now supports MCP for business data access, but safety risks remain

OpenAI has officially enabled support for Anthropic’s Model Context Protocol (MCP) in ChatGPT, allowing businesses to connect their internal tools directly to the chatbot through Deep Research.

The development enables employees to retrieve company data from previously siloed systems, offering real-time access to documents and search results via custom-built MCP servers.

Adopting MCP — an open industry protocol recently embraced by OpenAI, Google and Microsoft — opens new possibilities and presents security risks.

OpenAI advises users to avoid third-party MCP servers unless hosted by the official service provider, warning that unverified connections may carry prompt injections or hidden malicious directives. Users are urged to report suspicious activity and avoid exposing sensitive data during integration.

To connect tools, developers must set up an MCP server and create a tailored connector within ChatGPT, complete with detailed instructions. The feature is now live for ChatGPT Enterprise, Team and Edu users, who can share the connector across their workspace as a trusted data source.

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Meta offers $100M bonuses to poach OpenAI talent but Altman defends mission-driven culture

Meta has reportedly attempted to lure top talent from OpenAI with signing bonuses exceeding $100 million, according to OpenAI’s CEO Sam Altman.

Speaking on a podcast hosted by his brother, Jack Altman, he revealed that Meta has offered extremely high compensation to key OpenAI staff, yet none have accepted the offers.

Meta CEO Mark Zuckerberg is said to be directly involved in recruiting for a new ‘superintelligence’ team as part of the latest AI push.

The tech giant recently announced a $14.3 billion investment in Scale AI and brought Scale’s CEO, Alexandr Wang, on board. Altman believes Meta sees ChatGPT not only as competition for Google but as a potential rival to Facebook regarding user attention.

Altman questioned whether such high-compensation strategies foster the right environment, suggesting that culture cannot be built on upfront financial incentives alone.

He stressed that OpenAI prefers aligning rewards with its mission instead of offering massive pay packets. In his view, sustainable innovation stems from purpose, not payouts.

While recognising Meta’s persistence in the AI race, Altman suggested that the company will likely try again if the current effort fails. He highlighted a cultural difference, saying OpenAI has built a team focused on consistent innovation — something he believes Meta still struggles to understand.

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OpenAI brings DALL-E image creation to WhatsApp users worldwide

OpenAI has officially launched image creation capabilities for WhatsApp users, expanding access to its AI visual tools via the verified number +1-800-ChatGPT. Using natural language prompts, the feature enables users to generate or edit images directly within their chats.

Previously limited to the web and mobile versions of ChatGPT, the image generation tool—powered by DALL-E—is now available globally on WhatsApp, free of charge. OpenAI announced the rollout via X, encouraging users to connect their accounts for enhanced functionality.

To get started, users should save +1-800-ChatGPT (+1-800-242-8478) to their contacts, send ‘Hi’ via WhatsApp, and follow the instructions to link their OpenAI account.

Once verified, they can prompt the AI with creative requests such as ‘design a futuristic skyline’ or ‘show a dog surfing on Mars’ and receive bespoke visuals in return.

The move further integrates generative AI into everyday messaging, making powerful image-creation tools more accessible to a broad user base.

Meanwhile, WhatsApp is preparing to introduce in-app advertising. With over two billion active users, Meta plans to monetise the platform more aggressively—signalling a notable shift in WhatsApp’s strategy.

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ChatGPT loses chess match to Atari 2600

ChatGPT, was trounced in a chess match by a 1979 video game running on an Atari 2600 emulator. Citrix engineer Robert Caruso set up the match using Video Chess to test how the AI would perform against vintage gaming software.

The result was unexpectedly lopsided. ChatGPT confused rooks for bishops, forgot piece positions and made repeated beginner mistakes, eventually asking for the match to be restarted. Even when standard chess notation was used, its performance failed to improve.

Caruso described the 90-minute session as full of basic blunders, saying the AI would have been laughed out of a primary school chess club. His post highlighted the limitations of ChatGPT’s architecture, which is built for language understanding, not strategic board gameplay.

While the experiment doesn’t mean ChatGPT is entirely useless at chess, it suggests users are better off discussing the game with the bot than challenging it. OpenAI has not yet responded to the light-hearted but telling critique.

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OpenAI considers antitrust action against Microsoft over AI hosting control

OpenAI reportedly tries to reduce Microsoft’s exclusive control over hosting its AI models, signalling growing friction between the two companies.

According to the Wall Street Journal, OpenAI leadership has considered filing an antitrust complaint against Microsoft, alleging anti-competitive behaviour in their ongoing collaboration. The move could trigger federal regulatory scrutiny.

The tension comes amid ongoing talks over OpenAI’s corporate restructuring. A report by The Information suggests that OpenAI is negotiating to grant Microsoft a 33% stake in its reorganized for-profit unit. In exchange, Microsoft would give up rights to future profits.

OpenAI also wants to revise its existing contract with Microsoft, particularly clauses that grant exclusive Azure hosting rights. The company reportedly aims to exclude its planned $3 billion acquisition of AI startup Windsurf from the agreement, which otherwise gives Microsoft access to OpenAI’s intellectual property.

This developing rift could reshape one of the most influential alliances in AI. Microsoft has invested heavily in OpenAI since 2019 and integrates its models into Microsoft 365 Copilot and Azure services. However, both firms are diversifying.

OpenAI is turning to Google Cloud and Oracle for additional computing power, while Microsoft has begun integrating alternative AI models into its products.

Industry experts warn that regulatory scrutiny or contract changes could impact enterprise customers relying on tightly integrated AI solutions, particularly in sectors like healthcare and finance. Companies may face service disruptions, higher costs, or compatibility challenges if major players shift strategy or infrastructure.

Analysts suggest that the era of single-model reliance may be ending. As innovation from rivals like DeepSeek accelerates, enterprises and cloud providers are moving toward multi-model support, aiming for modular, scalable, and use-case-specific AI deployments.

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OpenAI turns to Google Cloud in shift from solo AI race

OpenAI has entered into an unexpected partnership with Google, using Google Cloud to support its growing AI infrastructure needs.

Despite being fierce competitors in AI, the two tech giants recognise that long-term success may require collaboration instead of isolation.

As the demand for high-performance hardware soars, traditional rivals join forces to keep pace. OpenAI, previously backed heavily by Microsoft, now draws from Google’s vast cloud resources, hinting at a changing attitude in the AI race.

Rather than going it alone, firms may benefit more by leveraging each other’s strengths to accelerate development.

Google CEO Sundar Pichai, speaking on a podcast, suggested there is room for multiple winners in the AI sector. He even noted that a major competitor had ‘invited me to a dance’, underscoring a new phase of pragmatic cooperation.

While Google still faces threats to its search dominance from tools like ChatGPT, business incentives may override rivalry.

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