OpenAI

OpenAI weighs governance changes to block takeover

OpenAI is considering granting special voting rights to its non-profit board as part of new governance measures aimed at protecting the power of its directors amid a potential takeover bid from Elon Musk. The company’s CEO Sam Altman and board members are reportedly evaluating the move as OpenAI transitions to a for-profit structure. This would allow the non-profit board to retain control over key decisions, potentially blocking hostile takeovers, including Musk’s recent $97.4 billion acquisition offer.

The proposal comes after Musk’s consortium attempted to acquire OpenAI, with the company rejecting the offer, stating that it is not for sale and dismissing future bids. Musk’s bid appears to be driven by concerns over OpenAI’s shift toward profitability, as the company seeks to secure more funding to remain competitive in the AI sector. The special voting rights would give the non-profit board the ability to overrule major investors such as Microsoft and SoftBank, ensuring that OpenAI’s leadership retains influence over key decisions.

This move reflects OpenAI’s efforts to maintain control over its future direction while fending off external pressures from investors and potential acquirers. No final decision has been made yet, but the proposal is seen as a key strategy to safeguard the company’s independence as it navigates the evolving AI landscape.

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Indian music industry joins lawsuit against OpenAI

Several of India’s leading Bollywood music labels, including T-Series, Saregama, and Sony, seek to join a lawsuit against OpenAI in New Delhi. They are concerned that the company’s AI models may have used their sound recordings without permission, potentially violating copyright laws. The legal action follows a previous lawsuit filed by Indian news agency ANI, which accused OpenAI’s ChatGPT of using content without authorisation to train its models. The music labels argue that this issue has significant implications for the global music industry.

The music companies, which represent major Indian and international music acts, claim that OpenAI’s AI systems could extract lyrics, compositions, and sound recordings from the internet without consent. T-Series, known for releasing thousands of songs annually, and Saregama, which holds a vast catalogue of iconic Indian music, are leading the charge. The Indian Music Industry (IMI), which also represents global labels like Sony Music and Warner Music, is pushing for the case to be heard in court, as the outcome could impact the future use of copyrighted content in AI training.

OpenAI, backed by Microsoft, argues that it adheres to fair-use principles by using publicly available data to build its AI models. However, the company is facing increasing legal pressure from multiple sectors worldwide, including recent lawsuits in Germany, where GEMA accused OpenAI of unlicensed use of song lyrics. OpenAI has opposed the Indian lawsuit, claiming that Indian courts do not have jurisdiction over the matter, given the company’s US base.

The next court hearing, which could shape the future of AI and copyright law in India, is scheduled for 21 February. This legal battle is gaining attention, particularly as OpenAI’s chief, Sam Altman, recently visited India to discuss the country’s plans for developing low-cost AI technology.

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Musk will withdraw $97.4 billion bid for OpenAI non-profit

Elon Musk has stated he will withdraw his $97.4 billion bid for OpenAI’s non-profit arm if the company halts plans to become a for-profit entity. Musk’s lawyers clarified in a court filing that if OpenAI’s board agrees to maintain the charity’s mission and remove the ‘for sale’ sign from its assets, he will retract his offer. However, if the conversion to a for-profit model continues, Musk’s consortium insists the charity must be compensated by what an independent buyer would pay for its assets.

OpenAI, originally founded by Musk and Sam Altman in 2015 as a non-profit, is in the midst of restructuring. Altman, now CEO, has moved to create a for-profit unit within the organisation to attract investors like Microsoft.

Musk, who left the company over disagreements with Altman, is suing to block this transition. This legal battle intensified this week when Musk’s group made a bid to purchase the non-profit’s assets, which Altman has rejected, stating that the organisation is not for sale.

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OpenAI prioritises simplicity with unified AI model strategy

OpenAI has announced plans to simplify its artificial intelligence product line by combining its o-series and GPT-series models into a unified system. CEO Sam Altman revealed the strategy in a post on X, highlighting the need for more accessible AI tools.

The decision marks a shift away from standalone releases, such as the previously unveiled o3 and o3 mini models.

The company aims to launch GPT-5 as a comprehensive AI system that incorporates the features of earlier models, addressing user concerns about complexity. Altman stressed the importance of creating tools that ‘just work’ while providing no exact timeline for the rollout.

OpenAI also plans to release GPT-4.5, codenamed ‘Orion’, as its final non-chain-of-thought model.

The announcement follows increased scrutiny over AI development costs, with competitors like China’s DeepSeek introducing more affordable alternatives. The move aligns with OpenAI’s efforts to remain competitive while addressing usability issues.

By streamlining its offerings, OpenAI hopes to deliver systems capable of handling diverse tasks and leveraging available tools seamlessly. The new roadmap reflects a broader industry trend towards efficiency and user-centric design.

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Adobe unveils AI video tool with new pricing model

Adobe has launched the first public version of its AI-powered video generation tool, Firefly Video Model, introducing competition to OpenAI’s Sora and Runway’s video-generation services. The tool is designed to integrate with Adobe’s Premiere Pro software, making it useful for film and television professionals. Instead of focusing on generating long video clips, Adobe’s model helps improve or extend real production shots that need adjustments.

The tool currently produces five-second clips at 1080p resolution, shorter than OpenAI’s 20-second limit, but Adobe argues that most production clips are only a few seconds long. Pricing starts at $9.99 for 20 clips per month and $29.99 for 70 clips, with a separate ‘Premium’ plan for high-volume users like studios to be announced later this year. Adobe is also working on 4K video generation, prioritising visual quality over longer clips.

Vice President of Generative AI Alexandru Costin emphasised that Adobe aims to make AI-generated video look as realistic as traditional filming. The company remains focused on improving motion, structure, and image quality rather than extending clip duration. Meta Platforms is also developing a video-generation model, but has not yet confirmed a release date.

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OpenAI accuses Musk of hypocrisy

Elon Musk’s $97.4 billion bid to acquire OpenAI’s assets has sparked controversy, with OpenAI accusing him of contradicting his own legal claims.

Musk’s lawsuit, filed in August, argues that OpenAI’s assets should remain in a charitable trust and not be transferred for private gain. OpenAI has called his offer ‘an improper bid to undermine a competitor’.

The dispute comes as OpenAI seeks to transition into a for-profit organisation to secure funds for advanced AI development. Musk, a co-founder of OpenAI who left before ChatGPT’s rise in 2022, has launched his own AI startup, xAI, in 2023.

OpenAI’s letter to a federal court highlights the clash between Musk’s stated opposition to privatising its assets and his attempt to acquire them with private investors. The AI company argues that Musk’s bid undermines his legal position and the nonprofit’s mission.

Representatives for Musk have yet to comment. OpenAI continues to defend its transition plan, emphasising the need for substantial investment to remain competitive in the fast-evolving AI landscape.

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Musk claims Grok 3 outperforms rivals

Elon Musk announced on Thursday that his AI chatbot, Grok 3, is nearing completion and will be released in the next week or two. In a video call at the World Governments Summit in Dubai, Musk stated that Grok 3 exhibits powerful reasoning capabilities, outperforming other AI models in tests conducted so far. This new AI is being developed through Musk’s company, xAI, which he founded to rival OpenAI and Google.

Musk, also a co-founder of OpenAI, has been outspoken in his criticism of the AI startup. Recently, a consortium led by Musk made a $97.4 billion offer to acquire OpenAI’s nonprofit assets, a move that comes amid Musk’s ongoing legal battle with OpenAI. He is challenging the company’s decision to transition to a for-profit model, arguing that it undermines its original nonprofit mission.

In addition to discussing AI, Musk shared his thoughts on reducing US government spending, suggesting that $1 trillion could be saved by cutting inefficiencies. He also spoke on international matters, advising the US to be less involved in other countries’ affairs. Musk’s comments followed a partnership announcement with UAE AI Minister Omar Al Olama on a futuristic underground transport system called the “Dubai Loop.”

Musk’s remarks at the summit highlighted his wide-ranging influence, not only in technology but also in global political and economic discussions.

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Baidu to launch Ernie 5 AI in 2025

Baidu, China’s tech giant, is set to unveil the next version of its AI model, Ernie 5, in the second half of 2025. This new iteration will introduce multimodal capabilities, allowing it to process and convert a variety of formats such as text, video, images, and audio, offering significant advancements in AI technology.

The release is timed to respond to increasing competition in China’s rapidly developing AI sector, particularly from the startup DeepSeek. The company has gained attention with a reasoning model that rivals OpenAI’s GPT while offering lower costs. Despite being one of the first to enter the AI space in China after the debut of ChatGPT in 2022, Baidu has faced challenges in gaining widespread adoption of its Ernie model.

Baidu’s AI offerings have struggled to keep pace with competitors like ByteDance’s Doubao chatbot and DeepSeek in terms of user uptake. The company maintains that its latest version, Ernie 4, is comparable to OpenAI’s GPT-4, but the adoption rate has been slower than anticipated. CEO Robin Li acknowledged the unpredictable nature of innovation, noting DeepSeek’s rise as a reminder that the future of AI is uncertain and can emerge from unexpected places.

Li also stressed the importance of continued investment in data centres and cloud infrastructure to keep up with the evolving demands of AI, even as newer models, such as DeepSeek’s, challenge the cost-efficiency of large AI models.

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Positron raises millions to challenge Nvidia in AI chips

AI chip startup Positron has raised $23.5 million in a bid to compete with industry leader Nvidia. The Reno-based company, which manufactures its chips in Arizona, claims its processors consume less than a third of the power of Nvidia’s high-performance H100 chips while maintaining similar capabilities. Investors in the funding round included Valor Equity Partners, Atreides Management, and Flume Ventures.

Positron’s chips are designed for AI inference, the stage where trained AI models are used rather than developed. While demand is currently higher for training chips, analysts predict that inference chips could soon become the more sought-after option as AI applications expand. This shift has led major players such as OpenAI, Google, and Meta to invest heavily in AI infrastructure, with spending expected to reach tens of billions of dollars this year.

Although Nvidia dominates roughly 80% of the AI chip market, rising costs and concerns over reliance on a single supplier have pushed major tech firms to seek alternatives. With its latest funding, Positron positions itself as a strong contender in the growing US and global AI chip industry, offering a more energy-efficient option for future AI applications.

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Musk bids $97.4 billion-dollar to reclaim control over OpenAI

Elon Musk has reignited his rivalry with OpenAI by leading a consortium in a staggering $97.4 billion bid to acquire the nonprofit that governs the ChatGPT creator. The move is the latest chapter in Musk’s long-running battle with OpenAI CEO Sam Altman, who swiftly dismissed the offer with a sarcastic post on X, suggesting he would buy Musk’s platform for $9.74 billion instead. The dramatic exchange highlights the growing tensions surrounding OpenAI’s controversial shift from a nonprofit to a for-profit entity, a transition that Musk has legally challenged, claiming it betrays the company’s original mission of prioritising AI safety over profit.

Musk co-founded OpenAI with Altman in 2015, envisioning an organisation dedicated to open-source AI research for the benefit of humanity. However, he parted ways with the company before it became a dominant force in generative AI. Since then, Musk has launched his own AI venture, xAI, which recently secured $6 billion in funding at a $40 billion valuation. His latest bid to acquire OpenAI comes when the company is seeking new investments to fuel its growth, with reports suggesting that SoftBank is in talks to lead a funding round that would push OpenAI’s valuation to an eye-watering $300 billion.

Musk’s legal battle with OpenAI hinges on the argument that the organisation’s leaders, including Altman, have violated their original agreement by prioritising commercial interests over AI safety and transparency. His lawsuit seeks to block OpenAI’s shift to a for-profit structure, and now, his surprise takeover bid could throw a major obstacle in the company’s fundraising efforts. The consortium backing Musk’s offer includes Baron Capital Group and Emanuel Capital, signalling that serious financial players support the bid. Analysts suggest that OpenAI’s board has a fiduciary duty to consider the offer, given its substantial valuation and potential legal complications.

Financing such a deal would require Musk to tap into his vast wealth, with options including selling Tesla stock, leveraging assets from SpaceX, or securing loans against his holdings. However, his financial leverage is likely constrained after his $44 billion acquisition of X (formerly Twitter), and securing additional funding for such a massive bid could prove challenging. Meanwhile, OpenAI, currently valued at $157 billion, remains in talks with investors for its expansion, and any disruption caused by Musk’s move could impact its ability to raise funds on favourable terms.

Why does it matter?

Legal experts and industry analysts view Musk’s bid as a significant disruption to OpenAI’s trajectory. Jonathan Macey, a corporate governance professor at Yale Law School, noted that the nonprofit’s board is now in a difficult position, as rejecting a higher offer in favour of a different funding strategy could raise concerns about whether the board is acting in the best interest of OpenAI’s original mission. Furthermore, Musk’s criticism of OpenAI’s partnership with Microsoft, a key investor in the company, adds another layer of complexity to the situation, as Microsoft remains a powerful force in shaping OpenAI’s future direction.

If Musk’s plan succeeds, he could steer OpenAI back toward an open-source, safety-focused model, aligning with his publicly stated goals of ensuring AI development remains transparent and ethical. However, if OpenAI resists, it could face prolonged legal battles and financial uncertainties that might slow its rapid expansion. Either way, Musk’s aggressive push to reclaim influence over OpenAI could reshape the company’s approach and future business plans.