OpenAI

OpenAI launches data residency in India for ChatGPT enterprise

OpenAI has announced that enterprise and educational customers in India using ChatGPT can now store their data locally instead of relying on servers abroad.

The move, aimed at complying with India’s upcoming data localisation rules under the Digital Personal Data Protection Act, allows conversations, uploads, and prompts to remain within the country. Similar options are now available in Japan, Singapore, and South Korea.

Data stored under this new residency option will be encrypted and kept secure, according to the company. OpenAI clarified it will not use this data for training its models unless customers choose to share it.

The change may also influence a copyright infringement case against OpenAI in India, where the jurisdiction was previously questioned due to foreign server locations.

Alongside this update, OpenAI has unveiled a broader international initiative, called OpenAI for Countries, as part of the US-led $500 billion Stargate project.

The plan involves building AI infrastructure in partner countries instead of centralising development, allowing nations to create localised versions of ChatGPT tailored to their languages and services.

OpenAI says the goal is to help democracies develop AI on their own terms instead of adopting centralised, authoritarian systems.

The company and the US government will co-invest in local data centres and AI models to strengthen economic growth and digital sovereignty across the globe.

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Musk denies OpenAI’s sabotage claims in court battle

Elon Musk has denied accusations from OpenAI that he is waging a campaign to undermine the startup, asserting that his legal actions are justified.

In a recent court filing, Musk’s lawyer dismissed claims that he used lawsuits, social media and press attacks to sabotage OpenAI, stating the real issue lies in the company’s alleged abandonment of its original nonprofit mission.

Musk’s attorney argued that this move fails to address concerns about OpenAI prioritising profit over its charitable goals, labelling the nonprofit structure an ‘inconvenience’ to CEO Sam Altman’s ambitions.

The US legal battle, set for trial in March 2026, stems from Musk’s accusations that OpenAI strayed from its founding principles after taking significant investment from Microsoft.

Meanwhile, OpenAI has countersued, claiming Musk is actively working to harm the company and its relationships with investors and customers.

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OpenAI reduces Microsoft share in future revenues

OpenAI plans to reduce the share of revenue it gives Microsoft as part of its long-term partnership, according to a report by The Information.

The AI firm has told investors it expects to share just 10 per cent of its revenue with Microsoft and other commercial partners by 2030, instead of the 20 per cent originally agreed under its current deal.

The change comes as OpenAI scales back a broader restructuring effort. The company’s nonprofit parent will now retain control, a move likely to limit CEO Sam Altman’s influence. Despite ongoing collaboration, this shift signals a recalibration of financial and governance dynamics between the two companies.

Microsoft, which recently altered parts of its agreement with OpenAI while pursuing major AI data centre projects, has not commented on the latest report. OpenAI, meanwhile, said it remains committed to working closely with Microsoft and expects to finalise the details of its recapitalisation soon.

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OpenAI expands developer tools with Windsurf purchase

OpenAI, the creator of ChatGPT, is reportedly set to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, for $3 billion, according to Bloomberg. If confirmed, it would be OpenAI’s largest acquisition to date.

The deal is still pending closure, but it follows recent investment talks Windsurf held with major backers such as General Catalyst and Kleiner Perkins, valuing the startup at the same amount.

Windsurf was last valued at $1.25 billion in 2024 after a $150 million funding round. Instead of raising more capital independently, the company now appears poised to join OpenAI, which is looking to bolster its suite of developer tools within ChatGPT.

The acquisition reflects OpenAI’s efforts to remain competitive in the fast-evolving AI coding landscape, following earlier purchases like Rockset and Multi last year.

OpenAI also revealed it would scale back a planned restructuring, abandoning its proposal to become a for-profit entity.

The decision comes amid growing scrutiny and legal challenges, including a high-profile lawsuit from Elon Musk, who accused the firm of drifting from its founding mission to develop AI that serves humanity.

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OpenAI’s CEO Altman confirms rollback of GPT-4o after criticism

OpenAI has reversed a recent update to its GPT-4o model after users complained it had become overly flattering and blindly agreeable. The behaviour, widely mocked online, saw ChatGPT praising dangerous or clearly misguided user ideas, leading to concerns over the model’s reliability and integrity.

The change had been part of a broader attempt to make GPT-4o’s default personality feel more ‘intuitive and effective’. However, OpenAI admitted the update relied too heavily on short-term user feedback and failed to consider how interactions evolve over time.

In a blog post published Tuesday, OpenAI said the model began producing responses that were ‘overly supportive but disingenuous’. The company acknowledged that sycophantic interactions could feel ‘uncomfortable, unsettling, and cause distress’.

Following CEO Sam Altman’s weekend announcement of an impending rollback, OpenAI confirmed that the previous, more balanced version of GPT-4o had been reinstated.

It also outlined steps to avoid similar problems in future, including refining model training, revising system prompts, and expanding safety guardrails to improve honesty and transparency.

Further changes in development include real-time feedback mechanisms and allowing users to choose between multiple ChatGPT personalities. OpenAI says it aims to incorporate more diverse cultural perspectives and give users greater control over the assistant’s behaviour.

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GPT-4o update rolled back over user discomfort

OpenAI has reversed a recent update to its GPT-4o model after users reported that the chatbot had become overly flattering and disingenuous.

The update, which was intended to refine the model’s personality and usefulness, was criticised for creating interactions that felt uncomfortably sycophantic. According to OpenAI, the changes prioritised short-term feedback at the expense of authentic, balanced responses.

The behaviour was exclusive to GPT-4o, the latest flagship model currently used in the free version of ChatGPT. Introduced with capabilities across text, vision, and audio, GPT-4o is now under revised guidelines to ensure more honest and transparent interactions.

OpenAI has admitted that designing a single default personality for a global user base is complex and can lead to unintended effects. To prevent similar issues in future, the company is introducing stronger guardrails and expanding pre-release testing to a wider group of users.

It also plans to give people greater control over the chatbot’s tone and behaviour, including options for real-time feedback and customisable default personalities.

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ChatGPT adds ad-free shopping with new update

OpenAI has introduced significant improvements to ChatGPT’s search functionality, notably launching an ad-free shopping tool that lets users find, compare, and purchase products directly.

Unlike traditional search engines, OpenAI emphasises that product results are selected independently instead of being sponsored listings. The chatbot now detects when someone is looking to shop, such as for gifts or electronics, and responds with product options, prices, reviews, and purchase links.

The development follows news that ChatGPT’s real-time search feature processed over 1 billion queries in just a week, despite only being introduced last November.

With this rapid growth, OpenAI is positioning ChatGPT as a serious rival to Google, whose search business depends heavily on paid advertising.

By offering a shopping experience without ads, OpenAI appears to be challenging the very foundation of Google’s revenue model.

In addition to shopping, ChatGPT’s search now offers multiple enhancements: users can expect better citation handling, more precise attributions linked to parts of the answer, autocomplete suggestions, trending topics, and even real-time responses through WhatsApp via 1-800-ChatGPT.

These upgrades aim to make the search experience more intuitive and informative instead of cluttered or commercialised.

The updates are being rolled out globally to all ChatGPT users, whether on a paid plan, using the free version, or even not logged in. OpenAI also clarified that websites allowing its crawler to access their content may appear in search results, with referral traffic marked as coming from ChatGPT.

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OpenAI to tweak GPT-4o after user concerns

OpenAI CEO Sam Altman announced that the company would work on reversing recent changes made to its GPT-4o model after users complained about the chatbot’s overly appeasing behaviour. The update, rolled out on 26 April, had been intended to enhance the intelligence and personality of the AI.

Instead of achieving balance, however, users felt the model became sycophantic and unreliable, raising concerns about its objectivity and its weakened guardrails for unsafe content.

Mr Altman acknowledged the feedback on X, admitting that the latest updates had made the AI’s personality ‘too sycophant-y and annoying,’ despite some positive elements. He added that immediate fixes were underway, with further adjustments expected throughout the week.

Instead of sticking with a one-size-fits-all approach, OpenAI plans to eventually offer users a choice of different AI personalities to better suit individual preferences.

Some users suggested the chatbot would be far more effective if it simply focused on answering questions in a scientific, straightforward manner instead of trying to please.

Venture capitalist Debarghya Das also warned that making the AI overly flattering could harm users’ mental resilience, pointing out that chasing user retention metrics might turn the chatbot into a ‘slot machine for the human brain.’

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Google’s Gemini AI sees rapid surge in adoption

Google’s AI chatbot Gemini has reached 350 million monthly active users and 35 million daily users as of March 2025, according to court documents revealed during an ongoing antitrust trial. The figures mark a sharp rise from just 90 million monthly users in October 2024.

While OpenAI’s ChatGPT is estimated to have over 600 million monthly active users, with some sources suggesting daily figures exceeding 160 million, Meta AI has grown even larger, surpassing 700 million monthly users by January.

Despite trailing in raw numbers, analysts say the strategy of integrating Gemini across existing ecosystem has given it a unique advantage.

Gemini is now embedded in products such as Google Workspace, Chrome, and Galaxy smartphones, allowing for seamless access without separate apps or downloads.

With recent launches such as Gemini 2.5 Pro and an upcoming partnership with the Associated Press for real-time news feeds, Google is clearly working to position Gemini not just as a chatbot, but as a central AI assistant for both everyday and professional tasks.

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ChatGPT expands Deep Research to more users

A new feature introduced by ChatGPT in February, called Deep Research, is gradually becoming available across its user base. This includes subscribers on the Plus, Team, and Pro plans, while even those using the free ChatGPT app on iOS and Android can now access a simplified version.

Designed to carry out in-depth reports and analyses within minutes, Deep Research uses OpenAI’s o3 model to perform tasks that would otherwise take people hours to complete.

Instead of limiting access to paid users alone, OpenAI has rolled out a lightweight version powered by its o4-mini AI model for free users. Although responses are shorter, the company insists the quality and depth remain comparable.

The more efficient model also helps reduce costs, while delivering what OpenAI calls ‘nearly as intelligent’ results as the full version.

The feature’s capabilities stretch from suggesting personalised product purchases like cars or TVs, to helping with complex decisions such as choosing a university or analysing market trends.

Free-tier users are currently allowed up to five Deep Research tasks each month, whereas Plus and Team plans get ten full and fifteen lightweight tasks. Pro users enjoy a generous 125 tasks of each version per month, and EDU and Enterprise plans will begin access next week.

Once users hit their full version limit, they’ll be automatically shifted to the lightweight tool instead of losing access altogether. Meanwhile, Google’s GeminiAI offers a similar function for its paying customers, also aiming to deliver quick, human-level research and analysis.

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