OpenAI

OpenAI negotiates $500m deal for AI startup

OpenAI is reportedly in talks to acquire io Products, an AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman, in a deal that could exceed $500 million.

Instead of focusing solely on software like ChatGPT and API tools, OpenAI appears to be eyeing consumer devices as a way to diversify its revenue.

io Products is said to be working on AI-powered consumer tech, including a screenless smartphone and smart home gadgets.

The company’s team includes several former Apple designers, such as Tang Tan and Evans Hankey. Instead of traditional screens, these new devices are expected to explore more ambient and context-aware ways of interaction.

Jony Ive, best known for his role in designing iconic Apple products like the iPhone and iMac, left Apple in 2019 to launch his design consultancy, LoveFrom.

His collaboration with Altman on io Products was publicly confirmed last year and has already drawn interest from high-profile backers, including Laurene Powell Jobs. Funding for the startup was projected to reach $1 billion by the end of 2024.

The move echoes Altman’s previous investments in AI hardware, such as Humane Inc., a wearable tech startup that also focused on screenless interaction. Instead of scaling that venture, however, HP acquired some of Humane’s assets for $166 million earlier this year.

OpenAI’s potential acquisition of io Products could mark a significant shift toward physical consumer products in the AI space.

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Copyright lawsuits against OpenAI and Microsoft combined in AI showdown

Twelve copyright lawsuits filed against OpenAI and Microsoft have been merged into a single case in the Southern District of New York.

The US judicial panel on multidistrict litigation decided to consolidate, despite objections from many plaintiffs who argued their cases were too distinct.

The lawsuits claim that OpenAI and Microsoft used copyrighted books and journalistic works without consent to train AI tools like ChatGPT and Copilot.

The plaintiffs include high-profile authors—Ta-Nehisi Coates, Sarah Silverman, Junot Díaz—and major media outlets such as The New York Times and Daily News.

The panel justified the centralisation by citing shared factual questions and the benefits of unified pretrial proceedings, including streamlined discovery and avoidance of conflicting rulings.

OpenAI has defended its use of publicly available data under the legal doctrine of ‘fair use.’

A spokesperson stated the company welcomed the consolidation and looked forward to proving that its practices are lawful and support innovation. Microsoft has not yet issued a comment on the ruling.

The authors’ attorney, Steven Lieberman, countered that this is about large-scale theft. He emphasised that both Microsoft and OpenAI have, in their view, infringed on millions of protected works.

Some of the same authors are also suing Meta, alleging the company trained its models using books from the shadow library LibGen, which houses over 7.5 million titles.

Simultaneously, Meta faced backlash in the UK, where authors protested outside the company’s London office. The demonstration focused on Meta’s alleged use of pirated literature in its AI training datasets.

The Society of Authors has called the actions illegal and harmful to writers’ livelihoods.

Amazon also entered the copyright discussion this week, confirming its new Kindle ‘Recaps’ feature uses generative AI to summarise book plots.

While Amazon claims accuracy, concerns have emerged online about the reliability of AI-generated summaries.

In the UK, lawmakers are also reconsidering copyright exemptions for AI companies, facing growing pressure from creative industry advocates.

The debate over how AI models access and use copyrighted material is intensifying, and the decisions made in courtrooms and parliaments could radically change the digital publishing landscape.

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Sam Altman’s AI cricket post fuels India speculation

A seemingly light-hearted social media post by OpenAI CEO Sam Altman has stirred a wave of curiosity and scepticism in India. Altman shared an AI-generated anime image of himself as a cricket player dressed in an Indian jersey, which quickly went viral among Indian users.

While some saw it as a fun gesture, others questioned the timing and motives, speculating whether it was part of a broader strategy to woo Indian audiences. This isn’t the first time Altman has publicly praised India.

In recent weeks, he lauded the country’s rapid adoption of AI technology, calling it ‘amazing to watch’ and even said it was outpacing the rest of the world. His comments marked a shift from a more dismissive stance during a 2023 visit when he doubted India’s potential to compete with OpenAI’s large-scale models.

However, during his return visit in February 2025, he expressed interest in collaborating with Indian authorities on affordable AI solutions. The timing of Altman’s praise coincides with a surge in Indian users on OpenAI’s platforms, now the company’s second-largest market.

Meanwhile, OpenAI faces a legal tussle with several Indian media outlets over their alleged content misuse. Despite this, the potential of India’s booming AI market—projected to hit $8 billion by 2025—makes the country a critical frontier for global tech firms.

Experts argue that Altman’s overtures are more about business than sentiment. With increasing competition from rival AI models like DeepSeek and Gemini, maintaining and growing OpenAI’s Indian user base has become vital. As technology analyst Nikhil Pahwa said, ‘There’s no real love; it’s just business.’

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OpenAI backs Adaptive Security in the battle against AI threats

AI-driven cyber threats are on the rise, making it easier than ever for hackers to deceive employees through deepfake scams and phishing attacks.

OpenAI, a leader in generative AI, has recognised the growing risk and made its first cybersecurity investment in New York-based startup Adaptive Security. The company has secured $43 million in Series A funding, co-led by OpenAI’s startup fund and Andreessen Horowitz.

Adaptive Security helps companies prepare for AI-driven cyberattacks by simulating deepfake calls, texts, and emails. Employees may receive a phone call that sounds like their CTO, asking for sensitive information, but in reality, it is an AI-generated test.

The platform identifies weak points in a company’s security and trains staff to recognise potential threats. Social engineering scams, which trick employees into revealing sensitive data, have already led to massive financial losses, such as the $600 million Axie Infinity hack in 2022.

CEO Brian Long, a seasoned entrepreneur, says the funding will go towards hiring engineers and improving the platform to keep pace with evolving AI threats.

The investment comes amid a surge in cybersecurity funding, with companies like Cyberhaven, Snyk, and GetReal also securing major investments.

As cyber risks become more advanced, Long advises employees to take simple precautions, including deleting voicemails to prevent hackers from cloning their voices.

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OpenAI’s Deep Research feature to expand to free users

OpenAI is preparing to make its Deep Research feature available to free-tier users, following its initial rollout to Plus and Enterprise customers.

The tool, designed to conduct in-depth online research, allows ChatGPT to analyse vast amounts of information, synthesise key findings, and generate detailed reports. Isa Fulford, a member of OpenAI’s technical staff, recently confirmed the planned expansion in a post on X.

Deep Research is powered by an optimised version of the o3 model, which enhances web browsing and data analysis capabilities.

Users can request reports on various topics, such as global smartphone adoption trends, and receive summaries with citations, graphs, and insights. The tool can also process text, images, and PDFs from online sources to provide more comprehensive responses.

No official timeline has been announced for when free users will gain access to the feature, but OpenAI’s move signals an effort to expand the accessibility of advanced AI-driven research.

The functionality may also allow users to upload their own files for more personalised analysis, further enhancing the potential of ChatGPT as a research assistant.

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OpenAI CEO says India leads in AI creativity

Sam Altman sparked interest among Indian users on X after praising the country’s rapid AI adoption and sharing an AI-generated image of himself playing cricket. In his 2 April post, the OpenAI CEO called India’s AI creativity an ‘explosion,’ claiming the country was outpacing the world in adoption rates.

Users questioned why Altman singled out India, with some turning to AI chatbots like Perplexity and Grok for verification. His comments followed a February visit to India, where he met IT Minister Ashwini Vaishnaw and highlighted India as OpenAI’s second-largest market.

Altman’s remarks also came shortly after OpenAI’s GPT-4o update, which enhanced AI-generated images and illustrations. To showcase this, he shared an anime-style image of himself as a cricket player, sporting a Team India jersey.

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OpenAI is now valued at $300 billion after new funding

OpenAI has secured a $40 billion funding deal from SoftBank, pushing its valuation to $300 billion instead of staying below that mark, making it the third most valuable private company in the world.

It now ranks behind Elon Musk’s SpaceX, valued at around $350 billion, instead of taking the top spot, and TikTok’s parent company, ByteDance, which stands at approximately $315 billion.

The valuation surpasses major firms like Chevron, Salesforce, McDonald’s, Pepsico, and Samsung instead of lagging behind them.

Funding is structured in two phases, beginning with an initial $10 billion investment. The remaining $30 billion is expected to be provided by the end of 2025, as reported by the New York Times.

OpenAI stated that this capital will allow the company to advance AI research instead of stagnating and expand its infrastructure with more powerful tools.

Founded in 2015 as a non-profit, OpenAI later shifted to a capped-profit model to attract investment instead of relying solely on donations while continuing its work in AI development.

Despite facing operational challenges and legal disputes, including a high-profile lawsuit from Musk opposing its transition to a profit-driven model, OpenAI has continued to grow.

Its ChatGPT platform now boasts 500 million weekly users instead of seeing a decline. In February, investors, including Musk, sought control of the firm, but CEO Sam Altman firmly rejected the proposal, reaffirming that ‘OpenAI is not for sale’ instead of giving in to external pressure.

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ChatGPT adds one million users per hour with AI image tool

OpenAI’s ChatGPT is experiencing unprecedented growth following the release of its new AI image generation feature. According to CEO Sam Altman, the AI tool has been attracting one million new users per hour, spurred by what he described as ‘biblical demand.’

The GPT-4o model, now available to free users, has quickly become a sensation, drawing comparisons to the app’s initial launch 26 months ago.

The latest update allows users to generate highly detailed visuals, including logos, diagrams, and imagery with precise meaning. OpenAI has touted GPT-4o’s ability to accurately render text, follow prompts closely, and draw from its extensive knowledge base to produce tailored visuals.

Popular uses include crafting images in the style of Studio Ghibli, which has led to a flood of creative outputs shared across social media platforms.

However, the overwhelming popularity has strained OpenAI’s resources. Sam Altman acknowledged the situation by noting that their GPUs were ‘melting’ under the pressure.

To manage the surge, OpenAI implemented temporary rate limits to enhance efficiency and maintain service quality.

The company’s success has also attracted significant investment, with OpenAI securing $40 billion in funding, bringing its valuation to $300 billion.

Since launching in November 2022, ChatGPT has amassed 500 million users, solidifying its position as one of the most influential AI platforms globally.

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OpenAI expands image generator access to all users

OpenAI has made its image generator, powered by the GPT-4o model, accessible to all users, CEO Sam Altman announced on X. Previously, this feature was available only to paying ChatGPT subscribers.

While there is no clear indication of how many images free-tier users can create, Altman previously mentioned a possible limit of three per day.

The tool has seen massive demand since its launch, with Altman joking that OpenAI’s GPUs were ‘melting’ under the pressure. However, it has also sparked controversy, particularly after users began generating images in the style of Studio Ghibli, raising copyright concerns.

Others have used the generator to create fake receipts, such as restaurant bills. OpenAI has responded by stating that all AI-generated images contain metadata identifying them and that the company takes action when violations occur.

In a major financial development, OpenAI has secured $40 billion in funding from SoftBank, valuing the company at $300 billion. The company also revealed that ChatGPT now boasts 500 million weekly active users and 700 million monthly active users, marking a significant milestone in its growth.

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OpenAI’s Ghibli-style tool raises privacy and data issues

OpenAI’s Ghibli-style AI image generator has taken social media by storm, with users eagerly transforming their photos into artwork reminiscent of Hayao Miyazaki’s signature style.

However, digital privacy activists are raising concerns that OpenAI might use this viral trend to collect thousands of personal images for AI training, potentially bypassing legal restrictions on web-scraped data.

Critics warn that while users enjoy the feature, they could unknowingly be handing over fresh facial data instead of protecting their privacy, raising ethical questions about AI and data collection.

Beyond privacy concerns, the trend has also reignited debates about AI’s impact on creative industries. Miyazaki, known for his hand-drawn approach, has previously expressed scepticism about artificial intelligence in animation.

Additionally, under GDPR regulations, OpenAI must justify data collection under “legitimate interest,” but experts argue that users voluntarily uploading images could give the company more freedom to use them instead of requiring further legal justification.

OpenAI has yet to issue an official statement regarding data safety, but ChatGPT itself warns users against uploading personal photos to any AI tool unless they are certain about its privacy policies.

Cybersecurity experts advise people to think twice before sharing high-resolution images online, use passwords instead of facial recognition for device security, and limit app access to their cameras.

As AI-generated image trends continue to gain popularity, the debate over privacy and data ownership is unlikely to fade anytime soon.

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