OpenAI

OpenAI, G42 plan world’s largest AI data facility

OpenAI is reportedly set to become the anchor tenant in a 5-gigawatt data centre project in Abu Dhabi, part of what could become one of the largest AI infrastructure builds globally, according to Bloomberg.

The facility, spanning approximately 10 square miles, is being developed by UAE-based tech firm G42 as part of OpenAI’s broader Stargate initiative, a joint venture announced with SoftBank and Oracle to establish high-capacity AI data centres worldwide.

While OpenAI’s first Stargate facility in Texas is projected to reach 1.2 gigawatts, the Abu Dhabi project would more than quadruple that. The planned scale would consume power equivalent to five nuclear reactors.

OpenAI and G42 have collaborated since 2023 to accelerate AI adoption in the Middle East. The partnership has sparked concerns among US officials, particularly around G42’s past ties to Chinese firms, including Huawei and BGI.

G42 has since pledged to divest from China and shift its focus. In early 2024, Microsoft invested $1.5 billion in G42, and company president Brad Smith joined its board, reinforcing US–UAE tech ties. An official statement from OpenAI on the project is still pending.

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CoreWeave shares rebound after $4B OpenAI partnership announcement

Shares of AI cloud infrastructure company CoreWeave recovered on Thursday, gaining around 3% after the firm announced an expanded partnership with OpenAI worth up to $4 billion.

The deal helped ease investor concerns following the company’s earlier dip in trading.

CoreWeave stock had fallen as much as 9.1% earlier in the day after the company projected annual capital expenditures for 2025 would be roughly four times higher than expected revenue.

The forecast was included in CoreWeave’s first earnings report since going public in March.

The expanded agreement with OpenAI appears to have lifted investor sentiment, offsetting concerns about the company’s aggressive spending strategy as it builds out its AI-focused cloud infrastructure.

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OpenAI launches AI safety hub

OpenAI has launched a public online hub to share internal safety evaluations of its AI models, aiming to increase transparency around harmful content, jailbreaks, and hallucination risks. The hub will be updated after major model changes, allowing the public to track progress in safety and reliability over time.

The move follows growing criticism about the company’s testing methods, especially after inappropriate ChatGPT responses surfaced in late 2023. Instead of waiting for backlash, OpenAI is now introducing an optional alpha testing phase, letting users provide feedback before wider model releases.

The hub also marks a departure from the company’s earlier stance on secrecy. In 2019, OpenAI withheld GPT-2 over misuse concerns. Since then, it has shifted towards transparency by forming safety-focused teams and responding to calls for open safety metrics.

OpenAI’s approach appears timely, as several countries are building AI Safety Institutes to evaluate models before launch. Instead of relying on private sector efforts alone, the global landscape now reflects a multi-stakeholder push to create stronger safety standards and governance for advanced AI.

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Harvey adds Google and Anthropic AI

Harvey, the fast-growing legal AI startup backed early by the OpenAI Startup Fund, is now embracing foundation models from Google and Anthropic instead of relying solely on OpenAI’s.

In a recent blog post, the company said it would expand its AI model options after internal benchmarks showed that different tools excel at different legal tasks.

The shift marks a notable win for OpenAI’s competitors, even though Harvey insists it’s not abandoning OpenAI. Its in-house benchmark, BigLaw, revealed that several non-OpenAI models now outperform Harvey’s original system on specific legal functions.

For instance, Google’s Gemini 2.5 Pro performs well at legal drafting, while OpenAI’s o3 and Anthropic’s Claude 3.7 Sonnet are better suited for complex pre-trial work.

Instead of building its own models, Harvey now aims to fine-tune top-tier offerings from multiple vendors, including through Amazon’s cloud. The company also plans to launch a public legal benchmark leaderboard, combining expert legal reviews with technical metrics.

While OpenAI remains a close partner and investor, Harvey’s broader strategy signals growing competition in the race to serve the legal industry with AI.

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OpenAI backs away from for-profit transition amid scrutiny

OpenAI has announced it will no longer pursue a full transition to a for-profit company. Instead, it will restructure its commercial arm as a public benefit corporation (PBC), retaining oversight by its nonprofit board.

The move comes after discussions with the attorneys general of California and Delaware, and growing concerns about governance and mission drift. The nonprofit board—best known for briefly removing CEO Sam Altman—will continue to oversee the company and appoint the PBC board.

Investors will now hold regular, uncapped equity in the PBC, replacing the previous 100x return cap, a change designed to attract future funding. The nonprofit will also gain a growing equity stake in the business arm.

In a message to staff, Altman said OpenAI remains committed to building AI that benefits humanity and sees this structure as the best path forward. Critics, including former staff, say questions remain about technology ownership and long-term priorities.

At the same time, Meta is positioning itself as a major rival. It recently launched a standalone AI assistant app, powered by its Llama 4 model and available across platforms including Ray-Ban smart glasses. The app includes a social Discover feed, encouraging interaction with shared AI outputs.

OpenAI’s new structure attempts to balance commercial growth with ethical governance—a model that may influence how other AI firms approach funding, control, and public accountability.

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Microsoft and OpenAI rework billion dollar deal

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.

According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.

The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.

The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.

The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.

Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.

The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.

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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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