OpenAI

AI industry warned of looming financial collapse

Despite widespread popularity and unprecedented investment, OpenAI may be facing a deepening financial crisis. Since launching ChatGPT, the company has lost billions yearly, including an estimated $5 billion in 2024 alone.

Tech critic Ed Zitron argues that the AI industry is heading towards a ‘subprime AI crisis’, comparing the sector’s inflated valuations and spiralling losses to the subprime mortgage collapse in 2007. Startups like OpenAI and Anthropic continue to operate at huge losses.

Companies relying on AI infrastructure are already feeling the squeeze. Anysphere, which uses Anthropic’s models, recently raised prices sharply, angering users and blaming costs passed down from its infrastructure provider.

To manage exploding demand, OpenAI has also introduced tiered pricing and restricted services for free users, raising concerns that access to AI tools will soon be locked behind expensive paywalls. With 800 million weekly users, any future revenue strategy could alienate a large part of its global base.

Zitron believes these conditions cannot sustain long-term growth and will ultimately damage revenues and public trust. The industry, he warns, may be building its future on unstable ground.

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ChatGPT quietly tests new ‘Study Together’ feature for education

A few ChatGPT users have noticed a new option called ‘Study Together’ appearing among available tools, though OpenAI has yet to confirm any official rollout. The feature seems designed to make ChatGPT a more interactive educational companion than just delivering instant answers.

Rather than offering direct solutions, the tool prompts users to think for themselves by asking questions, potentially turning ChatGPT into a digital tutor.

Some speculate the mode might eventually allow multiple users to study together in real-time, mimicking a virtual study group environment.

With the chatbot already playing a significant role in classrooms — helping teachers plan lessons or assisting students with homework — the ‘Study Together’ feature might help guide users toward deeper learning instead of enabling shortcuts.

Critics have warned that AI tools like ChatGPT risk undermining education, so it could be a strategic shift to encourage more constructive academic use.

OpenAI has not confirmed when or if the feature will launch publicly, or whether it will be limited to ChatGPT Plus users. When asked, ChatGPT only replied that nothing had been officially announced.

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Sam Altman shrugs off Meta poaching, backs Trump, jabs at Musk

OpenAI CEO Sam Altman addressed multiple hot topics during the Sun Valley conference, including Meta’s aggressive recruitment of top AI researchers, his strained relationship with Elon Musk, and a surprising show of support for Donald Trump.

Altman downplayed Meta’s talent raids, saying he had not spoken to Mark Zuckerberg since the Meta CEO lured away three OpenAI researchers with a $100 million signing bonus. All three had worked at OpenAI’s Zurich office, which opened in 2024.

Despite the losses, Altman described the situation as ‘fine’ and ‘good’, suggesting OpenAI’s mission continues to retain top talent.

The OpenAI chief also took a subtle swipe at Meta’s smartglasses, saying he doesn’t like wearable tech and implying his company has no plans to follow suit.

On the topic of Elon Musk, Altman laughed off their rivalry, saying only that Musk’s bust-ups with everybody, and hinting at the long-running tension between the two former co-founders.

Perhaps most notably, Altman expressed disillusionment with the Democratic Party, saying he no longer feels represented by mainstream figures he once supported.

He praised Donald Trump’s focus on AI infrastructure. He even donated $1 million to Trump’s inaugural fund — a gesture reflecting a broader shift among Silicon Valley leaders warming to Trump as his popularity rises.

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OpenAI locks down operations after DeepSeek model concerns

OpenAI has significantly tightened its internal security following reports that DeepSeek may have replicated its models. DeepSeek allegedly used distillation techniques to launch a competing product earlier this year, prompting a swift response.

OpenAI has introduced strict access protocols to prevent information leaks, including fingerprint scans, offline servers, and a policy restricting internet use without approval. Sensitive projects such as its AI o1 model are now discussed only by approved staff within designated areas.

The company has also boosted cybersecurity staffing and reinforced its data centre defences. Confidential development information is now shielded through ‘information tenting’.

These actions coincide with OpenAI’s $30 billion deal with Oracle to lease 4.5 gigawatts of data centre capacity across the United States. The partnership plays a central role in OpenAI’s growing Stargate infrastructure strategy.

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Lithuania questions legality of Robinhood’s new tokens

Robinhood’s new blockchain tokens, which are tied to firms like SpaceX and OpenAI, are under EU scrutiny, with Lithuania’s central bank reviewing whether the product meets financial rules.

The tokens, introduced on 30 July, allow retail investors to gain exposure to high-profile private firms through digital assets. Although Robinhood offered a promotional giveaway to attract EU users, questions quickly arose over the product’s legal classification and how it was marketed to the public.

OpenAI has publicly stated it has no affiliation with Robinhood and has not authorised share transfers. Robinhood responded by confirming that the tokens do not represent actual equity but provide access to the value of private firms via non-equity instruments.

Regulators are now assessing whether the product meets compliance standards and whether investor information has been presented clearly and accurately. The central bank has requested further details before issuing a formal judgement.

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OpenAI rejects Robinhood’s token offering

OpenAI has publicly disavowed Robinhood’s decision to sell so-called ‘OpenAI tokens’, warning that these blockchain-based contracts do not offer real equity in the company.

In a statement posted on X, OpenAI made clear that it had not approved, endorsed, or participated in the initiative and emphasised that any equity transfer requires its direct consent.

Robinhood recently announced plans to offer tokenised access to private firms like OpenAI and SpaceX for investors in the EU. The tokens do not represent actual shares but mimic price movements using blockchain contracts.

Despite OpenAI’s sharp rejection, Robinhood’s stock surged to record highs following the announcement.

A Robinhood spokesperson later claimed the tokens were linked to a special purpose vehicle (SPV) that owns OpenAI shares, though SPVs do not equate to direct ownership either.

The company said the move aims to give everyday investors indirect exposure to high-profile startups through digital contracts.

Robinhood CEO Vlad Tenev defended the strategy on X, saying the token sale was just the beginning of a broader effort to democratise access to private markets.

OpenAI, meanwhile, declined to comment further.

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OpenAI and Oracle join forces for massive AI data centre expansion

OpenAI had signed a significant cloud computing deal with Oracle worth $30 billion per year, aiming to secure around 4.5GW of capacity through the Stargate joint venture, in which Oracle is a key investor.

Oracle plans to develop several large-scale data centres across the United States, including a potential expansion of its Abilene, Texas, site from 1.2GW to 2GW.

According to reports from Bloomberg and the Financial Times, other locations under consideration include Michigan, Wisconsin, Wyoming, New Mexico, Georgia, Ohio, and Pennsylvania.

In addition to its collaboration with Oracle, OpenAI continues using Microsoft Azure as its primary cloud provider and works with CoreWeave and Google. Notably, OpenAI leverages Google’s custom TPUs in some operations.

Despite the partnerships, OpenAI is pursuing plans to build its data centre infrastructure. The company also intends to construct a Stargate campus in the United Arab Emirates, in collaboration with Oracle, Nvidia, Cisco, SoftBank, and G42, and is scouting global locations for future facilities.

The massive investment underscores OpenAI’s growing compute needs and the global scale of its AI ambitions.

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Apple may use ChatGPT or Claude to power Siri

Apple is reportedly in talks with OpenAI and Anthropic as it considers outsourcing AI technology for its voice assistant, Siri.

The discussions are said to include the possibility of training versions of ChatGPT or Claude to run on Apple’s cloud infrastructure. According to Bloomberg’s Mark Gurman, Apple is currently leaning towards Anthropic’s Claude as a better fit for Siri, although no final decision has been made.

While Apple already allows users to access ChatGPT through its Apple Intelligence platform, the integration is currently optional and user-driven.

What is now under consideration would mark a significant shift, such as choosing a third-party model to power Siri directly. The initiative comes as the company struggles to keep pace in a rapidly advancing AI market dominated by Google, OpenAI, and others.

Apple is still developing its large language models under a project codenamed LLM Siri. However, these in-house systems are reportedly lagging behind leading models already available.

Should Apple proceed with a third-party integration, it would signal a rare admission that its internal AI efforts are not enough to compete at the highest level.

Once celebrated for breakthrough innovations like the iPhone, Apple has faced growing criticism for a lack of fresh ideas. With rivals embedding generative AI into everyday tools, the pressure is mounting.

If Siri remains limited — still unable to answer basic questions — Apple risks alienating even its most loyal users. Whether through partnership or internal progress, the company now faces a narrowing window to prove it still leads, instead of follows.

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OpenAI leadership battles talent exodus

OpenAI is scrambling to retain its top researchers after Meta launched a bold recruitment drive. Chief Research Officer Mark Chen likened the situation to a break-in at home and reassured staff that leadership is actively addressing the issue.

Meta has reportedly offered signing bonuses of up to $100 million to entice senior OpenAI staff. Chen and CEO Sam Altman have responded by reviewing compensation packages and exploring creative retention incentives, assuring fairness in the process.

The recruitment push comes as Meta intensifies efforts in AI, investing heavily in its superintelligence lab and targeting experts from OpenAI, Google DeepMind, and Scale AI.

OpenAI has encouraged staff to resist pressure to make quick decisions, especially during its scheduled recharge week, emphasising the importance of the broader mission over short-term gains.

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Meta expands AI ambitions with more OpenAI hires

According to a report published by The Information on Sunday, Meta Platforms has hired four additional researchers from OpenAI.

The researchers—Shengjia Zhao, Jiahui Yu, Shuchao Bi, and Hongyu Ren—are set to join Meta’s AI team as part of a broader recruitment drive. All four were previously involved in AI development at OpenAI, the Microsoft-backed company behind ChatGPT and other generative models.

Earlier in the week, The Wall Street Journal reported that Meta had hired three more OpenAI researchers—Lucas Beyer, Alexander Kolesnikov and Xiaohua Zhai—based in the firm’s Zurich office.

The hires reflect Meta’s increased investment in advanced AI research, particularly in ‘superintelligence’, a term CEO Mark Zuckerberg has used to describe future AI capabilities.

Meta and OpenAI have not yet responded to requests for comment. Reuters noted that it could not independently verify the hiring details at the time of reporting.

With growing competition among tech giants in AI innovation, Meta’s continued talent acquisition suggests a clear intention to strengthen its internal capabilities through strategic hiring.

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