On Monday, Microsoft and OpenAI announced that they have, once again, renegotiated the deal binding the two companies. Despite some opinions on X that frame it as a victory for the ChatGPT maker over the Windows giant, both sides are walking away winners. With this new deal, instead of Microsoft having exclusive access to all of OpenAI's products and IP until the magical day when OpenAI produces AGI, its partnership has a definitive timeline. This contract gives Microsoft a nonexclusive license to OpenAI IP for models and products through 2032. The two companies are still calling Microsoft OpenAI's 'primary cloud partner,' meaning that the bulk of OpenAI's cloud will likely be served by Azure for the six years this deal covers, even as OpenAI rushes to build its own data centers with other partners. In October, OpenAI agreed to buy an additional $250 billion worth of Microsoft's cloud. This line is a message to Microsoft shareholders that OpenAI will still be an enormous Azure customer. OpenAI products will ship 'first on Azure, unless Microsoft cannot and chooses not to support the necessary capabilities,' the companies say. But, critically, 'OpenAI can now serve all its products to customers across any cloud provider.'...

AI companies are beginning to entertain the possibility that they could cease to exist. This notion was, until recently, more theoretical: A couple of years ago, an ex-OpenAI employee named Leopold Aschenbrenner wrote a lengthy memo speculating that the U.S. government might soon take control of the industry. By 2026 or 2027, Aschenbrenner wrote, an 'obvious question' will be circling through the Pentagon and Congress: Do we need a government-led program for artificial general intelligence'an AGI Manhattan Project' He predicted that Washington would decide to go all in on such an effort. Aschenbrenner may have been prescient. Earlier this year, at the height of the Pentagon's ugly contract dispute with Anthropic, Secretary of Defense Pete Hegseth warned that he could invoke the Defense Production Act (DPA), a Cold War'era law that he reportedly suggested would allow him to force the AI company to hand over its technology on whatever terms the Pentagon desired. The act is one of numerous levers the Trump administration can pull to direct, or even commandeer, AI companies. And the companies have been giving the administration plenty of reason to consider doing so....

OpenAI is losing two of the architects of its most ambitious moonshots. Kevin Weil, who led the company's science research initiative, and Bill Peebles, the researcher behind AI video tool Sora, both announced their departures on Friday. The exits come as OpenAI consolidates around enterprise AI and its forthcoming 'superapp.' The departures follow OpenAI's decision to cut back on 'side quests,' including customer-facing bets like Sora and OpenAI for Science. Sora, which was losing an estimated $1 million per day in compute costs, was shut down last month. OpenAI for Science was the internal research group behind Prism, an AI-powered platform that promised to accelerate scientific discovery. It's being absorbed into 'other research teams,' according to Weil's social media post announcing the news. 'It's been a mind-expanding two years, from Chief Product Officer to joining the research team and starting OpenAI for Science,' Weil wrote. 'Accelerating science will be one of the most stunningly positive outcomes of our push to AGI.'...

In December, the company was reportedly raising around $700 million at a $7.5 billion valuation, sources told Bloomberg at the time, although it didn't formally announce the close of that round. That round was said to be led by Situational Awareness, an AGI-focused fund founded by former OpenAI researcher Leopold Aschenbrenner, and backed by Stripe's Collison brothers, former GitHub CEO Nat Friedman, and the AI investor and entrepreneur Daniel Gross. There's good reason for the hype over Fluidstack. In November, Anthropic announced that it had signed a $50 billion deal with the startup to build data centers custom-designed for its needs in Texas and New York. Unlike hyperscalers like AWS, which serve all kinds of computing needs, Fluidstack's infrastructure is built specifically for AI. The deal was a huge vote of confidence for Fluidstack, a company that was relatively unknown in the U.S. Anthropic primarily uses AWS and Google Cloud to serve Claude (though it also has a partnership with Microsoft to supply Claude to that software giant's customers). But just like rival OpenAI, Anthropic is growing so fast that it needs more capacity, and this deal gives Anthropic more control over its own cloud infrastructure....