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- 🤝 OpenAI Seeks New Deal With Microsoft
🤝 OpenAI Seeks New Deal With Microsoft
PLUS: Trump fires copyright chief over AI dispute 🔥
AI Insights
May 12, 2025
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Welcome, AI Enthusiasts!
Today’s AI Insights:
OpenAI seeks new deal with Microsoft
Trump fires copyright chief over AI dispute
OpenAI looks to cut Microsoft’s revenue share
Microsoft adds 2-year rehire ban for ousted staff
Anthropic launches AI for Science Program
xAI partners with Palantir to power finance AI
How to create studio-quality music with AI
AI tool of the day
Latest AI and tech news
Read Time: 4 mintue
LATEST AI NEWS
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OPENAI & MICROSOFT
Image source: Getty Images
OpenAI is in the middle of intense negotiations with Microsoft, one of its largest investors and strategic partners, as it works through major corporate restructuring plans.
The Details:
OpenAI is converting its business arm into a for-profit public benefit corporation but keeping nonprofit board control.
Microsoft, which invested $13 billion into OpenAI, is reportedly the main holdout in approving this new structure.
The talks include how much equity Microsoft would receive in the for-profit entity.
Microsoft is also pushing for extended access to OpenAI tech beyond their current 2030 agreement.
Rising tension stems from OpenAI’s rapid enterprise growth and its Stargate data center initiative, which could shift power dynamics.
Why it matters:
This negotiation could redefine one of the most important alliances in the AI industry. With OpenAI scaling rapidly and Microsoft expanding its own models and infrastructure, the outcome may shape who controls the future of AI distribution, infrastructure, and innovation.
AI DISPUTE
Image Source: Reuters
In a dramatic move, the Trump administration has reportedly dismissed Shira Perlmutter, head of the U.S. Copyright Office, shortly after she released a report warning that many AI tools using copyrighted data may fall outside fair use protections.
The Details:
Perlmutter’s report argued that AI use of copyrighted material for commercial purposes could exceed fair use boundaries.
It warned against using copyrighted works to generate competing content, especially when sourced illegally.
Critics say her firing is tied to her refusal to support AI firms—specifically Elon Musk’s data mining efforts—for training models.
Rep. Joe Morelle called the firing an “unprecedented power grab,” accusing the Trump administration of retaliating over the AI report.
Trump also fired Librarian of Congress Carla Hayden the same day, escalating concerns over political interference in knowledge institutions.
Why it matters:
This shake-up underscores the growing legal and political tensions around AI’s use of copyrighted data. With courts expected to weigh heavily on the Copyright Office’s opinions, the firing of its leader raises serious questions about the future of content protections, creative rights, and AI regulation in the U.S.
NETFLIX
Image source: Netflix
Netflix just unveiled its new AI-driven search experience, powered by OpenAI’s ChatGPT. The tool is designed to help users find what to watch using natural, conversational prompts.
The Details:
Users can now type requests like “funny but not too silly” or “scary with a bit of humor” to get tailored show and movie suggestions.
The feature is launching as an opt-in beta for iOS users this week, after early testing in Australia and New Zealand.
Netflix joins competitors like Amazon and Tubi in adding generative AI to search, though Tubi later shut down its version.
The tool aims to streamline discovery, especially for undecided viewers overwhelmed by choices.
Netflix also announced generative AI for translating title cards and revealed a new short-form video feed and redesigned TV homepage.
Why it matters:
As content libraries grow, finding the right show becomes harder. Netflix’s move brings AI search into the mainstream streaming experience and could redefine how users navigate entertainment. Whether it sticks will depend on how well users adopt conversational discovery.
AI TOOL OF THE DAY
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AI & TECH NEWS
OpenAI is planning to reduce Microsoft’s 20% revenue share to 10% as part of a broader restructuring. The move aims to replace profit rights with traditional equity, ease investor concerns, and extend Microsoft’s access to OpenAI tech beyond 2030—despite rising tensions and new deals with Oracle and SoftBank.
Amazon is building Kiro, an AI-powered coding tool that uses agents and a multi-modal interface to generate code in real time. Designed to outpace existing tools, Kiro promises faster, smarter software creation—positioning Amazon to compete in the booming AI coding space.
Elon Musk’s xAI has teamed up with Palantir and TWG to bring Grok and Colossus tech into finance and insurance. The goal? Smarter, AI-fueled operations that boost competitiveness across industries.
Anthropic is offering free API credits to researchers solving big problems in biology and life sciences. From drug discovery to genetic analysis, the goal is to speed up breakthroughs using Claude’s advanced AI for research, design, and data interpretation.
Microsoft is enforcing a two-year block on rehiring employees dismissed for performance issues, according to an internal doc seen by Business Insider. The policy marks a tougher stance on underperformance amid ongoing organizational changes.
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AI MEME OF THE DAY
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