The Pentagon has agreed to OpenAI's rules for deploying its technology safely in classified settings, though no contract has been signed, a source familiar with the talks tells Axios. Why it matters: The Pentagon has blasted OpenAI rival Anthropic for days, contending its red lines for AI use in the military -- mass surveillance and autonomous weapons -- are philosophical and "woke." - Now, the department, which did not immediately respond to a request for comment, appears to have accepted OpenAI's similar conditions. Catch up quick: OpenAI CEO Sam Altman, in an overnight memo to employees, laid out his company's approach. - OpenAI also does not approve of ChatGPT for mass surveillance and autonomous weapons. - The company wants the…
A deal with OpenAI could put Amazon first to market with a new type of AI service for developers — but the two companies will have to tread carefully to avoid running afoul of OpenAI's deal with Microsoft . Why it matters: If successful, Amazon Web Services could land in the more enviable position at the leading edge of generative AI rather than being forced to compete mainly by delivering models more cheaply than rival clouds. Driving the news: Amazon and OpenAI on Friday announced a multi-pronged deal that calls for Amazon to invest up to $50 billion in OpenAI, with Amazon getting access to a variety of OpenAI services. - The most notable piece: Amazon would be first to offer a new kind of computing they are calling "stateful runtime…
OpenAI CEO Sam Altman wrote in a memo to staff that he will draw the same red lines that sparked a high-stakes fight between rival Anthropic and the Pentagon : no AI for mass surveillance or autonomous lethal weapons. Why it matters: If other leading firms like Google follow suit, this could massively complicate the Pentagon's efforts to replace Anthropic's Claude , which was the first model integrated into the military's most sensitive work. - It would also be the first time the nation's top AI leaders have taken a collective stand about how the U.S. government can and can't use their technology. The flipside: Altman made clear he still wants to strike a deal with the Pentagon that would allow ChatGPT to be used for sensitive military…
The company reported a strong holiday quarter on Thursday. But its big spending on things like artificial intelligence and satellites is starting to make investors nervous.
Microsoft had one of its worst selloffs in history after it increased its AI spending plans. Meta did the same, but it was rewarded by investors. Why it matters: The wildly different market reactions to Meta and Microsoft earnings reveal the new calculus investors are using to evaluate AI winners and losers. State of play: Microsoft reported solid earnings , with revenue and profit beating expectations, but its stock fell nearly 12%. - Cloud revenue was up 39% from a year ago, but that was driven by non-AI workloads. Capital expenditure hit $37 billion for the quarter, a 65% jump. - That mismatch is the issue: If a company is spending a lot, fine, but it needs to be spending on AI investments that will make it money now. - Meta beat on…
Microsoft dropped 10%, shedding more than $350 billion in market value after its cloud business failed to impress, while Meta gained 10%.
AI:Microsoft’s market value cratered by over $350 billion following a massive 10% plunge triggered by lackluster performance in its cloud sector, signaling a major reality check for tech giants relying heavily on AI hype rather than tangible returns. While investors punished Microsoft for failing to meet expectations, Meta managed to rally with a 10% surge as capital began shifting toward companies capable of delivering actual profitability from their artificial intelligence investments. This market volatility underscores the growing demand for immediate payoffs and exposes the fragility of valuations built on speculative technology spending.Open