Industry Trend AI News & Updates

Altman Dismisses Musk's OpenAI Bid as Competitive Tactic

OpenAI CEO Sam Altman dismissed Elon Musk's $97.4 billion bid for OpenAI's nonprofit arm as an attempt to slow down the company. At the AI Action Summit in Paris, Altman characterized Musk as an insecure competitor who has raised significant funding for his own AI company xAI to compete with OpenAI.

AI Investment Soars 62% to $110B in 2024 While Overall Tech Funding Declines

Venture capital funding for AI startups surged to $110 billion in 2024, representing a 62% increase compared to the previous year, even as overall technology funding declined by 12%. The US dominated AI investment with 42% of its venture capital ($80.7 billion) going to AI startups, compared to just 25% in Europe, with generative AI companies raising $47.4 billion and foundational AI technology overtaking applications in growth.

Elon Musk Leads $97.4 Billion Bid to Purchase OpenAI, Promising Return to Open Source Roots

Elon Musk, along with investors including his AI company xAI, has submitted an unsolicited $97.4 billion bid to purchase OpenAI. Musk, who co-founded OpenAI in 2015 and is currently in legal disputes with the company, claims the acquisition would return OpenAI to its original mission as an open-source, safety-focused organization, contrasting this with his approach at xAI where he claims to have made the Grok model open source.

OpenAI Reports Government Discussions About DeepSeek Training Investigation

OpenAI has informed government officials about its investigation into Chinese AI firm DeepSeek, which it claims trained models using improperly obtained data from OpenAI's API. During a Bloomberg TV interview, OpenAI's chief global affairs officer Chris Lehane defended the company against accusations of hypocrisy by comparing OpenAI's training methods to 'reading a library book and learning from it,' while characterizing DeepSeek's approach as 'putting a new cover on a library book and selling it as your own.'

Altman Considers "Compute Budget" Concept, Warns of AI's Unequal Benefits

OpenAI CEO Sam Altman proposed a "compute budget" concept to ensure AI benefits are widely distributed, acknowledging that technological progress doesn't inherently lead to greater equality. Altman claims AGI is approaching but will require significant human supervision, and suggests that while pushing AI boundaries remains expensive, the cost to access capable AI systems is falling rapidly.

Sutskever's Safe Superintelligence Startup Seeking Funding at $20B Valuation

Safe Superintelligence, founded by former OpenAI chief scientist Ilya Sutskever, is reportedly seeking funding at a valuation of at least $20 billion, quadrupling its previous $5 billion valuation from September. The startup, which has already raised $1 billion from investors including Sequoia Capital and Andreessen Horowitz, has yet to generate revenue and has revealed little about its technical work.

Figure AI and Others Moving Away from OpenAI Dependencies

Humanoid robotics company Figure has announced it's ending its partnership with OpenAI to develop its own in-house AI models, with CEO Brett Adcock hinting at a significant breakthrough. This move reflects a potential shift in the industry as other organizations, including academic researchers who recently demonstrated training a capable reasoning model for under $50, explore alternatives to OpenAI's offerings.

OpenAI Co-founder John Schulman Joins Mira Murati's New AI Venture

John Schulman, an OpenAI co-founder who briefly joined Anthropic, is reportedly joining former OpenAI CTO Mira Murati's secretive new startup. Murati, who left OpenAI in September, has also recruited other former OpenAI talent including Christian Gibson from the supercomputing team, and was reportedly seeking over $100 million in funding for her venture in October.

Amazon Plans $100 Billion AI Investment in 2025 as Big Tech Accelerates Spending

Amazon has announced plans to spend over $100 billion on capital expenditures in 2025, with the vast majority dedicated to AI capabilities for its AWS cloud division. This represents a significant increase from Amazon's $78 billion capex in 2024, and aligns with similar massive AI investments announced by other tech giants including Meta, Alphabet, and Microsoft, who are collectively planning to spend hundreds of billions on AI infrastructure.

Tesla's Dojo and Cortex: Elon Musk's Custom AI Supercomputers for Self-Driving Cars

Tesla is developing custom supercomputers Dojo and Cortex to train AI models for its Full Self-Driving technology and humanoid robots. The company aims to reduce dependency on Nvidia chips by creating its own D1 chips, with plans to scale Dojo to 100 exaflops by October 2024, though recent communications suggest a pivot toward Cortex as the primary training infrastructure.