OpenAI AI News & Updates

OpenAI and Microsoft Reach Agreement on Corporate Restructuring to Public Benefit Corporation

OpenAI announced a non-binding agreement with Microsoft to transition its for-profit arm into a public benefit corporation (PBC), potentially allowing the company to raise additional capital and eventually go public. The deal requires regulatory approval from California and Delaware attorneys general, and comes after months of tense negotiations between the two companies over OpenAI's corporate structure and Microsoft's control.

OpenAI Signs Massive $300 Billion Cloud Computing Deal with Oracle

OpenAI has reportedly signed a historic $300 billion cloud computing contract with Oracle spanning five years, starting in 2027. This deal is part of OpenAI's strategy to diversify away from Microsoft Azure and secure massive compute resources, coinciding with the $500 billion Stargate Project involving OpenAI, SoftBank, and Oracle.

Microsoft Diversifies AI Partnership Strategy by Integrating Anthropic's Claude Models into Office 365

Microsoft will incorporate Anthropic's AI models alongside OpenAI's technology in its Office 365 applications including Word, Excel, Outlook, and PowerPoint. This strategic shift reflects growing tensions between Microsoft and OpenAI, as both companies seek greater independence from each other. OpenAI is simultaneously developing its own infrastructure and launching competing products like a jobs platform to rival LinkedIn.

OpenAI Research Identifies Evaluation Incentives as Key Driver of AI Hallucinations

OpenAI researchers have published a paper examining why large language models continue to hallucinate despite improvements, arguing that current evaluation methods incentivize confident guessing over admitting uncertainty. The study proposes reforming AI evaluation systems to penalize wrong answers and reward expressions of uncertainty, similar to standardized tests that discourage blind guessing. The researchers emphasize that widely-used accuracy-based evaluations need fundamental updates to address this persistent challenge.

OpenAI Restructures Model Behavior Team and Creates New AI Interface Research Group

OpenAI is reorganizing its Model Behavior team, which shapes AI personality and reduces sycophancy, by merging it with the larger Post Training team under new leadership. The team's founder Joanne Jang is starting a new research group called OAI Labs focused on developing novel interfaces for human-AI collaboration beyond traditional chat paradigms.

State Attorneys General Demand OpenAI Address Child Safety Concerns Following Teen Suicide

California and Delaware attorneys general warned OpenAI about child safety risks after a teen's suicide following prolonged ChatGPT interactions. They are investigating OpenAI's for-profit restructuring while demanding immediate safety improvements and questioning whether current AI safety measures are adequate.

OpenAI Acquires Alex Codes Team to Strengthen AI Coding Agent Development

OpenAI has hired the team behind Alex Codes, a Y-Combinator-backed startup that created an AI coding assistant for Apple's Xcode development environment. The three-person team is joining OpenAI's Codex division to work on the company's AI coding agent, following a pattern of acqui-hires by OpenAI including the recent $1.1 billion acquisition of Statsig.

Author Karen Hao Critiques OpenAI's Transformation from Nonprofit to $90B AI Empire

Karen Hao, author of "Empire of AI," discusses OpenAI's evolution from a nonprofit "laughingstock" to a $90 billion company pursuing AGI at rapid speeds. She argues that OpenAI abandoned its original humanitarian mission for a typical Silicon Valley approach of moving fast and scaling, creating an AI empire built on resource-hoarding and exploitative practices.

OpenAI Expands with $1.1B Statsig Acquisition and Major Leadership Restructuring

OpenAI acquired product testing startup Statsig for $1.1 billion in an all-stock deal, bringing on CEO Vijaye Raji as CTO of Applications. The acquisition is part of OpenAI's expansion of its Applications business under new leadership, with concurrent organizational changes including Kevin Weil moving to head a new "OpenAI for Science" division.

OpenAI Implements Safety Measures After ChatGPT-Related Suicide Cases

OpenAI announced plans to route sensitive conversations to reasoning models like GPT-5 and introduce parental controls following recent incidents where ChatGPT failed to detect mental distress, including cases linked to suicide. The measures include automatic detection of acute distress, parental notification systems, and collaboration with mental health experts as part of a 120-day safety initiative.