OpenAI's Strategic Moves in Government and Employee Incentives

First, a collection of first reactions to GPT-5. This week saw major AI shifts — from web-scraping battles to the brutal economics of AI coding startups. Cloudflare took aim at Perplexity over “stealth crawling,” Google defended AI overviews against claims they hurt web traffic, and reports revealed that coding firms like Windsurf and Replit face severe negative margins despite rapid growth. Also in the mix: Google’s Jules coding agent launch, N8N’s potential $2.3B valuation as the first pure-play agentic company, Microsoft’s talent raids on Google DeepMind, and OpenAI’s $500B secondary talks with $1.5M employee bonuses and $1 government-agency deals. Together, these stories show the fierce power struggles and harsh economics shaping AI’s next era.

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