Equity OpenAI and Microsoft’s ‘frenemies relationship,’ and what you missed at SXSW
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Mar 14, 2025 OpenAI's recent $11.9 billion deal with CoreWeave reshapes the AI cloud landscape, raising questions about power dynamics with Microsoft. At SXSW, attendees noticed a shift in tech vibes, with fewer industry presences and a focus on film. Founders are feeling a 'vibe shift' ahead of Y Combinator’s Demo Day, as funding trends change. The sale of Niantic's gaming division to Scopely for $3.5 billion highlights the shift towards AI geospatial tech, raising concerns about data privacy. Engaging discussions on data roles in AI development add more depth to the conversation.
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OpenAI and Microsoft's Frenemy Relationship
- OpenAI's $12 billion investment in CoreWeave shifts the AI cloud landscape.
- This move creates a complex "frenemy" dynamic with Microsoft, their major backer and competitor.
YC Founders Rethink Funding
- YC founders reconsider large funding rounds, prioritizing control and leanness.
- AI empowers smaller teams to build impactful products, challenging traditional funding needs.
Lean AI Companies at YC
- Browser Use, an AI agent tool builder, gained significant buzz at YC Demo Day.
- Cursor, another lean AI company, reportedly reached $100 million ARR with only 20 people.