Techmeme Ride Home Tue. 06/17 – Open AI Still Needs To Placate Microsoft
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Jun 17, 2025 OpenAI faces major hurdles in its shift to a for-profit model, particularly in negotiations with Microsoft. Meanwhile, Intel plans significant layoffs as it grapples with financial issues. A surprising new contender in gaming emerges, as a gardening game on Roblox gains traction, surpassing Fortnite. In media, social media has now overtaken TV as the leading news source for Americans, while streaming has officially claimed the title of king in television viewing. The landscape of how we consume content continues to evolve dramatically.
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OpenAI Seeks New Microsoft Terms
- OpenAI wants to renegotiate its deal with Microsoft to reduce Microsoft's revenue cut and lift exclusive cloud hosting rights.
- This change could allow competitors like Amazon and Google to host OpenAI models, impacting the cloud market dynamics.
AGI Definition Dispute
- OpenAI and Microsoft dispute the definition of artificial general intelligence (AGI) affecting their contract rights.
- OpenAI believes AGI is closer than Microsoft thinks, influencing revenue and IP rights timelines.
OpenAI Wins $200M Defense Contract
- The U.S. Defense Department awarded OpenAI a $200M contract to develop AI tools for national security.
- This is OpenAI's first DoD contract, marking AI's growing role in defense applications.