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Tuesday’s issue is in partnership with…

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🔓 Tuesday’s AI Report:

1. 🧐 OpenAI further increases Microsoft tensions?

2. 💰 In partnership with Mode Mobile

3. 🚫 DeepSeek rejects funding

4. 🎮 Microsoft AI games are coming

5. 💼 In partnership with Innovating with AI

6. ⚙️ Trending AI Tools

7. 🏗️ Practical AI Applications

8. 📑 Recommended Resources

Read Time: 5 minutes

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LATEST IN AI

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🧐 OpenAI further increases Microsoft tensions?

🚨 Our Report — OpenAI has signed a five-year, $11.9B agreement with NVIDIA-backed cloud-server provider CoreWeave—ahead of its highly anticipated stock market debut—possibly adding another layer of tension with partner Microsoft, who is, coincidentally, one of CoreWeave’s biggest customers, accounting for 64% of its revenue in 2024.

🔓 Key Points:

• CoreWeave will provide OpenAI with AI infrastructure to help train its AI models, and OpenAI will get $350M worth of equity in CoreWeave before its IPO (led by Morgan Stanley, JPMorgan Chase, and Goldman Sachs).

• CoreWeave has a network of 32 data centers and over 250,000 NVIDIA AI chips (NVIDIA also has a 6% stake in the start-up), including its latest Blackwell chips, which support AI reasoning capabilities. 

• OpenAI CEO Sam Altman recently said that OpenAI was “out of AI chips” and needs “reliable compute” to continue building scaleable AI, and this agreement will “complement” its deals with Oracle, Microsoft, and Softbank.

🔐 Relevance — This is likely to further increase tension between OpenAI and Microsoft because a) it shows OpenAI is continuing to diversify away from Microsoft for computing power (after they renegotiated their pre-standing agreement in January, which now allows OpenAI to use cloud providers other than Microsoft—which was its primary partner); b) OpenAI will not just have access to the same AI infrastrucure as Microsoft, but it will also have a stake in the company that’s providing it, and c) it comes as it was recently reported that Microsoft is building its own AI reasoning models, internally, which wil rival OpenAI’s o1 and o3-mini models.

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TOGETHER WITH MODE MOBILE

Your Data Made Them Billions—Now It’s Your Turn to Profit

🚨Open AI reached a valuation of $340B this year, all on the back of your data.

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• Paid over $325M to over $45M users.

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• Previously ranked #1 fastest-growing software company by Deloitte.

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🚫 DeepSeek rejects funding

🚨 Our Report — According to the Wall Street Journal (WSJ), DeepSeek—the Chinese start-up that shook the AI industry in January with the release of its open-source, high-performing, but low-cost reasoning model, R1—is not looking for any funding from outside investors, despite lots of VC interest (namely Tencent and Alibaba), which is unheard of in an industry where start-ups are constantly looking to raise outside capital to help fuel their advancements and competitive edge.

🔓 Key Points:

• DeepSeek is 84% owned by its founder—Liang Wenfeng—with the rest owned by Wenfeng’s hedge fund, High-Flyer, meaning DeepSeek is a one-man show, and Wenfeng intends to keep it that way.

• Wenfeng is in no hurry to secure funding—especially government-led—because he doesn’t want to share control and worries that outside (especially Beijing) “influence would interfere in DeepSeek’s decisions.”

• This aligns with Wenfeng’s previously stated opinion that most VCs have an acute focus on monetization, which clashes with his focus on fundamental research, something he discovered when he tried to raise funds in 2023.

🔐 Relevance — However, although Wenfeng has managed to fund DeepSeek through High-Flyer revenue, reducing his need for outside help, he is likely to need more and more advanced AI chips to keep up with competitors, which will be costly and difficult to get hold of due to tightening US export restrictions to China.

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🎮 Microsoft AI games are coming

• A job listing for a software engineer “specializing in 3D rendering engines” (which are typically used to build browser-based video games) has revealed that Microsoft might be building 3D games for its AI chatbot, Copilot.

• This comes after Microsoft recently demoed Muse, an AI model that can understand 3D game physics and react to players’ actions, and announced it would be powering short, interactive games on Copilot.

• It also coincides with plans to integrate Copilot into video games (starting with Minecraft) to help players and rumors that it has been experimenting with interactive “character-based” Copilot features.

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TOGETHER WITH INNOVATING WITH AI

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TRENDING AI TOOLS

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2. DesignBundles transforms written prompts into high-res digital artwork

3. RightBlogger creates SEO blogs in minutes

PRACTICAL AI

RECOMMENDED RESOURCES

STARTUPS

Name: Suno
Value: $521M
Funding raised: $125M (Series B)

Suno is an AI music creation platform that combines a proprietary music generation model with OpenAI's ChatGPT to allow users to generate complete songs—including the music, lyrics, and vocals—from text prompts and is currently used by 12M users.

PODCASTS

Testing the Most Realistic AI Voices

In this podcast episode, the hosts explore AI voice technology—from tools like Sesame to Hume's Octave Text-to-Speech—you'll hear live demos of each tool and learn about the practical applications for AI voices and the societal implications of this emerging technology.

QUICK HITS

• Popular voice cloning tools lack crucial safeguards

• Sony playing with AI-powered PlayStation characters

• Gmail gets a Gemini-powered ‘Add to calendar’ button

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