Record Cloud Spend: OpenAI made headlines by agreeing to spend $300 billion over five years on Oracle’s cloud services – a staggering partnership that sent Oracle’s stock soaring. This reflects OpenAI’s massive compute needs as it scales up its AI models.

Restructuring with Nonprofit Control: OpenAI also announced a major restructuring that gives its original nonprofit arm a $100 billion stake in a new public-benefit corporation . The nonprofit will retain control of OpenAI’s direction, according to board chair Bret Taylor, ensuring the company’s roots in its mission remain strong. Microsoft, OpenAI’s key investor, has signed a memorandum of understanding to support this new structure .

Microsoft Diversifies with Anthropic: In a surprise twist, Microsoft is partnering with OpenAI’s rival Anthropic to power features in Microsoft 365 apps – ending its exclusive reliance on OpenAI’s tech . This move comes amid reports of a growing rift as OpenAI pursues its own infrastructure (even planning its own chips) and shows Microsoft hedging its bets in the generative AI race. Microsoft believes Anthropic’s latest Claude model excels in certain tasks (like creating polished PowerPoint slides) better than OpenAI’s, so it’s blending both companies’ AI offerings going forward . These developments underscore rapidly shifting alliances in the AI industry.

Sources: techcrunch datacenterdynamics