Welcome back AI enthusiasts!
In today’s Daily Report:
🔌Microsoft Pulled the Plug on OpenAI’s $3 Billion Deal
🔬AI Helps Doctors Decode Medical Images
🛠Trending Tools
🥪Brief Bites
💰Funding Frontlines
💼Who’s Hiring?
Read Time: 3 minutes
🗞RECENT NEWS
AI DRAMA
🔌Microsoft Pulled the Plug on OpenAI’s $3 Billion Deal
OpenAI’s plans to acquire Windsurf for $3 billion fell apart on Friday due to complications with Microsoft. So, what the heck happened?
Key Details:
Microsoft has invested over $13 billion into OpenAI, gaining access to cutting-edge AI models to develop AI-powered features for Microsoft 365 Apps like Outlook, Word, and Excel.
Microsoft also gets 20% of OpenAI’s revenue until 2030. That means 20% of the money OpenAI earns from selling products or services is given to Microsoft. Now, OpenAI wants to reduce that amount from 20% to 10% to prioritize restructuring efforts.
OpenAI recently raised a $30 billion Series F funding round at a $300 billion valuation. However, SoftBank Group Inc.’s $30 billion investment is contingent on OpenAI restructuring into a Delaware Public Benefit Corporation (PBC).
OpenAI can’t just flip a switch and restructure into a Delaware PBC without Microsoft’s approval because it would risk a breach of contract. In other words, OpenAI needs Microsoft’s approval to restructure. The only issue is OpenAI and Microsoft don’t see eye to eye on anything right now.
Microsoft’s existing contract with OpenAI also gives it automatic rights to any Intellectual Property (IP) OpenAI acquires, unless Microsoft agrees to an exemption.
Windsurf directly competes with Microsoft’s GitHub Copilot and Visual Studio Code, which made Microsoft uncomfortable with allowing OpenAI to own it. So, they blocked the acquisition.
Why It’s Important:
So, who really controls OpenAI? This situation highlights how Microsoft’s corporate self-interest is shaping what OpenAI can do and can’t do.
OpenAI and Microsoft were once seen as perfectly aligned partners. Now, they’re at odds over money, control, and direction.
🩺 PULSE CHECK
Is OpenAI effectively controlled by Microsoft?
AI RESEARCH
🔬AI Helps Doctors Decode Medical Images
Google Research recently introduced “MedGemma,” a family of advanced AI models designed to understand medical text and interpret clinical images.
Key Details:
It was built using Gemma 3, a compact, efficient, and lightweight Small Language Model (SLM) that requires fewer computational resources while maintaining strong text reasoning capabilities.
“MedGemma” is comprised of:
MedGemma 27B Multimodal: Acts like a diagnostic helper (e.g., “Based on the ultrasound and accompanying clinical notes, the patient has an inflamed gallbladder.”)
MedSigLIP: Acts like a medical trainee (e.g., “I’m learning to recognize patterns between clinical images and medical reports!”)
For example, it can analyze radiographs (i.e., X-rays of bones, organs, and tissues) to identify subtle abnormalities such as fractures, infections, or tumors.
Why It’s Important:
We’re witnessing the rapid adoption of GenAI in healthcare, with 80% of hospitals using GenAI to enhance patient care. The World Health Organization (WHO) estimates a shortfall of 10 million healthcare workers by 2030. As a result, demand for GenAI to augment clinical capacity and reduce medical workforce burdens has skyrocketed.
The AI healthcare market reached $32.34 billion in 2024 and is projected to grow to $431.05 billion by 2032. Alphabet’s Google is uniquely positioned to dominate the AI healthcare market because of robust partnerships with leading medical institutions.
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🧰 Browse our Always Up-To-Date AI Toolkit.
🥪BRIEF BITES
Meta acquired “PlayAI,” a startup that leverages real-time voice intelligence to generate AI-powered voices as real as humans.
Luma AI launched “Dream Lab LA,” a creative hub where Hollywood veterans can access the knowledge, tools, and teams to thrive in the AI era.
Microsoft unveiled “Phi-4-mini-flash-reasoning,” which offers advanced reasoning capabilities while utilizing limited compute, memory, and latency.
Moonshot AI released “Kimi K2,” a massive open-source language model that achieves industry-leading performance across frontier knowledge, reasoning, and coding.
💰FUNDING FRONTLINES
💼WHO’S HIRING?
📒FINAL NOTE
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