Welcome back AI enthusiasts!
In today’s Daily Report:
🔥OpenAI’s Heated Negotiations With Microsoft
🧯Trump Administration Fires Head of U.S. Copyright Office
🛠Trending Tools
🥪Brief Bites
💰Funding Frontlines
💼Who’s Hiring?
Read Time: 3 minutes
🗞RECENT NEWS
OPENAI
🔥OpenAI’s Heated Negotiations With Microsoft
Image Source: Canva’s AI Image Generators/Magic Media
OpenAI has been negotiating with Microsoft to rewrite the terms of their multi-billion-dollar partnership.
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 was founded as a non-profit organization before it added a “capped profit” framework called OpenAI LP in 2019, which essentially acts as a money-making company within the original non-profit organization. OpenAI plans to restructure OpenAI LP into a Delaware PBC that’s still controlled by the non-profit Board of Directors (BofD).
Why It’s Important:
OpenAI can’t just flip a switch and turn OpenAI LP into a Delaware PBC without Microsoft’s approval because it would risk a breach of contract.
OpenAI needs Microsoft’s approval to restructure. The only issue is that OpenAI and Microsoft don’t see eye to eye on anything right now.
AI DRAMA
🧯Trump Administration Fires Head of U.S. Copyright Office
The Trump Administration recently fired Shira Perlmutter, the Head of the U.S. Copyright Office (USCO), after she expressed concerns about how AI firms are training advanced AI models on copyrighted materials.
Key Details:
AI firms like OpenAI and Anthropic are leveraging copyrighted materials to train advanced AI models on how to understand and generate human-like text, images, audio, video, and code.
AI firms argue that it falls under Fair Use through Transformative Use: adding new expression, meaning, or messaging to the original works.
In other words, advanced AI models learn patterns from copyrighted materials to create new content significantly different from the original works.
Perlmutter highlighted that this reasoning might not always be justified, particularly when an advanced AI model’s outputs compete with the original works.
She proposed exploring licensing mechanisms to address these concerns. For instance, AI firms could pay Licensing Fees to access large pools of copyrighted materials. Then, those Licensing Fees could be distributed to the creators whose original works were used.
Why It’s Important:
OpenAI CEO Sam Altman has formed a close relationship with the Trump Administration, especially through the The Stargate Project: a plan to invest $500 billion over the next four years building new AI infrastructure for OpenAI in America.
With AI firms like OpenAI wanting to minimize the legal barriers for training advanced AI models, many speculate that this firing was strategically done to prevent the creation of stricter regulatory hurdles when developing advanced AI models.
🩺 PULSE CHECK
If an AI-generated image closely resembles a copyrighted photo, who should own the rights?
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🧰 Browse our Always Up-To-Date AI Toolkit.
🥪BRIEF BITES
Pope Leo XIV outlined that AI developments pose “new challenges for the defense of human dignity, justice, and labor.”
Zencoder just launched “Zen Agents,” which deploys AI Agents that understand your code and connect seamlessly with your toolsets.
Tencent introduced “HunyuanCustom,” an open-source multimodal AI model that generates videos from text, image, audio, and video inputs.
Researchers at the University of California, Berkeley (UC Berkeley) developed “VideoMimic,” which teaches humanoid robots to climb staircases and sit on chairs.
💰FUNDING FRONTLINES
💼WHO’S HIRING?
📒FINAL NOTE
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