Casey Newton

They've got a new deal with Microsoft, an expansion of their deal with Amazon, changes to their Stargate compute strategy, and a new push toward new kinds of ad-supported subscriptions.

And, of course, they've got this big trial with Elon Musk that started this week in Oakland.

So let's get through all of it.

But first, before we do that, let's make our disclosures.

I work for the New York Times, which is suing OpenAI, Microsoft, and Perplexity.

My fiance works at Anthropic.

Okay.

So let's start this week with this new Microsoft deal.

So Microsoft and OpenAI have, of course, been partners for many years.

Microsoft remains the biggest investor in OpenAI.

Their stake is valued at about $135 billion.

But their relationship has also been strained over the years by various factors.

And this week, they seem to be sort of consciously uncoupling or at least rewriting their partnership agreement and allowing OpenAI to be a little bit more promiscuous in who they do deals with.

Yeah, so under this new rewritten version of the Microsoft and OpenAI deal, Microsoft will no longer have to share revenue with OpenAI.

The new deal also removes the part of the original agreement that had to do with AGI.

The old agreement said that basically once OpenAI reached AGI, Microsoft would stop getting certain revenue share payments.

But under the new agreement, OpenAI will keep sharing revenue with Microsoft until 2030, no matter what benchmarks they hit.

So the AGI clause is gone.

Right.

So AGI has been poorly defined for many years, and everyone's got their own definition.