Good Morning,

OpenAI and Microsoft are reportedly in talks to renegotiate the terms of their high-profile partnership.

TODAY IN MORNING AI

• OpenAI and Microsoft Redefine Their Strategic Alliance Amid Rising Stakes

• Tencent has unveiled HunyuanCustom

• Google rolled out a feature called "implicit caching" for its Gemini 2.5 models

• Microsoft President Brad Smith announced a ban on the use of DeepSeek

• AI fun fact

  and more…

Read Time: 6 Minutes 32 Seconds

AI HEADLINES
TOP AI STORIES

• Tencent has unveiled HunyuanCustom, an open-source AI system capable of generating personalized videos from text, images, audio, and video inputs while maintaining subject consistency.

• Google rolled out a feature called "implicit caching" for its Gemini 2.5 models, enabling automatic detection and reuse of cached content in API requests—potentially cutting costs by up to 75%.

• Microsoft President Brad Smith announced a ban on the use of DeepSeek models by employees, citing concerns over propaganda and data security.

• Baidu has filed a patent for an AI system designed to interpret animal sounds, behaviors, and emotional states, translating them into human-understandable language.

• Over 400 British artists have signed an open letter to Prime Minister Keir Starmer, calling for legislation mandating transparency in the use of copyrighted materials for AI training.

AI DEVELOPMENT
OpenAI and Microsoft Redefine Their Strategic Alliance Amid Rising Stakes

OpenAI and Microsoft are reportedly in talks to renegotiate the terms of their high-profile partnership, with OpenAI aiming to reduce Microsoft’s revenue share as part of a broader restructuring effort, and Microsoft seeking extended access to OpenAI’s technology beyond 2030.

Key Details:

• Microsoft has invested more than $13 billion in OpenAI and remains a major obstacle in OpenAI’s push to convert its for-profit business arm into a public benefit corporation (PBC).

• OpenAI is looking to cut Microsoft’s revenue share from 20% to 10% by 2030, a year in which it projects $174 billion in revenue.

• The partnership has reportedly cooled, as OpenAI explores deals with competitors around its Stargate initiative and targets some of the same enterprise clients as Microsoft.

• Intellectual property is another source of tension, with Microsoft pressing for continued access to OpenAI’s technology beyond the current agreement's 2030 expiration.

Why It Matters:
Speculation around the future of this partnership has been ongoing, but tensions appear to be rising. Microsoft’s role as a key holdout in OpenAI’s IPO and PBC ambitions makes the negotiations particularly high-stakes. Still, with both sides motivated to realign, a restructured agreement could revive their multi-billion-dollar alliance.

Looking for unbiased, fact-based news? Join 1440 today.

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Subscribe to 1440 today.

TOOLBOX
SOME USEFUL AI TOOLS

• Remote Agent – Assign coding tasks to AI assistants operating in the cloud

• Open Computer Agent – Hugging Face's AI that interacts directly with a computer interface

• Shopify Magic – Enhanced with new reasoning features and image generation tools

• Enhance My Listing – Amazon’s latest tool for optimizing and refining product listings

PROMPT OF THE DAY
Craft Targeted Ads with ChatGPT

PROMPT👇

Please review our current interview screening process and highlight opportunities to make it more effective and efficient.

This prompt asks for an evaluation of the existing interview screening process to find weaknesses and suggest ways to improve it.

AI DESIGNS

a painting by the artist Alphonse Mucha, an art nouveau style border on a white background with misty multi-layered medieval village landscape, an American woman looking directly at me with light green eyes and long blond white hair, red white and blue clothing hippy gypsy boho, jewelry, sitting, looking at me, filigree, heroic masculinity, art nouveau, casual and pensive pose, Lawrence Alma Tadema, --v 6.1 --ar 73:127

AI FUN FACT
DID YOU KNOW?

Some modern playgrounds now use AI-powered cameras and sensors to monitor how kids interact with equipment—helping designers make play areas safer, more inclusive, and even more fun based on real usage data.

It’s a wrap!

Thank you for taking the time to read this. Your engagement and support mean the world to us. We hope you found this newsletter both informative and inspiring. Stay tuned for more exciting news and stories in our next edition.

P.S. Don't forget to share this newsletter with your friends & colleagues for real-time updates and exclusive content. We love hearing from you, so feel free to share your thoughts and feedback!