OAKLAND: A federal jury ruled Monday that Elon Musk waited too long to sue OpenAI and its co-founders, delivering a decisive victory to OpenAI CEO Sam Altman and ending one of Silicon Valley&#39;s most closely watched courtroom battles. The jury in Oakland federal court found that Musk&#39;s claims against Altman, OpenAI President Greg Brockman, The OpenAI Foundation and Microsoft were barred by relevant statutes of limitations, rejecting the billionaire&#39;s core arguments. Judge Yvonne Gonzalez Rogers, who had asked the jury to advise her on the matter, accepted and confirmed the verdict. The three-week trial saw a parade of tech titans take the stand, with Musk arguing that OpenAI&#39;s pivot to a profit-driven business betrayed its original nonprofit mandate. The outcome spares OpenAI from a potentially existential legal threat. Had Musk prevailed, he was seeking to force the company to revert to its nonprofit structure -- a move that would have derailed its planned IPO and unwound ties to major investors including Microsoft, Amazon and SoftBank, who have poured billions into the company amid the global AI race. Musk, the world&#39;s richest person, had sued OpenAI over its transformation from a scrappy nonprofit into the $850 billion juggernaut behind ChatGPT, claiming Altman and Brockman improperly used a $38 million donation he had intended to sustain OpenAI as a research lab devoted to developing AI for the benefit of humanity. The jury first had to resolve a threshold issue: whether Musk, who filed suit in 2024 -- four years after his last contribution -- had done so within the statutory time limit. It found he had not, ending the case before jurors could weigh the underlying merits. The judge had ruled ahead of deliberations that the jury&#39;s verdict on the statute of limitations would be advisory, but said she would likely follow its recommendation. Had the case proceeded, jurors -- and ultimately the judge -- would have determined whether OpenAI&#39;s co-founders misappropriated Musk&#39;s donations and broke promises to him in order to pursue a commercial path and enrich themselves. Dueling billionairesClosing arguments had centered heavily on Altman&#39;s integrity and behind-the-scenes maneuvering that rankled colleagues. Musk attorney Steven Molo attacked Altman&#39;s credibility, invoking OpenAI&#39;s founding vision. &quot;A non-profit devoted to the safe development of artificial intelligence, open-sourced as practical, for the benefit of humanity. You know, we&#39;re supposed to buy that,&quot; Molo said Thursday. OpenAI attorney Sarah Eddy countered with an attack on Musk himself, pointing to testimony from Shivon Zilis -- a business associate of Musk with whom he has four children -- who had served as an intermediary between the tech executives. &quot;Even the people who work for him, even the mother of his children, can&#39;t back his story,&quot; Eddy said. As Judge Gonzalez Rogers noted during the trial, the case had in many ways come down to a simple question: who to believe among the bickering billionaires. Musk left OpenAI in 2018 and has since pursued AI projects through his rocket company SpaceX, while his AI startup xAI has struggled to gain traction against OpenAI and Anthropic, another prominent California-based company. Altman, who was fired unexpectedly by OpenAI&#39;s board in November 2023 for a lack of candor before being reinstated under pressure from employees, emerged from the trial with allegations of manipulation and a toxic work culture largely unresolved by the verdict. Microsoft, OpenAI&#39;s largest private backer with $13 billion committed, was also spared. Musk&#39;s accusation that the Windows-making giant was liable for aiding and abetting the alleged breach of charitable trust fell away once the underlying case was ruled invalid.

Business

US jury ruled Elon Musk sued OpenAI too late, ending his challenge against Sam Altman, Microsoft and OpenAI’s for-profit shift, preserving the company’s structure, investor ties and planned public offering.

Musk loses blockbuster OpenAI suit as jury says too late

OAKLAND: Elon Musk was obsessed with trying to control OpenAI, the artificial intelligence company&#39;s CEO Sam Altman said Tuesday at a blockbuster trial pitting some of the world&#39;s wealthiest tech titans against each other. Altman is the latest in a parade of Silicon Valley megastars to take the stand in the case brought by Musk over OpenAI&#39;s pivot away from scrappy non-profit into the $850 billion juggernaut behind ChatGPT. Musk -- the richest person on the planet -- claims Altman and co-founder Greg Brockman improperly used a $38 million injection he had hoped would sustain OpenAI as a research lab, developing the technology for the good of humanity. &quot;It does not fit with my conception of the words &#39;stealing a charity&#39; to look at what has actually happened here,&quot; Altman told the court in Oakland, California. OpenAI was founded as a non-profit in 2015, but established a for-profit subsidiary in 2019 as the AI race heated up. Altman and others insist this was necessary to raise the vast sums of money from investors, including Microsoft, required to compete in a costly and difficult field. Musk&#39;s legal case demands that OpenAI revert to non-profit status, a move that would impact its position in the global artificial intelligence race against Anthropic, Google and China&#39;s Deepseek. OpenAI counters that Musk -- who is now also an AI competitor with his xAI -- is motivated by petty revenge, having failed to seize majority control of the commercial entity. The court has heard how, in 2017, the company&#39;s co-founders discussed the creation of the subsidiary with Musk. Altman said Tuesday that the Tesla boss demanded a huge controlling stake. &quot;An early number that Mr Musk threw out was that he should have 90% of the equity to start,&quot; he told the jury. &quot;It then softened, but it always was a majority.&quot; &quot;The fact that Mr Musk was unwilling to commit in writing to something contractual where he would not have long-term control made me very uncomfortable,&quot; said Altman. He noted OpenAI had been founded with the belief that no one person should control artificial general intelligence (AGI), the hypothetical level at which AI is smarter than humans. When Altman and Brockman thwarted Musk&#39;s attempts to dominate the company, the mercurial businessman walked away entirely, telling them the venture would fail without him. &quot;The thing that burned into my memory is when he told us we had a zero percent -- not one percent -- chance of success,&quot; Altman told the hearing. &#39;I&#39;m a truthful person&#39; Musk&#39;s lawyers hit back, sparring with Altman over claims he is deceitful. &quot;Are you completely trustworthy?&quot; Attorney Steven Molo asked. &quot;Do you always tell the truth?&quot; &quot;I believe I&#39;m a truthful person,&quot; a tense Altman replied. &quot;It wasn&#39;t my question, sir,&quot; snapped Molo. Altman was abruptly ousted as head of OpenAI in Nov. 2023, accused of mendacity by his own board of directors. He was reinstated five days later after a company revolt, but has struggled to shrug off a reputation for dishonesty in Silicon Valley. Musk&#39;s case has highlighted the mind-boggling sums of cash washing around AI companies as they forge ahead with a technology that is changing the way we live and work. That includes the $30 billion stake that Altman&#39;s co-founder Greg Brockman was revealed to have in the company. On Monday, Microsoft CEO Satya Nadella testified that he was &quot;very proud&quot; of his firm&#39;s canny investment in the commercial venture, which has seen an initial $13 billion become worth more than ten times that amount in just a few years. Altman&#39;s testimony is expected to continue into Wednesday. An advisory jury is expected to reach a verdict on any actual wrongdoing by the week of May 18. Judge Yvonne Gonzalez Rogers will then make the final ruling on both liability and remedies after hearing the jury&#39;s opinion. She has indicated she will likely follow their advice.

Artificial Intelligence

Musk -- the richest person on the planet -- claims Altman and co-founder Greg Brockman improperly used a $38 million injection he had hoped would sustain OpenAI as a research lab, developing the technology for the good of humanity.

Musk 'wanted 90%' of OpenAI, Altman tells tech titan trial

NEW YORK: Microsoft and OpenAI announced a major revision of their landmark partnership on Monday, freeing the ChatGPT-maker to serve customers across competing cloud platforms.&nbsp;The amended agreement, announced jointly by the two companies, reshapes the financial and commercial terms of a relationship that has been showing signs of strain as both sides encroached on each other&#39;s turf in recent months.&nbsp;The revisions come as OpenAI pursues a long-anticipated initial public offering, with the cleaner financial terms viewed as providing greater clarity for prospective investors about the company&#39;s long-term obligations to Microsoft.&nbsp;Microsoft has poured more than $13 billion into OpenAI since their partnership began in 2019, making the software giant the startup&#39;s primary backer, exclusive cloud provider and a roughly 27% shareholder.&nbsp;Under the deal, Microsoft&#39;s Azure remains OpenAI&#39;s primary cloud platform, and OpenAI products will continue to ship first on Microsoft&#39;s cloud -- unless the company cannot or chooses not to support the required capabilities.&nbsp;But crucially OpenAI is now free to offer all its products to customers on any cloud provider, a major shift from previous exclusivity constraints.&nbsp;According to US media reports, the deal would also see OpenAI continue paying Microsoft a 20% revenue share through 2030, but payments will now be subject to a total cap -- a significant concession that limits Microsoft&#39;s revenue from the partnership as OpenAI continues to grow.&nbsp;Microsoft&#39;s license to OpenAI&#39;s intellectual property will run through 2032 but will transition from exclusive to non-exclusive -- a change that opens the door for OpenAI to offer similar rights to rivals.&nbsp;The revamped deal comes after the two companies struck a broader restructuring agreement in October, when OpenAI completed a recapitalisation and committed to spending $250 billion on Azure cloud services.&nbsp;But OpenAI has since branched out its dealings to other tech giants, while Microsoft seeks to develop its own AI products independently from OpenAI.&nbsp;In February, Amazon and OpenAI announced a major strategic partnership, with Amazon agreeing to invest up to $50 billion in the company.&nbsp;OpenAI also said it would expand its existing $38 billion agreement with Amazon Web Services by $100 billion over eight years.

Microsoft and OpenAI revised their partnership, letting OpenAI use other cloud providers. Microsoft Azure stays primary, but exclusivity ends as OpenAI prepares for an IPO.

Microsoft, OpenAI loosen ties as rivalry simmers

TORONTO: OpenAI&rsquo;s CEO Sam Altman has apologized to a Canadian town devastated by a February mass shooting, saying he was &ldquo;deeply sorry&rdquo; the company did not notify police about the killer&rsquo;s troubling ChatGPT account. OpenAI had banned an account linked to Jesse Van Rootselaar in June 2025, eight months before the 18-year-old transgender woman killed eight people at her home and a school in the tiny British Columbia mining town of Tumbler Ridge. The account was banned over concerns about usage linked to violent activity, but OpenAI said it did not inform police because nothing pointed toward an imminent attack. Canadian officials condemned OpenAI&rsquo;s handling of the case and summoned company leaders to Ottawa to explain its security protocols.The family of a girl who was shot and gravely wounded at the school is suing the US tech giant for negligence. In a letter Thursday addressed to the community of Tumbler Ridge, published Friday by the local news site Tumbler RidgeLines, Altman said &ldquo;no one should ever have to endure a tragedy like this.&rdquo; &ldquo;I am deeply sorry that we did not alert law enforcement to the account that was banned in June,&rdquo; Altman wrote. &ldquo;While I know words can never be enough, I believe an apology is necessary to recognize the harm and irreversible loss your community has suffered.&rdquo; Van Rootselaar killed her mother and brother at the family&rsquo;s home before heading to the local secondary school, where she shot dead five children and a teacher. She died of a self-inflicted gunshot wound after police entered the building.

OpenAI had banned an account linked to Jesse Van Rootselaar in June 2025, eight months before the 18-year-old transgender woman killed eight people at her home and a school in the tiny British Columbia mining town of Tumbler Ridge.

OpenAI CEO apologizes to Canada town for not reporting mass shooter

SAN FRANCISCO: The luxury San Francisco home of OpenAI boss Sam Altman was hit by a Molotov cocktail on Friday, the company said, as police announced the arrest of a suspect. No one was injured in the incident, and the firm behind the popular ChatGPT artificial intelligence chatbot would not confirm if the CEO was home at the time. The motive for the attack and subsequent threats to set fire to OpenAI&rsquo;s San Francisco headquarters &mdash; apparently by the same 20-year-old man &mdash; were not immediately known. But they come as Altman&rsquo;s profile has risen with the increasing use of AI, amid fears it could massively disrupt employment patterns and cause irreversible societal changes. Police in San Francisco responded after reports that someone had tried to set fire to a gate at the sprawling home. A statement from the San Francisco Police Department said officers were dispatched to the home just after 4:00 am (1100 GMT). &ldquo;At the scene, officers learned that an unknown male subject threw an incendiary destructive device at a home, causing a fire to an exterior gate. The suspect then fled on foot,&rdquo; SFPD said. A short time later they were called to the firm&rsquo;s offices where a man was making threats. &ldquo;When officers arrived on scene, they recognized the male to be the same suspect from the earlier incident and immediately detained him,&rdquo; the statement said of the unnamed 20-year-old suspect. A spokesman for OpenAI confirmed the attack on the chief executive&rsquo;s residence and the threats to the San Francisco headquarters.&ldquo;The individual is in custody, and we&rsquo;re assisting law enforcement with their investigation,&rdquo; the spokesman told AFP. AI for warAltman and OpenAI have become targets for people protesting AI as a threat to society. Detractors have been particularly troubled by OpenAI&rsquo;s decision to provide its technology to the US Department of Defense. In a rare post on his personal blog, Altman shared a photo of his husband and their baby &ldquo;in the hopes that it might dissuade the next person from throwing a Molotov cocktail at our house.&rdquo; The OpenAI chief defended his convictions and called for a de-escalation of rhetoric surrounding. &ldquo;I empathize with anti-technology sentiments and clearly technology isn&rsquo;t always good for everyone,&rdquo; Altman wrote. &ldquo;But overall, I believe technological progress can make the future unbelievably good, for your family and mine.&rdquo; OpenAI last month said it was valued at $852 billion after a funding round that raised $122 billion. The figure reflects the surging costs of computing power and came amid lingering questions about whether OpenAI and rival companies can generate sufficient revenue to cover expenses. ChatGPT claims the top position in consumer AI, with more than 900 million weekly active users and some 50 million subscribers. Use of ChatGPT&rsquo;s online search engine has tripled over the course of a year, according to OpenAI.

Attack targets Sam Altman’s San Francisco home as police arrest suspect after Molotov incident, raising concerns over growing backlash against OpenAI and the rapid expansion of artificial intelligence technologies worldwide.

OpenAI CEO’s California home hit by Molotov cocktail, man arrested

SAN FRANCISCO: OpenAI on Tuesday said that the startup was valued at $852 billion in a freshly closed funding round that raised $122 billion.&nbsp;The eye-watering level of funding came in higher than originally projected, reflecting the surging costs of computing power and arriving amid lingering questions about whether OpenAI and other AI companies can generate sufficient revenue to cover expenses.&nbsp;&quot;The capital being deployed today is helping build the infrastructure layer for intelligence itself,&quot; OpenAI said in a blog post.&nbsp;&quot;Over time, that value will flow back into the economy, to companies, to communities, and increasingly to individuals.&quot;&nbsp;The ChatGPT-maker said that its revenue rate of $2 billion monthly is quickly growing.&nbsp;The funding round included a diverse set of partners including Amazon, Microsoft, Nvidia, and Softbank, according to OpenAI.&nbsp;In an unusual move, some $3 billion was reportedly raised from individual investors.&nbsp;ChatGPT claims the top position in consumer AI, with more than 900 million weekly active users and some 50 million subscribers.&nbsp;Use of ChatGPT&#39;s online search engine has tripled over the course of a year, according to OpenAI.&nbsp;&quot;These are not just growth milestones -- they show that frontier AI is becoming part of everyday life for people around the world,&quot; the San Francisco-based startup said in the post.&nbsp;The company in February began rolling out advertising for its non-premium users in a bid to bring in more revenue.&nbsp;OpenAI also announced that it is building a &quot;superapp&quot; that will combine ChatGPT, internet browsing, a Codex coding tool, and agentic capabilities that allow digital assistants to independently tend to tasks.&nbsp;The massive funding round comes with anticipation that OpenAI is planning to become a publicly traded company this year as competition intesifies in the AI sector.&nbsp;Arch-rival Anthropic, founded by former OpenAI employees, continues to gain ground and grab headlines for its well-regarded Claude AI models.&nbsp;Anthropic earlier this year secured a $30 billion funding round.&nbsp;Google&#39;s AI model Gemini has emerged as another potent competitor, with Elon Musk&#39;s xAI also attracting investment and users.

OpenAI raised $122 billion in a funding round valuing it at $852 billion, backed by major partners and individuals, while expanding ChatGPT, building a superapp, growing revenue, and preparing for public listing amid AI competition.

OpenAI raises $122 billion in boosted funding round

PARIS: The introduction of advertisements and sponsored content into chatbots has raised privacy concerns among AI users as brands scramble to stay relevant in a fast-changing online environment. <a href="https://www.pakistantv.com/article/over-million-users-talk-about-suicide-weekly-to-chatgpt-open-ai" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">ChatGPT</a>&nbsp;developer OpenAI began showing ads in chatbot conversations for free and low-cost users to start balancing its hundreds of billions in spending commitments with new revenue sources. It swiftly came in for mockery from rival Anthropic, which has staked its reputation on safety and data security. Anthropic&#39;s advertisement broadcast during last week&#39;s Super Bowl showed a man asking advice from a conversational AI, which then shoehorns advertising copy for a dating site into its otherwise relevant response. OpenAI boss Sam Altman shot back that the clip was &quot;clearly dishonest&quot;.&nbsp;Beyond OpenAI, Microsoft has been&nbsp;<a href="https://www.pakistantv.com/article/openai-introducing-ads-to-chatgpt" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">running contextual ads</a>&nbsp;and sponsored content in its Copilot AI assistant since 2023.&nbsp;AI search engine Perplexity has been testing ads in the United States since 2024, while Google is also testing ads in the AI &quot;overviews&quot; its namesake search engine has been offering since last year. Data privacyGoogle has repeatedly denied wanting to run ads in its&nbsp;<a href="https://www.pakistantv.com/article/apple-chooses-googles-gemini-ai-to-power-siri" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Gemini</a>chatbot, with Demis Hassabis, head of the search giant&#39;s DeepMind AI arm, saying that ads &quot;have to be handled very carefully&quot;.&nbsp;&quot;The most important thing&quot; in AI is &quot;trust in security and privacy, because you want to share potentially your life with that assistant,&quot; he added.&nbsp;OpenAI has sought to reassure users that ChatGPT&#39;s responses will not be modified by the ads, which are shown alongside conversations rather than being integrated into them.&nbsp;It has also promised not to sell user data to advertisers.&nbsp;AI companies are &quot;concerned that selling ads will scare away users,&quot; said Nate Elliott, an analyst with US data firm Emarketer.&nbsp;But &quot;when it&#39;s free, you&#39;re the product. It&#39;s a risk we&#39;re all more or less aware of already,&quot; said Jerome Malzac of AI consultancy Micropole.&nbsp;&quot;We accept it because we find value in it.&quot;&nbsp;If that proves true, advertisers will be delighted to surf the AI wave as it crashes over the world&#39;s internet users.&nbsp;Game changer&quot;It&#39;s going to be a game changer for the entire industry,&quot; said Justin Seibert, head of Direct Online Marketing.&nbsp;&quot;We&#39;re already seeing how high the conversion rates (interactions resulting in a purchase) are for people that are coming in from ChatGPT and the other LLMs (large language models),&quot; he added.&nbsp;AI assistants could account for up to 2% of the online advertising market by 2030, HSBC bank analysts suggested in a report.&nbsp;Many brands are already prioritizing visibility on the new channel, including US supermarket chain Target and software maker Adobe.&nbsp;Beyond buying a spot on users&#39; screens, companies are also pushing for their products to appear in chatbots&#39; organic responses.&nbsp;The practice is known as GEO (Generative Engine Optimization), an evolution of the Search Engine Optimization strategy during the era of Google&#39;s dominance over the web.&nbsp;&quot;We identified 90 rules that can make sure the content you create is valued by AI and spread to the right places,&quot; said Joan Burkovic, head of French GEO startup GetMint.&nbsp;The company already claims 100 clients, including fashion brand Lacoste.&nbsp;Malzac highlighted techniques like including references to scientific papers, adding a &quot;frequently asked questions&quot; section to your website, and posting information that&#39;s structured and regularly updated, Malzac said.&nbsp;&quot;If your brand isn&#39;t referenced (by chatbots), it no longer exists&quot; for some users, he warned.

This picture shows screens displaying the logos of OpenAI and ChatGPT. — (AFP/FILE)

ChatGPT developer OpenAI begins showing ads in chatbot conversations for free and low-cost users to start balancing its hundreds of billions in spending commitments with new revenue sources.

New world for users and brands as ads hit AI chatbots

SAN FRANCISCO: YouTube announced plans on Wednesday to allow its users this year to create AI versions of themselves for video sharing, matching a feature from Sora, the video-creation app from ChatGPT-maker OpenAI.&nbsp;&quot;AI will be a boon to the creatives who are ready to lean in,&quot; CEO Neal Mohan wrote in an annual letter outlining the platform&#39;s priorities for 2026.&nbsp;The Google-owned video platform sees AI as the next transformative technology for content creation, comparing it to earlier innovations like the music synthesizer and Photoshop.&nbsp;More than one million channels used YouTube&#39;s AI creation tools daily in December, according to the company.&nbsp;Mohan said YouTube plans to dramatically expand artificial intelligence tools for its creators this year, including allowing them to produce games from simple text prompts.&nbsp;The ability to generate short videos using your own likeness would follow Sora&#39;s cameo feature, which was launched last year by OpenAI and allows users to insert their likeness and voice into AI-generated videos.&nbsp;Google and&nbsp;<a href="https://www.pakistantv.com/article/openai-introducing-ads-to-chatgpt" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">OpenAI</a>&nbsp;are caught in an intense AI rivalry, with the search engine giant pushing out generative AI abilities to products such as Gmail and Maps, as well as promoting its Gemini chatbot, a competitor to ChatGPT.&nbsp;In an email to AFP, Google said it would release more details about the feature soon.&nbsp;In his letter, Mohan insisted that &quot;AI will remain a tool for expression, not a replacement&quot; for human creators.&nbsp;This addressed growing concerns about AI-generated content quality and authenticity as well as fears about the long-term survival of creative industries in the face of the technology.&nbsp;The platform will require creators to disclose altered or synthetic content and plans to give them tools to manage unauthorized use of their likeness in AI-generated videos.&nbsp;Mohan said YouTube is also building systems to combat &quot;AI slop&quot; -- low-quality automated content -- by adapting existing anti-spam and clickbait measures.&nbsp;The video service has been the top streaming platform by watch time in the United States for nearly three years, according to Nielsen data. Its short-form video feature, Shorts, now averages 200 billion daily views.

YouTube plans to let creators generate AI videos using their own likeness, expanding AI tools while requiring disclosure, combating low-quality content, and positioning AI as a creative aid amid rivalry with OpenAI this year globally.

YouTube to match OpenAI with AI likeness feature

SAN FRANCISCO: OpenAI CEO Sam Altman called on world governments Thursday to invest in AI infrastructure, as questions grow about whether the ChatGPT-maker, the world&rsquo;s most valuable private company, can absorb artificial intelligence&rsquo;s massive costs. &ldquo;What we do think might make sense is governments building (and owning) their own AI infrastructure, but then the upside of that should flow to the government as well,&rdquo; Altman wrote in a long post on X, clarifying OpenAI&rsquo;s position amid growing scrutiny of the company&rsquo;s ambitious spending plans. The company behind ChatGPT was facing scrutiny after its chief financial officer Sarah Friar told a business conference Wednesday that the US government could help attract the enormous investment needed for AI computing and infrastructure by guaranteeing loans to pay for the buildout. After fierce criticism, the executive later retracted the statement, saying her point was clumsily explained, which Altman reiterated in his own post. &ldquo;We do not have or want government guarantees for OpenAI datacenters,&rdquo; Altman wrote. &ldquo;We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or otherwise lose in the market,&rdquo; he added. &ldquo;If we screw up and can&rsquo;t fix it, we should fail, and other companies will continue on doing good work.&rdquo; The comments came as OpenAI faces questions about its financial trajectory. OpenAI has become a highly pivotal company, with the AI race launched by the release of ChatGPT driving Wall Street to new records even as doubts grow about the broader health of the American economy. Altman said the company expects to reach over $20 billion in annualized revenue this year, a significant accomplishment for a startup, and is looking at infrastructure spending commitments of approximately $1.4 trillion over the next eight years. This includes a $300 billion partnership with Oracle and a $500 billion Stargate project with Oracle and SoftBank that was announced at the White House in January. He projected that OpenAI revenue will grow to hundreds of billions of dollars by 2030, driven by as-yet-unreleased consumer devices, robotics, and AI-powered scientific discovery. Given the strategic importance of the technology, Altman argued that building a &ldquo;strategic national reserve of computing power&rdquo; makes sense for governments, particularly as massive infrastructure projects take years to complete. He cited severe compute constraints already forcing OpenAI and competitors to limit availability of their products and delay new features, warning that the risk of insufficient computing power outweighs the risk of overbuilding.

Sam Altman urges governments to build and own AI computing infrastructure, saying it is essential to meet rising demand. He clarifies the company is not seeking government guarantees, despite growing concerns over AI development costs.

OpenAI boss calls on governments to build AI infrastructure

WASHINGTON: ChatGPT-maker OpenAI signed a $38 billion deal Monday with Amazon&#39;s AWS cloud computing arm, as the artificial intelligence company continues on a major partnership spree that has also included Oracle, Broadcom, AMD and chip-making juggernaut Nvidia.&nbsp;Under the seven-year agreement, OpenAI, which is partly owned by AWS&#39;s archrival Microsoft, will gain access to computing resources including hundreds of thousands of state-of-the-art Nvidia GPUs, the crucial component of the generative artificial intelligence revolution.&nbsp;The deal, which will grow over its multi-year term, will also give access to tens of millions of more conventional CPUs that will be used for the everyday deployment of so-called agentic AI.&nbsp;&quot;Scaling frontier AI requires massive, reliable compute,&quot; said OpenAI co-founder and CEO Sam Altman in a joint statement. &quot;Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.&quot;&nbsp;OpenAI will immediately begin utilizing AWS computing, with all capacity targeted to be used before the end of 2026, and the ability to expand further in the coming years.&nbsp;By some estimates, OpenAI has inked approximately $1 trillion worth of infrastructure deals in 2025, including a $300 billion Oracle deal and a $500 billion Stargate project with Oracle and SoftBank.&nbsp;The massive infrastructure spending comes as revenues in 2025 are expected to be in the tens of billions this year, a very high figure for a startup, but far from the amount needed to recoup the costs of computing needed to power OpenAI&#39;s powerful chatbots.&nbsp;The deal was the first one since OpenAI formalized its new structure, in which the company has a freer hand to move away from its non-profit origins and deliver profits for its investors.&nbsp;The partnership with AWS builds on existing collaboration between the companies, with OpenAI&#39;s more open-source models already available on Amazon servers.

OpenAI signed a $38 billion, seven-year deal with AWS, gaining access to Nvidia GPUs and CPUs to scale AI. The partnership expands OpenAI’s infrastructure, supporting advanced AI deployment amid record multi-billion-dollar tech deals in 2025.

Articles tagged with "OpenAI"