Welcome back, AI’ers!

Here’s What’s On The Menu For Today

• Musk and Zuckerberg's secret plan to acquire OpenAI

• Nvidia pauses its China-focused AI chip

• Anthropic's massive $10B funding round

• Meta appoints a new superintelligence chief

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TODAY’S TOP STORIES

Musk's Secret OpenAI Bid

The Recap: In a bombshell court filing, OpenAI revealed that Elon Musk approached rival Mark Zuckerberg to join a massive $97.6B bid to acquire the AI company, a potential alliance that would have dramatically reshaped the tech landscape.

Unpacked:

• The proposed alliance never materialized, as the filing states that neither Mark Zuckerberg nor Meta signed Musk's letter of intent to purchase the company.

• This move highlights the long-running feud between Musk and OpenAI, which he co-founded in 2015 but left in 2018 citing disagreements over its direction and partnership with Microsoft.

• The attempt underscores the intense competition in the AI space, with both Musk's xAI and Meta's AI division aggressively competing with OpenAI for talent and market dominance.

Bottom line: This failed bid offers a rare glimpse into the high-stakes power plays happening behind the scenes to control the future of artificial intelligence. A Musk-Zuckerberg alliance would have created an entity with unparalleled resources, directly challenging the dominance of Microsoft and Google in the AI arena.

Nvidia's Great China Chip Halt

The Recap: Nvidia has reportedly paused production of its H20 AI chip, designed specifically for China, after Beijing raised national security concerns and urged local tech giants to avoid the hardware.

Unpacked:

• Beijing's directive stems from allegations that the chips could contain security "backdoors," a claim Nvidia's CEO Jensen Huang denies as the company engages in discussions with the Chinese government.

• The H20 was Nvidia's workaround for earlier U.S. export controls, and this production halt throws its $17 billion China business into fresh uncertainty just after Washington had approved resumed sales.

• Despite the setback, Nvidia is already talking to the U.S. government about a potential successor chip for China, tentatively named the B30A, based on its next-generation Blackwell architecture.

Bottom line: This move highlights the intense geopolitical friction shaping the global AI hardware market. It also creates a significant opening for China's domestic chipmakers to accelerate their development and capture market share from a global leader.

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MORE STORIES

Anthropic's $10B War Chest

The Recap: AI startup Anthropic is reportedly closing in on a massive $10 billion funding round to fuel its race against OpenAI. The potential deal could see the company's valuation triple.

Unpacked:

• The proposed $10B round is double its initial target of $5B, signaling a dramatic surge in investor demand for the Claude maker.

• A successful raise could triple Anthropic's current $61.5B valuation, pushing it into an exclusive tier of AI giants.

• Prominent investors like Iconiq Capital and TPG are backing the deal, underscoring Wall Street's confidence in Anthropic's long-term strategy.

Bottom line: This influx of capital is about securing the immense computational power needed for next-generation models. The AI arms race is accelerating, and Anthropic is ensuring it has the resources to compete at the highest level.

Meta Crowns a New AI Lead

The Recap: Meta is making a huge bet on new leadership, appointing 28-year-old Scale AI cofounder Alexandr Wang to lead its new superintelligence lab. In a major leadership shakeup, AI luminaries Nat Friedman and Yann LeCun will now report directly to him.

Unpacked:

• This move is part of a broader strategic realignment that includes dissolving existing teams to form a new, yet-unnamed "TBD Lab" focused on superintelligence.

• The new hierarchy places Wang above established AI pioneers, including Turing Award winner Yann LeCun, signaling a significant shift in the company's approach.

• The appointment is already stirring up competitive tension, with Wang publicly insisting Meta is heavily investing in AI and drawing a sharp reply from OpenAI's leadership.

Bottom line: This aggressive move shows Meta is prioritizing a founder's mentality and speed to directly challenge competitors like OpenAI in the AGI race. The company is betting that a startup-like culture, led by a young and proven builder, is the key to achieving its superintelligence goals.

OTHER NEWS YOU MAY LIKE

Google launched a specialized version of Gemini for government agencies, pricing it aggressively at $0.47 per year to undercut rivals and win federal contracts.

Meta signed its first major cloud computing deal with Google, committing to a $10B, six-year plan to access Google Cloud infrastructure for its massive AI development efforts.

Elon Musk sought Mark Zuckerberg's financial backing for his unsuccessful $97.4B bid to acquire OpenAI, according to court filings from the AI company.

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