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- OpenAI's $10 billion bet on its own chips
OpenAI's $10 billion bet on its own chips
PLUS: Anthropic's record settlement and OpenAI's LinkedIn rival
Good morning, AI enthusiast.
OpenAI is reportedly making a massive $10 billion investment in custom AI chips with Broadcom. This move signals a significant push by the company to develop its own in-house silicon, aiming to decrease its dependency on third-party suppliers.
The move is a major step towards vertical integration, designed to optimize hardware for future models. But is this massive investment in custom silicon the key to securing the immense computing power needed to stay ahead in the competitive AI landscape?
In today’s AI recap:
OpenAI's $10B custom chip deal
New legal precedents for AI training data
OpenAI’s plan to rival LinkedIn
8 trending AI Tools
OpenAI's $10B Chip Bet

The Recap: Broadcom's stock surged after announcing a $10B custom AI chip order from a new customer, widely believed to be OpenAI, signaling a major move to build in-house silicon.
Unpacked:
OpenAI joins tech giants like Google and Meta in a strategic push to develop custom silicon, aiming to decrease its dependency on Nvidia's expensive and supply-constrained GPUs.
The custom chips are slated for internal use to power OpenAI's demanding AI models, with production reportedly starting next year and volume shipments beginning in 2026.
The deal establishes OpenAI as Broadcom's fourth major custom chip customer, joining the ranks of Google and Meta, and boosting the company's AI revenue forecast for 2026 significantly.
Bottom line: This isn't just about cost savings; it's a strategic play for vertical integration. By controlling its own chip supply, OpenAI can optimize hardware for its future models and secure the immense computing power needed to stay ahead in the AI race.
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AI Copyright Crossroads

The Recap: Major AI companies are facing increased scrutiny over training data usage as courts begin establishing new precedents for fair use in machine learning applications.
Unpacked:
Legal experts suggest that the distinction between commercially available content and pirated materials will become crucial for AI training datasets going forward
Several pending lawsuits could reshape how AI companies approach data acquisition, potentially requiring more explicit licensing agreements with content creators
The growing legal landscape indicates that transparency in training data sources may become a competitive advantage for AI companies seeking to avoid litigation risks
Bottom line: AI companies must now balance innovation speed with legal compliance as copyright law catches up to machine learning technology.
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OpenAI's Next Target: LinkedIn

The Recap: OpenAI is moving into the professional development space, unveiling plans for an AI-powered jobs platform and a new certification initiative designed to train millions for the AI-driven economy.
Unpacked:
The OpenAI Jobs Platform, expected by mid-2026, will use AI to match candidates with employers, creating a direct competitor to LinkedIn.
A new certification program aims to train 10 million Americans by 2030, launching with major partners like Walmart to help workers build AI fluency.
The move directly addresses the job market disruption caused by AI, providing a pathway for workers to adapt and showcase in-demand skills.
Bottom line: OpenAI is expanding its mission from building AI tools to shaping the entire workforce ecosystem that uses them. By controlling the training, certification, and job placement pipeline, the company can accelerate AI adoption and solidify its central role in the future of work.
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The Shortlist
Anthropic agreed to a landmark $1.5 billion settlement with authors in a class-action lawsuit, resolving claims it used pirated books to train its Claude AI models.
Google DeepMind developed Deep Loop Shaping, a new AI method that improves control of gravitational wave observatories like LIGO, potentially allowing astronomers to detect hundreds more cosmic events per year.
Fable announced plans to use its Showrunner AI platform to reconstruct 43 minutes of lost footage from Orson Welles' 1942 classic, "The Magnificent Ambersons," in a non-commercial academic project.
TurbineOne landed a $98.9 million contract with the U.S. Army to equip soldiers with AI applications on phones and drones for rapid, on-the-ground threat identification.
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