Everyday AI Podcast – An AI and ChatGPT Podcast - EP 610: Microsoft and OpenAI change partnership, publishers partner against AI scraping, Oracle’s $300B AI play and more AI News That Matters

Episode Date: September 15, 2025

Microsoft and OpenAI are kinda breaking up. 😢Speaking of breaking up, some of the world's largest publishers have finally come together to (maybe) break up the Wild West of LLM scraping.Oh, and Oracle's officially putting $300 billion on the line for AI. Don't spend hours trying to keep up with AI. That's our job. Instead join us on Mondays as we bring you the AI News That Matters. Microsoft and OpenAI change partnership, publishers partner against AI scraping, Oracle’s $300B AI play and more -- An Everyday AI Chat Tune in now. Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageJoin the discussion: Thoughts on this? Join the convo and connect with other AI leaders on LinkedIn.Upcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: [e-mail] with Jordan on LinkedInTopics Covered in This Episode:OpenAI and Oracle $300B Cloud AI DealOracle Joins Big Four Cloud ProvidersAnthropic Claude Launches File Creation FeatureClaude File Creation for Enterprise and TeamsMicrosoft Integrates Claude Into Office 365Microsoft Copilot Adds Multi-Model AI SupportApple Loses Senior AI Executive to MetaOpenAI Adds Anthropic’s MCP Protocol to ChatGPTMajor Publishers Launch Real Simple Licensing (RSL) StandardRSL Targets AI Web Scraping and LicensingMicrosoft Building In-House AI Chip ClustersOpenAI–Microsoft Partnership Restructuring and Future IPOOpenAI Revenue Share with Microsoft DeclinesTimestamps:00:00 Generative AI Partnership Changes04:07 Oracle's Partnership with OpenAI: Implications07:43 Language Models Creating Files Explained14:27 Apple Struggles with AI Leadership16:20 OpenAI Integrates Anthropic's MCP in ChatGPT22:32 "Major Publishers Unite for AI Licensing"24:19 Impact of RSL on Publishing Industry29:46 Microsoft's Push for AI Independence31:59 OpenAI-Microsoft Partnership Restructures Future34:40 OpenAI-Microsoft Partnership Challenges39:09 Tech Updates: AI Innovations and Releases42:21 "Stay Updated with AI Insights"Keywords:Microsoft and OpenAI partnership, OpeSend Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info) Start Here ▶️Not sure where to start when it comes to AI? Start with our Start Here Series. You can listen to the first drop -- Episode 691 -- or get free access to our Inner Cricle community and all episodes: StartHereSeries.com Also, here's a link to the entire series on a Spotify playlist. 

This is the Everyday AI Show, the everyday podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life. Meet Firefly AI Assistant, now live in Adobe Firefly, the All In One Creative AI Studio. Just describe what you want to create and the assistant handles the rest, orchestrating multi-step workflows across Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome. The assistant accelerates execution. One of the landmark partnerships that has defined the generative AI age is changing.

Another thing that's changing, the way that large language models may be getting their information in the future after some major publishers have partnered together and a $300 billion play in AI by Oracle. Maybe we didn't see a huge new model released this week from Google or Open AI, but we have some partnership news that is technically going to impact tens of millions of people and how they work. So we're to be covering all of that today on Everyday AI and a whole lot more. Thanks for tuning in and thanks for joining us. What's going on, y'all? My name is Jordan Wilson and welcome to Everyday AI. This is your daily live stream podcast and free daily news that are helping

everyday business leaders like you and me, not just keep up with AI because there's a ton going on, but how we can make sense of all of these updates and behind the scenes happenings and take something away to grow our companies and our careers. So if that's what you're trying to do, it starts here with the unedited live stream podcast, but to take it to the next level, you got to go to our website, y'all. It's at your everyday AI.com. So there, two things you got to do. One, sign up for the free daily newsletter where each day we recap the live stream podcast.

like we're going over now, but also we keep you in line and up to date with everything that's happening in the world of AI, not just what we're going over in today's show. So yeah, most Mondays, we go over kind of this special segment, the AI news that matters. So you don't got to waste hours every single week or hours every single day trying to figure out how these things are going to impact your line of work. Just join us on Mondays. We do our no BS straight to the point recap. So with that, live stream audience, I see you there.

Thanks for joining us, but let's get straight into it. I'm in a new place you can see, you know, in Wisconsin now. So not in my normal Chicago, but thanks for everyone else for tuning in live. Jay joining in from West Virginia, Angie, good morning. Marie joining from New Jersey, Fort Lauderdale. Joe says he's not a Florida man. All right. Let's get into it, y'all.

our first piece of AI news, $300 billion. That's a big one, right? That's a number you don't see floated around a lot. So let's talk about this new $300 billion deal between Open AI and Oracle. Technically kind of new, but kind of amending and updating their previous agreement. So Oracle has reportedly signed a five-year computing power commitment with Open AI worth about $300 billion driving a 359% surge in Oracle's reported future contract revenue this quarter and a $317 billion increase in backlog.

So if this deal is fully utilized and there are some contingencies that it might not be an actual $300 billion contract in the long run, but the deal could put Oracle's cloud revenue runway near a trillion dollars by 2030, a figure that underscores how. generative AI demand is reshaping where hyper-scaler investment flows. So Oracle Cloud infrastructure or ACI, well, now you got to say there's a big four in cloud. You can't not include Oracle Cloud or OCI anymore. So joining Amazon Web Services, Microsoft's Azure, and Google Cloud. So now for the big AI cloud providers, the big three have officially become a big four with Oracle. You can't make an argument against them with this $300 billion plate.

So according to reports, OCI's approach, which is identical regions, tight capacity planning, and engineering first delivery was a key reason that Open AI opted in alongside Oracle's strengths in data movement and high performance infrastructure. Skeptics, however, note the financial bar is steep. So for Open AI to fully fund a $300 billion commitment over, five years, it would need roughly $60 billion in annual revenue minimum, right, just to make this thing work. And that's around six times its current reported run rate. So yeah, some people are doing the math and the math isn't necessarily mapping. But obviously, uh, there's some other

AI news that could shape how open AI may be able to raise funds and they may be able to bring money in aside from just their annualized, uh, revenue. So for Oracle database fusion and ERP customers, Gartner says that this is a net win with Oracle expected to keep investing in core apps while offering access to expanded GPU capacity. And also the broader market implication is faster AI forever, right? Now that Oracle has this big partnership in place building off of their previous partnership with OpenAI and Stargate, this means that all the other cloud providers are going to have to continue to keep up and push each other,

push each other. So ultimately what this means, especially for enterprise companies that are looking to take advantage of generative AI, you know, we always talk about, oh, running things in the cloud. Well, for the most part, there had been three big cloud providers. And now Oracle knocking on the door and saying, yeah, now there's a big four. All right.

Speaking of new, new features at least that I think are actually pretty big. So Anthropic has rolled out a new file creation feature for Claude. that can generate, modify, and manage project files, making it more useful for coding tasks, documentation, and data workflows. So the feature supports end-to-end tasks such as scaffolding repos, editing code, writing config files, and producing Claude artifacts, which can speed up software and content development for teams. So Claude operates with controlled external access via an allowed white list of domains

including API.antropic.com, GitHub.com, and other places where you can kind of create these files. So right now, though, unfortunately, this isn't going out to all plans. So if you're logging in, yeah, this is this new file creation feature has actually grabbed a lot of headlines the last few days, but a lot of people are like, wait, I don't have this. that's because right now this feature is only for team and enterprise accounts and team and enterprise administrators have to first enable or disable the feature. for their organizations to be able to use it.

So for other users, including free pro, you know, the $20 month and the $100 plan, Max, apparently didn't even get this file right away. So public sharing also will be disabled for conversations that involved file creation. So enterprise users, though, that do have their hands on this and teams users, but on the enterprise side, users get sandboxed execution. So environments are never. shared between users supporting cleaner separation of workflows and easier auditability. So Anthropic says that it continuously tests and red teams this features and recently updated

their documentation to reflect this. So like what does this mean? Well, essentially, most large language models by default have real problems creating files, right? You have to actually either sometimes just get lucky, right, whether you're working with co-pilot, chat GBT, etc. Or you have to know a little bit about prompt engineering, using the right mode, et cetera. So, you know, as an example,

you might have to call out and have chat GPT use advanced data analysis mode and not just use the default GPT5 in order to create a file. So now this is a new feature that Claude has started to roll out across teams in enterprise accounts, which is eventually going to be adapted by everyone, because it's going to have to be. You know, I think earlier on, a lot of people weren't necessarily as concerned about creating files inside of a large language model because they were like, okay, well,

you know, I'll just copy and paste it. But as large language models, obviously get more robust, get more features and functionality, right, get the ability to create PowerPoints, right? So, you know, chat GPT agent mode can do a lot of these things by default. They can create Excel sheets now, PowerPoint now. But ancient mode is extremely slow and a little clunky right now. So now this is pretty big news with Anthropic Claude rolling this out to their broader chat, right? Just normal Claude being able to create PowerPoints, docs, Excel sheets, etc.

Pretty big news, but don't like Anthropics rollout, not giving access to all paid users. So unfortunately, this might be something if you're just on the base $20 a month Claude plan. I don't know. You might have to wait a couple of months, a couple of quarters. But hopefully it's a little faster rollout than that. Speaking of Claude, well, Microsoft is adding Anthropics Claude to their Office 365 mix. Pretty big news here. And we have more news.

I think on our last news story with Microsoft and OpenAI, but Microsoft definitely shaking it up just as OpenAI shook it up with their Oracle partnership, kind of going outside of the Azure cloud. So right now, Microsoft is widening its AI lineup inside of Office 365. Now, routing tasks between Anthropics Claude and OpenAI's ChatGBTGBT models to improve performance and reduce reliance on a single provider. So now Microsoft will begin to integrate Claude models alongside ChatGPT across their office products, including Word, Excel, and PowerPoint with Microsoft dynamically choosing models based on demand workload and task fit.

I'm not a big fan on that. I think it's better to allow users to choose which model that they want to use. So I'm not a big fan of that. And one of the reasons why, right, is you want to be able to work large language models into your daily workflow. So if you're constantly, you know, using Microsoft copilot and using their obviously AI features to help across Word, Excel and PowerPoint, you're going to get driven. drastically different results, which is going to require drastically different inputs,

whether it's using any of the GBT5 models versus using the Claude 4 family. So although I think it's great that Microsoft is starting to incorporate other models, not a huge fan with co-pilot doing this dynamically. So a little bit more on this partnership. So the partnership with Anthropic runs over AWS, meaning that Microsoft will pay AWS. And that one's interesting, right? So Microsoft having to pay one of their competitors.

So AWS is one of Claude's big backers. And also that's how Claude runs. So Microsoft is having to pay AWS to access Claude, even though they have their open AI models running on their own Azure architecture. So Microsoft, though, says there should be no change to current co-pilot or Office 365 pricing, even though their pricing is increasing with the new Claude inclusion, signaling a focus on capability gains rather than a short-term monetization strategy for Microsoft. So yeah, it's not like Microsoft is using this as a key feature to try and go and get more

users across their co-pilot Enterprise Suite. They're just, you know, hoping for more reliability, a little bit more versatility as well. So Microsoft said that performance was a key driver. And reportedly they said that Claude Sonnet 4 family was a little bit better in helping generate slides, spreadsheets, and PDFs directly in chat, and has shown advantages on office specific tasks like more polished PowerPoint design and automated Excel functions. So this move, it's not necessarily very unique within co-pilot because Microsoft and their copilot product had pretty much been just running on the GPT family and the O-Series family

of models when there was an O-Series family of models. But essentially, Microsoft had been, exclusively over the life of their front end copilot, just been offering OpenAI's models. But it follows their GitHub co-pilot multi-model approach, which they've already been using for a long time on their AI coding platform copilot. They let developers pick from chat GPT, XAI, Gemini, and Claude, suggesting maybe this might mean a future where Microsoft offers many different models

inside their product stack. I do think or and I hope if they go there, I do hope that means that they'll allow users to actually select which models make the most sense. And this shift comes amid an uneasy but still ongoing Microsoft and OpenAI relationship, despite Microsoft holding a reported 49% equity stake in OpenAI with a total of about $13 billion. invested in the company over the years. But like I said, that partnership is definitely changing.

Another one walks out the door. Yes, Apple has lost another one of their senior AI leaders. And this one, again, another one not looking good for Apple. So according to Bloomberg, Robbie Walker, one of Apple's most senior AI executives and the former head of Siri is leaving the company next month. raising fresh questions about Apple's already cautious approach to artificial intelligence. So Bloomberg reports that Walker has led Apple's answers information and knowledge team since April of this year and previously ran Siri.

So the news lands as Apple actually trails by a lot by a huge distance, their biggest rivals on consumer AI features and their Apple intelligence, including the built-in chat GPT tie-in, has rolled out extremely slowly and has carried with it a bunch of lawsuits for essentially Apple promoting all these Apple intelligence features that just don't exist. And we've seen that Apple has had to form a partnership with one of its biggest rivals in Google for a future smarter version of Siri. So Apple did not immediately respond to this big news, but internal leadership shifts continue as Apple has lost just about all their big AI names and leading AI researchers.

So recent talent losses to Meta have intensified pressure, as Bloomberg has reported that Rooming Ping, who is Apple's top executive for AI models, plus other researchers such as Mark Lee and Tom Gunter, have joined Meta's superintelligence labs teams. So the timing, like I said, follows last week's. Apple's product event where they introduce new iPhones and a slimmer iPhone, while also just not really talking a whole lot about AI. And that's probably a good thing because they would just be talking about other companies

that they're having to pay in order to provide AI to their consumers. Another one, that's kind of a strange partnership, right? We've had a lot of strange partnerships in AI news this week, right? We just talked about Microsoft having to pay Amazon to use Claude, even though they're partnered with OpenAI, OpenAI and Oracle. And now we have OpenAI and Anthropic. Because OpenAI has officially added Anthropics, very popular model context protocol directly inside ChatGBTGPT.

So OpenAI did release something called developer mode this week, which allows people to enable the model context. protocol or MCP directly inside of chat chbt. So this gives people the access and ability to run their own MCP servers and also let chat chitpt run read-write commands from within a chat. So OpenAI did even admit themselves that this is quote unquote powerful but dangerous with safeguards and guidance needed to reduce risk. So this is why they kind of rolled this out in what they're now calling a device.

developer mode. So you have to go into your chat chPD settings. Depends on what plan you're on. Obviously, if you're on enterprise teams, a paid plan, et cetera, but you have to first enable developer settings. And then you are able to use the MCP protocol within chat chad chvety, which is actually a huge deal, right? So in the same way that you can kind of think Zapier, right?

Zapier can connect you if you, you know, use Zapier's, you know, custom GPT or something like that. it can connect you to 6,000 or 7,000 different pieces of software. Well, MCP is the same thing. Well, Zapier has an MCP that you can use inside of chat GPT. Wow, that's a lot of acronyms. But this also opens up to just all MCP servers. And we probably should do a show on MCP now, especially since chat GPT is supporting it.

So I don't know, live stream audience, Spotify people, just comment MCP like yes or no if you want the show. I've said for months, I'm like, yeah, we'll do one eventually. But I think this might be the thing that's really going to push MCPs into the spotlight. Even though Microsoft co-pilot started to support them natively inside of Windows, I actually think it is chat GPT's 700 million weekly active users that could thrust MCPs into the real spotlight here. And not necessarily, not even for good reasons. I think this is actually what's going to open the door for a lot of prompt injections, malicious attacks that for the most part, you haven't really seen inside of chat chbt.

So although this does open up a wide range of capabilities when it comes to what you can do and what you can accomplish, right, essentially giving read, right access to anything on the internet now, but that's actually can be bad because you're giving read, right access to anything on the internet within your chat chabit. account. So this is a door that definitely swings two ways, but I think this is actually going to be the thing that is going to make MCPs, something that's not just for developers or dorks like me anymore. So if you're like, what the heck is in MCP, you can kind of think of it like a universal port for AI tools, right? How there's, you know, a USB, you know, free or something on your computer

and on your iPhone and on other devices. Well, MCP is kind of like that. It's like a universal port for AI tools. So developers, though, can also expose functions through these MCPs, such as checking inventory, updating records in your backend tools that you use, and even processing payments through different MCP servers. So safety controls, though, require explicit confirmation for any right action with full JSON payload review, tools labeled read only, hint, are treated as read only, while other are blocked until approval.

So Open AI, though, is trying to center their approach on safe in-chat usage with guardrails, while Anthropics documentation focuses on MCP as open infrastructure for enterprise-scale systems and a growing ecosystem for pre-built servers. So, y'all, this is actually big, right? Because you can do, like I said, you could do a lot of these things already by going through Zapier. But number one, you have to pay a lot of money. Number two, it can be a little slower, essentially, if you're using an intermediary. So this is kind of like how websites have APIs to talk to each other.

So MCPs kind of are like an API type protocol for websites. So it can allow different AI systems to talk to different AI systems and then different AI systems to talk to different backends, right? So think if your company has, you know, a CRM and an ERP and they have all of these different systems, well, now ChadGBT can probably be able to run off those because there's probably already a publicly available MCP tool that will do it or you can build your own MCP tool. So again, the whole read write giving chat GPT read right access to in theory, an unlimited number of systems. This really does change what you can do with. with chat chbt. It changes.

So if you've used chat chb t's newer connectors, so it's kind of like a connector in MCP, although they are technically, from a technical standpoint, much different, built much different from a functionality statement, or from a functionality viewpoint, they're kind of the same, right?

So chat chabt a couple of months ago rolled out these connectors. So, you know, Gmail for an example. ChatGPT can always just know your Gmail and it can go in and read your Gmail. It can't send anything, right? So it's the same way. These different MCP servers are going to be able to access just about any data that you want, any dynamic data that your company uses. So huge news there.

All right. This one could be even bigger. So I'm excited about this one. A lot of like a lot of people know my background is in journalism. So I've been talking about for now almost three years about how the future of me, media and publishing can go. And this is a huge new partnership that could influence that. So now you have some of the world's biggest publishers that have come together.

So including companies like and publishing companies like Reddit, Yahoo, Medium, Quora, people, O'Reilly, WikiHow, Zip Davis, all coming together to support a new open standard called really simple licensing or RSL. This sets paid terms for how AI systems like chat GPT, Gemini, co-pilot, Claude, et cetera, how they can access and crawl and use content on your websites. So the RSL standard adds licensing instructions to these different robot. That text in essentially these AI bots that crawl different websites. and it tells them and embeds the terms in different web material, books, videos, and

data sets, enabling large language model systems to be charged via a subscription, a pay per crawl fee, or a pay per inference when an AI references their work. So this initiative is organized by the R.S.L. Collective, led by RSS co-creative, Eckhart's Walder, and former Ask.com. Adobe just introduced an entirely new way to create, bringing the power and precision of its creative suite into one conversational experience. Meet Firefly AI Assistant, now live in the Adobe Firefly app, the All In One Creative AI Studio.

Powered by Adobe's creative agent, Firefly AI Assistant lets you start with your vision, just describe what you want, and shape the outcome as it takes form with the Assistant. The Assistant orchestrates multi-step workflows, drawing on 60-plus Prograde to a across Adobe Creative Cloud apps, including Photoshop, Illustrator, Premiere, Lightroom Express, and more to help bring your ideas to life. You can also get started with creative skills, a growing library of pre-built workflows for common creative tasks, like batch editing photos, creating mood boards, portrait retouching, and creating social variations. Every step the assistant takes is visible so you can refine, redirect, or take over at any time. You stay in the

driver's seat as the creative director. Adobe Firefly AI assistant now in public beta. See it today at Firefly.adopadop.com. CEO, Doug Leads, who aims to create a scalable business model that defines rights and compensation across the lab. I'm actually going to try to get, I was talking with Doug yesterday. So I'm going to try to get Doug on the show. If you guys think it would be an interesting show, I would love it just to talk about how this might impact the future of work, because this is big, because this could

in theory, obviously keep a lot of publishing companies in the game longer, but also create a much more equitable kind of compensation package for all of these companies that they're, you know, we've seen the stories about how, you know, the traditional web is dead and how major publishers now, because of large language models, for the most part, just scraping their websites and using all of their information without attribution without compensation, you've seen a lot of these companies over the past couple of years lose up to 60, 70, 80 percent of their website users. And a lot of times, that means losing 60 to 70 to 80 percent of their revenue. So you've seen these huge layoffs across the industry.

So this new RSL or real simple licensing agreement could be huge. So RSL differs from individual licensing deals struck by publishers. Right. So we've seen, you know, Reddit as an example, have, you know, multi-million dollar annual partnerships with some of the big large language model makers. So RSL is different from these individual deals because it offers any website or creator a standardized plug-in way to get paid without negotiating separate contracts. So on enforcement, RSL by itself cannot block bots, but the collective is working with Fastly.

So only AI crawlers with a valid license ID essentially, right, saying, hey, you're only going to be able to crawl websites if you're registered through there. So then publishers would need to, will need other providers to build similar gatekeeping tools, right? So this is one of those things. It's only truly going to work if all of the big names get on board. Right. But from what I've read, it's fairly free and easier for small, indie and individual content. creators to essentially start using this technology. So the collective says that members will share legal enforcement costs,

comparing the approach to ASCAP or ASCAP in music, yet acknowledging that AI training data and web scraping remain in a legal gray area amid ongoing lawsuits involving all the big names such as Ready, Getty images, and other major publishers. So for companies and creators, this is big and it could open up a new revenue stream from AI usage and provide clearer compliance rules for data access at scale. So y'all, I've been saying this literally for almost three years. I said there's only three ways that this works out in the long run because the cat's already

out of the bag. And this is going to take years, if not decades, to legislate or adjudicate in the courts, right, especially here in the U.S. So the three options for big publishers are, well, number one, you die. Number two, you sue or number three, you partner, right? And there hasn't been a good way to partner aside from if you're one of the biggest websites in the world. But what about for everyone else? So this is a great way for it looks like a great way.

So I'm going to be investigating more and hopefully bringing the RSL team on the everyday AI show soon to talk about this. But this seems like a great way for all different companies to choose the third option there. because there's literally no other option because eventually, especially if you, if your company creates content to get leads, right, which is what for the most part, whether you're in B to B, B, B, C, whether you're a small, you know, solo creator or you're a Fortune 500 company. Companies put content on their website to attract their ideal client and customer and eventually bring them on as a client, as a paying client or customer.

So there's obviously been a weird, awkward reckoning going on, I think, especially in 2025, as we've seen kind of this shift toward large language models, essentially being an answers engine, right, and not just relying on old scraped content, right? So many, so many of the large language models, Chad, GBT, even Clawed now, Gemini, etc. They're using just real-time web scraping to provide answers. So a lot of times, they're not users, aren't going to these websites. They're not signing up for these, you know, services or, you know, being able to get retargeted, you know, by visiting a website. So this is huge.

And I can't emphasize enough, even though this might be a small thing. I think this could be a big win for the media, for journalism, for content. Because here's the other thing. Large language models are eating from the hand. Like they're eating the actual hand that is feeding them, right? Because you've had so many large enterprise. media companies that have had to lay off hundreds or thousands of employees. And when you go back and look at it, it's like, yo, it's their work that actually

allowed these large language models to be as smart and as robust as they are. All right. I'll get off my soapbox on that one. And let's move on. I think we have two more, two or three more big stories here. So let's get to it. So next, Microsoft, according to reports, is moving to cut reliance on open AI as they plan significant investments in their own AI chip clusters to reduce dependency on open AI,

according to Business Insider reports. So this is signaling a push for self-sufficiency while keeping their partnership in place. So Microsoft AI CEO Mustafa Soleiman told employees reportedly that the company should be able to build world class frontier models in-house and use other models, pragmatically underscoring a strategy to play a close second to open AI in three to six months. So what does this mean? Well, essentially, Microsoft is going to be building its own chip clusters to build more powerful models to reduce their reliance on open AI.

So Microsoft is testing third party models in co-pilot, aside from that earlier partnership that we talked about with Claude in Anthropics, in Microsoft Office products inside Copilot. But Microsoft is also testing other third party models and co-pilot and building its own off-frontier models aiming to diversify suppliers and lower costs for enterprise customers who rely on Microsoft 365 and Azure. So a little bit more on the Microsoft and Open AI, but this is now our second AI news story of the day.

And we haven't even gotten to the big one yet. That shows that Microsoft. in Open AI, technically our third story, they're kind of diversifying. So Open AI, or sorry, Microsoft is now starting to build its own chip clusters to build more powerful models. We have the story earlier here about Oracle and Open AI's potential $300 billion cloud AI deal. And also Microsoft starting to integrate and implement Anthropic Clause models inside of copilot. All right. Moving on.

And this is this is our big one, y'all. This is the big one. Actually a two part story here. Two parts to it. So first, Open AI in Microsoft have agreed to move forward with a new partnership. Their old partnership is gone.

And this is pretty big, especially if your company is an open AI enterprise. So Open AI and Microsoft signed a nine non-binding agreement to let OpenAI convert its for-profit arm into a public benefits corporation or PBC, while the OpenAI nonprofit side keeps control of this entity and gains a stake valued at over $100 billion, according to reports. So this matters because the new PBC public benefits corporation structure could unlock large new funding rounds for Open AI, make an eventual IPO.

possible or allow Open AI, the chat GPT maker to go public and still keep mission focused control in place, which could speed product development and change pricing across widely used AI tools. So the agreement comes in the form of an MOU or a memorandum of understanding and it's not final and both sides says they are working on a definitive contract and need approvals from both California and Delaware attorneys general before any transition takes effect. So Brett Taylor, who's OpenAI board chair, said the nonprofit will continue to control operations and also hold the PBC stake, but other terms were not yet disclosed. So like I said, previously, Microsoft had reportedly invested between $13 and $14 billion for a 49% claim in OpenAI.

So this is a big shift here. So Microsoft under this new agreement would remain a preferred tech partner and primarily cloud. a primary cloud provider under the current deal, but Open AI is reducing reliance by, again, reportedly committing $300 billion to Oracle like we just talked about and also partnering with SoftBank on the Stargate data center. So months of tense talked included. So yeah, this has been going on for many months. We've been reporting on it.

These new partnership talks between Open AI and Microsoft and they included disputes over rights to tech from Windsor. an AI coding startup that Open AI sought to buy, but the acquisition kind of collapsed because of this kind of agreement in the current partnership between Microsoft and OpenAI, and then WinSurf essentially was Aqua hired by Google. And then much of the remaining team moved to cognition.

So reportedly, the current partnership had also been a problem for Open AI in acquiring other large, AI companies that may not fit under the current agreement or that may be a direct competitor to Microsoft. So OpenAI's nonprofit overprofit governance, which enabled the 2023 firing and the quick rehiring of CEO Sam Altman remains intact and would carry over into this new structure. So this is big because if regulators approve and contracts are finalized, like I said, you could expect faster capital raises a clear path for open AI to go public, right? So being able to,

you know, go in your 401k and buy open AI shares, but also this would allow open AI to probably have faster acquisitions, right, which could ultimately change the product drastically that 700 million people are using on a weekly basis. All right. So a little bit more on the revenue side. So technically a separate story here, but related. So, According to the information, Open AI projects that its revenue share with Microsoft will fall from nearly 20% in 2025 to only about 8% by the end of the decade, a shift that could reshape the economics of Open AI. So this new report says this change could let Open AI retain more than $50 billion of additional revenue that they did not project through. 2030, giving it critical capital to cover massive training and inference costs as their usage scales. So yeah, reportedly Microsoft had about 20% of a revenue share.

And this is kind of outside, but we don't know if it's exactly outside or in addition to that 49% equity sake. But according to this new report from the information, the rev share side would fall from 20% to 8% by the end of the decade. So a pretty big drop off there. So, but that would mean Open AI having a greater ability to scale and ramp up usage as well. So the companies, like I said, are finalizing that new partnership terms following the new non-binding MOU that enabled OpenAIs corporate restructuring. So Microsoft, though, still gains strategically with a significant equity stake moving forward and integration.

of OpenAI's models across co-pilot and the right of first refusal, sorry, the right of first refusal on Open AI's computers, keeping workloads anchored to Azure if they wish. All right. Sheesh. That was a lot. Yeah, Douglas saying, is it hot take Tuesday already? Not yet.

All right. But there's more. Let's go over quick rapid fire here. of what's new and what's next. All right. So these are some kind of new stories, some rumors, some new features, but there was a ton of smaller updates that could end up being big for you or your business. So we're going to go over them very quickly.

Here we go. Bullet point. Let's go. So Claude rolled out memory finally, but only for enterprise and team plans. Claude also rolled out private chats. all users. Perplexity unveiled the free access to perplexity for the U.S. government. Meta signed a $140 million licensing deal with Black Forest Labs for AI images after a similar partnership with MidGermy. So meta going all in on third party AI image models.

Google's V-O-3 can now generate vertical videos, and that's actually important. So keep an eye on social media reels being flooded with Google V-O-3 videos if they weren't already because now V-O-3 can generate vertical, whereas before it could only generate landscape. Open AI reversed course and is keeping their standard voice mode after they previously said they would get rid of it in lieu of their new advanced voice mode. So standard voice mode is sticking around. Perplexity raised $200 million at a $20 billion valuation. Microsoft added scripted audio mode, which looks pretty cool.

I played around with it to its co-pilot audio expressions. AI agent startup GenSpark released an updated AI browser with on-device AI, which looks really good. And it might give chromes or sorry, not chromes, chromium-based comet from perplexity, a run for their money on a top agentic browser. Replit introduced Agent 3, which looks extremely impressive, an agent that can run for up to two hours at a time, thinking machine labs run by former OpenAI,

exec, Mira, Marotti launched their connectionism's blog and shared code to make large language model inference more deterministic and less generative. Open it, yeah, we got a lot. Open AI is testing new checkout features for its desktop application where they'll eventually offer shopping straight within chat, GPT. AI agent startup Manus added connectors like Gmail, Google Calendar, Notion, Zapier, and others to its product. ChatGPT may soon roll out parental controls, which I think will be sorely needed.

Google rolled out a new feature inside Canvas called Select and Ask, making editing much easier inside Canvas. You can just select an element in Canvas and talk to Gemini and have it change it. Chat GPT earlier in the week announced branching of conversations. I think a lot of people are going nuts over this. I'm not really going to use it a whole lot because there's some problems with carrying over contacts that I think people aren't really understanding, but that's fine. Notebook L.M added custom reports and new audio overview options, which we covered late last week in episode 608.

Make sure to go check it out. It's actually really, really good. The TikTok parent company ByteDance released AI Image Model, seed, Rame 4.0, which is really good. A lot of people are saying it's better than Google's nano banana. I don't think it is. Benchmarks don't say it is, but it is by far number two. So huge new player on the scene. If you haven't seen Seedream 4.0 yet from ByteDance, pretty big. Speaking of Google's nano banana, Adobe has already rolled it out in Photoshop. So pretty big news there if your company is heavy Photoshop users. Google is rolling out ads in its AI mode.

Albania, Albania became the first country to appoint an AI bot as an official government minister. Wild. So much happening this week in AI news. I hope this was helpful. If it was, don't be greedy. Go tell someone about this. If this was helpful, you know, a lot of people are like, hey, Jordan, this is my cheat code. You know, listening to everyday AI and having you do all my work for me, it's great.

What can I do to help you? tell someone about it. All right. If you're listening to the podcast, appreciate it. If you click that follow or subscribe button on Spotify or Apple Music, if you could, leave us a rating.

But also, if you're listening on the live stream, click that little repost button, share this with your network. We try to do this every single day. I understand how hard it is to keep up with everything in the world of AI. And AI, if it hasn't already,

it's going to impact all of us and how we work. So join us on Mondays. If you don't really care about anything else, if you just want to know what's, new, what's next. That's what we do for you. Tuesday's kind of our hot take Tuesday. Coming with a hot take this week.

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Thanks, y'all. Meet Firefly AI assistant. Now live in Adobe Firefly. The Allman One Creative AI Studio. Just describe what you want to create in your own words and the assistant handles the rest, orchestrating multi-step workflows across Adobe Creative Cloud apps, including Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome while the assistant accelerates execution.

Stand control with the ability to step in and refine at any time. See it today at firefly.adop.com. And that's a wrap for today's edition of Everyday AI. Hi, thanks for joining us. If you enjoyed this episode, please subscribe and leave us a rating. It helps keep us going. For a little more AI magic, visit your EverydayAI.com and sign up to our daily newsletter so you don't get left behind.

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