Latest AI News

OpenAI and Microsoft have restructured their partnership, allowing OpenAI to become a public benefit corporation and work with multiple infrastructure providers beyond Microsoft. The agreement ensures Microsoft maintains preferred access to OpenAI's technology while removing the "AGI doomsday clause" that could have restricted access. The nonprofit OpenAI Foundation will retain significant equity and influence. This arrangement reflects the evolving AI landscape, with both companies positioning themselves for increased competition and collaboration as they navigate regulatory scrutiny and advance toward artificial general intelligence.

Elon Musk's xAI has laid off approximately 500 workers from its data annotation team, representing over a third of the group responsible for training the Grok chatbot. The restructuring primarily affected generalist AI tutors, whose positions are being eliminated following a strategic review. Despite these cuts, xAI announced plans to significantly expand its specialist AI tutor team by "10X," focusing on areas like STEM, finance, medicine, and safety. This shift reflects the company's evolving strategy toward more specialized expertise in AI development as it continues its mission to build "truth-seeking AGI" and compete with established tech giants in the artificial intelligence sector.

OpenAI plans to reduce revenue sharing with commercial partners from 20% to 8% by 2030, allowing the company to retain an additional $50 billion in revenue. Microsoft remains a key investor despite this change, with both companies signing a non-binding MOU for future collaboration. OpenAI has transformed into a Public Benefit Corporation, with its nonprofit arm maintaining control and holding equity exceeding $100 billion. The company's revenue, which recently surpassed $13 billion annually, comes from subscriptions (ChatGPT Plus, Pro, Team, Enterprise), API licensing, and transactional AI services. This strategic shift positions OpenAI for greater financial independence while balancing commercial growth with its social mission.

Legence Corp, a Blackstone-backed engineering and infrastructure firm specializing in mission-critical building services, recently completed its IPO on Nasdaq with a valuation approaching $3 billion. The company offered 26 million shares at $25-$29 each, raising up to $754 million. Originally acquired by Blackstone in 2020 as Therma Holdings, Legence has grown through strategic acquisitions and rebranded in 2024. Despite reporting a net loss of $46.27 million in 2024, the company achieved $2.10 billion in revenue (30% year-over-year growth) and maintains a $2.8 billion contract backlog. Legence serves high-growth sectors including technology, healthcare, and government, providing engineering, installation, and maintenance services. Blackstone retained a controlling stake post-IPO, signaling confidence in Legence's long-term growth potential.