Latest AI News

Microsoft is diversifying its AI strategy by integrating Anthropic's models into Office 365 Copilot alongside OpenAI technology. This strategic shift aims to enhance capabilities in document processing and content generation. The companies are developing a C# SDK for the Model Context Protocol to facilitate integration. This move reflects an industry trend toward multi-vendor AI strategies based on performance rather than exclusive partnerships.

Fermi America, co-founded by former Energy Secretary Rick Perry, is pursuing a $13.16 billion IPO as a data center REIT focused on AI infrastructure. The company's HyperGrid project in Texas will integrate 11GW of power generation, including nuclear energy, with data center facilities. This approach addresses critical power scarcity issues in the sector, where vacancy rates have fallen to just 1.6% while lease rates rose 19%. Having secured $350 million in financing, Fermi aims to compete with industry giants like Digital Realty and Equinix by solving the power supply challenges facing AI-driven data centers.

OpenAI is experiencing explosive growth, projecting $12 billion in revenue for 2025, double its 2024 figures. Despite this success, the company faces substantial financial challenges with expected losses of $10 billion in 2025. The ambitious Stargate project requires massive infrastructure investment, with compute costs potentially reaching $28 billion by 2028. OpenAI depends heavily on external funding, particularly from SoftBank's $10 billion commitment, which requires conversion to a for-profit entity by December 2025. The company isn't expected to achieve profitability before the decade's end, possibly requiring $100 billion in annual revenue to break even.

Meta is expanding access to its Llama AI model to US allies in Europe and Asia by 2025. Llama 4, released in April 2025, features a mixture-of-experts architecture supporting text and image inputs across 12 languages. Two versions were launched: Scout (17B active parameters) and Maverick (17B active parameters with 400B total), while a larger Behemoth version remains in development. Meta claims Llama 4 outperformed ChatGPT on benchmarks, though this sparked controversy regarding testing methods. The company aims to grow its AI reach beyond its current hundreds of millions of monthly users while fostering an open ecosystem to compete with rivals like ChatGPT.