Good morning. It’s Wednesday, February twelfth.
Today in Tech History: in 1877, Alexander Graham Bell made the primary long-distance telephone call. See the phone he used here.
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OpenAI To Develop Own Chips
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Musk’s $97B Bid for OpenAI
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US and UK refuse to sign the Paris AI Motion Summit
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4 Recent AI Tools
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Latest AI Research Papers
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Today’s trending AI news stories
OpenAI moves to develop its own AI chips by 2026
OpenAI is on the cusp of completing its first bespoke AI chip, with plans to roll out mass production by 2026, courtesy of TSMC’s 3-nanometer process. A team of 40 engineers, led by former Google chip expert Richard Ho, is overseeing development in collaboration with Broadcom, specializing in a design suited to each training and inference.

Nonetheless, the relatively small team raises doubts about OpenAI’s ability to match the dimensions of efforts by Google and Amazon. The chip initiative is seen as a strategic move to scale back reliance on Nvidia and strengthen OpenAI’s negotiating position with suppliers amid intensifying competition. Meanwhile, Amazon, Meta, and Microsoft are ramping up investments in AI infrastructure, while OpenAI itself is involved within the $500 billion Stargate initiative. Read more.
Musk’s $97 Billion Bid Is M&A Trolling That Could Derail OpenAI’s Fundraising
A consortium led by Elon Musk offered $97.4 billion to amass the nonprofit organization controlling OpenAI, the corporate behind ChatGPT. This unsolicited bid complicates OpenAI’s plans to transition right into a for-profit entity and raises questions on the nonprofit’s obligations.
OpenAI’s current structure involves a nonprofit controlling a for-profit subsidiary. The transition plan involves making the subsidiary a standalone for-profit company, with the nonprofit retaining a big stake. Experts estimate this stake might be value around $65 billion based on OpenAI’s current valuation.
Musk’s offer, nevertheless, significantly exceeds this estimated value. His attorney argues that the nonprofit should be fairly compensated and that the $97.4 billion offer represents the true market value of OpenAI’s for-profit arm. This move puts pressure on OpenAI’s board, potentially requiring them to contemplate Musk’s bid, even in the event that they find his involvement undesirable. It forces OpenAI to justify its internal valuation of its for-profit arm, potentially impacting negotiations with existing investors like Microsoft.
OpenAI CEO Sam Altman dismissed the offer with a pointy jab on 𝕏. In an interview with Bloomberg TelevisionAltman took a private slight at Musk responding to an issue about whether Musk’s bid was “from a position of insecurity” about his own AI company, xAI. Altman reaffirmed that OpenAI will not be on the market and that their mission stays focused on constructing AI for the good thing about humanity.
The corporate’s nonprofit status puts it in a bind—legally certain to maximise value for its mission while facing Musk’s multibillion-dollar bid and the strain between its charitable purpose and for-profit ambitions is now on full display. How this plays out could set the tone for all the AI industry and not only OpenAI’s future. Read more.
US and UK refuse to sign the Paris AI Motion Summit statement
On the AI Motion Summit in Paris, 61 countries, including China, India, and Canada, signed a joint declaration advocating for an “open, inclusive, and ethical” approach to artificial intelligence. Notably, the U.S. and the U.K. abstained, citing concerns about ideological biases and the chance of AI being co-opted for authoritarian purposes.
Vice President JD Vance underscored the nation’s resolve to retain its AI leadership, distancing American innovation from international governance frameworks.
While the declaration calls for greater transparency, security, and cooperation in AI development, it drew criticism for its perceived lack of urgency and ambition. Leading voices, equivalent to Anthropic’s Dario Amodei, warned that the failure to act swiftly on AI governance risks missing a chance to deal with global challenges. Read more.


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