OpenAI is reportedly planning to launch Orion, its next frontier AI model, by December, according to The Verge. Sources say it won't land in ChatGPT right away and will go to close partners first, though Sam Altman called the report fake news and an OpenAI spokesperson denied any plans to release Orion this year.
Microsoft just rolled out generative fill and erase tools to Paint on Copilot Plus PCs, letting users add or remove objects with a quick brush stroke. The Photos app is also adding an on-device super-resolution tool that can upscale blurry pictures up to 8x in seconds. Quick image touch-ups just got a lot harder to justify paying Adobe for.
Microsoft just introduced a fresh suite of on-device AI experiences for Copilot+ PCs and Windows 11. Highlights include Click to Do, an interactive overlay suggesting quick actions across any screen, alongside offline natural language file search and 8x photo upscaling. Recall also returns with opt-in defaults and biometric locks, rolling out to Windows Insiders this fall.
Apple has pulled out of talks to participate in OpenAI’s upcoming $6.5 billion funding round at the eleventh hour, according to The Wall Street Journal. While Microsoft is set to add another $1 billion and Nvidia remains in talks, Apple decided to pass on writing a rare equity check. The move won't affect their product partnership, with ChatGPT still slated to hit iOS 18 later this year.
Microsoft just overhauled Windows Recall's security architecture after months of privacy backlash. The AI tool is now strictly opt-in and fully uninstallable, isolating snapshots inside secure enclaves that require Windows Hello biometrics to decrypt on the fly. Why it matters: Microsoft is trying to salvage its flagship AI feature by turning it into a showcase for client-side security.
Microsoft just launched general availability for fine-tuning GPT-4o and GPT-4o mini on Azure OpenAI Service. The update also brings Meta's new Llama 3.2 vision models, the Phi-3.5 family, and a new Correction feature to catch hallucinations in real time before users see them. It makes tailor-made enterprise LLMs much easier and safer to deploy.
OpenAI is just about to restructure into a full-fledged for-profit benefit corporation, stripping its founding nonprofit board of control. CEO Sam Altman, who previously owned zero equity, is set to receive billions in shares, hot on the heels of CTO Mira Murati abruptly walking out. Why it matters: The transition officially buries OpenAI's original safety-first, capped-profit promise in favor of traditional Silicon Valley investor returns.
Microsoft just introduced a "correction" preview in Azure AI Studio that flags inaccuracies and rewrites flawed outputs before users ever see them. It works by grounding generated text against source documents, though Microsoft admits using models to police other models isn't foolproof.
Microsoft just signed a 20-year deal with Constellation to restart the shuttered Three Mile Island nuclear plant, exclusively buying 100 percent of its output to fuel expanding AI data centers. The site is slated to come back online in 2028 pending regulatory approval, supplying over 800 megawatts of carbon-free energy. Why it matters: Training and running massive AI models requires enormous electricity, and nuclear power is fast becoming the answer for reliable, clean baseload energy.
GitHub just opened a preview bringing OpenAI’s o1-preview and o1-mini to GitHub Copilot and Models. Developers can now swap out GPT-4o inside VS Code’s Copilot Chat to tackle complex logic bugs and edge cases with deliberate reasoning. Why it matters: Coding assistants are moving beyond basic boilerplate autocomplete toward actual architectural problem-solving.
Intel just announced plans to spin off its AI-focused foundry business into an independent subsidiary with its own board, clearing the way for outside capital. The stock jumped over 6% following the news. Intel hopes this move and its upcoming 18A process will help turn around steep losses and mount a challenge to Nvidia.
Microsoft just announced that its Copilot Wave 2 features are rolling out to educators and students. School accounts now get free access to GPT-4o with enterprise data protection—ensuring prompts aren't used to train models—along with collaborative Copilot Pages and custom agents. Why it matters: It gives institutions compliant, walled-off AI tools instead of leaving teachers to bring their own.
Apple is reportedly in negotiations to invest in OpenAI as part of a new funding round valuing the startup at over $100 billion. Thrive Capital is set to lead with roughly $1 billion, and Microsoft may chip in more as well. Why it matters: After partnering to bring ChatGPT into iOS 18 later this year, putting real money on the table would seriously lock in Apple’s alliance with the top AI player.
Inflection just announced plans to cap free usage on its AI chatbot Pi to relieve GPU strain, months after Microsoft hired away its founders. After nearly shutting down the chatbot two weeks ago, the downsized startup decided to keep Pi running for consumers and allow chat exports, while shifting focus toward enterprise licensing.
OpenAI, Adobe, and Microsoft just threw their support behind California's AB 3211 bill, which requires invisible watermarks in AI-generated media and visible labels on platforms like Instagram and X. Why it matters: Big Tech previously lobbied against the measure as overly burdensome, but recent amendments have brought the industry's heaviest hitters on board ahead of the final vote.
Microsoft just announced that its controversial Recall feature won't reach Windows Insiders until October, pushing back its testing timeline again. The tool—which snapshots PC activity for local search—was pulled in June after researchers exposed critical security flaws. Microsoft is currently overhauling it with default opt-in, full database encryption, and Windows Hello authentication, making a wide public release this year very unlikely.
Microsoft just launched three new Phi-3.5 lightweight models under a permissive MIT license, featuring a 3.8B Mini, a 41.9B MoE, and a 4.15B Vision model. All three support a 128k context window and beat larger competitors on select reasoning benchmarks. It's a major gift for developers wanting capable local AI without commercial restrictions.
Stability AI just appointed entertainment technology veteran Hanno Basse as its new Chief Technology Officer. Basse brings over 30 years of deep industry experience, previously serving as CTO at Digital Domain, Microsoft Azure Media and Entertainment, and 20th Century Fox. The hire signals Stability AI is doubling down on integrating generative AI directly into professional studio production workflows.
OpenAI just banned a cluster of ChatGPT accounts linked to an Iranian covert influence operation dubbed Storm-2035. The campaign used AI to generate political articles and social media comments targeting the U.S. presidential election, though OpenAI found zero evidence the content gained any real traction with human audiences.
Microsoft is working on a new Workspaces feature for its PowerToys suite on Windows. The tool lets users save multi-app layouts to a shortcut, automatically launching and snapping apps across displays with a single click. It is slated to debut in the PowerToys 0.84 update.
