May 12, 2025

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Microsoft OpenAI Partnership Renegotiation, AI Risks, and Industry Applications

Recent developments in the tech industry have highlighted the growing importance of artificial intelligence (AI). Microsoft and OpenAI are renegotiating their partnership, with Microsoft seeking more equity in OpenAI's new for-profit entity. Meanwhile, Alphabet's stock has dropped 7% in five days due to concerns over long-term risks posed by AI to the company's search business. Experts have emphasized the need for human oversight to guide AI development, citing concerns over speed and automation outpacing ethics and policy. On a more positive note, AI is being used in various industries, such as education and job searching, to enhance outcomes and improve efficiency. Arizona schools are using AI to reimagine education, while a 34-year-old technical lead used AI tools to land a six-figure job. Additionally, Mastercard is exploring ways to use AI to enhance security and prevent fraudulent transactions. As AI continues to evolve, companies like SoundCloud are addressing concerns over the use of artist content to train AI models, and experts are advising schools on how to integrate AI into classrooms in ways that enhance learning.

Key Takeaways

  • Microsoft and OpenAI are renegotiating their partnership, with Microsoft seeking more equity in OpenAI's new for-profit entity.
  • Alphabet's stock has dropped 7% in five days due to concerns over long-term risks posed by AI to the company's search business.
  • Experts emphasize the need for human oversight to guide AI development, citing concerns over speed and automation outpacing ethics and policy.
  • AI is being used in education to amplify what educators do best, freeing them from repetitive tasks and allowing them to focus on mentoring students.
  • A 34-year-old technical lead used AI tools to optimize his resume and land a six-figure job.
  • Mastercard is exploring ways to use AI to enhance security and prevent fraudulent transactions.
  • SoundCloud has responded to backlash over a change to its Terms of Use, saying that it has never used artist content to train AI models.
  • Experts advise schools to develop guidelines for AI use and ensure that students are not relying too much on AI.
  • AI can be used to develop more cognitively demanding tasks, provide instant feedback, and enhance student engagement.
  • The use of AI in various industries is expected to continue growing, with potential applications in job searching, education, and security.

Microsoft and OpenAI renegotiate partnership

Microsoft and OpenAI are reportedly renegotiating their partnership, with Microsoft seeking more equity in OpenAI's new for-profit entity. The companies are also revising their broader contract, with Microsoft offering to give up some of its equity in exchange for access to OpenAI technology developed after 2030. OpenAI recently announced a major change to its corporate restructuring plans, aiming to convert its business arm into a for-profit public benefit corporation. The negotiations are complicated by a cooling relationship between the two companies. Microsoft has invested $13 billion in OpenAI to date and is a key holdout needed to approve the restructuring.

OpenAI and Microsoft rework pact

OpenAI and Microsoft are reworking their multibillion-dollar agreement, allowing OpenAI to launch an initial public offering (IPO) while protecting Microsoft's access to AI models. Microsoft is a crucial holdout to OpenAI's plans to restructure itself and move away from its nonprofit roots. The companies are discussing how much equity Microsoft will get in exchange for its $13 billion-plus investment in OpenAI. Multiple sources say the negotiations are being complicated by a cooling relationship between the two companies. The revised contract may allow Microsoft to give up some of its equity stake in OpenAI's new for-profit business in exchange for access to technology developed after 2030.

Alphabet stock drops 7% in five days

Alphabet's stock has dropped 7% in five days, erasing $138 billion in market value, due to concerns over long-term risks posed by artificial intelligence to the company's search business. Apple's exploration of adding AI services to its web browser has raised concerns that Google's search revenue may be at risk. Despite this, most analysts remain bullish on Alphabet, with over 80% having buy ratings. The company's market share seems to be holding up, with 89.7% of worldwide market share for search engines. However, some analysts are getting cautious, with estimates for 2025 net income potentially being overly optimistic.

Experts discuss AI and security

The 2025 Vanderbilt Summit on Modern Conflict and Emerging Threats featured expert panels discussing the role of human judgment in the development and deployment of artificial intelligence. Leaders emphasized the need for human oversight to guide AI development, citing concerns over speed and automation outpacing ethics and policy. The panels explored various topics, including AI's potential to enhance national defense strategy, its role in biomedicine, and the need for robust training and frameworks for accountability. Experts warned that speed, scale, and complexity are outpacing current policy and governance structures, making collaboration, trust, and real-world testing essential.

AI helps job seeker land six-figure job

A 34-year-old technical lead used AI tools like ChatGPT and Gemini to optimize his resume and land a six-figure job. He asked the AI tools to rate his resume and provide suggestions for improvement, which helped him refine his resume and make it more effective. The AI tools also helped him with formatting, comparing different versions, and tailoring his resume for specific jobs. The job seeker credits the AI tools with helping him improve his resume and increase his chances of landing a competitive role.

Arizona schools use AI to reimagine education

Two Arizona schools, Unbound Academy and Novatio School, are using artificial intelligence to rethink education. The schools are using AI to amplify what educators do best, freeing them from repetitive tasks and allowing them to focus on mentoring students and providing individualized support. AI is being used to deliver instant feedback, allowing learners to progress at their own pace, and to create personalized learning plans. The schools are also offering financial literacy workshops and emphasizing critical thinking and creativity skills.

Mastercard exec says AI can solve online shopping fraud

A Mastercard executive says that AI agents can help solve online shopping's $750 million fraud problem. The executive believes that AI can be used to prevent fraud and improve the online shopping experience. Mastercard is exploring ways to use AI to enhance security and prevent fraudulent transactions.

Expert explains how schools can keep up with AI

An expert says that schools must navigate how to integrate artificial intelligence into classrooms in ways that enhance learning. The expert suggests that AI can be used to develop more cognitively demanding tasks, provide instant feedback, and enhance student engagement. Teachers can use AI tools to develop lesson ideas, create graphic organizers, and differentiate text-based assignments. However, the expert also warns that schools need to develop guidelines for AI use and ensure that students are not relying too much on AI.

SoundCloud says it never trained AI on artist content

SoundCloud has responded to backlash over a change to its Terms of Use, saying that it has never used artist content to train AI models. The company claims that the updated terms were meant to clarify how content may interact with AI technologies within SoundCloud's own platform. SoundCloud has added a 'no AI' tag for artists to explicitly prohibit unauthorized use and says that any future AI tools will be built to enhance discovery, protect rights, and expand opportunities for artists.

Sources

Artificial Intelligence Microsoft OpenAI Partnership AI Technology Machine Learning