An anonymous reader quotes a report from Data Center Dynamics: Google has signed a $10 million deal to pull 100,000 tons of carbon dioxide out of the air. The company will buy direct air capture (DAC) credits from startup Holocene, to be delivered in the early 2030s. The deal is the lowest price on record for DAC, at $100 per ton -- a price the Department of Energy previously said was needed to make carbon capture mainstream. Google will provide the funds up front, but there is no guarantee that Holocene will hit that goal. Running Tide, a carbon removal company that Microsoft paid to capture 12,000 tons of CO2 in 2023, shut down in 2024. The $100 price was also made possible thanks to the US government's 45Q tax credit, which provides DAC suppliers $180 per ton of carbon removed.

Holocene passes air through a waterfall with an amino acid added to it which binds CO2. This is then mixed with guanidine to form a solid crystal mass. Next, the amino acid is sent back to the beginning of the loop, while the solid is lightly heated to release pure CO2 -- which can then be stored. The company plans to capture and store 100,000 tons of CO2 by the early 2030s. "The structure of this partnership -- providing immediate funding to achieve an ambitious but important price in the medium term -- is just one way to support carbon removal as it scales," Randy Spock, carbon credits and removals lead, said.

wiredmikey shares a report from SecurityWeek: Microsoft on Tuesday raised an alarm for in-the-wild exploitation of a critical flaw in Windows Update, warning that attackers are rolling back security fixes on certain versions of its flagship operating system. The Windows flaw, tagged as CVE-2024-43491 and marked as actively exploited, is rated critical and carries a CVSS severity score of 9.8/10. Redmond's documentation of the bug suggests a downgrade-type attack similar to the 'Windows Downdate' issue discussed at this year's Black Hat conference. Microsoft's bulletin reads: "Microsoft is aware of a vulnerability in Servicing Stack that has rolled back the fixes for some vulnerabilities affecting Optional Components on Windows 10, version 1507 (initial version released July 2015). This means that an attacker could exploit these previously mitigated vulnerabilities on Windows 10, version 1507 (Windows 10 Enterprise 2015 LTSB and Windows 10 IoT Enterprise 2015 LTSB) systems that have installed the Windows security update released on March 12, 2024 -- KB5035858 (OS Build 10240.20526) or other updates released until August 2024. All later versions of Windows 10 are not impacted by this vulnerability."

To protect against this exploit, Microsoft says Windows users should install this month's Servicing stack update (SSU KB5043936) and the September 2024 Windows security update (KB5043083), in that order.

Earlier today, Sony unveiled the $699.99 PlayStation 5 Pro -- a mid-generation upgrade model for the PlayStation 5 that requires a separate $79.99 disc drive if you want to play your physical games. As The Verge's Jay Peters writes, the announcement "may have marked the beginning of the end for game console disc drives." From the report: Microsoft is clearly eyeing the discless direction with Xbox as well. The more affordable Xbox Series S can't play discs, and there's a discless Series X in white that's set to launch later this year. Last year's giant Xbox leak revealed a cylindrical, "adorably all digital" Xbox Series X redesign too. That hasn't been announced as an official product, but it shows a disc-free future is on Microsoft's mind. It seems likely that Sony and Microsoft are testing the waters for going all-digital for the PlayStation 6 and the next generation Xbox -- or at least offering disc drives separately. It's like Apple removing the disc drive all over again.

But this time it's not just the people making the devices. Retailers are stepping back from physical media, too. Redbox is toast. Best Buy said last year that it would stop carrying physical movies, and Target recently confirmed that it would be all but ditching DVDs in its physical stores. I know movies aren't video games, but it doesn't seem like a big leap that brick-and-mortar stores might stop carrying physical video games down the line; UK retailer GAME has already ended video game trade-ins.

Microsoft today announced significant strides in its Azure Quantum Cloud service, including the demonstration of logical operations using the largest number of error-corrected qubits ever achieved. This progress brings the industry closer to building reliable quantum computers capable of solving complex problems beyond the reach of classical systems, the company said.

In a significant partnership, Microsoft is collaborating with Atom Computing to integrate their neutral-atom hardware into Azure Quantum. Atom Computing has already shown promise with hardware exceeding 1,000 qubits. Key to Microsoft's advancements is the implementation of the "tesseract code" error correction scheme on Quantinuum's trapped-ion quantum hardware. This led to a 22-fold reduction in error rates, a critical step towards reliable quantum computations. Microsoft is also committed to simplifying quantum programming. Azure's Q# language will now automatically handle complex error correction, making quantum development more accessible.

Oracle missed the tech industry's move to cloud computing last decade and ended up an also-ran. Now the AI boom has given it another shot. WSJ: The 47-year-old company that made its name on relational database software has emerged as an attractive cloud-computing provider for AI developers such as OpenAI, sending its long-stagnant stock to new heights. Oracle shares are up 34% since January, well outpacing the Nasdaq's 14% rise and those of bigger competitors Microsoft, Amazon.com and Google.

It is a surprising revitalization for a company many in the tech industry had dismissed as a dinosaur of a bygone, precloud era. Oracle appears to be successfully making a case to investors that it has become a strong fourth-place player in a cloud market surging thanks to AI. Its lateness to the game may have played to its advantage, as a number of its 162 data centers were built in recent years and are designed for the development of AI models, known as training.

In addition, Oracle isn't developing its own large AI models that compete with potential clients. The company is considered such a neutral and unthreatening player that it now has partnerships with Microsoft, Google and Amazon, all of which let Oracle's databases run in their clouds. Microsoft is also running its Bing AI chatbot on Oracle's servers.

CrowdStrike CFO Burt Podbere says the cybersecurity firm has not faced lawsuits over July's global IT outage. Speaking at a conference, Podbere emphasized efforts to shift customer focus from legal threats to business discussions. The Register: There were dark rumblings from Delta Air Lines last month, for example, threatening litigation over alleged gross negligence. At the time, CrowdStrike reiterated its apologies, saying: "Public posturing about potentially bringing a meritless lawsuit against CrowdStrike as a long-time partner is not constructive to any party." During his time at the Citi conference, Podbere admitted: "We don't know how it's all going to shake out.

"Everything we're doing and trying to do is take the legal discussion away from our interaction with customers and move it to the business discussion. "And as time goes on, that does get easier because we're moving further away from the Sun, right? And that's how we think about it."

Wired interviews America's foreign policy chief, Secretary of State Antony Blinken, about U.S. digital polices, starting with a new "cybersecurity bureau" created in 2022 (which Wired previously reported includes "a crash course in cybersecurity, telecommunications, privacy, surveillance, and other digital issues.") Look, what I've seen since coming back to the State Department three and a half years ago is that everything happening in the technological world and in cyberspace is increasingly central to our foreign policy. There's almost a perfect storm that's come together over the last few years, several major developments that have really brought this to the forefront of what we're doing and what we need to do. First, we have a new generation of foundational technologies that are literally changing the world all at the same time — whether it's AI, quantum, microelectronics, biotech, telecommunications. They're having a profound impact, and increasingly they're converging and feeding off of each other.

Second, we're seeing that the line between the digital and physical worlds is evaporating, erasing. We have cars, ports, hospitals that are, in effect, huge data centers. They're big vulnerabilities. At the same time, we have increasingly rare materials that are critical to technology and fragile supply chains. In each of these areas, the State Department is taking action. We have to look at everything in terms of "stacks" — the hardware, the software, the talent, and the norms, the rules, the standards by which this technology is used.

Besides setting up an entire new Bureau of Cyberspace and Digital Policy — and the bureaus are really the building blocks in our department — we've now trained more than 200 cybersecurity and digital officers, people who are genuinely expert. Every one of our embassies around the world will have at least one person who is truly fluent in tech and digital policy. My goal is to make sure that across the entire department we have basic literacy — ideally fluency — and even, eventually, mastery. All of this to make sure that, as I said, this department is fit for purpose across the entire information and digital space.
Wired notes it was Blinken's Department that discovered China's 2023 breach of Microsoft systems. And on the emerging issue of AI, Blinken cites "incredible work done by the White House to develop basic principles with the foundational companies." The voluntary commitments that they made, the State Department has worked to internationalize those commitments. We have a G7 code of conduct — the leading democratic economies in the world — all agreeing to basic principles with a focus on safety. We managed to get the very first resolution ever on artificial intelligence through the United Nations General Assembly — 192 countries also signing up to basic principles on safety and a focus on using AI to advance sustainable development goals on things like health, education, climate. We also have more than 50 countries that have signed on to basic principles on the responsible military use of AI. The goal here is not to have a world that is bifurcated in any way. It's to try to bring everyone together.

Safe Superintelligence (SSI), co-founded by OpenAI's former chief scientist Ilya Sutskever, has raised $1 billion to develop safe AI systems that surpass human capabilities. The company, valued at $5 billion, plans to use the funds to hire top talent and acquire computing power, with investors including Andreessen Horowitz, Sequoia Capital, and DST Global. Reuters reports: Sutskever, 37, is one of the most influential technologists in AI. He co-founded SSI in June with Gross, who previously led AI initiatives at Apple, and Daniel Levy, a former OpenAI researcher. Sutskever is chief scientist and Levy is principal scientist, while Gross is responsible for computing power and fundraising. Sutskever said his new venture made sense because he "identified a mountain that's a bit different from what I was working on."

SSI is currently very much focused on hiring people who will fit in with its culture. Gross said they spend hours vetting if candidates have "good character", and are looking for people with extraordinary capabilities rather than overemphasizing credentials and experience in the field. "One thing that excites us is when you find people that are interested in the work, that are not interested in the scene, in the hype," he added. SSI says it plans to partner with cloud providers and chip companies to fund its computing power needs but hasn't yet decided which firms it will work with. AI startups often work with companies such as Microsoft and Nvidia to address their infrastructure needs.

Sutskever was an early advocate of scaling, a hypothesis that AI models would improve in performance given vast amounts of computing power. The idea and its execution kicked off a wave of AI investment in chips, data centers and energy, laying the groundwork for generative AI advances like ChatGPT. Sutskever said he will approach scaling in a different way than his former employer, without sharing details. "Everyone just says scaling hypothesis. Everyone neglects to ask, what are we scaling?" he said. "Some people can work really long hours and they'll just go down the same path faster. It's not so much our style. But if you do something different, then it becomes possible for you to do something special."

The Register's Brandon Vigliarolo reports: Microsoft's "acquihire" of Inflection AI was today cleared by UK authorities on the grounds that the startup isn't big enough for its absorption by Microsoft to affect competition in the enterprise AI space. The Competition and Markets Authority (CMA) confirmed the conclusion of its investigation by publishing a summary of its decision. While the CMA found that Microsoft's recruitment of Inflection co-founders Mustafa Suleyman and Karen Simonyan, along with other Inflection employees, in March 2024 to lead Microsoft's new AI division did create a relevant merger situation, a bit of digging indicated everything was above board.

As we explained when the CMA kicked off its investigation in July, the agency's definition of relevant merger situations includes instances where two or more enterprises have ceased to be distinct, and when the deal either exceeds 70 million pounds or 25 percent of the national supply of a good or service. In both cases, the CMA determined [PDF], the Microsoft/Inflection deal met the criteria. As to whether the matter could lead to a substantial lessening of competition, that's where the CMA decided everything was OK.

"Prior to the transaction, Inflection had a very small share of UK domain visits for chatbots and conversational AI tools and ... had not been able to materially increase or sustain its chatbot user numbers," the CMA said. "Competitors did not regard Inflection's capabilities with regard to EQ [emotional intelligence, which was an Inflection selling point] or other product innovation as a material competitive constraint." In addition, the CMA said Inflection's foundational model offering wouldn't exert any "material competitive constraint" on Microsoft or other enterprise foundational model suppliers as none of the potential Inflection customers the CMA spoke with during its probe identified any features that made Inflection's software more attractive than other brands. Ouch.

The latest Windows personal computers with AI features have "the best specs" on "all the benchmarks," Microsoft Chief Executive Satya Nadella recently said. There is one problem: The chips inside current models are incompatible with many leading videogames. From a report: Microsoft and its partners this spring rolled out Copilot+ PCs that include functions such as creating AI-generated pictures and video. Under the hood of the new laptops is a hardware change. Instead of the Intel chips that have powered Microsoft Windows PCs for nearly four decades, the initial Copilot+ PCs to hit the market use Qualcomm chips, which in turn rely on designs from U.K.-based Arm.

Most PC games, including popular multiplayer games such as "League of Legends" and "Fortnite," are made to work with Intel's x86, a chip architecture that has been the standard for many personal computers for decades. To make some of these programs function on the Qualcomm-Arm system, they must be run through a layer of software that translates Intel-speak into Arm-speak. Chip experts say the approach isn't perfect and can result in bugs, glitches or games simply not working. The problem is widespread. About 1,300 PC games have been independently tested to see if they work on Microsoft's new Arm-powered PCs and only about half ran smoothly, said James McWhirter, an analyst with research firm Omdia.

After an initial euphoric rush to the cloud, admins are questioning the value and promise of the tech giant's services. The Register: According to a report published by UK cloud outfit Civo, more than a third of organizations surveyed reckoned that their move to the cloud had failed to live up to promises of cost-effectiveness. Over half reported a rise in their cloud bill. Although the survey, unsurprisingly, paints Civo in a flattering light, some of its figures may make uncomfortable reading for customers sold on the promises from hyperscalers. Like-for-like comparisons for a simple three-node cluster with 200 GB of persistent storage and a 5 TB data transfer showed prices going from $1,278.58 in 2022 to $1,458.68 in 2024 on Microsoft Azure.

For Google, the price went from $1,107.61 to $1,250.35. According to Civo's figures, the cost at AWS increased from $1,142.46 to $1,234.59. "The Kubernetes prices were taken from the hyperscalers' very own pricing calculators," a Civo spokesperson told The Register. In the IT world, there is an expectation that bang for buck increases as time goes by, but in this example, prices are rising faster than the rate of inflation, and what customers receive for their money remains unchanged.

An anonymous reader quotes a report from Ars Technica: On Thursday, ABC announced an upcoming TV special titled, "AI and the Future of Us: An Oprah Winfrey Special." The one-hour show, set to air on September 12, aims to explore AI's impact on daily life and will feature interviews with figures in the tech industry, like OpenAI CEO Sam Altman and Bill Gates. Soon after the announcement, some AI critics began questioning the guest list and the framing of the show in general. [...] Critics of generative AI ... question the utility of the technology, its perceived environmental impact, and what they see as blatant copyright infringement.

"Sure is nice of Oprah to host this extended sales pitch for the generative AI industry at a moment when its fortunes are flagging and the AI bubble is threatening to burst," tweeted author Brian Merchant, who frequently criticizes generative AI technology in op-eds, social media, and through his "Blood in the Machine" AI newsletter. "The way the experts who are not experts are presented as such what a train wreck," replied artist Karla Ortiz, who is a plaintiff in a lawsuit against several AI companies. "There's still PLENTY of time to get actual experts and have a better discussion on this because yikes." On Friday, Ortiz created a lengthy viral thread on X that detailed her potential issues with the program, writing, "This event will be the first time many people will get info on Generative AI. However it is shaping up to be a misinformed marketing event starring vested interests (some who are under a litany of lawsuits) who ignore the harms GenAi inflicts on communities NOW." The AI TV special will feature "some of the most important and powerful people in AI," said ABC. They include Microsoft co-founder Bill Gates, OpenAI CEO Sam Altman, YouTube creator Marques Brownlee, Tristan Harris and Aza Raskin from the Center for Humane Technology, FBI Director Christopher Wray, and author Marilynne Robinson.

The show will air on September 12 on ABC (and a day later on Hulu) in the U.S.

An anonymous reader shares a report: While the latest update to Windows 11 makes it look like the upcoming Recall feature can be easily removed by users, Microsoft tells us it's just a bug and a fix is coming. Deskmodder spotted the change last week in the latest 24H2 version of Windows 11, with KB5041865 seemingly delivering the ability to uninstall Recall from the Windows Features section. "We are aware of an issue where Recall is incorrectly listed as an option under the 'Turn Windows features on or off' dialog in Control Panel," says Windows senior product manager Brandon LeBlanc in a statement to The Verge. "This will be fixed in an upcoming update."

Efforts to add Rust code to the Linux kernel has suffered a setback as one of the maintainers of the Rust for Linux project has stepped down -- citing frustration with "nontechnical nonsense," according to The Register: Wedson Almeida Filho, a software engineer at Microsoft who has overseen the Rust for Linux project, announced his resignation in a message to the Linux kernel development mailing list. "I am retiring from the project," Filho declared. "After almost four years, I find myself lacking the energy and enthusiasm I once had to respond to some of the nontechnical nonsense, so it's best to leave it up to those who still have it in them."

[...] Memory safety bugs are regularly cited as the major source of serious software vulnerabilities by organizations overseeing large projects written in C and C++. So in recent years there's been a concerted push from large developers like Microsoft and Google, as well as from government entities like the US Cybersecurity and Infrastructure Security Agency, to use memory-safe programming languages -- among them Rust. Discussions about adding Rust to Linux date back to 2020 and were realized in late 2022 with the release of Linux 6.1. "I truly believe the future of kernels is with memory-safe languages," Filho's note continued. "I am no visionary but if Linux doesn't internalize this, I'm afraid some other kernel will do to it what it did to Unix."

Microsoft's Windows 11 operating system has surpassed Windows 10 usage for Steam users for the first time since its launch in 2021. From a report: Windows 10 has been holding strong in recent years, despite Microsoft's plans to end support for Windows 10 in October 2025. There are now signs that Windows 11 adoption is finally heading in the right direction for Microsoft. Steam hardware survey data for August puts Windows 11 usage at 49 percent, an increase of more than 3 percent over the previous figure in July of nearly 46 percent. Windows 10 usage has dipped by around 3 percent to 47 percent, while macOS and Linux Steam usage has largely remained the same during August.

"Sometimes an artificial intelligence tool comes out of nowhere and dominates the conversation on social media," writes Tom's Guide.

"This week that app is Cursor, an AI coding tool that uses models like Claude 3.5 Sonnet and GPT-4o to make it easier than ever to build your own apps," with the ability to "write, predict and manipulate code using nothing but a text prompt." Cursor is part development environment, part AI chatbot and unlike tools like GitHub Copilot it can more or less do all of the work for you, transforming a simple idea into functional code in minutes... Built on the same system as the popular Microsoft Visual Studio Code, Cursor has already found a fanbase among novice coders and experienced engineers...

Cursor's simplicity, working from a chat window, means even someone completely new to code could get a functional app running in minutes and keep building on it to add new features... The startup has raised over $400 million since it was founded in 2022 and works with various models including those from Anthropic and OpenAI... In my view, its true power is in the democratization of coding. It would also allow someone without much coding experience to build the tools they need by typing a few lines of text.
More from ReadWrite: Cursor, an AI firm that is attempting to build a "magical tool that will one day write all the world's code," has announced it has raised $60 million in its Series A funding round... As of August 22, the company had a valuation of $400 million, according to sources cited by TechCrunch...

Anysphere is the two-year-old startup that developed the app. Its co-founders are Michael Truell, Sualeh Asif, Arvid Lunnemark and Aman Sanger, who started the company while they were students at MIT... Using advanced AI capabilities, it is said to be able to finish, correct, and change AI code through natural language commands. It currently works with JavaScript, Python, and TypeScript, and is free for most uses. The pro plan will set you back $20 per month.
But how well does it work? Tom's Guide notes that after requesting a test app, "It generated the necessary code in the sidebar chat window and all I had to do was click Apply and then Accept. This added the code to a new Python file including all the necessary imports. It also gave me instructions on how to add modules to my machine to make the code work.

"As the chat is powered by Claude 3.5 Sonnet, you can just have it explain in more detail any element of the code or any task required to make it run..."

Andreessen Horowitz explains why they invested in the company: It's very clear that LLMs are a powerful tool for programmers, and that their coding abilities will improve over time. But it's also clear that for most coding tasks, the problem to solve is not how to make LLMs perform well in isolation, but how to make them perform well alongside a human developer. We believe, therefore, the interface between programmers and AI models will soon become one of the most important pieces of the dev stack. And we're thrilled to announce our series A investment...

Cursor is a fork of VS Code that's heavily customized for AI-assisted programming. It works with all the latest LLMs and supports the full VS Code plugin ecosystem. What makes Cursor special are the features designed to integrate AI into developer workflows — including next action prediction, natural language edits, chatting with your codebase, and a bunch of new ones to come... Our belief is that Cursor, distinctly among AI coding tools, has simply gotten it right. That's why, in a little over a year, thousands of users have signed up for Cursor, including at companies like OpenAI, Midjourney, Perplexity, Replicate, Shopify, Instacart, and many others. Users give glowing reviews of the product, many of them have started to pay for it, and they rarely switch back to other IDEs. Most of the a16z Infra team have also become avid Cursor users!
One site even argues that Cursor's coding and AI capabilities "should be a wake up call for Microsoft to make VS Code integration with GitHub Copilot a lot easier."

Thanks to Slashdot reader joshuark for sharing the article.

Apple is in talks to invest in OpenAI, a move that would cement ties to a partner integral to its efforts to gain ground in the artificial-intelligence race. WSJ: The investment would be part of a new OpenAI fundraising round that would value the ChatGPT maker above $100 billion, people familiar with the situation said. The Wall Street Journal reported Wednesday that venture-capital firm Thrive Capital is leading the round, which will total several billion dollars, and Apple rival Microsoft is also expected to participate.

It couldn't be learned how much Apple or Microsoft will invest into OpenAI this round. To date, Microsoft has been the primary strategic investor into OpenAI. It owns a 49% share of the AI startup's profits after investing $13 billion since 2019. Apple in June announced OpenAI as the first official partner for Apple Intelligence, its system for infusing AI features throughout its operating system. The new AI will feature an improved Siri voice assistant, text proofreading and creating custom emojis.

Google says it has evidence that Russian government hackers are using exploits that are "identical or strikingly similar" to those previously made by spyware makers Intellexa and NSO Group. From a report: In a blog post on Thursday, Google said it is not sure how the Russian government acquired the exploits, but said this is an example of how exploits developed by spyware makers can end up in the hands of "dangerous threat actors." In this case, Google says the threat actors are APT29, a group of hackers widely attributed to Russia's Foreign Intelligence Service, or the SVR. APT29 is a highly capable group of hackers, known for its long-running and persistent campaigns aimed at conducting espionage and data theft against a range of targets, including tech giants Microsoft and SolarWinds, as well as foreign governments.

Google said it found the hidden exploit code embedded on Mongolian government websites between November 2023 and July 2024. During this time, anyone who visited these sites using an iPhone or Android device could have had their phone hacked and data stolen, including passwords, in what is known as a "watering hole" attack. The exploits took advantage of vulnerabilities in the iPhone's Safari browser and Google Chrome on Android that had already been fixed at the time of the suspected Russian campaign. Still, those exploits nevertheless could be effective in compromising unpatched devices.

The Register's Liam Proven reports: Microsoft's in-house professional networking site is moving to Microsoft's in-house Linux. This could mean that big changes are coming for the former CBL-Mariner distro. Ievgen Priadka's post on the LinkedIn Engineering blog, titled Navigating the transition: adopting Azure Linux as LinkedIn's operating system, is the visible sign of what we suspect has been a massive internal engineering effort. It describes some of the changes needed to migrate what the post calls "most of our fleet" from the end-of-life CentOS 7 to Microsoft Azure Linux -- the distro that grew out of and replaced its previous internal distro, CBL-Mariner.

This is an important stage in a long process. Microsoft acquired LinkedIn way back in 2016. Even so, as recently as the end of last year, we reported that a move to Azure had been abandoned, which came a few months after it laid off almost 700 LinkedIn staff -- the majority in R&D. The blog post is over 3,500 words long, so there's quite a lot to chew on -- and we're certain that this has been passed through and approved by numerous marketing and management people and scoured of any potentially embarrassing admissions. Some interesting nuggets remain, though. We enjoyed the modest comment that: "However, with the shift to CentOS Stream, users felt uncertain about the project's direction and the timeline for updates. This uncertainty created some concerns about the reliability and support of CentOS as an operating system." [...]

There are some interesting technical details in the post too. It seems LinkedIn is running on XFS -- also the RHEL default file system, of course -- with the notable exception of Hadoop, and so the Azure Linux team had to add XFS support. Some CentOS and actual RHEL is still used in there somewhere. That fits perfectly with using any of the RHELatives. However, the post also mentions that the team developed a tool to aid with deploying via MaaS, which it explicitly defines as Metal as a Service. MaaS is a Canonical service, although it does support other distros -- so as well as CentOS, there may have been some Ubuntu in the LinkedIn stack as well. Some details hint at what we suspect were probably major deployment headaches. [...] Some of the other information covers things the teams did not do, which is equally informative. [...]

OpenAI is in talks to raise several billion dollars in a new funding round that would value the startup behind ChatGPT above $100 billion, WSJ reported Wednesday, citing sources. From the report: Venture-capital firm Thrive Capital is leading the round and will invest about $1 billion, according to people familiar with the matter. Microsoft is also expected to put in money. The new funding round would be the biggest infusion of outside capital into OpenAI since Microsoft invested around $10 billion in January 2023.

Since then, an arms race has developed in Silicon Valley to build the most advanced artificial-intelligence systems in an effort to dominate an industry many say will revolutionize the economy. OpenAI was last valued at $86 billion late last year, when employees sold existing shares. Thrive, a New York-based firm founded 15 years ago by Josh Kushner, already has a close relationship with OpenAI and its chief executive, Sam Altman. It has put several hundred million dollars into the startup since last year.