AI Spotlight keeps you up-to-speed on the latest cool stuff in AI and tech. This week, we'll show you new tools, how businesses can use AI, and what's hot in the world of AI.

In today’s email:

• Microsoft & OpenAI: Cracks in Silicon Valley’s Closest Alliance.

• Elon Musk's xAI Seeks Major Cash Boost Amid Rapid Growth.

• OpenAI Lands $200M Pentagon Deal—Leaving Microsoft in the Cold.

• Tutorial: How to automate your web browsing with AI.

• 📢Top AI Tools of the Week

Microsoft & OpenAI: Cracks in Silicon Valley’s Closest Alliance.

What once looked like one of the tech world’s strongest partnerships is starting to unravel. Microsoft and OpenAI have spent the past six years working side by side—sharing infrastructure, resources, and billions in investment. But as OpenAI grows in power and ambition, it’s now pushing for more autonomy. The company reportedly wants to restructure as a public-benefit corporation, giving it more leeway to chase profits and scale quickly. Microsoft, understandably cautious, isn’t so eager to loosen its grip.

Key Points

• Tensions are rising as OpenAI pushes to shift its structure and gain more independence from Microsoft’s influence.

• Microsoft has invested heavily since 2019, securing priority access to OpenAI’s powerful models in return—but the dynamics are changing fast.

• According to reports, the standoff could escalate, with OpenAI allegedly weighing the option of taking public action or seeking government scrutiny.

• Despite the conflict, both companies released a joint note suggesting hope for continued collaboration—but the future looks uncertain.

• At the heart of the tension: control, profit models, and whether OpenAI can continue to scale without sacrificing its mission or Microsoft’s trust.

  Source: https://www.wsj.com/tech/ai/openai-and-microsoft-tensions-are-reaching-a-boiling-point

Elon Musk's xAI Seeks Major Cash Boost Amid Rapid Growth

The AI race just got more intense—and expensive. Elon Musk’s ambitious AI venture, xAI, is reportedly on the hunt for another massive funding round. According to sources via Bloomberg, the startup is seeking $4.3 billion in equity capital, in addition to the $5 billion in debt funding Musk is also pursuing for the broader X and xAI ecosystem. After a hefty $6 billion raise in late 2024, it appears the company is burning through resources at a pace that matches Musk’s bold vision. With AI development costs soaring, xAI seems to be doubling down on its aggressive expansion strategy.

key Points

• Elon Musk’s xAI is seeking $4.3 billion in equity financing to support its rapid development and scale.

• This new round follows a $6B cash injection received in December—most of which appears to have already been spent.

• xAI is also looking to raise an additional $5B in debt, tied to a larger financial strategy involving X and xAI.

• The company is behind Grok (an AI chatbot on X) and Aurora, an AI image generation tool—both of which are resource-heavy.

• These moves signal a continued push to challenge AI giants like OpenAI and Google, as Musk bets big on vertical integration within his ecosystem.

  
  Source: https://techcrunch.com/2025/06/17/elon-musks-xai-is-reportedly-seeking-a-4-3b-equity-raise/

OpenAI Lands $200M Pentagon Deal—Leaving Microsoft in the Cold.

In a move that’s shaking up alliances in the AI world, OpenAI has secured a contract worth up to $200 million with the U.S. Department of Defense. The partnership will focus on developing prototype systems using OpenAI’s most advanced models—systems aimed at improving workflows, cybersecurity, and more. While OpenAI insists all use must align with its ethics guidelines, the deal raises eyebrows, especially as OpenAI deleted its explicit ban on “military and warfare” use earlier this year. But the bigger twist? This contract could be seen as a subtle undercutting of Microsoft, OpenAI’s biggest backer—and long-time government cloud powerhouse.

key Points

• The Pentagon has tapped OpenAI for a $200M contract to build prototype AI systems for national security and admin use.

• Example applications include streamlining service member healthcare and assisting with proactive cyber defense.

• OpenAI maintains all use cases must align with its ethical guidelines, despite quietly changing its policy language on military use earlier this year.

• The deal is part of OpenAI’s new “OpenAI for Government” program, which bundles services for agencies like NASA, NIH, and the Treasury.

• Microsoft, a major investor in OpenAI, recently had its Azure OpenAI Service approved for classified government use—but now the DoD is dealing directly with OpenAI, possibly bypassing Microsoft's cloud infrastructure.

  
  Source: https://techcrunch.com/2025/03/03/opera-announces-a-new-agentic-feature-for-its-browser/

How to automate your web browsing with AI

In today’s fast-paced digital world, doing more with less effort is key. With tools like the Genspark AI browser, you can delegate your routine online tasks to artificial intelligence—saving time while staying productive. Here's a quick guide to help you get started.

Here’s how:

1. Ask Genspark to summarize, transcribe, or extract info from any video.

2. Turn on AI Adblock in Preferences to remove all ads and trackers.

3. Ask for the best alternatives, prices, and reviews from top sites.

4. Summarize top social posts, then turn them into a 5-min podcast.

5. Use prompts to auto-fill forms, gather info, and more.

Top AI Tools of the Week

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