The feud between OpenAI plus its leadership and Elon Musk continues as the latest installment in the series sees the latter once again meddle with the AI startup in court, this time looking to block its transition from a non-profit to a for-profit. Other key takeaways include:

• ChatGPT being found recently unable to talk or say anything about David Mayer and other public figures
• Meta's plans for a 40,000 km-long fiber-optic subsea cable beginning to surface
• Amazon giving its Amazon Connect contact center management platform an AI feature refresh

Join us at AI Tangle as we untangle this week's happenings in AI!

THE BIG AI STORY

For what feels like the umpteenth time, Elon Musk has filed for a preliminary injunction against OpenAI, its leadership, and Microsoft in the US District Court for the Northern District of California. Musk, who co-founded OpenAI in 2015 but left in 2018, has previously accused the startup of abandoning its nonprofit roots and potentially harming competitors, including his own AI company, xAI, if the injunction were not granted. Musk's legal team argues that these actions risk "irreparable harm" to the public and xAI, but what actual accusations are being made?

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What are the accusations being fronted?

Musk's motion targets OpenAI's leadership, including CEO Sam Altman, and major investor Microsoft, accusing them of using illegal tactics to achieve market dominance. The claims range from discouraging investors from funding rivals like xAI to leveraging Microsoft's resources to gain an unfair advantage. OpenAI's shift from nonprofit to a fully for-profit entity is also under scrutiny, as Musk's lawyers allege that this transition involves questionable deals, such as using Stripe, where Altman holds "material financial interests," as a payment processor. However, like in other cases, OpenAI is denying these allegations, calling Musk's repeated lawsuits baseless, while Musk continues to warn that continuing unchecked governance changes could irreversibly harm competition and public trust in AI development.

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5 QUICK HITS

A recent fad shared among many of OpenAI's ChatGPT users on Reddit has been the model's inability to say the name of David Mayer de Rothschild (and some others) or talk much about him, a member of one of the wealthiest, oldest, and storied families in history. This unexpected censorship has sparked various speculations, ranging from intentional suppression to overcautious filtering due to past incidents, such as the case with Brian Hood. Though some users have reported that this issue seems to be getting ironed out, the lack of transparency raises concerns about ChatGPT's reliability.

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​Being the 2nd largest driver of internet usage globally with AI expected to increase that, it might not come as a surprise that reports of Meta planning to build a 40,000+ km fiber-optic subsea cable began to circulate, marking its first wholly-owned project of this scale. Estimated to cost over $10 billion over years of project time, the cable will provide Meta with exclusive data traffic capacity globally, boosting reliability and performance for many of its platforms, like Facebook, Instagram, and WhatsApp. The route of the cable will also avoid geopolitical hotspots while still connecting it to key regions for the company, such as India.

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Amazon Web Services (AWS) has recently introduced new AI-based features to Amazon Connect, its contact center management service, ahead of the AWS re:Invent 2024 event. Updates include AI-powered customer segmentation for targeted marketing campaigns and improved integrations with Amazon Lex and Amazon Q to improve AI assistant capabilities. A Salesforce integration optimizes customer routing, while a WhatsApp for Business feature allows agents to handle inquiries via the app. AWS also debuted AI tools for deeper performance analysis of contact centers.

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​Nebius Group, an AI infrastructure firm spun off from Yandex, has raised $700 million in a private placement from investors like Accel, Orbis Investments, and most recently, Nvidia. Founded by former Yandex CEO Arkady Volozh, Nebius is focused on building GPU clusters and cloud platforms for AI developers. The funding supports its $1 billion investment plan through mid-2025, though this is subject to increase, with possible expansion in the US, where over half of its clients are located in. Nebius estimates its annualized revenue to grow between $750 million and $1 billion by 2025.

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Former Israeli NBA player Omri Casspi recently raised $60 million for Swish Ventures, a venture fund focusing on early-stage cybersecurity, cloud infrastructure, and AI startups. Following up on his $36 million Sheva Capital fund, Swish plans to back 10 companies with investments of $5-$7 million each. The Swish Ventures fund has a narrower focus compared to Sheva, with its interest specifically in cybersecurity and AI, especially in Israel and the US. Swish's investors include Sequoia Capital and founders of previous Sheva-backed startups.

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AI EXTRA READ

A Problem Nowhere Close to Being Solved (3-min read)

Though he believes Nvidia will remain pivotal in AI advancement, reducing computation costs by a million times, and enabling researchers to innovate freely, Nvidia CEO Jensen Huang believes solving AI hallucination, where AI fabricates information, is still several years away.