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OpenAI in talks for funding at $340B valuation!

Plus: Microsoft launches DeepSeek’s AI on Azure

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Top picks for today:

  • 🔥 OpenAI raising funds, targeting $340B valuation

  • 🚀 DeepSeek’s AI model is now available on Azure despite controversy

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🔥 What’s Hot in AI News:


OpenAI says Chinese DeepSeek using its work for their AI apps

OpenAI has raised concerns over the emergence of DeepSeek, a Chinese app that mimics ChatGPT's performance at a lower cost, potentially through a technique called knowledge distillation. The app's rapid development has prompted investigations into whether OpenAI's models were used without authorization, with Microsoft, a key investor in OpenAI, looking into the matter. David Sacks, the White House AI czar, anticipates that US AI companies will take steps to prevent such practices, while the US government has already imposed export controls to limit China's access to advanced AI technologies. OpenAI emphasized the need for stronger protections against these efforts to replicate and distill US-made AI models.

OpenAI in talks to raise funding that would value AI startup at up to $340 billion

OpenAI is in talks to raise up to $40 billion, which would increase its value to as much as $340 billion. SoftBank is leading this funding round and could become OpenAI’s biggest backer, investing between $15 billion and $25 billion. The funds may also support Stargate, a joint venture between OpenAI, SoftBank, and Oracle, aimed at boosting U.S. AI infrastructure. OpenAI’s valuation was last set at $157 billion, and it plans to compete with other AI companies, including Elon Musk’s xAI, Microsoft, Google, Amazon, and Anthropic. Meanwhile, Chinese startup DeepSeek has gained attention in the U.S. for creating a powerful AI model at a much lower cost, sparking more competition for OpenAI.


Google quietly announces its next flagship AI model

Google quietly launched its next-gen AI model, Gemini 2.0 Pro Experimental, as part of an update to its Gemini chatbot app. This new model, which succeeds Gemini 1.5 Pro, is designed to offer improved factual accuracy and stronger performance, particularly in coding and mathematics tasks. However, it’s still in an "early preview" stage and may exhibit unexpected behaviors or errors. Unlike other models in the Gemini lineup, Gemini 2.0 Pro Experimental doesn't have access to real-time information and lacks compatibility with certain app features. The release comes at a time when competition from Chinese AI startup DeepSeek is gaining attention, as their models have been found to rival those from major U.S. tech companies. Initially, the changelog included mention of the model, but the reference was later removed, with Google attributing the mention to an "out-of-date release note" published by mistake.

Microsoft rolls out DeepSeek's AI model on Azure

Microsoft has partnered with DeepSeek to launch its AI reasoning model, R1, on the Azure AI Foundry platform, offering it to enterprises with a focus on security and safety. Despite this, Microsoft is reportedly investigating DeepSeek for potentially misusing OpenAI's services by exfiltrating data through its API in late 2024. While R1’s inclusion in Azure reflects its appeal, tests have shown that the model provides inaccurate or non-answers 83% of the time on news topics and refuses to answer 85% of prompts related to China, possibly due to censorship. It's unclear whether Microsoft has modified R1 to address these issues.

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