The nonprofit could hold a stake worth over $100 billion if OpenAI reaches a $500 billion valuation in private markets
What just happened? Microsoft and OpenAI have reached an agreement to extend their high-profile partnership, resolving months of strained negotiations and clearing the way for the artificial intelligence startup to move forward with its plan to form a for-profit corporation. The non-binding deal represents a potential turning point in one of the most closely watched relationships in the AI sector, though many of the terms have yet to be finalized.
"Someone is going to lose a phenomenal amount of money"
Editor's take: Even to a non-investor, it is clear that we are in the middle of a massive AI bubble. It is not a matter of if it will burst, but when. Many of the companies driving this growth seem more interested in ginning up hype than being realistic about the value of the technology.
Forward-looking: OpenAI has officially launched GPT-5, more than two years after GPT-4 and a long parade of incremental upgrades. The company is pitching it as a "unified" AI that can seamlessly decide when to be fast, when to think deeply, and when to conserve resources. It's the kind of framing that suggests a new era for ChatGPT's 700 million weekly users and the broader AI market. But behind the marketing, GPT-5 is as much a strategic play in an intensifying AI arms race as it is a leap in capability.
Visual Studio Code has introduced a revamped tool picker and support for over 128 tools per agent request in MCP. Chat now features GPT-5 integration and checkpoints to restore previous states. Users can now manage multiple Git branches simultaneously, too.