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OpenAI Announces Massive US Government Partnership

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Government Agencies Gain Access to Advanced AI Models

OpenAI Partners with US Government to Deploy ChatGPT Across Federal Workforce

Federal employees will soon have access to cutting-edge artificial intelligence tools under a new initiative. OpenAI is making its advanced models available to government agencies for a nominal fee, aiming to enhance public service delivery.

A Strategic Alliance for Public Service

OpenAI is collaborating with the US government, specifically the General Services Administration (GSA), to provide federal employees with access to its leading frontier models. This landmark agreement allows government agencies to utilize OpenAI’s technology for just $1 over the next year, as announced on Wednesday.

“One of the best ways to make sure AI works for everyone is to put it in the hands of the people serving the country. We’re proud to partner with the General Services Administration, delivering on President Trump’s AI Action Plan, to make ChatGPT available across the federal government, helping public servants deliver for the American people.”

—Sam Altman, CEO of OpenAI

This partnership signifies months of dedicated engagement by OpenAI’s leadership, including CEO Sam Altman, with government officials. Company executives have been actively promoting their AI tools to various federal bodies, including the Food and Drug Administration, since at least May.

Government Embraces Generative AI

The GSA recently expanded its federal purchasing list to include three new AI models: Anthropic’s Claude, Google’s Gemini, and OpenAI’s ChatGPT. This move aligns with President Trump’s AI Action Plan, which emphasizes accelerating AI innovation within the United States.

In parallel, OpenAI released two open-weight models, its first since 2019. These models can be deployed locally and customized, potentially addressing data security requirements for government entities.

Accelerating AI Adoption in Government

The initiative follows efforts to streamline government operations through AI. The Department of Government Efficiency (DOGE), under Elon Musk‘s purview, has been instrumental in advancing government AI projects, including the development of the GSAi chatbot. A DOGE operative has also been reportedly using AI tools to revise regulations within the Department of Housing and Urban Development.

American technology giants are increasingly seeking to engage with the US government. Previously, Sam Altman was present when President Trump announced a significant data center infrastructure project, dubbed Stargate, from OpenAI.

Government agencies possess vast datasets that could prove valuable for AI development. OpenAI has stated that interactions with federal employees will not be used for ChatGPT’s training data. Modernizing operations is a key driver for agencies, with generative AI seen as a pathway to enhanced efficiency. The Department of Defense, a major potential client, has a proposed budget increase of 13.4 percent for fiscal year 2026.

The US government’s commitment to AI integration is reflected in its broader technological modernization efforts. For instance, the Federal Aviation Administration is implementing AI to improve air traffic control systems, aiming to reduce delays and enhance safety. The FAA anticipates that AI could improve operational efficiency by up to 15% in the coming years (FAA, 2024).

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Business

AMD earnings report 2Q 2025

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

AMD Earnings Miss Estimates Amid AI Chip Push

Chip Giant Navigates Export Controls and Fierce Competition

Advanced Micro Devices (AMD) reported quarterly earnings that fell short of analyst expectations, causing its stock to dip in after-hours trading. The company, a key player in the artificial intelligence hardware market, is facing headwinds from U.S. export restrictions on its high-end chips, particularly impacting sales to China.

AI Business Faces Setback from Export Restrictions

For the quarter ending in June, AMD posted adjusted earnings per share of 48 cents, missing the anticipated 49 cents. Revenue, however, exceeded forecasts at $7.69 billion, compared to the expected $7.42 billion. The company anticipates current-quarter sales to reach approximately $8.7 billion, plus or minus $300 million, against analyst projections of $8.3 billion.

The company’s AI-focused business experienced a year-over-year decline in revenue. This downturn is largely attributed to U.S. export restrictions that effectively halted sales of its MI308 AI chips to China. Previously, the MI308’s export to China was blocked in April, costing AMD an estimated $800 million in the June quarter.

CEO Lisa Su explained the situation to analysts, stating, “AI business revenue declined year over year as US export restrictions effectively eliminated MI308 sales to China, and we began transitioning to our next generation.” While the Trump administration has signaled potential waivers, AMD’s current outlook does not incorporate any revenue from the MI308 chip, with license applications still under review by the Department of Commerce.

Lisa Su, CEO of Advanced Micro Devices, and Sam Altman, CEO of OpenAI, testify during a Senate Commerce, Science and Transportation Committee hearing on AI capabilities. (Tom Williams | CQ-Roll Call, Inc. | Getty Images)

New AI Chips Touted as Competitive

Despite these challenges, AMD is pushing forward with its next-generation AI hardware. The company recently unveiled its Instinct MI400 AI chips, slated for market release next year. Notably, OpenAI CEO Sam Altman has committed to adopting AMD’s upcoming GPUs.

Su also highlighted the competitive nature of AMD’s newest AI chip, the Instinct MI350, stating it is comparable to Nvidia’s GB200 chips for both AI model training and inference. “Seven of the top ten model builders and AI companies use Instinct,” she added, underscoring customer adoption.

Other Segments Show Strong Growth

Beyond its AI offerings, AMD’s core businesses demonstrated robust performance. The data center segment, which includes central processing units (CPUs) that compete with Intel, saw a 14% annual increase in revenue, reaching $3.2 billion. This segment is crucial as it powers traditional servers.

The Client and Gaming division experienced a significant surge of 69% year-over-year, generating $3.6 billion in revenue. This growth was propelled by strong demand for AMD’s Ryzen Zen 5 desktop CPUs and custom chips for game consoles, alongside its gaming GPUs. Client revenue alone climbed 57% to $2.5 billion, while gaming revenue soared 73% to $1.1 billion, surpassing expectations.

Globally, the semiconductor market is projected to grow by 13.1% in 2024, reaching $689 billion, according to the Semiconductor Industry Association (SIA 2024).

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Technology

YouTube Co-founder Warns of Short-Form Video’s Impact on Kids

by Rachel Kim – Technology Editor
written by Rachel Kim – Technology Editor

YouTube Co-Founder Warns of TikTok‘s Impact on Attention Spans, Urges Safeguards

Steve Chen, the former chief technology officer of YouTube before its acquisition by Google in 2006, has voiced strong concerns about the proliferation of short-form content, exemplified by TikTok, and its potential negative effects on attention spans, particularly in children. Speaking at the Stanford Graduate School of Business earlier this month, Chen described TikTok as “purely entertainment” that exists “just for that moment,” suggesting that shorter-form content directly correlates with shorter attention spans.

Chen, a father of two, expressed his reluctance for his own children to exclusively consume short-form videos, fearing it could hinder their ability to engage with longer content. he shared anecdotes of parents who actively encourage their children to watch longer videos, deliberately avoiding the visually stimulating elements common in short-form content, a strategy he believes is effective. “If they don’t get exposure to the short-form content right away, then they’re still happy with that other type of content that they’re watching,” Chen stated.

He noted that many companies have felt compelled to adopt short-form content strategies in response to TikTok’s success. Though, Chen cautioned thes companies, including his former employer YouTube, to strike a balance between monetization and user engagement with content that is “actually useful.” He also highlighted the potential for addictiveness in short-form video distribution and advocated for the implementation of safeguards for children,such as age restrictions and time limits on app usage.

Chen’s remarks align with concerns raised by other prominent figures in the tech industry regarding social media’s influence on young people.Sam Altman, CEO of OpenAI, recently commented on social media scrolling and the “dopamine hit” from short-form video, suggesting it might very well be “messing with kids’ brain development in a super deep way.” Similarly, Elon Musk, owner of X (formerly Twitter), admitted in 2023 that his approach to limiting his children’s social media use might have been a mistake. Musk now advises parents to be more involved in their children’s social media habits, recommending greater oversight of the content they consume due to the influence of algorithms.

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Business

This is a big danger that makes the Creator Chatgpt worried

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

AI Fuels Fraud Fears: **Sam Altman** Warns of Impersonation Crisis

OpenAI CEO highlights voice and video cloning dangers, urging caution in financial security.

The rapid advancement of artificial intelligence presents a growing threat of sophisticated fraud, according to OpenAI CEO **Sam Altman**. He warns that AI’s ability to perfectly mimic human voices and appearances could soon undermine critical security measures.

The Impersonation Threat

Altman expressed particular concern about financial institutions that still rely on voice biometrics for high-value transactions. He pointed out the alarming ease with which AI can now replicate voices, rendering current authentication methods vulnerable.

“The thing that makes me afraid is that there are still some financial institutions to receive voiceprints as authentication to transfer a large amount of money or do anything else,” **Altman** stated, adding, “You just have to say the phrase and they immediately do it.” He further elaborated that AI has “fully defeated most of the ways to manage it at this time, in addition to passwords.”

Broader Concerns and Government Warnings

This concern is not isolated to **Altman**. The FBI has also issued warnings about AI-powered voice and video cloning scams. Reports have surfaced of parents being deceived by AI voices impersonating their children in distress.

Earlier this month, US officials cautioned about an incident where an individual used AI to imitate Senator **Marco Rubio**’s voice, contacting government officials. **Altman** anticipates this escalating from voice calls to indistinguishable video or FaceTime impersonations.

According to a report by the cybersecurity firm Sontiq, phishing attacks using AI-generated voice deepfakes increased by 300% in the first half of 2023 compared to the same period in 2022. The FBI’s Internet Crime Complaint Center (IC3) reported that businesses lost over $1.7 billion in business email compromise scams in 2023, a figure likely to be exacerbated by AI.

Existential AI Risks

Beyond immediate fraud concerns, **Altman** shared deeper anxieties about the potential misuse of advanced AI. He worries about “evil actors” exploiting superintelligence before humanity is prepared to defend against it, citing scenarios like AI-powered attacks on critical infrastructure or the creation of biological weapons.

The potential loss of human control over superintelligent AI systems and the delegation of too much decision-making power to AI also weigh on **Altman**’s mind. He believes that AI intelligence could surpass human capabilities significantly by the 2030s, underscoring the urgency of addressing these challenges.

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Technology

OPENAI announces the imminent launch of GPT-5

by Rachel Kim – Technology Editor
written by Rachel Kim – Technology Editor

OpenAI Gears Up for GPT-5 Launch: Early August Debut Anticipated

New AI Model Promises Enhanced Capabilities, Including Mini and Nano Versions

Speculation surrounding OpenAI’s next-generation AI model, GPT-5, is intensifying as new reports suggest an earlier-than-expected release. CEO Sam Altman hinted at an upcoming launch earlier this week, with internal sources now pointing to an early August availability.

GPT-5 Architecture and Expected Features

The highly anticipated GPT-5 is expected to integrate the advanced reasoning abilities of OpenAI’s “O” series models with the established strengths of the GPT line. This hybrid approach aims to optimize performance, allowing the AI to intelligently select the best model for a given task, balancing speed, cost, and output quality.

Users will reportedly have the ability to switch between these operational modes, though discerning the most suitable option may become more intuitive with GPT-5. The upcoming model is also slated to incorporate all existing ChatGPT features, including voice interaction, Canvas, and enhanced research capabilities.

Chronological Evolution of OpenAI Models

The AI landscape has seen rapid advancements since ChatGPT’s debut in November 2022, initially powered by GPT-3.5. March 2023 marked a significant leap with the release of GPT-4, followed by the multimodal GPT-4o in March 2024. The development of GPT-5, however, has experienced delays from its initially planned timeline.

In February, Sam Altman outlined a roadmap for new corporate models, suggesting a rollout within “a few weeks/months.” By April, a shift in strategy was announced, with the release of O3 and O4-Mini models, pushing back GPT-5. Altman cited integration challenges as the reason for the postponement.

Tiered Access and Experimental Nature

OpenAI plans a tiered access structure for GPT-5. Free ChatGPT users will receive standard intelligence level access, while subscribers will gain entry to higher intelligence tiers, with Pro subscribers enjoying the highest level. This tiered approach mirrors existing access models for advanced AI features.

Sam Altman recently emphasized that GPT-5 will be an experimental model, incorporating diverse research techniques. He clarified that it is not the same model that recently received recognition at the International Mathematics Olympiad.

The development of advanced AI models like GPT-5 continues to push the boundaries of what’s possible. For instance, Google’s Gemini 1.5 Pro demonstrated impressive long-context understanding by processing the entire King James Bible (over 770,000 words) in a single prompt, showcasing the rapid progress in AI’s capacity for information absorption and analysis (The Register, 2024).

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Business

Mark Zuckerberg unleashed, why buy everything? From AI to Essilux the race of the Founder of Facebook

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Meta Bets Billions on AI Supremacy

Zuckerberg Poaches Top Talent, Invests Heavily in AI Research and Physical Stores

Mark Zuckerberg is making an aggressive push for dominance in the artificial intelligence landscape, mirroring his past strategies of ambitious acquisitions and bold market plays. After a significant investment in the metaverse that yielded mixed results, Meta’s focus has sharply shifted to generative AI.

Superintelligence Labs: The New Frontier

Meta has launched “Superintelligence Labs,” a new division aimed at achieving primacy in AI development. This initiative is bolstered by substantial investments in both software and physical retail for smart glasses, signaling a multi-faceted approach to AI integration.

Acquisition and Talent Influx

A key move in this strategy is the significant acquisition of Scale AI, a company specializing in data collection and labeling crucial for AI model development. While Meta secured a 49% stake for $14.3 billion, the move aims to avoid antitrust scrutiny while gaining a crucial operational advantage. The CEO of Scale AI has now taken the helm of Meta Labs. To further bolster its research capabilities, Meta is reportedly offering staggering salary packages, with some of the top AI talents from competitors like OpenAI, Anthropic, Perplexity, and even Apple being offered up to $100 million annually. This aggressive recruitment drive has already seen many top minds join the Meta team.

Physical Stores and Smart Glasses

In parallel with its AI research, Meta is accelerating its project to integrate physical products with its software offerings. This includes the development of smart glasses, created in partnership with Essilor Luxottica, and VR viewers like the Quest series. These products are slated for distribution through a network of dedicated physical stores, following a model akin to Apple’s retail strategy. Meta has already invested $3.5 billion to acquire a 3% stake in Essilor Luxottica, with ambitions to increase its holding to 5%.

Challenging the AI Giants

Meta’s recent efforts come after the perceived underperformance of its Llama 4 AI model. Unlike the leading “closed” models such as OpenAI’s ChatGPT, Google’s Gemini, Anthropic’s Claude, and Elon Musk’s Grok, Llama 4 is an open-source model that has reportedly lagged in market effectiveness. Internal reports suggest that Zuckerberg received overly optimistic assessments of Meta’s AI progress from his technical teams. Following the departure of research head Joelle Pineau, Zuckerberg initiated his counter-offensive in May.

Strategic Setbacks and Departures

Despite its aggressive strategy, Meta has faced some resistance. Perplexity reportedly refused an acquisition offer. Furthermore, a highly sought-after figure in the AI world, Ilya Sutskever, formerly of OpenAI and now heading Safe Superintelligence, has evaded Meta’s grasp. However, Meta did manage to recruit key collaborators from Sutskever‘s orbit, including co-founder Daniel Gross and Traprit Bansal, along with several prominent engineers from OpenAI, highlighting the significant talent war underway.

The High-Stakes Gamble

Meta’s concentrated effort to assemble a team of around fifty leading AI minds is a high-stakes gamble. The company is betting that this concentration of talent can develop superior technology. However, the inherent risks of internal discord within such elite teams remain, echoing past challenges faced by both OpenAI and Meta’s own AI divisions. With these moves, Zuckerberg appears to be committing all resources to this critical technological race.

The global AI market is projected to reach over $1.5 trillion by 2030, indicating the immense economic potential driving these competitive strategies (Grand View Research, 2024).

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