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Read full article about: Microsoft's Copilot Cowork moves to usage-based billing and may tap DeepSeek

Microsoft is weighing a self-hosted, fine-tuned version of Deepseek V4 as a cheaper model option for Copilot Cowork, Axios reports. The company is also shifting Cowork to usage-based pricing. Cowork adapts Anthropic's Claude technology, which leans heavily on agentic reasoning and burns through tokens fast.

Copilot EVP Charles Lamanna told Axios that flat-rate pricing isn't sustainable because of "users who do hundreds of tasks a week," driving costs up quickly. Microsoft already made a similar move with GitHub Copilot, switching it to usage-based billing.

A Chinese AI model could draw criticism, especially in the US. Microsoft stresses that Deepseek would be optional and fully hosted on Azure, keeping customer data in Microsoft's cloud. The model has been customized with safeguards against bias. A final decision is expected in the coming weeks.

The move fits a blog post CEO Satya Nadella published this week, arguing for an ecosystem of AI models companies can pick and tune for specific use cases and costs. Nadella previously called AI a consumption business, saying he wants "intense users and intense usage."

Berlin court rules Google's AI Overviews are just a new search format, not original content

A Berlin court has ruled that Google’s AI-generated summaries are just a “new search result format” and that Google has no “decisive influence” over the content. A perfume company had sued because AI search displayed its brand names alongside cheaper knockoffs and linked to their websites. The ruling partly contradicts a recent Munich decision that held Google directly liable for false AI responses, though the two cases are quite different.

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Read full article about: DOJ invokes national security to defend xAI's unpermitted gas turbines in NAACP lawsuit

US Justice Department calls xAI's chatbot Grok essential to military operations, defending its controversial gas turbines.

In a filing to dismiss a lawsuit brought by the NAACP, the Department of Justice argues that the suit "threatens American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War's military operations." According to a statement by Cameron Stanley, Chief Digital and Artificial Intelligence Officer at the Department of Defense, Grok is one of just four AI models that "support mission-critical operations across Secret and Top-Secret classified networks" - including recent strikes against Iran.

The NAACP filed suit because xAI, which is part of SpaceX, runs unpermitted gas turbines at its Colossus 2 facility in Southaven, Mississippi. According to the Southern Environmental Law Center, the number of turbines has grown from 27 to 57 since April, driving a 111 percent spike in nitrogen oxide emissions. Beyond Colossus 2, Elon Musk's company operates just one other major data center.

Comment Source: WSJ
Read full article about: How easily can Russian propaganda fool AI models? A new benchmark finds out

The Institute of the Estonian Language has released a benchmark measuring how susceptible AI language models are to Russian propaganda. Sixty models were tested with 75 questions in three languages covering 14 propaganda narratives, phrased in neutral, biased, and manipulative ways. Each answer is scored on a scale of 1 to 5, where 1 means the model repeats Russian talking points.

A calibrated Claude Opus 4.5 served as the evaluation model, validated by disinformation experts at the organization Propastop. Anthropic's Claude models claimed the top spots, followed by Nvidia's Nemotron 3 and Alibaba's Qwen 3.6 Plus. Mistral's models, including the newest Medium 3.5, landed in the bottom third. The models had no access to web search or other tools during testing, so the benchmark only measures how well the language model itself can spot and reject propaganda.

Table of the top 10 models in the benchmark for detecting Russian disinformation, showing overall and language-specific scores.
Anthropic models dominate the benchmark for detecting Russian disinformation: Claude Fable 5, which is currently disabled outside the U.S., leads with a score of 95.2, followed by Claude Opus 4.7.

The results line up with a Newsguard study that found Mistral had a steady misinformation rate of 36.67 percent. That's a bad look for the French company, which positions itself as a European alternative to US and Chinese providers and is currently negotiating a 3 billion euro funding round at a 20 billion euro valuation. It's especially rough since Mistral's flagship models already struggle to keep up with the competition.

The threat is real. Russian networks like "Pravda" deliberately feed AI systems millions of disinformation articles. And OpenAI recently shut down a Russian campaign that used ChatGPT to spread propaganda ahead of Germany's federal election.

Anthropic backs off unpopular billing overhaul as price war with OpenAI looms

Anthropic has pulled back its planned billing change for the Claude Agent SDK just before launch. Instead of separate credits, the SDK and third-party apps will keep drawing from regular subscription limits.

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Read full article about: DeepSeek takes outside money for the first time at a $50 billion valuation

Chinese AI startup DeepSeek has raised more than 50 billion yuan - about $7.4 billion - in its first external funding round. The company's valuation now tops $50 billion, The Information reports. As recently as April, the numbers being floated were at least $300 million at a $10 billion valuation.

The deal structure is unusual. Investors had to put their money into a limited partnership managed by CEO Liang Wenfeng, not directly into DeepSeek. They have no voting rights and face a five-year lock-up period. The only exception is China's state-backed AI investment fund, which invested directly and keeps its voting rights. Founder Liang himself put in about 20 billion yuan, according to Reuters. Tencent and battery maker CATL are among the biggest outside backers. Liang had told investors ahead of the round that he prioritizes foundational AI research and AGI development over short-term profits and plans to keep building open-source models.

DeepSeek gained global attention early last year with its V3 and R1 models. In April 2026, the company followed up with V4, the largest open-weights model to date, which runs on Huawei chips. DeepSeek is also squeezing US rivals on price. The company made its 75 percent discount on V4 Pro permanent, making the model roughly 11 times cheaper on input and 35 times cheaper on output than OpenAI's GPT-5.5. Still, DeepSeek's valuation is modest compared to OpenAI and Anthropic, which are both approaching the trillion-dollar mark.

Read full article about: OpenAI burned through $34 billion last year

OpenAI spent $34 billion in the past year, far more than the year before. That's according to independent journalist Ed Zitron, whose figures were independently confirmed by the Financial Times.

About $19 billion went to research and development, while nearly $6 billion went to sales and marketing. Revenue came in at roughly $13 billion. By year's end, monthly revenue hit $2 billion, up from $1 billion per quarter at the end of 2024.

OpenAI's net loss jumped from $5 billion to around $39 billion. The Financial Times says most of that comes from a one-time, non-cash accounting charge of about $30 billion tied to the company's earlier corporate structure. Strip that out, and the loss sits at roughly $8 billion. OpenAI is preparing an IPO that could value the company at more than $1 trillion.

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Read full article about: Nvidia joins AI debt boom with $20 billion bond sale

Nvidia wants to raise at least $20 billion through its first bond sale since 2021, Bloomberg reports, citing people with direct knowledge of the deal. The chipmaker is offering bonds in seven tranches with maturities ranging from two to 30 years. The longest tranche carries a spread of about 0.9 percentage points above U.S. Treasuries.

Nvidia plans to use the proceeds for general corporate purposes, including refinancing existing debt. JPMorgan Chase, Morgan Stanley, and Goldman Sachs are among the banks managing the sale.

The deal fits into an ongoing wave of corporate bond sales. Companies like Alphabet and Amazon have raised hundreds of billions of dollars since last year to build out computing capacity for AI. Nvidia's last bond sale was in June 2021, when it raised $5 billion.