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Elon Musk's AI company xAI is reportedly in advanced talks to secure $15 billion in new funding, according to the Wall Street Journal. The deal would value the company at $230 billion, a sharp increase from the $113 billion valuation it reported in March following its merger with X. Musk's financial adviser Jared Birchall shared the terms with investors on Tuesday evening. It's still unclear whether the new valuation applies before or after the additional investment.

Like other AI firms, xAI is burning through cash as it builds out its infrastructure. In June, the company raised $5 billion in equity and $5 billion in debt to construct a massive data center in Memphis. Musk's space company SpaceX contributed $2 billion to that round.

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Former U.S. Treasury Secretary and Harvard professor Larry Summers has stepped down from OpenAI's board following the publication of his email exchanges with Jeffrey Epstein. Summers had already announced on Monday that he would withdraw from all public roles, though it was initially unclear whether that included his position at OpenAI.

Summers said he was grateful for his time on the board and planned to continue following the company's work. OpenAI told CNBC that it respected his decision and valued his contributions. As a board member, Summers was among the few people directly involved in key decisions related to artificial general intelligence (AGI) at the company.

His resignation comes after the U.S. Congress released more than 20,000 documents revealing his communications and contacts with Epstein.

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Microsoft has introduced Agent 365, a new platform designed to help organizations manage their AI agents as if they were part of the workforce.

Agent 365 includes five core features: a centralized registry for every AI agent in the organization through Microsoft Entra, access control using unique agent IDs, performance dashboards for tracking efficiency, integration with Microsoft 365 apps and corporate data, and built-in security managed by Microsoft Defender and Microsoft Purview.

The system works with Microsoft's own tools like Copilot Studio, but it also supports open-source frameworks and third-party solutions from partners such as Adobe, Nvidia, ServiceNow, and Workday. Agent 365 is available in the Microsoft 365 Admin Center and is currently being tested through Microsoft's Frontier program.

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Microsoft, Nvidia, and Anthropic have unveiled a set of new strategic partnerships valued at 45 billion dollars. Anthropic plans to scale its Claude models on Microsoft Azure and has agreed to purchase 30 billion dollars in Azure compute capacity, plus up to one gigawatt of additional capacity. As part of the deal, Nvidia and Anthropic are collaborating closely for the first time on model design and engineering, tuning Claude for Nvidia's architectures. The compute stack includes Nvidia's Grace Blackwell and Vera Rubin systems. Nvidia is investing up to 10 billion dollars in Anthropic, while Microsoft is investing up to 5 billion dollars.

Microsoft Foundry customers will gain access to Claude models like Claude Sonnet 4.5, Claude Opus 4.1, and Claude Haiku 4.5. With this move, Claude becomes the only top-tier model available across all three major cloud platforms. Microsoft also continues using Claude across its Copilot lineup, including GitHub Copilot and Microsoft 365 Copilot. CEOs Dario Amodei, Satya Nadella, and Jensen Huang introduced the partnerships in a ten-minute announcement video.

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Thinking Machines Lab, founded by former OpenAI CTO Mira Murati, is looking to raise up to five billion dollars in new funding, according to The Information. That would at least triple the nine-month-old company's existing capital. A second source says the startup is aiming for a valuation of at least 50 billion dollars.

The company previously raised two billion dollars at a ten-billion-dollar valuation from backers including Andreessen Horowitz. The money will support research, new hires, and computing resources. In October, the company launched Tinker, a tool that lets developers customize open AI models. Thinking Machines is also working on a consumer-facing product, potentially a voice-based AI assistant.

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Arm and Nvidia plan closer collaboration. Arm says its CPUs will be able to connect directly to Nvidia's AI chips using NVLink Fusion, making it easier for customers to pair Neoverse CPUs with Nvidia GPUs. The move also opens Nvidia's NVLink platform to processors beyond its own lineup.

The partnership targets cloud providers like Amazon, Google, and Microsoft, which increasingly rely on custom Arm chips to cut costs and tailor their systems. Arm licenses chip designs rather than selling its own processors, and the new protocol speeds up data transfers between CPUs and GPUs. Nvidia previously tried to buy Arm in 2020 for 40 billion dollars, but regulators in the United States and the United Kingdom blocked the deal.

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Cloudflare is acquiring Replicate and folding its massive model library into Workers AI. The deal pushes Cloudflare's inference platform past 50,000 available models. Replicate users can keep using their existing APIs, while Workers AI users gain access to a far larger catalog along with new fine-tuning options. Both companies plan to bring Replicate's full library to Workers AI and let developers run their own models directly on Cloudflare's network.

Replicate has become a major hub for developers who want easy API access to AI models. Cloudflare brings its global network and serverless inference system to the table. "Together, we’re going to become the default for building AI apps," said Replicate cofounder Ben Firshman. Replicate will stay as an independent brand but operate with Cloudflare's support and infrastructure behind it.

Cloudflare, best known for its DNS services, recently introduced a system that blocks AI crawlers by default and gives website owners more control over how their content is accessed.

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