OpenAI plans to give Microsoft a much smaller share of its revenue going forward, according to a report from The Information.
The company has reportedly told some investors that Microsoft's cut — currently just under 20 percent — will drop to around 8 percent by 2030. That shift would let OpenAI hold on to more than $50 billion in additional revenue to cover its massive computing costs. Under the original deal, Microsoft was guaranteed 20 percent through 2030.
In return, sources told The Information that Microsoft will get one-third of the restructured OpenAI entity, with another portion going to the nonprofit side. Microsoft still will not have a board seat. The two companies are also said to be negotiating over server expenses and contract terms around the potential use of artificial general intelligence (AGI).
It's not yet clear whether the recently announced, non-binding agreement between the two companies already reflects these revenue changes.
Google DeepMind has introduced a new language model called VaultGemma, designed with a focus on privacy. It is the largest open model to date trained from scratch with differential privacy, containing 1 billion parameters.
Normally, large language models can memorize parts of their training data, including sensitive information like names, addresses, or entire documents. Differential privacy avoids this by adding controlled random noise during training, making it statistically impossible to trace the model's outputs back to specific examples. In theory, even if VaultGemma were trained on confidential documents, those documents could not be reconstructed later.
According to Google, early tests confirm that the model does not reproduce training data. The tradeoff is performance: its output is roughly comparable to non-private LLMs released about five years ago.
The model weights are openly available on Hugging Face and Kaggle.
Elon Musk's AI company xAI has laid off about 500 employees, including a third of its data annotation team. These workers had been training the company's chatbot Grok by sorting and explaining raw data. According to internal emails seen by Business Insider, xAI is eliminating most roles for so-called generalist tutors and plans to hire more specialists instead. Employees will continue to be paid through the end of their contracts, or no later than November 30, but lost access to company systems immediately. Just before the cuts, staff were required to take skills tests that were supposed to determine their future roles. On X, the company said it plans to expand its team of expert tutors in fields like science, medicine, and finance "tenfold." The idea is to give Grok deeper domain knowledge, a move similar to practices at other AI firms, which often outsource this work to external contractors. As a result, low-cost mass data annotation work is beginning to lose its role, gradually being replaced by the very AI systems it helped build.
Robby Walker, one of Apple's top AI executives, will leave the company next month, according to Bloomberg. Walker led Siri until earlier this year, when responsibility for the product shifted to software chief Craig Federighi. After that, he oversaw projects for a new AI-powered web search expected to launch in 2026, aimed at competing with services like ChatGPT and Perplexity. Most recently, he led Apple's "Answers, Information and Knowledge" team. His exit adds to a string of departures from Apple's AI division, including Ruoming Pang and Frank Chu, who left for Meta.
Nvidia is pulling back from direct competition with cloud providers like Amazon Web Services, according to The Information. Its GPU cloud service, DGX Cloud, will now be used mainly for Nvidia's own research. The service was originally pitched to banks, pharmaceutical companies, and other enterprises as a way to book computing power directly from Nvidia. But insiders say demand stayed low, partly because prices were higher than those of traditional cloud providers. Nvidia invested around $13 billion to rent back its own chips from AWS and other major clouds, then resold some of that capacity to customers like Amgen and ServiceNow. Publicly, Nvidia denies any shift in strategy. Company executive Alexis Black Bjorlin said DGX Cloud is fully booked and will continue to expand. At the same time, Nvidia has launched DGX Cloud Lepton, a marketplace where cloud providers can offer their own GPU resources.
Tencent has hired AI researcher Shunyu Yao away from OpenAI, according to Bloomberg citing people familiar with the matter. At the Shenzhen-based tech giant, Yao is expected to work on integrating artificial intelligence into Tencent's existing services. Before joining Tencent, he spent time at Google and Princeton University, focusing his research on AI agents. Chinese media speculated that his compensation package could be worth more than 100 million yuan, roughly $14 million. Tencent dismissed the figure on its official WeChat channel, calling it a rumor, but didn't provide further details. Neither OpenAI nor Yao has commented. His departure comes during an intense race for AI talent, one that has recently escalated with Meta CEO Mark Zuckerberg offering payouts that reportedly reach into the hundreds of millions of dollars.