OpenAI plans to slash revenue share to Microsoft: The Information

OpenAI plans to reduce the share of revenue it gives to Microsoft by at least half by decade’s end, according to a report by The Information.

IBM says customers are doubling down on AI amid economic uncertainty

The US technology major is not seeing any decline in investments, Krishna said during a virtual media briefing. Rather, he said, clients are increasing investments in AI as they look for productivity gains and cost savings, while also seeking to grow revenue.

OpenAI, IBM, and Palantir: AI Investments Surge Amid Market Shifts

The Pulse

The AI landscape is witnessing a dynamic shift as major players like OpenAI and IBM recalibrate their strategies. Amid economic uncertainty, companies are doubling down on AI investments, highlighting its potential for productivity gains and revenue growth while navigating ethical challenges.

How it's happening

OpenAI plans to reduce its revenue share to Microsoft, signaling a strategic shift. IBM is investing $150 billion in the U.S. to bolster its AI capabilities. Meanwhile, Palantir raises its revenue forecast, driven by increasing demand for AI solutions across industries.

Key takeaways

• OpenAI reduces Microsoft revenue share from 20% to 10% by 2030.
• IBM commits $150 billion to U.S. AI development over five years.
• Palantir raises revenue forecast, anticipating $3.89 billion in 2025.
• AI is reshaping pricing models in business communication sectors.
• Legal challenges persist, as seen in Elon Musk's lawsuit against OpenAI.

Notable actions

OpenAI is set to acquire Windsurf for $3 billion, enhancing its coding assistant capabilities. IBM's CEO emphasizes the need for U.S. investment in AI. As companies adapt to market demands, the focus on ethical AI and regulatory frameworks will be crucial for sustainable growth.

IBM CEO makes play for AI market and more US investment

IBM also announced in April that over the next five years, it would invest $150 billion in the United States, where it has manufactured mainframe computers for more than 60 years. It will make quantum computers in the United States as well, chief executive Arvind Krishna said.

Palantir raises annual revenue forecast on booming AI demand

The Denver, Colorado-based company now expects revenue in fiscal year 2025 between $3.89 billion and $3.90 billion, up from its earlier forecast of sales between $3.74 billion and $3.76 billion. Analysts on average expect $3.75 billion in annual sales, according to data from LSEG. Palantir now expects US businesses to drive more than $1.18 billion in sales this year, up from its earlier expectation of more than $1.08 billion.

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