😨OpenAI Vs Microsoft Gets Tense

Today we will discuss:

• Power struggle in AI's top duo—OpenAI weighs antitrust complaints as Microsoft pushes for more control over its AI and IP

• Don’t miss this week’s Workflow Wednesday—Build ethical AI workflows using ChatGPT to draft a real ethics policy, SEMrush to automate content responsibly, and GitHub to build a transparent workflow; now available at only $20/month! 

• Meta’s AI turns product photos into video ads—The company is leaning on generative AI to make ad creation faster and cheaper for small businesses

• In other AI news —Alta raises $11M to launch an AI fashion stylist inspired by Clueless, TikTok introduces AI-generated influencer ads, Huawei and ByteDance plan major tech investments in Brazil, and Alibaba debuts new Qwen3 models compatible with Apple’s MLX architecture

• Saved the best for last—10 must-try AI tools

OpenAI considers antitrust action as tensions with Microsoft escalate

Key Points 

• OpenAI needs Microsoft’s approval to convert into a for-profit company and avoid losing $20 billion in funding.

• The companies are locked in disputes over Windsurf’s IP, cloud access, and Microsoft’s potential stake in a new structure.

 ☕ Context of the news - OpenAI and Microsoft are in a tough spot. What was once one of tech’s most successful partnerships is now facing serious friction. 

OpenAI wants more freedom from Microsoft’s control over its cloud infrastructure and product distribution and is also pushing to complete its conversion into a for-profit public-benefit corporation. But for that to happen, it needs Microsoft’s approval.

🗞️News - So far, getting that green light hasn’t been easy. The two companies are stuck in drawn-out negotiations, according to people familiar with the talks.

Reportedly, OpenAI executives have even floated the idea of accusing Microsoft of anticompetitive behavior. That could lead to federal scrutiny and put even more strain on the relationship.

😯What's more? There’s also growing tension around OpenAI’s $3 billion acquisition of Windsurf, a coding startup. Microsoft wants access to Windsurf’s intellectual property, while OpenAI is pushing back. 

The companies are also at odds over how much Microsoft would own after the conversion. Microsoft is asking for a bigger stake than OpenAI is willing to offer. If OpenAI doesn’t complete the conversion by the end of the year, it could lose $20 billion in funding. 

Meanwhile, Microsoft wants continued access to OpenAI’s technology, even after the startup reaches artificial general intelligence. That’s a level of capability some in the tech world believe is close, while others still see it as far off. Either way, time is running out and both sides have a lot to lose.

Read the full story here.

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Meta’s new AI tool turns product images into multi-scene video ads

Key Points 

• Meta’s new tool lets advertisers turn up to 20 product images into video ads with music and text.

• The feature is aimed at small businesses, making it easier and cheaper to produce high-quality ad content.

🎥News - Meta just launched a new AI-powered image-to-video tool for advertisers, allowing brands to turn up to 20 product images into multi-scene video ads complete with music and text overlays.

The feature is designed to help marketers, especially small businesses, create content that stands out on platforms like Facebook and Instagram without needing a full production crew.

👾AI is the main character now - The update isn’t a one-off. Meta’s CEO Mark Zuckerberg has gone all-in on AI this year personally recruiting a new “superintelligence” team and backing companies like Scale AI with a $14.3 billion investment. 

AI now sits at the heart of Meta’s ad strategy, which makes sense given that advertising still brings in about 98% of the company’s revenue.

👨‍💻More AI, less effort - The new video tool joins a growing lineup of generative AI features Meta has been quietly rolling out: text-to-image ad creation, AI-generated GIFs, and a still-in-the-works text-to-video tool called Movie Gen.

The announcement coincided with the Cannes Lions ad festival, where TikTok also dropped its own set of AI ad tools. Looks like the battle for AI-driven creativity in marketing is just heating up.

Read the full story here.