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  • Tariff Trouble: GM Cuts 750 Jobs at Oshawa Facility

    The president of the union that represents workers announced on 2 May that General Motors is cutting off roughly 750 employees at its Oshawa Assembly facility as it adjusts shifts because of US tariffs.

     According to a news release from Unifor, the plant, which employs about 3,000 people, will switch from operating on three shifts to two shifts beginning this autumn. Unifor would not permit GM to barter Canadian jobs in order to win over Donald Trump.

    Lana Payne, national president of Unifor, described the action as a careless choice that directly affects Unifor’s members and might have repercussions for the whole network of auto parts suppliers. In addition to the 1,500 employees who work elsewhere in the supply chain, the plant will lay off about 750 workers, Payne told a media house.

    The shift change “will impact approximately 700 workers”, according to GM spokesman Marie Binette’s email, though she did not call the action a layoff. “We are committed to supporting employees through the transition,” she stated.

    Why Company Decided for a Layoff?

    Workers in Oshawa’s car industry have been preparing for the effects of U.S. tariffs on their livelihoods, and now they are facing layoffs. Last month, President Donald Trump imposed a 25% duty on all automobile imports into the United States.

    In an email to a media company, GM spokesperson Jennifer Wright stated that the company’s Oshawa facility will resume operating on two shifts due to anticipated demand and the changing trade situation.

    As GM refocuses the Oshawa facility to produce more trucks in Canada for Canadian consumers, these adjustments will contribute to a sustainable manufacturing footprint. According to Unifor, light and heavy-duty Chevrolet Silverado pickup vehicles are produced at the Oshawa factory for the North American market.

    These trucks are also assembled at plants in the United States and Mexico. As per Payne, GM has already given the required six months’ notice of layoffs. She stated that during those six months, she will fight back with her members every day in an attempt to persuade General Motors to change its decision.

    PM Offers Sympathy to Affected Workers

    In his first significant press conference since winning the federal election, Prime Minister Mark Carney expressed his “deepest sympathy” for the impacted employees and their families. The government is “fighting hard” for the auto industry, he added, and “making sure companies act in true partnership … in maintaining employment and investment in Canada.”

    “If not, there will be consequences for those companies,” Carney stated. Payne called the announcement of shift reduction by General Motors before Carney and US President Donald Trump started negotiations on a new economic agreement premature and disrespectful.

    Under Canada’s remission framework, Unifor urged the federal government to “review and reconsider” GM’s tariff-exempt status. According to the government’s website, this framework exempts businesses from paying retaliatory Canadian tariffs on US goods.

     In order to reiterate their dedication to Canadian investment and production, the union is also requesting that Carney speak with automakers.

  • Cybersecurity Giant CrowdStrike Lays Off 500 Employees

    500 workers will be let go by CrowdStrike. The decision to lay off roughly 5% of its global workforce was made public by the cybersecurity software company on 7 May.

    George Kurtz, the CEO of the company, claims that this choice is consistent with the plan to advance artificial intelligence’s use in business operations. A regulatory filing was used to announce the layoffs. CEO Kurtz clarified that artificial intelligence has become a key component of the business’ operations in a memo that was part of the filing.

    According to him, AI is helping CrowdStrike increase creativity, lessen the need for aggressive hiring, and enhance departmental results. According to Kurtz, AI has always been a key component of the business’s operations.

    AI helps brands innovate from idea to product more quickly and flattens the hiring curve. It increases client results, expedites the go-to-market process, and boosts front and back office productivity. AI is a force multiplier for the entire company.

    CrowdStrike will Continue Hiring

    In spite of the layoffs, CrowdStrike reiterated that it will keep hiring in crucial areas, especially in its go-to-market and customer success teams, in order to achieve its goal of $10 billion in recurring revenue annually.

    Between $36 million and $53 million will be charged as a result of the layoffs, which are anticipated to be finished by the end of the fiscal second quarter.

    According to Kurtz, the business will start holding meetings with impacted workers the next day and will finish these discussions as soon as feasible throughout all regions, in compliance with regional regulations and consultation mandates.

    Additionally, Kurtz presented the layoffs as a targeted attempt to reorganise the company for sustained expansion. He pointed out that CrowdStrike is consciously choosing to grow in a disciplined manner while still providing value to its clients.

    Layoffs Part of Workforce Adjustment

    In recent months, the technology industry has seen a broader trend of labour modifications, which includes the layoffs at CrowdStrike. Numerous businesses, including the tech giants, have recently announced additional layoffs; the majority of these have also been connected to the growing impact of artificial intelligence and general financial instability.

    Meta apparently laid off more than 100 workers in its Reality Labs business, which specialised in wearable technologies and virtual reality, earlier in April. According to reports, this action was taken to streamline collaboration between teams developing VR hardware and experiences.

    In April, Intel also revealed that it would be laying off around 21,000 workers, or over 20% of its staff. The corporation clarified that while it adjusts to changes under its new CEO, the layoffs are a part of a significant restructuring.

     In the meantime, Microsoft has decided to stop outsourcing after-sales assistance and is closing its operations in China, which will affect some 2,000 workers.

    In an effort to streamline its organisational structure, the corporation is apparently considering further layoffs that might take place in May, possibly focusing on middle management and non-coding positions.

  • AlcoBev Brand Feline Spirits Bags INR 5.2 Crore Led by Inflection Point Ventures to Disrupt India’s Liquor Market

    • Feline Spirits is a craft alcoholic beverage startup offering premium handcrafted liquors across vodka, whisky and brandy categories.
    • The funds will be used to expand its product portfolio and enter new geographies.
    • Feline Spirits has sold over 4.1 lakh bottles across 8 markets, generating more than INR 25 crore in sales in FY25. 
    • So far, Inflection Point Ventures (IPV) has invested over INR 800 Cr across 210+ startups. 

    Feline Spirits, a homegrown craft alcoholic beverage startup, has raised INR 5.2 crore led by Inflection Point Ventures (IPV). The funds will be utilised to fuel portfolio expansion and support the company’s entry into new geographies. 

    Feline Spirits is on a mission to build India’s first true craft spirits powerhouse. With a focus on delivering handcrafted liquors in premium packaging at affordable prices, the brand has developed a diverse portfolio across vodka, whisky, and brandy in the premium and mass-premium segments. The company champions transparency in distilling practices and prides itself on using authentic ingredients, appealing to the evolving tastes of modern Indian consumers.

    Founded by Prabhat Sharma (CEO) and Rohit Saxena (COO), Feline Spirits combines the heritage of a 3rd-generation master blender with sharp consumer insight to craft premium spirits that resonate with today’s evolving tastes. By blending traditional distillation expertise with contemporary trends—such as smoother profiles, innovative blends, and modern branding—the duo has successfully carved a niche in a highly competitive market, offering high-end yet accessible spirits that appeal to a new generation of drinkers.

    Ankur Mittal, Co-Founder, IPV, says, “India’s alcohol market has long been split between low-quality mass products and overpriced international brands. Feline Spirits bridges this gap by offering premium, handcrafted liquor that’s high in quality, thoughtfully designed, and reasonably priced. Feline is setting a new standard, where well-made, great-looking spirits are no longer a luxury, but the norm.”

    Currently operational across 8 states and the union territories, Feline Spirits has already established a notable market presence, driven by a diverse portfolio and having served more than 20 Lakhs customers. The brand continues to expand strategically across both private and government-owned markets. 

    In FY23–24, Feline Spirits recorded a monthly top-line of over 2 lakh bottles (10,303 cases) with revenue crossing INR 11 Cr. In FY24–25, the company sold over 19,751 cases (4.1+ lakh bottles), generating a sales value of over INR 25 Cr. It has secured operating licenses in 8 markets, including 5 government-owned and operated ones.

    Backed by strong liasoning, innovative packaging, and a gross profit (GP) of 55% in the premium segment, Feline Spirits stands out with its commitment to making premium liquor accessible to all. Its unique product designs and strategic value chain partnerships further reinforce its market positioning.

    “At Feline Spirits, our vision has always been to redefine India’s alcohol industry by crafting high-quality, premium spirits. Our partnership with IPV has provided us with the right strategic backing to accelerate our expansion and establish Feline Spirits as a formidable player in the market. As we expand our footprint across the country and strengthen our partnerships, we’re excited to lead a transformation in the way consumers engage with and enjoy craft alcohol,” Said Prabhat Sharma, CEO of Feline Spirits.

    India’s Spirits market is projected to reach USD 31 billion in 2024, growing at a CAGR of 6.51% between 2024 and 2028. Globally, the market was valued at USD 1.4 trillion in 2022 and is expected to grow to USD 2 trillion by 2027, highlighting immense potential in this sector.

    About Feline Spirits

    Feline Spirits, founded by Prabhat Sharma and Rohit Saxena, is a craft alcoholic beverage startup committed to building India’s first true craft spirits powerhouse. With a focus on premium packaging and transparency in distilling practices, the company aims to make premium spirits more accessible.

    About Inflection Point Ventures and Physis Capital

    Inflection Point Ventures (IPV) is an angel investing platform with over 23,500+ CXOs, HNIs, and Professionals to invest in startups. The firm supports new-age entrepreneurs by providing them with monetary & experiential capital and connecting them with a diverse group of investors. IPV has launched a $50 Mn CAT 2 VC fund, Physis Capital, to invest in Pre-Series A to Series B growth-stage start-ups. The fund has already deployed capital in two startups so far, with a few deals in advanced stages of the pipeline.

    Top 5 Startup Investing Platforms in India
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  • IFFCO Tokio Unveils Inclusive Home Insurance Covering Owners and Renters

    On May 7, IFFCO-Tokio, a leading general insurer, announced the debut of “Comprehensive Home Protector”, a home insurance product that eliminates any insurance gaps.

    The product covers the risk of loss or damage to the insured’s and their family’s tangible assets, interests, and liabilities. The insurance product is designed in accordance with the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). It includes de-bundled fire coverage, and the insured can select “Basic Fire Cover” in addition to choosing additional coverage for other natural and man-made disasters.

    It covers sections, such as earthquakes, storms, cyclones, typhoons, tempests, hurricanes, tornadoes, tsunamis, floods, inundation, lightning, landslides, acts of terrorism, riots, strikes, malicious damage, bush fires, forest fires, damage caused by the actions of civic authorities, etc.

    Other Benefits Offered by the Company

    Additionally, personal money, critical documents, and cards lost outside of the insured’s house under specific circumstances are covered by this policy. In addition to covering the cost of replacing lost or damaged documents and items, such as share and stock certificates, deposit receipts, insurance policies, title deeds, manuscripts, passports, driver’s licenses, credit cards, and personal records and certificates, the policy also covers the cost of returning lost money.

     Coverage for belongings damage when moving residences from one area to another is one of the most important features of IFFCO Tokio’s home insurance policy. Damages from fire, lightning, bridge collapse, carrying vehicle overturning, derailment or accident, robbery, and dacoity are all included in this feature.

    Some of the policy’s most notable features include loss of jewellery and other valuables, damage to fine art, fixed glass, and sanitary fittings; breakdown of household appliances, portable electronics, and bicycles; accidental death or disability of the insured; protection from loan payments in the event of death or disability; and personal liability insurance.

    Taking Care of Tenant’s Liability

    Tenant liability to the homeowner for damage to the structure, the contents provided by the owner or landlord, electrical installations, underground and above-ground tanks, fixed glass/sanitary fittings, and other fixtures, fittings and interior decorations is also covered by the policy.

    Those who purchase the policy directly from IFFCO Tokio will receive a flat 10% early bird discount on the policy premium as part of the company’s launch extravaganza.

    Niharika Singh, Executive Director, Marketing, IFFCO Tokio General Insurance, commented on the exciting product’s debut, saying that Comprehensive Home Protector’s introduction is a major turning point in IFFCO-Tokio’s history. There are as many risks associated with the brand as one could encounter at home or when moving.

     Additionally, the business has built it such that the consumer can select the risks and only pay the premium for those risks that are likely to be revealed. By offering this coverage, the company hopes to ensure that the policyholder purchases peace of mind in addition to the policy.

  • India Soars as Pakistan Stumbles: A Tale of Two Stock Markets

    In the wake of the recent Pahalgam terror attack and heightened tensions between India and Pakistan, Indian stock markets have shown the most amazing resilience. The Nifty 50 and BSE Sensex have not only withstood the geopolitical storm but have managed to post gains. This is a very good sign for investor confidence. Even on May 7, when Indian forces executed Operation Sindoor targeting terrorist hubs across Pakistan and Pakistan-occupied Kashmir, Indian indices closed in positive territory. Such performance over the last month really underscores the depth of India’s Economic strength.

    Pakistan’s KSE 100 Plummets Under Pressure

    By contrast, the Karachi Stock Exchange in Pakistan has suffered investor jitters. Since cross-border hostilities between India and Pakistan have picked up, going back to April 22, the KSE 100 index has tumbled over 6 percent. On the day of Operation Sindoor alone, it was down more than 5 percent during trading before recovering some losses to close the day only 3 percent lower than the previous day. Not only does the index reflect fears over events in Pakistan and the possible escalation of tensions with India, it also once again calls attention to the KSE’s own chronic problems. Since the KSE essentially closed after the results were announced from the election in early May, it has now only opened twice; given the current environment, it’s possible that international investors may have the KSE on a watch list for heightened risk.

    Historical events have shown that the Indian markets have been resilient when confronted with issues of a geopolitical nature. Research done by Anand Rathi and Bajaj Broking reveals that during past confrontations, like the Kargil conflict or the Balakot air strike, Indian indices only fell back marginally. And those pullbacks were largely attributed to factors affecting the global markets, with the Indian market being part of that global ecosystem.

    Diverging Economic Fundamentals Shape Market Sentiment

    The starkly different market reactions arise from very different kinds of economic health. India, the world’s fifth-largest economy and on track to soon surpass Japan, enjoys rapid growth, sustained public investment, and healthy domestic consumption. By contrast, Pakistan suffers from really poor economic health, as suggested by weak key indicators: high inflation, currency volatility, and a dependency on IMF bailouts.

    Moody’s recently said that prolonged tensions would likely derail Pakistan’s modest recovery, putting fiscal consolidation at risk and access to foreign financing in jeopardy. But India’s macroeconomic stability, notwithstanding significant geopolitical headwinds, looks pretty much as it has always looked, and is bolstered by recent foreign institutional investment of the kind that hasn’t been seen since 2021.

    The emerging market story is a well-worn one. When investors get nervous, they seek the shelter of economic strength. And what demonstrates the most economic strength is the fundamentals.

  • Starlink Secures Approval to Launch Satellite Internet in India

    Elon Musk’s satellite internet project has finally got a go-ahead from the Indian government to set up operations after nearly three years of wading through bureaucratic channels. Starlink now moves toward getting its Global Mobile Personal Communication by Satellite (GMPCS) license cleared. A letter of intent has been issued, marking a significant go-ahead for the company to set up operations in a market where it has pushed back against domestic telecom giants Reliance Jio and Bharti Airtel, who opposed Starlink in favor of auctioning spectrum.

    Strategic Meetings Accelerate Progress

    Starlink’s latest movement in India traces high-profile dealings with the Indian leadership. Last month, Prime Minister Narendra Modi and SpaceX CEO Elon Musk had a discussion that provided a glimpse into the kind of collaboration between star companies and high-profile world leaders that is common in the modern political economy. Meanwhile, SpaceX’s Starlink also pressed its case for going to market in India in meetings with senior government officials. Pressing the play button on the Indian digital economy is a promise that Starlink, a bridge in satellite technology, makes to the Indian government.

    A New Chapter in India’s Broadband Landscape

    Starlink’s arrival presents a real alternative to old-school terrestrial broadband networks like cable and fiber. With about 7,000 satellites currently in orbit, it’s also the much larger player in the satellite broadband space, and the much cheaper one, too. Still, with that much space in the sky, Starlink’s coverage is unmatched, and resilience is built into a system that can route around terrestrial failures, whether due to natural disasters or human errors. Pricing remains an open question, but the first tier of customers in India will probably be well-heeled urban households and businesses seeking a reliable alternative.

    Compliance and Localization

    The Department of Telecommunications has now granted approval. There had been some concern that the stringent new guidelines released by the department, demanding, among other things, that public and private satellite internet providers support India’s regional navigation system, NavIC, might hobble Starlink’s entry into the Indian market. Starlink already has its phased rollout plan in place, clearly outlined in the 50-page application document it submitted last July, in which it also detailed how it would comply with the new regulations. Implementation of the plan will be closely monitored by the Indian government.

  • Google Faces Market Jitters as Apple Points to AI-Driven Decline in Searches

    The threat to Google’s long-standing dominance in search may be affecting its user base. Signals point to changing user behavior. At a federal antitrust trial, Apple executive Eddy Cue testified that for the first time ever, searches through Apple’s Safari browser dropped last month. According to Cue, more and more people are now using AI tools to find information, rather than traditional search engines like Google’s. The testimony moved the market, with Google’s stock diving over 9% in the afternoon after the news came out. It also highlights the high stakes of the relationship between the two companies, which has Google paying Apple more than $20 billion a year to be the default search engine on its devices.

    AI Rivals Gain Ground

    The sharp drop in Safari searches coincides with the rising fame of AI search alternatives like OpenAI, Perplexity AI Inc., and Anthropic PBC. These are much more powerful alternatives to what you get in a standard search engine, explained Cue. In a not-so-distant future, he sees Apple using these AI platforms as search options in Safari. But don’t expect them to take over from Google as the number one choice anytime soon.

    Google’s Push Into AI

    Under relentless pressure, Google has been turning sharply toward AI, integrating its Gemini AI engine into the core search business. The company now works to transform conventional searches into AI-powered query responses, but with mixed results thus far. Despite the early hiccups and public ridicule, including the infamous “glue pizza” incident, Google has kept pushing the narrative that its AI enhancements are yielding positive results. During the latest earnings call, CEO Sundar Pichai told analysts that AI Overviews drive increased search usage, with users finding the search experience more rewarding and nearly comprehensive.

    Google Must Speed up Innovation

    Apple’s revelation has fanned the flames of fear that the foundation of Google search, which is the foundation of its $2 trillion valuation, could be in for some long-term trouble. We now need to consider the very real possibility of AI search engines steadily encroaching on Google’s territory. And while Apple’s current stance is to keep AI engines as optional add-ons and not as default options, the trajectory seems to be toward a use case where, in increasing numbers, we sidestep the kind of searches for which we currently rely on Google. For Google, all of this means the imperative to reassure us that it’s not just innovating but also adapting—reassuring these investors, in particular, that in a very fast-evolving digital landscape, it won’t be left behind.

  • Doesn’t affect doing our job at all: US Fed Chairman on Trump’s criticism

    The benchmark interest rates of the US Federal Reserve were kept at between 4.25% and 4.50% in the most recent policy meeting held on May 7, 2025, under the direction of Chairman Jerome Powell. This meeting and its outcome were instead more about the steady and cautious approach the Fed is trying to telegraph to markets. The Federal Open Market Committee (FOMC) was essentially saying in this meeting, much as it had in the previous meeting, that it is closely watching developments and is willing to adjust either up or down if something unexpected comes along. This reflects a balancing act the Fed is trying to achieve: sticking to its inflation targets without derailing what seems to be a steady, albeit slow, economic expansion.

    Powell’s Response to Trump’s Remarks

    At the post-meeting press conference, Powell dealt with recent criticisms leveled by President Donald Trump. Trump had called for immediate rate cuts to stave off an impending economic slowdown. In an April post on Truth Social, he criticized Powell’s pace in adjusting rates, dubbing him “Mr. Too Late,” and pressed for some semblance of a timely response that would lower the cost of borrowing.

    “With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump had said in his Truth Social post.

    In response to all this, Powell stated that such comments from the executive branch have no impact on the Fed’s operations. He went on to emphasize that the Federal Reserve remains completely focused on its dual mandate.

    “Doesn’t affect doing our job at all. We’re always going to do the same thing, which is we’re going to use our tools to foster maximum employment and price stability for the benefit of the American people,” US Fed Chairman Jerome Powell told the press. Powell asserted that the Fed is an independent agency and continues to make its policy calls on the basis of a three-part assessment of the data, risks, and outlook.

    Vigilance and Flexibility

    Inflation has eased somewhat, but the economy still faces some headwinds. So the Fed’s strategy is one of vigilance and, maybe more important, flexibility. Fed Chair Jerome Powell made it clear in his press conference that the central bank is not in a rush to move, either tighten or loosen, but it stands at the ready to adjust if new risks pop up that could threaten to push the economy off its current positive trajectory.

    Fed’s FOMC committee reaffirmed its intention to make adjustments as necessary to keep supporting the economy while also safeguarding against a sudden rise in the unemployment rate or in inflation. The measured approach the Fed is now taking, and has signaled it will continue to take, aims to maintain a stable inflation rate and keep investors confident.

  • India’s Investment Outlook Holds Steady Despite Pakistan Conflict

    Concerns have been raised that the recent escalation between India and Pakistan could shake foreign investment sentiment. However, analysts suggest the actual impact may be muted. India’s economy, now valued at USD 4 trillion, has minimal direct trade with Pakistan, limiting immediate financial exposure. In fact, despite cross-border missile strikes grabbing headlines, local equity, currency, and bond markets showed almost no reaction. Investors seem to be betting that the situation is unlikely to lead to a full-blown conflict. Considering this, Ajay Marwaha, head of fixed income of the Nuvama Group, said that the broader investment landscape might well remain unaffected.

    Historical Resilience of Indian Markets

    India’s past tiffs with its neighbors offer some comfort. Take, for example, the 2019 India-Pakistan flare-up. After that kerfuffle, the rupee held its ground against the dollar, and yields on Indian bonds saw a very modest rise after which they promptly headed downward. Or consider the Galwan Valley clash with China in 2020. The rupee weakened a fraction after that incident, which was an intense fight, but quickly stabilized.

    Domestic Strength Balances External Caution

    The robust domestic market of India serves as a buffer from capital market volatility linked to global geopolitical events. Portfolio flows to India are only temporarily affected, even by major external developments like military conflicts or massive natural disasters.

    On net, India has recently seen  substantial foreign investor participation in its domestic capital markets. By adding to their existing holdings in the domestic equity markets, foreign institutional investors increased their overall exposure to Indian equities to USD 889 billion as of May 2023. Despite a modest pullback in the Indian rupee in the first quarter of 2023, the local equities being held by these foreign investors delivered a currency-adjusted return of 12% from 2022 to early May 2023.

    Focus on Trade Deals and Structural Reforms

    India’s immediate conflict notwithstanding, its long-term investment appeal is rooted in trade and economic reforms that are going in the right direction. Just days ago, a milestone free trade agreement with the U.K. was finalized, and discussions with the U.S. for a bilateral pact are progressing nicely, with many suggesting for the global slowdown and trade dispute resolution to be seen as a great opportunity for India.

    These two developments, along with India’s plans to lower tariffs on raw materials in order to encourage the kind of manufacturing that goes with a truly ‘Make In India’ reality, are pivotal for growth. And that makes the short-term jitters that are affecting the stock market a much lesser worry.

  • OpenAI to Slash Microsoft’s Revenue Share Amid Major Restructuring

    According to various media reports, OpenAI, the company behind ChatGPT, has informed investors that it intends to reduce the revenue share it gives to Microsoft, its biggest sponsor, by 2030. The announcement of OpenAI’s intentions to lower Microsoft’s income share follows the corporation’s decision to withdraw its proposal to acquire the startup from its nonprofit division.

    OpenAI’s current proposal calls for transforming its for-profit division into a distinct public benefit company (PBC), although the non-profit would still have significant ownership and influence over the business.

     The new strategy aims to maintain the non-profit objective while enabling the AI startup to obtain more capital to remain competitive in the AI race. Microsoft had not approved OpenAI’s new restructuring plans, according to a media article shortly after the plan was unveiled.

     The Windows manufacturer wanted to make sure the modifications would safeguard its $13.75 billion investment.

    Bringing Down Revenue Sharing From 20% to 10%

    According to reports, OpenAI committed to share 20% of its earnings until 2030 as part of its current deal. By the end of this decade, it now hopes to cut it in half and lower Microsoft’s revenue share to 10%. Microsoft wants access to OpenAI’s technologies after 2030.

    “We continue to work closely with Microsoft and look forward to finalising the details of this recapitalisation in the near future,” an OpenAI representative told a media outlet. Notably, after OpenAI launched Project Stargate in January, a joint venture with SoftBank and Oracle of Japan to construct a $500 billion AI data centre in the US, Microsoft altered certain important aspects of its agreement with the ChatGPT provider.

     Notably, after OpenAI announced Project Stargate in January—a joint venture with SoftBank of Japan and Oracle to construct a $500 billion AI data centre in the US—Microsoft modified certain important provisions of its agreement with OpenAI.

    Chinese DeepSeek a Major Threat to OpenAI

    Early in 2025, China’s DeepSeek stunned Western markets by creating a comparable AI model at a fraction of the price, delivering OpenAI a serious blow.

    To keep its dominance in the AI market, the Sam Altman-led company has now introduced a number of AI solutions.

    Even though Google’s Gemini 2.5 Pro presently leads the benchmarks, ChatGPT is still one of the most widely used programs, especially in light of the recent viral fad for Ghibli and action figure-style graphics that its new image generator sparked.

    Additionally, OpenAI recently pledged to increase its use of Azure services for research and training. Microsoft now has the first say in adding capacity under a new deal, but OpenAI is free to construct more infrastructure.