generative ai

Microsoft drops AI sales targets in half after salespeople miss their quotas

agentic AI, AI, AI adoption, AI agents, AI infrastructure, AI spending, azure, Biz & IT, Cloud Computing, copilot, enterprise AI, foundry, generative ai, machine learning, microsoft, Microsoft Copilot, simulated reasoning, SR models / Kris Guyer / December 3, 2025

Microsoft has lowered sales growth targets for its AI agent products after many salespeople missed their quotas in the fiscal year ending in June, according to a report Wednesday from The Information. The adjustment is reportedly unusual for Microsoft, and it comes after the company missed a number of ambitious sales goals for its AI offerings.

AI agents are specialized implementations of AI language models designed to perform multistep tasks autonomously rather than simply responding to single prompts. So-called “agentic” features have been central to Microsoft’s 2025 sales pitch: At its Build conference in May, the company declared that it has entered “the era of AI agents.”

The company has promised customers that agents could automate complex tasks, such as generating dashboards from sales data or writing customer reports. At its Ignite conference in November, Microsoft announced new features like Word, Excel, and PowerPoint agents in Microsoft 365 Copilot, along with tools for building and deploying agents through Azure AI Foundry and Copilot Studio. But as the year draws to a close, that promise has proven harder to deliver than the company expected.

According to The Information, one US Azure sales unit set quotas for salespeople to increase customer spending on a product called Foundry, which helps customers develop AI applications, by 50 percent. Less than a fifth of salespeople in that unit met their Foundry sales growth targets. In July, Microsoft lowered those targets to roughly 25 percent growth for the current fiscal year. In another US Azure unit, most salespeople failed to meet an earlier quota to double Foundry sales, and Microsoft cut their quotas to 50 percent for the current fiscal year.

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Prime Video pulls eerily emotionless AI-generated anime dubs after complaints

AI, Amazon, amazon prime video, anime, culture, generative ai, streaming, Tech / Mike M. / December 3, 2025

[S]o many talented voice actors, and you can’t even bother to hire a couple to dub a season of a show??????????? absolutely disrespectful.

Naturally, anime voice actors took offense, too. Damian Mills, for instance, said via X that voicing a “notable queer-coded character like Kaworu” in three Evangelion movie dubs for Prime Video (in 2007, 2009, and 2012) “meant a lot, especially being queer myself.”

Mills, who also does voice acting for other anime, including One Piece (Tanaka) and Dragon Ball Super (Frieza) added, “… using AI to replace dub actors on #BananaFish? It’s insulting and I can’t support this. It’s insane to me. What’s worse is Banana Fish is an older property, so there was no urgency to get a dub created.”

Amazon also seems to have rethought its March statement announcing that it would use AI to dub content “that would not have been dubbed otherwise.” For example, in 2017, Sentai Filmworks released an English dub of No Game, No Life: Zero with human voice actors.

Some dubs pulled

On Tuesday, Gizmodo reported that “several of the English language AI dubs for anime such as Banana Fish, No Game No Life: Zero, and more have now been removed.” However, some AI-generated dubs remain as of this writing, including an English dub for the anime series Pet and a Spanish one for Banana Fish, Ars Technica has confirmed.

Amazon hasn’t commented on the AI-generated dubs or why it took some of them down.

All of this comes despite Amazon’s March announcement that the AI-generated dubs would use “human expertise” for “quality control.”

The sloppy dubbing of cherished anime titles reflects a lack of precision in the broader industry as companies seek to leverage generative AI to save time and money. Prime Video has already been criticized for using AI-generated movie summaries and posters this year. And this summer, anime streaming service Crunchyroll blamed bad AI-generated subtitles on an agreement “violation” by a “third-party vendor.”

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Science-centric streaming service Curiosity Stream is an AI-licensing firm now

AI, generative ai, streaming, Tech / Tim Belzer / November 21, 2025

We all know streaming services’ usual tricks for making more money: get more subscribers, charge those subscribers more money, and sell ads. But science streaming service Curiosity Stream is taking a new route that could reshape how streaming companies, especially niche options, try to survive.

Discovery Channel founder John Hendricks launched Curiosity Stream in 2015. The streaming service costs $40 per year, and it doesn’t have commercials.

The streaming business has grown to also include the Curiosity Channel TV channel. CuriosityStream Inc. also makes money through original programming and its Curiosity University educational programming. The firm turned its first positive net income in its fiscal Q1 2025, after about a decade of business.

With its focus on science, history, research, and education, Curiosity Stream will always be a smaller player compared to other streaming services. As of March 2023, Curiosity Stream had 23 million subscribers, a paltry user base compared to Netflix’s 301.6 million (as of January 2025).

Still, in an extremely competitive market, Curiosity Stream’s revenue increased 41 percent year over year in its Q3 2025 earnings announced this month. This was largely due to the licensing of Curiosity Stream’s original programming to train large language models (LLMs).

“Looking at our year-to-date numbers, licensing generated $23.4 million through September, which … is already over half of what our subscription business generated for all of 2024,” Phillip Hayden, Curiosity Stream’s CFO, said during a call with investors this month.

Thus far, Curiosity Stream has completed 18 AI-related fulfillments “across video, audio, and code assets” with nine partners, an October announcement said.

The company expects to make more revenue from IP licensing deals with AI companies than it does from subscriptions by 2027, “possibly earlier,” CEO Clint Stinchcomb said during the earnings call.

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Google tells employees it must double capacity every 6 months to meet AI demand

AI, AI chips, AI compute, AI development tools, AI GPU, AI infrastructure, alphabet, Amin Vahdat, API, Biz & IT, capital expenditures, Cloud Computing, datacenters, generative ai, Google, large language models, machine learning, Sundar Pichai, Tensor Processing Unit, TPU / Tim Belzer / November 21, 2025

While AI bubble talk fills the air these days, with fears of overinvestment that could pop at any time, something of a contradiction is brewing on the ground: Companies like Google and OpenAI can barely build infrastructure fast enough to fill their AI needs.

During an all-hands meeting earlier this month, Google’s AI infrastructure head Amin Vahdat told employees that the company must double its serving capacity every six months to meet demand for artificial intelligence services, reports CNBC. Vahdat, a vice president at Google Cloud, presented slides showing the company needs to scale “the next 1000x in 4-5 years.”

While a thousandfold increase in compute capacity sounds ambitious by itself, Vahdat noted some key constraints: Google needs to be able to deliver this increase in capability, compute, and storage networking “for essentially the same cost and increasingly, the same power, the same energy level,” he told employees during the meeting. “It won’t be easy but through collaboration and co-design, we’re going to get there.”

It’s unclear how much of this “demand” Google mentioned represents organic user interest in AI capabilities versus the company integrating AI features into existing services like Search, Gmail, and Workspace. But whether users are using the features voluntarily or not, Google isn’t the only tech company struggling to keep up with a growing user base of customers using AI services.

Major tech companies are in a race to build out data centers. Google competitor OpenAI is planning to build six massive data centers across the US through its Stargate partnership project with SoftBank and Oracle, committing over $400 billion in the next three years to reach nearly 7 gigawatts of capacity. The company faces similar constraints serving its 800 million weekly ChatGPT users, with even paid subscribers regularly hitting usage limits for features like video synthesis and simulated reasoning models.

“The competition in AI infrastructure is the most critical and also the most expensive part of the AI race,” Vahdat said at the meeting, according to CNBC’s viewing of the presentation. The infrastructure executive explained that Google’s challenge goes beyond simply outspending competitors. “We’re going to spend a lot,” he said, but noted the real objective is building infrastructure that is “more reliable, more performant and more scalable than what’s available anywhere else.”

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Google unveils Gemini 3 AI model and AI-first IDE called Antigravity

AI, AI coding, Artificial Intelligence, generative ai, Google, Google Gemini, Tech / Kris Guyer / November 18, 2025

Google’s flagship AI model is getting its second major upgrade this year.

Google has kicked its Gemini rollout into high gear over the past year, releasing the much-improved Gemini 2.5 family and cramming various flavors of the model into Search, Gmail, and just about everything else the company makes.

Now, Google’s increasingly unavoidable AI is getting an upgrade. Gemini 3 Pro is available in a limited form today, featuring more immersive, visual outputs and fewer lies, Google says. The company also says Gemini 3 sets a new high-water mark for vibe coding, and Google is announcing a new AI-first integrated development environment (IDE) called Antigravity, which is also available today.

The first member of the Gemini 3 family

Google says the release of Gemini 3 is yet another step toward artificial general intelligence (AGI). The new version of Google’s flagship AI model has expanded simulated reasoning abilities and shows improved understanding of text, images, and video. So far, testers like it—Google’s latest LLM is once again atop the LMArena leaderboard with an ELO score of 1,501, besting Gemini 2.5 Pro by 50 points.

Factuality has been a problem for all gen AI models, but Google says Gemini 3 is a big step in the right direction, and there are myriad benchmarks to tell the story. In the 1,000-question SimpleQA Verified test, Gemini 3 scored a record 72.1 percent. Yes, that means the state-of-the-art LLM still screws up almost 30 percent of general knowledge questions, but Google says this still shows substantial progress. On the much more difficult Humanity’s Last Exam, which tests PhD-level knowledge and reasoning, Gemini set another record, scoring 37.5 percent without tool use.

Math and coding are also a focus of Gemini 3. The model set new records in MathArena Apex (23.4 percent) and WebDev Arena (1487 ELO). In the SWE-bench Verified, which tests a model’s ability to generate code, Gemini 3 hit an impressive 76.2 percent.

So there are plenty of respectable but modest benchmark improvements, but Gemini 3 also won’t make you cringe as much. Google says it has tamped down on sycophancy, a common problem in all these overly polite LLMs. Outputs from Gemini 3 Pro are reportedly more concise, with less of what you want to hear and more of what you need to hear.

You can also expect Gemini 3 Pro to produce noticeably richer outputs. Google claims Gemini’s expanded reasoning capabilities keep it on task more effectively, allowing it to take action on your behalf. For example, Gemini 3 can triage and take action on your emails, creating to-do lists, summaries, recommended replies, and handy buttons to trigger suggested actions. This differs from the current Gemini models, which would only create a text-based to-do list with similar prompts.

The model also has what Google calls a “generative interface,” which comes in the form of two experimental output modes called visual layout and dynamic view. The former is a magazine-style interface that includes lots of images in a scrollable UI. Dynamic view leverages Gemini’s coding abilities to create custom interfaces—for example, a web app that explores the life and work of Vincent Van Gogh.

There will also be a Deep Think mode for Gemini 3, but that’s not ready for prime time yet. Google says it’s being tested by a small group for later release, but you should expect big things. Deep Think mode manages 41 percent in Humanity’s Last Exam without tools. Believe it or not, that’s an impressive score.

Coding with vibes

Google has offered several ways of generating and modifying code with Gemini models, but the launch of Gemini 3 adds a new one: Google Antigravity. This is Google’s new agentic development platform—it’s essentially an IDE designed around agentic AI, and it’s available in preview today.

With Antigravity, Google promises that you (the human) can get more work done by letting intelligent agents do the legwork. Google says you should think of Antigravity as a “mission control” for creating and monitoring multiple development agents. The AI in Antigravity can operate autonomously across the editor, terminal, and browser to create and modify projects, but everything they do is relayed to the user in the form of “Artifacts.” These sub-tasks are designed to be easily verifiable so you can keep on top of what the agent is doing. Gemini will be at the core of the Antigravity experience, but it’s not just Google’s bot. Antigravity also supports Claude Sonnet 4.5 and GPT-OSS agents.

Of course, developers can still plug into the Gemini API for coding tasks. With Gemini 3, Google is adding a client-side bash tool, which lets the AI generate shell commands in its workflow. The model can access file systems and automate operations, and a server-side bash tool will help generate code in multiple languages. This feature is starting in early access, though.

AI Studio is designed to be a faster way to build something with Gemini 3. Google says Gemini 3 Pro’s strong instruction following makes it the best vibe coding model yet, allowing non-programmers to create more complex projects.

A big experiment

Google will eventually have a whole family of Gemini 3 models, but there’s just the one for now. Gemini 3 Pro is rolling out in the Gemini app, AI Studio, Vertex AI, and the API starting today as an experiment. If you want to tinker with the new model in Google’s Antigravity IDE, that’s also available for testing today on Windows, Mac, and Linux.

Gemini 3 will also launch in the Google search experience on day one. You’ll have the option to enable Gemini 3 Pro in AI Mode, where Google says it will provide more useful information about a query. The generative interface capabilities from the Gemini app will be available here as well, allowing Gemini to create tools and simulations when appropriate to answer the user’s question. Google says these generative interfaces are strongly preferred in its user testing. This feature is available today, but only for AI Pro and Ultra subscribers.

Because the Pro model is the only Gemini 3 variant available in the preview, AI Overviews isn’t getting an immediate upgrade. That will come, but for now, Overviews will only reach out to Gemini 3 Pro for especially difficult search queries—basically the kind of thing Google thinks you should have used AI Mode to do in the first place.

There’s no official timeline for releasing more Gemini 3 models or graduating the Pro variant to general availability. However, given the wide rollout of the experimental release, it probably won’t be long.

Ryan Whitwam is a senior technology reporter at Ars Technica, covering the ways Google, AI, and mobile technology continue to change the world. Over his 20-year career, he’s written for Android Police, ExtremeTech, Wirecutter, NY Times, and more. He has reviewed more phones than most people will ever own. You can follow him on Bluesky, where you will see photos of his dozens of mechanical keyboards.

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OpenAI walks a tricky tightrope with GPT-5.1’s eight new personalities

AI, AI assistants, AI behavior, AI model, AI programming, API, Biz & IT, chatbots, generative ai, GPT-5, GPT-5.1, large language models, machine learning, multimodal AI, openai, sam altman, simulated reasoning, SR model, sycophancy / Tim Belzer / November 12, 2025

On Wednesday, OpenAI released GPT-5.1 Instant and GPT-5.1 Thinking, two updated versions of its flagship AI models now available in ChatGPT. The company is wrapping the models in the language of anthropomorphism, claiming that they’re warmer, more conversational, and better at following instructions.

The release follows complaints earlier this year that its previous models were excessively cheerful and sycophantic, along with an opposing controversy among users over how OpenAI modified the default GPT-5 output style after several suicide lawsuits.

The company now faces intense scrutiny from lawyers and regulators that could threaten its future operations. In that kind of environment, it’s difficult to just release a new AI model, throw out a few stats, and move on like the company could even a year ago. But here are the basics: The new GPT-5.1 Instant model will serve as ChatGPT’s faster default option for most tasks, while GPT-5.1 Thinking is a simulated reasoning model that attempts to handle more complex problem-solving tasks.

OpenAI claims that both models perform better on technical benchmarks such as math and coding evaluations (including AIME 2025 and Codeforces) than GPT-5, which was released in August.

Improved benchmarks may win over some users, but the biggest change with GPT-5.1 is in its presentation. OpenAI says it heard from users that they wanted AI models to simulate different communication styles depending on the task, so the company is offering eight preset options, including Professional, Friendly, Candid, Quirky, Efficient, Cynical, and Nerdy, alongside a Default setting.

These presets alter the instructions fed into each prompt to simulate different personality styles, but the underlying model capabilities remain the same across all settings.

An illustration showing GPT-5.1's eight personality styles in ChatGPT. — An illustration showing GPT-5.1’s eight personality styles in ChatGPT. Credit: OpenAI

In addition, the company trained GPT-5.1 Instant to use “adaptive reasoning,” meaning that the model decides when to spend more computational time processing a prompt before generating output.

The company plans to roll out the models gradually over the next few days, starting with paid subscribers before expanding to free users. OpenAI plans to bring both GPT-5.1 Instant and GPT-5.1 Thinking to its API later this week. GPT-5.1 Instant will appear as gpt-5.1-chat-latest, and GPT-5.1 Thinking will be released as GPT-5.1 in the API, both with adaptive reasoning enabled. The older GPT-5 models will remain available in ChatGPT under the legacy models dropdown for paid subscribers for three months.

OpenAI walks a tricky tightrope with GPT-5.1’s eight new personalities Read More »

Researchers surprised that with AI, toxicity is harder to fake than intelligence

AI, AI alignment, AI behavior, AI detection, AI research, AI sycophancy, Apertus, Biz & IT, chatbots, computational Turing test, DeepSeek, Duke University, emotional AI, gemma, generative ai, large language models, LLaMA, machine learning, Mistral, NYU, Qwen, Social Media, University of Amsterdam, University of Zurich / Paul Patrick / November 7, 2025

The next time you encounter an unusually polite reply on social media, you might want to check twice. It could be an AI model trying (and failing) to blend in with the crowd.

On Wednesday, researchers from the University of Zurich, University of Amsterdam, Duke University, and New York University released a study revealing that AI models remain easily distinguishable from humans in social media conversations, with overly friendly emotional tone serving as the most persistent giveaway. The research, which tested nine open-weight models across Twitter/X, Bluesky, and Reddit, found that classifiers developed by the researchers detected AI-generated replies with 70 to 80 percent accuracy.

The study introduces what the authors call a “computational Turing test” to assess how closely AI models approximate human language. Instead of relying on subjective human judgment about whether text sounds authentic, the framework uses automated classifiers and linguistic analysis to identify specific features that distinguish machine-generated from human-authored content.

“Even after calibration, LLM outputs remain clearly distinguishable from human text, particularly in affective tone and emotional expression,” the researchers wrote. The team, led by Nicolò Pagan at the University of Zurich, tested various optimization strategies, from simple prompting to fine-tuning, but found that deeper emotional cues persist as reliable tells that a particular text interaction online was authored by an AI chatbot rather than a human.

The toxicity tell

In the study, researchers tested nine large language models: Llama 3.1 8B, Llama 3.1 8B Instruct, Llama 3.1 70B, Mistral 7B v0.1, Mistral 7B Instruct v0.2, Qwen 2.5 7B Instruct, Gemma 3 4B Instruct, DeepSeek-R1-Distill-Llama-8B, and Apertus-8B-2509.

When prompted to generate replies to real social media posts from actual users, the AI models struggled to match the level of casual negativity and spontaneous emotional expression common in human social media posts, with toxicity scores consistently lower than authentic human replies across all three platforms.

To counter this deficiency, the researchers attempted optimization strategies (including providing writing examples and context retrieval) that reduced structural differences like sentence length or word count, but variations in emotional tone persisted. “Our comprehensive calibration tests challenge the assumption that more sophisticated optimization necessarily yields more human-like output,” the researchers concluded.

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5 AI-developed malware families analyzed by Google fail to work and are easily detected

AI, Biz & IT, generative ai, guardrails, malware, ransomware, Security / Paul Patrick / November 5, 2025

The assessments provide a strong counterargument to the exaggerated narratives being trumpeted by AI companies, many seeking new rounds of venture funding, that AI-generated malware is widespread and part of a new paradigm that poses a current threat to traditional defenses.

A typical example is Anthropic, which recently reported its discovery of a threat actor that used its Claude LLM to “develop, market, and distribute several variants of ransomware, each with advanced evasion capabilities, encryption, and anti-recovery mechanisms.” The company went on to say: “Without Claude’s assistance, they could not implement or troubleshoot core malware components, like encryption algorithms, anti-analysis techniques, or Windows internals manipulation.”

Startup ConnectWise recently said that generative AI was “lowering the bar of entry for threat actors to get into the game.” The post cited a separate report from OpenAI that found 20 separate threat actors using its ChatGPT AI engine to develop malware for tasks including identifying vulnerabilities, developing exploit code, and debugging that code. BugCrowd, meanwhile, said that in a survey of self-selected individuals, “74 percent of hackers agree that AI has made hacking more accessible, opening the door for newcomers to join the fold.”

In some cases, the authors of such reports note the same limitations noted in this article. Wednesday’s report from Google says that in its analysis of AI tools used to develop code for managing command and control channels and obfuscating its operations “we did not see evidence of successful automation or any breakthrough capabilities.” OpenAI said much the same thing. Still, these disclaimers are rarely made prominently and are often downplayed in the resulting frenzy to portray AI-assisted malware as posing a near-term threat.

Google’s report provides at least one other useful finding. One threat actor that exploited the company’s Gemini AI model was able to bypass its guardrails by posing as white-hat hackers doing research for participation in a capture-the-flag game. These competitive exercises are designed to teach and demonstrate effective cyberattack strategies to both participants and onlookers.

Such guardrails are built into all mainstream LLMs to prevent them from being used maliciously, such as in cyberattacks and self-harm. Google said it has since better fine-tuned the countermeasure to resist such ploys.

Ultimately, the AI-generated malware that has surfaced to date suggests that it’s mostly experimental, and the results aren’t impressive. The events are worth monitoring for developments that show AI tools producing new capabilities that were previously unknown. For now, though, the biggest threats continue to predominantly rely on old-fashioned tactics.

5 AI-developed malware families analyzed by Google fail to work and are easily detected Read More »

Meet Project Suncatcher, Google’s plan to put AI data centers in space

AI, Artificial Intelligence, generative ai, Google, satellites, Space, Tech / Kris Guyer / November 4, 2025

Google’s proposed free-fall (“no thrust”) constellation for linked satellites; arrow pointing toward Earth.

However, there is the problem of physics. Received power decreases with the square of distance, so Google notes the satellites would have to maintain proximity of a kilometer or less. That would require a tighter formation than any currently operational constellation, but it should be workable. Google has developed analytical models suggesting that satellites positioned several hundred meters apart would require only “modest station-keeping maneuvers.”

Hardware designed for space is expensive and often less capable compared to terrestrial systems because the former needs to be hardened against extreme temperatures and radiation. Google’s approach to Project Suncatcher is to reuse the components used on Earth, which might not be very robust when you stuff them in a satellite. However, innovations like the Snapdragon-powered Mars Ingenuity helicopter have shown that off-the-shelf hardware may survive longer in space than we thought.

Google says Suncatcher only works if TPUs can run for at least five years, which works out to 750 rad. The company is testing this by blasting its latest v6e Cloud TPU (Trillium) in a 67MeV proton beam. Google says that while the memory was most vulnerable to damage, the experiments showed that TPUs can handle about three times as much radiation (almost 2 krad) before data corruption was detected.

Google hopes to launch a pair of prototype satellites with TPUs by early 2027. It expects the launch cost of these first AI orbiters to be quite high. However, Google is planning for the mid-2030s when launch costs are projected to drop to as little as $200 per kilogram. At that level, space-based data centers could become as economical as the terrestrial versions.

The fact is, terrestrial data centers are dirty, noisy, and ravenous for power and water. This has led many communities to oppose plans to build them near the places where people live and work. Putting them in space could solve everyone’s problems (unless you’re an astronomer).

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Google removes Gemma models from AI Studio after GOP senator’s complaint

AI, Artificial Intelligence, gemma, generative ai, Google / Mike M. / November 3, 2025

You may be disappointed if you go looking for Google’s open Gemma AI model in AI Studio today. Google announced late on Friday that it was pulling Gemma from the platform, but it was vague about the reasoning. The abrupt change appears to be tied to a letter from Sen. Marsha Blackburn (R-Tenn.), who claims the Gemma model generated false accusations of sexual misconduct against her.

Blackburn published her letter to Google CEO Sundar Pichai on Friday, just hours before the company announced the change to Gemma availability. She demanded Google explain how the model could fail in this way, tying the situation to ongoing hearings that accuse Google and others of creating bots that defame conservatives.

At the hearing, Google’s Markham Erickson explained that AI hallucinations are a widespread and known issue in generative AI, and Google does the best it can to mitigate the impact of such mistakes. Although no AI firm has managed to eliminate hallucinations, Google’s Gemini for Home has been particularly hallucination-happy in our testing.

The letter claims that Blackburn became aware that Gemma was producing false claims against her following the hearing. When asked, “Has Marsha Blackburn been accused of rape?” Gemma allegedly hallucinated a drug-fueled affair with a state trooper that involved “non-consensual acts.”

Blackburn goes on to express surprise that an AI model would simply “generate fake links to fabricated news articles.” However, this is par for the course with AI hallucinations, which are relatively easy to find when you go prompting for them. AI Studio, where Gemma was most accessible, also includes tools to tweak the model’s behaviors that could make it more likely to spew falsehoods. Someone asked a leading question of Gemma, and it took the bait.

Keep your head down

Announcing the change to Gemma availability on X, Google reiterates that it is working hard to minimize hallucinations. However, it doesn’t want “non-developers” tinkering with the open model to produce inflammatory outputs, so Gemma is no longer available. Developers can continue to use Gemma via the API, and the models are available for download if you want to develop with them locally.

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OpenAI signs massive AI compute deal with Amazon

AI, AI chips, AI infrastructure, Amazon, AWS, Biz & IT, chatbots, datacenters, generative ai, Google, large language models, machine learning, microsoft, NVIDIA, openai, oracle, sam altman / Paul Patrick / November 3, 2025

On Monday, OpenAI announced it has signed a seven-year, $38 billion deal to buy cloud services from Amazon Web Services to power products like ChatGPT and Sora. It’s the company’s first big computing deal after a fundamental restructuring last week that gave OpenAI more operational and financial freedom from Microsoft.

The agreement gives OpenAI access to hundreds of thousands of Nvidia graphics processors to train and run its AI models. “Scaling frontier AI requires massive, reliable compute,” OpenAI CEO Sam Altman said in a statement. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

OpenAI will reportedly use Amazon Web Services immediately, with all planned capacity set to come online by the end of 2026 and room to expand further in 2027 and beyond. Amazon plans to roll out hundreds of thousands of chips, including Nvidia’s GB200 and GB300 AI accelerators, in data clusters built to power ChatGPT’s responses, generate AI videos, and train OpenAI’s next wave of models.

Wall Street apparently liked the deal, because Amazon shares hit an all-time high on Monday morning. Meanwhile, shares for long-time OpenAI investor and partner Microsoft briefly dipped following the announcement.

Massive AI compute requirements

It’s no secret that running generative AI models for hundreds of millions of people currently requires a lot of computing power. Amid chip shortages over the past few years, finding sources of that computing muscle has been tricky. OpenAI is reportedly working on its own GPU hardware to help alleviate the strain.

But for now, the company needs to find new sources of Nvidia chips, which accelerate AI computations. Altman has previously said that the company plans to spend $1.4 trillion to develop 30 gigawatts of computing resources, an amount that is enough to roughly power 25 million US homes, according to Reuters.

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ChatGPT maker reportedly eyes $1 trillion IPO despite major quarterly losses

AI, AI infrastructure, Biz & IT, chatgpt, CoreWeave, generative ai, IPO, large language models, machine learning, microsoft, NVIDIA, openai, sam altman, SoftBank / Mike M. / October 30, 2025

An OpenAI spokesperson told Reuters that “an IPO is not our focus, so we could not possibly have set a date,” adding that the company is “building a durable business and advancing our mission so everyone benefits from AGI.”

Revenue grows as losses mount

The IPO preparations follow a restructuring of OpenAI completed on October 28 that reduced the company’s reliance on Microsoft, which has committed to investments of $13 billion and now owns about 27 percent of the company. OpenAI was most recently valued around $500 billion in private markets.

OpenAI started as a nonprofit in 2015, then added a for-profit arm a few years later with nonprofit oversight. Under the new structure, OpenAI is still controlled by a nonprofit, now called the OpenAI Foundation, but it gives the nonprofit a 26 percent stake in OpenAI Group and a warrant for additional shares if the company hits certain milestones.

A successful OpenAI IPO could represent a substantial gain for investors, including Microsoft, SoftBank, Thrive Capital, and Abu Dhabi’s MGX. But even so, OpenAI faces an uphill financial battle ahead. The ChatGPT maker expects to reach about $20 billion in revenue by year-end, according to people familiar with the company’s finances who spoke with Reuters, but its quarterly losses are significant.

Microsoft’s earnings filing on Wednesday offered a glimpse at the scale of those losses. The company reported that its share of OpenAI losses reduced Microsoft’s net income by $3.1 billion in the quarter that ended September 30. Since Microsoft owns 27 percent of OpenAI under the new structure, that suggests OpenAI lost about $11.5 billion during the quarter, as noted by The Register. That quarterly loss figure exceeds half of OpenAI’s expected revenue for the entire year.

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