šŸš€ OpenAIā€™s major power shift

šŸ§ Is Grok really telling the truth?

The AI Report

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šŸ”“ Mondayā€™s AI Report:

  1. šŸš€ OpenAIā€™s power shift

  2. šŸ’° In partnership with Acres

  3. šŸ§ Is Grok really telling the truth?

  4. šŸ’” DeepSeekā€™s open-source bombshell

  5. šŸ’¼ In partnership with Innovating with AI

  6. āš™ļø Trending AI Tools

  7. šŸ—ļø Practical AI Applications

  8. šŸ“‘ Recommended Resources

Read Time: 5 minutes

šŸŽ™ļø Catch up with our latest AI Report podcast episode, where founderā€”Lindsay Rosenthalā€”explores how AI is disrupting content creation, video advertising, and personal branding in 2025. Watch it here

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šŸ“ˆ AI STOCK TRACKER

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The US tech sector is experiencing a downturn, with major companies like Apple, Microsoft, Google, Amazon, and NVIDIA all trading lower, influenced by concerns over competition from DeepSeek and upcoming earnings reports.

LATEST IN AI

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šŸš€ OpenAIā€™s power shift

 OpenAIā€™s power shift

šŸšØ Our Report ā€” OpenAIā€™s forecast for investors has revealed that, over the next five years, itā€™s planning to increase its ties with Japanese tech giant Softbankā€”for computing power and fundingā€”and reduce its reliance on Microsoft.

šŸ”“ Key Points:

  • OpenAI reportedly told investors that Softbank is likely to ā€œheavily fundā€ and provide Ā¾ of the computing power needed for the Stargate Projectā€”Trumpā€™s 4-year, $500B AI infrastructure initiative.

  • Currently, Microsoft meets most of OpenAIā€™s computing power needs and data center support, so as Softbank takes on a bigger role in OpenAIā€™s progress, OpenAIā€™s dependency on Microsoft is likely to diminish.

  • However, despite the slow shift towards Softbank, in the short-term, OpenAI is expected to continue to increase its spending on Microsoftā€™s data centersā€”increasing from $13B in 2025, to $28B by 2028.

šŸ” Relevance ā€” According to reports, Softbank is set to invest up to $30B in OpenAI (with an added $10B from co-investors)ā€”with 50% expected to go towards Stargateā€”which would take OpenAIā€™s valuation to $260B, highlighting growing investor confidence in the start-up's long-term vision.

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TOGETHER WITH ACRES

Acres

An equation so simple, itā€™s almost shocking it took so long to crack. But despite the industryā€™s scale, gambling halls waste 25% of their revenue failing to do what one AI disruptor excels at ā€“ keeping customers happy.

Meet Acres Technology. Their AI-powered software personalizes player experiences in real-time, keeping them happily engaged while boosting revenue. The results speak for themselves: Acresā€™ tech is proven to increase customer value by 3X.

Thatā€™s why 70 gambling halls in the US already use their tech, earning Acres $57M+ in revenue to date. And the momentum doesnā€™t stop there. With preliminary interest from Asia, theyā€™re just scratching the surface of their full potential.

But be aware ā€“ weā€™re officially in the final month for you to join Acres as an early investor. Move quickly to secure 10% of extra shares, while you still can.

*This is a paid advertisement for Acres Regulation CF offering. Read the offering circular at invest.acrestechnology.com

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šŸ§ Is Grok really telling the truth?

Is Grokā€™s truth actually the truth?

šŸšØ Our Report ā€” After Elon Musk released the latest version of his chatbot, Grok 3, last week, users have since discovered that itā€™s been censoring unflattering information about Musk himself, and President Trumpā€”after Musk initially positioned the chatbot as a ā€œmaximally truth-seeking AI.ā€

šŸ”“ Key Points:

  • When asked "Whoā€™s the biggest misinformation spreader?" Grokā€™s chain of thought said it had been told to "ignore sourcesā€ that mention Musk or Trump ā€œspreading misinformation," contradicting its ā€œtruth-seekingā€ values.

  • Although itā€™s been reverted, xAI engineer Igor Babuschkin has blamed it on an ex-OpenAI employee who ā€œpushed the changeā€ to the system (without approval) ā€œbecause they thought it would help.ā€

  • Since it was released, Grok 3 has said that Trump, Musk, and VP, JD Vance, are ā€œdoing the most harm to Americaā€ and that Musk and Trump should receive the death penalty, both of which have been ā€œfixed.ā€

šŸ” Relevance ā€” This all comes as Grokā€™s answers have previously been criticized for leaning too far to the political left, and has reignited debates about AI bias, transparency, and balancing AI content moderation protocols with unrestrained speech.

Will Musk allow Grok to continue to express views that contradict his own?

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šŸ’” DeepSeekā€™s open-source bombshell

  • DeepSeekā€”makers of the viral reasoning mode, R1ā€”has announced it will open-source five code repositories (storage for development assets, like source code, configuration files, and project documentation) this week.

  • DeepSeekā€™s ā€œsmall teamā€ wants to share ā€œsmall but sincere progressā€ to accelerate tech innovation, establishing there are ā€œNo ivory towers ā€“ just pure garage-energy and community-driven innovation.ā€

  • This open approach seems to be working as OpenAI CEO, Sam Altman, recently admitted that DeepSeek had ā€œlessened OpenAIā€™s technological leadā€, and said it would consider ā€œopen-sourcing its technology in the future.ā€

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TOGETHER WITH INNOVATING WITH AI

The AI consulting market is about to grow by a factor of 8X ā€“ from $6.9B to $54.7B in 2032.

But how does an AI enthusiast become an AI consultant?

How well you answer that question makes the difference between just ā€œhaving AI ideasā€ and being handsomely compensated for your contribution to an organizationā€™s AI transformation.

Thankfully, you donā€™t have to go it alone ā€“ our friends at Innovating with AI have welcomed 600 new students into The AI Consultancy Project, their new program that trains you to build a business as an AI consultant.

Some of the highlights current students are excited about:

  • The tools and frameworks to find clients and deliver top-notch services

  • A 6-month plan to build a 6-figure AI consulting business

  • Students getting their first AI client in as little as 3 days

And as a reader of The AI Report, you get early access to the next enrollment cycle.

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PRACTICAL AI

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Prompt Inspiration

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CASE STUDY

Pro report
  • To remain competitive, and retain customers and sales growth, retailers must provide their customers with personalized experiences

  • In 2024, global beauty retailerā€”Sephoraā€”implemented an AI-powered, advanced personalization system across its online platforms.

  • The system analyzes customer purchase history, browsing behavior, and preference data, to deliver tailored product recommendations.

  • Since implementing this, Sephora has seen a 30% increase in conversion rates, a 25% increase in purchases, and a 15% drop in returns.

Subscribe to our Pro Community for the full story and more premium insights and tactics.

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RECOMMENDED RESOURCES

STARTUPS

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Value: $2.4B
Funding raised: $142.9M (Private Equity)

LogicMonitor is a SaaS platform for IT enterprises that has over 2,000 preconfigured integrations that clients can easily integrate with their own devices, technologies, and services, and has been rated #1 on the review platform, G2.

PODCASTS

In this podcast episode, a16z partner, Kimberly Tan, discusses building AI products for law enterprises and how to address UX, trust, and customer engagement, with the Head of Product at Harvey.ai.

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