Microsoft News - May 2026
Anthropic and OpenAI capture 89% of revenue, as Anthropic overtakes OpenAI
OpenAI and Anthropic now capture 89% of annualized revenue among top AI startups. This group includes 34 leading companies in the sector. Their combined...
Microsoft Scraps Traditional Leadership Team, Accelerating AI Development
CEO Satya Nadella overhauled Microsoft’s senior leadership structure to compete more effectively in the global AI race. The company retired its decades-old...
xAI records $6.4 billion loss, reversing SpaceX profits ahead of IPO
Elon Musk’s xAI reported a $6.4 billion operating loss for 2025. SpaceX disclosed these financial details within its initial public offering (IPO) S-1...
OpenAI invests in every Y Combinator startup, offering $2 million in tokens
OpenAI CEO Sam Altman offered to invest in every startup within the current Y Combinator (YC) accelerator batch. Each participating company will receive $2...
OpenAI disproves 1946 Erdős conjecture, signaling major leap toward AGI
OpenAI announced an internal reasoning model disproved the Erdős unit distance conjecture. Paul Erdős first posed this discrete geometry problem in 1946. The...
OpenAI prepares confidential IPO filing, targeting $1 trillion valuation
ChatGPT creator OpenAI is preparing a confidential initial public offering filing for submission as early as this week. The company is drafting its prospectus...
Tech giants mine employee data for AI, seeking proprietary advantage
Microsoft, Meta, and xAI are leveraging employee data to train artificial intelligence models. This strategy aims to secure a competitive advantage through...
Microsoft Gains $2.1 Billion Ackman Stake, Citing AI and Cloud Growth
Pershing Square Capital Management established a new position in Microsoft. Regulatory filings and statements from billionaire investor Bill Ackman confirmed...
Microsoft warns AI could automate most office jobs within 18 months
Microsoft AI chief Mustafa Suleyman warns that AI could automate most white-collar office jobs within the next 18 months. This rapid technological advancement...
Musk loses OpenAI lawsuit, jury rules claims filed too late
A California jury unanimously ruled against Elon Musk in his lawsuit against OpenAI, Sam Altman, and Greg Brockman. The court barred the claims because Musk...
OpenAI and Anthropic capture 89% of revenue, as AI market hits $80B
An analysis by The Information tracks 34 leading AI startups. These companies now generate nearly $80 billion in annualized revenue. This figure represents a...
OpenAI faces jury verdict, over Musk claims of nonprofit betrayal
Closing arguments have concluded in Elon Musk’s lawsuit against OpenAI and CEO Sam Altman. The jury will now begin deliberations to reach a verdict. Musk’s...
Microsoft gains Bill Ackman stake, following recent price dip
Bill Ackman announced Friday that Pershing Square acquired a new stake in Microsoft Corp. The billionaire investor described the current valuation of the...
OpenAI backs US-led AI watchdog with China, citing nuclear safety model
OpenAI supports the creation of a U.S.-led global governance body for artificial intelligence that includes China as a member. Policy executives modeled the...
Microsoft pursues $1B AI startup Inception, cutting OpenAI reliance
Microsoft is negotiating the acquisition of Inception, a large language model startup founded by a Stanford University team. The startup is reportedly seeking...
Microsoft Generates $9.5B From OpenAI, Defending Investment in Musk Trial
Microsoft corporate development executive Michael Wetter revealed the company recognized approximately $9.5 billion in revenue from its OpenAI partnership as...
Anthropic Overtakes OpenAI in Business Customers, Driven by Claude Model Growth
Anthropic has overtaken OpenAI in business customer volume for the first time. April 2026 data from fintech firm Ramp shows 34.4% of US businesses with AI...
OpenAI CEO claims Musk sought total control, citing his children
OpenAI CEO Sam Altman testified Tuesday. He claimed co-founder Elon Musk sought total control of the AI research lab. Altman stated Musk suggested passing this...
Thinking Machines Lab unveils real-time AI, ending stilted human-machine conversations
Thinking Machines Lab, founded by former OpenAI CTO Mira Murati, unveiled a research preview of its new interaction models. The technology enables AI to...
OpenAI caps Microsoft payments at $38B, slashing potential $135B payout
OpenAI capped its revenue-sharing payments to Microsoft at $38 billion, according to The Information. This new limit replaces a previous potential payout that...
OpenAI Co-founder Sutskever Reveals $7B Stake, Citing Concerns Over Altman
OpenAI co-founder and former chief scientist Ilya Sutskever testified his company stake is worth approximately $7 billion. He disclosed the valuation during...
Big Tech fuels $200 billion AI buildout, straining global power grids
Hyperscalers including Microsoft, Amazon, Google, and Meta are projected to spend between $145 billion and $200 billion on AI infrastructure this year....
TCI slashes $8 billion Microsoft stake, citing AI disruption risks
Sir Christopher Hohn’s activist hedge fund, TCI, sold nearly its entire $8 billion stake in Microsoft. The fund reduced its Microsoft position from 10% of its...
SK Hynix fields unprecedented tech giant funding, amid AI chip shortages
SK Hynix is receiving unprecedented offers from global tech firms to fund production lines and manufacturing equipment. These proposals aim to secure a stable...
OpenAI CTO testifies Sam Altman lied, alleging safety review deception
Former OpenAI Chief Technology Officer Mira Murati testified that CEO Sam Altman misled her regarding critical safety protocols. In a video deposition for Elon...
Microsoft and Nvidia Unveil MRC Protocol, Accelerating Large-Scale AI Training
A coalition including OpenAI, Microsoft, Nvidia, AMD, Broadcom, and Intel introduced the Multipath Reliable Connection (MRC) networking protocol. This new...
OpenAI projects $50 billion computing spend by 2026, fueling AI race
OpenAI President Greg Brockman testified the company expects to spend $50 billion on computing power in 2026. This figure marks a significant rise from the...
OpenAI Launches Self-Serve Ads, Scrapping $50,000 Minimum Spend
OpenAI launched a beta self-serve Ads Manager for ChatGPT in the United States. The platform targets businesses of all sizes, including small and medium-sized...
OpenAI upgrades ChatGPT to GPT-5.5 Instant, halving factual errors
OpenAI released GPT-5.5 Instant as the new default model for all ChatGPT users, replacing GPT-5.3 Instant. The company states the update provides smarter and...
Nscale invests €695M in Portugal for Microsoft, deploying 66,000 Nvidia Rubin GPUs
Nscale is investing €695 million to expand its Microsoft partnership in Sines, Portugal. The capital will fund new infrastructure at the Start Campus data...
OpenAI and Anthropic Face Scrutiny, As Circular Financing Inflates Sales
Analysts are flagging financial reporting practices at major AI companies like OpenAI and Anthropic that may inflate sales figures. Tech giants including...
S&P and Nasdaq fast-track mega-IPOs, eyeing SpaceX and OpenAI
S&P Dow Jones Indices and Nasdaq are revising rules to allow faster inclusion of massive private companies like SpaceX and OpenAI. These firms could rank among...
xAI used OpenAI models to train Grok, Musk admits in court
Elon Musk testified in federal court that his startup xAI partly used OpenAI models to train the Grok chatbot. The admission occurred during cross-examination...