Meta says its business AI now facilitates 10 million conversations a week
Meta says usage of its business AI across messaging apps has grown 10x since the start of the year as it expands access and lays groundwork for monetization.
Policy
Colorado lawmakers move to replace the state’s pioneering AI law with a new regulatory framework
A newly introduced bill would focus on automated decision-making systems, require consumer disclosures, and set liability rules for discrimination-law violations.
Model of the Week
WEEK 19 · MAY 2026
GPT-5.5
OpenAI · LLM Chat · Frontier Model
OpenAI’s latest frontier model, optimized for complex professional work (coding, research, analysis) with strong tool use and a 1M-token context window in the API.
1M token context (API)
Built-in computer use
$5 / $30 per 1M tok
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Pentagon reaches deals with seven tech companies to use their AI on classified systems
The Defense Department says the partnerships will expand access to AI tools inside secure networks via GenAI.mil, as Washington accelerates AI adoption across operations.
WSJ: Big Tech’s AI spending spree is getting expensive — and investors want payback
The Wall Street Journal argues that Microsoft, Amazon, Meta, and Alphabet are ramping capital spending for AI fast enough that depreciation is starting to bite, raising pressure to translate AI demand into durable profit.
Nvidia invests in Swedish legal AI startup Legora at $5.6B valuation
Nvidia’s NVentures joined a Series D extension for Legora, which sells agent-style tools for legal workflows and says it has surpassed $100M in ARR.
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This Week in AI & Tech
AI & Models
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AI
Google releases Gemma 4 open models and switches licensing to Apache 2.0
Google’s open-model line gets a major update, with a more permissive license aimed at broader commercial and research use.
AI
GitHub will start charging Copilot users based on their actual AI usage
Copilot moves to an AI-credits model that bills heavy users for inference beyond their plan’s included allocation.
AI
Microsoft and OpenAI revise partnership to end exclusivity and allow OpenAI to use rival clouds
The revised deal drops Microsoft’s exclusive right to sell OpenAI models, while keeping Azure as OpenAI’s primary cloud partner and extending Microsoft’s license on OpenAI IP.
AI
Mistral AI launches ‘Workflows’ orchestration layer in public preview
VentureBeat reports the Temporal-based system, delivered via Mistral Studio, is aimed at taking enterprise AI from pilots to production with multi-step, auditable processes.
Big Tech
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Big Tech
Microsoft and OpenAI remove the contract’s ‘AGI clause’ and loosen exclusivity
The longtime partnership is becoming less exclusive: OpenAI can ship products on other clouds, while Microsoft’s revenue share now runs to 2030 with caps.
Big Tech
Uber adds hotel bookings and says agentic AI helped it ship faster
Uber is expanding beyond rides and eats with in-app hotel booking plus a bundle of travel features, and the company says agentic coding tools helped cut development time.
Big Tech
Google pilots an 'Ask YouTube' conversational AI search experience
The new YouTube experiment blends video results with AI-generated summaries and follow-up Q&A, initially limited to U.S. Premium users.
Big Tech
Meta signs deal to use millions of Amazon’s Graviton chips for AI workloads
The agreement highlights a growing shift toward CPUs and custom silicon for running AI agents after models are trained.
Chips & Hardware
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Chips
Tesla says it plans to build AI chips on Intel’s not-yet-finished 14A process
Musk framed the Terafab effort as a supply-security move as demand for AI silicon tightens.
Chips
Nvidia shares hit a record, briefly pushing its market cap past $5 trillion
The rally underscores how central Nvidia’s GPUs remain to AI infrastructure spending across Big Tech.
Chips
SpaceX Plans to Manufacture Its Own GPUs at New Semiconductor Fab, S-1 Filing Reveals
Excerpts from the company's confidentially filed $1.75 trillion IPO registration list in-house GPU production as a major capital expenditure, alongside the Terafab chip venture Elon Musk is developing with Tesla and xAI using Intel's 14A process node.
Chips
Intel Reports 7% Revenue Gain as AI Demand Fuels Biggest Beat in Years
First-quarter revenue of $13.6 billion topped Wall Street estimates by more than $1 billion, driven by a 22% jump in the Data Center and AI segment, sending shares up more than 20%.
Startups & Funding
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Startups
Shapes raises $8M to put AI characters into group chats
The app blends human group conversations with user-created AI ‘Shapes’ designed to participate alongside friends.
Startups
Defense startup Scout AI raises $100M to train ‘Fury’ models on military exercises
Scout AI says it’s training vision-language-action agents on real-world field exercises to operate and command military assets.
Startups
DeepMind's David Silver just raised $1.1B to build an AI that learns without human data
Former DeepMind reinforcement learning leader David Silver’s new lab says it wants to build a 'superlearner' that acquires skills without human datasets.
Startups
Era raises $11M to build a software platform for AI gadgets
The startup is pitching an orchestration layer to help hardware makers route across models and manage real-world constraints.
Policy & Regulation
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Policy
Google signs a classified deal allowing Pentagon use of its AI models for ‘any lawful’ purpose
A report says the agreement expands DoD access to Google’s models, amid employee concerns about military AI uses.
Policy
Google expands Pentagon's access to its AI after Anthropic's refusal
A new contract expands Google’s AI availability on classified networks, following Anthropic’s push for tighter guardrails.
Policy
Axios: AI’s breakneck pace plus shrinking transparency is setting up an ‘Atomic Age’ moment
Axios warns that frontier AI is advancing faster than public understanding — and that the most capable models are becoming the least transparent, per Stanford’s 2026 AI Index — raising pressure for new norms and oversight.
Policy
OpenAI Briefs Federal Agencies and Five Eyes Allies on New Cyber AI Model
The company held a Washington event for roughly 50 cyber defense practitioners and is extending access to its GPT-5.4-Cyber model through a tiered program designed to keep advanced tools out of adversarial hands.
Analysis & Deep Dives
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Analysis
AI puts one fifth of London jobs at risk
A City Hall report estimates more than a million London jobs are significantly exposed to AI-driven task automation.
Analysis
Wall Street Turns Bullish on Neoclouds, But Analysts Warn of High Debt and Fragile Economics
CoreWeave surged 42% in April and Nebius drew a new Citi target, yet McKinsey and industry veterans caution that the bare-metal AI cloud model carries outsized risk.
Analysis
Meta, Microsoft Job Cuts Push 2026 Tech Layoffs Past 92,000 as AI Restructuring Accelerates
With four of the largest tech companies planning to spend nearly $700 billion on AI this year, economists are questioning whether the jobs being eliminated will ever return at the same scale.
Analysis
AI Traffic to US Retailers Surged 393% in Q1 2026 and Now Converts Better Than Human Shoppers
Adobe Analytics data from over one trillion retail site visits shows AI-driven shoppers convert 42 percent better and spend 37 percent more per visit than organic traffic, a complete reversal from a year ago.