ET AI: OpenAI executives have discussed accusing Microsoft of anticompetitive behavior: Report
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Good morning Reader, OpenAI executives are reportedly considering allegations of Microsoft's anticompetitive practices. Meanwhile, OpenAI has secured a $200 million US defense contract, highlighting its growing influence in AI.
A new report emphasizes the need for quicker upskilling in AI-related jobs, while discussions on responsible agentic AI frameworks continue. Additionally, Italy's regulator is investigating DeepSeek for misinformation risks, and Alibaba has launched new Qwen3 AI models compatible with Apple's MLX architecture.

In today's newsletter:

  • OpenAI executives have discussed accusing Microsoft of anticompetitive behavior: Report
  • OpenAI wins $200 million US defense contract
  • You just need to upskill quicker at AI-linked jobs: Report
  • Why IT needs framework for responsible agentic AI

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OpenAI executives have discussed accusing Microsoft of anticompetitive behavior: Report

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​OpenAI needs Microsoft's approval to complete its transition into a public-benefit corporation. But the two have not been able to agree on details even after months of negotiations, sources said. The companies are discussing revising the terms of Microsoft's investment, including the future equity stake it will hold in OpenAI, according to the sources.

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OpenAI wins $200 million US defense contract

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The work will be primarily performed in and near Washington with an estimated completion date of July 2026, the Pentagon said. ​OpenAI said last week that its annualised revenue run rate surged to $10 billion as of June, positioning the company to hit its full-year target amid booming AI adoption.

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OpenAI's Strategic Moves Amid Antitrust Scrutiny and Defense Contracts

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The Pulse

The AI landscape is rapidly evolving, marked by OpenAI's pivotal negotiations with Microsoft and a significant defense contract win. These developments underscore the economic stakes and ethical considerations surrounding AI's deployment in society.

How it's happening

OpenAI's negotiations with Microsoft reflect the complexities of corporate partnerships in AI, as both companies seek to redefine investment terms. Concurrently, OpenAI's $200 million defense contract highlights the growing demand for AI solutions in national security, emphasizing the interplay of innovation and regulation.

Key takeaways

  • OpenAI is negotiating terms with Microsoft amid antitrust concerns.
  • The company secured a $200 million contract with the U.S. Department of Defense.
  • AI job skills are evolving rapidly, with a 66% faster pace of change.
  • Experts call for frameworks to ensure responsible AI deployment.
  • Regulatory scrutiny is increasing for AI firms like DeepSeek in Europe.

Notable actions

OpenAI's revenue run rate surged to $10 billion, signaling robust growth. Meanwhile, Italy's antitrust authority is investigating DeepSeek for misleading content risks. As AI adoption accelerates, stakeholders must navigate the balance between innovation and ethical responsibility.

Why IT needs framework for responsible agentic AI

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Experts from Infosys, Tech Mahindra, and Nasscom stress the need for industry standards to ensure safe deployment of agentic AI—autonomous systems that act with minimal oversight. While offering major efficiency gains, these agents pose high risks like system misuse, value misalignment, and security breaches.

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(AI)gorithm turns recruiter

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Top IT services companies are using AI tools and solutions to recruit more, much quicker. Beena Parmar analyses how the new trend is shaping up and Annapurna Roy gives a lowdown on what’s inside

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Popular AI tools for you

Claude - Conversational AI assistant by Anthropic.ClickUp - All-in-one productivity platform with AI features.Clockwise - AI to optimize your team’s time and calendar.Copy.ai - AI copywriting assistant for marketers and creators.Cursor - AI coding assistant in a full-featured IDE.CVViZ - AI-powered resume screening and hiring platform.DeepSeek - Open-source AI models for search and writing.

Special picks of the day

(AI)gorithm turns recruiterWe would like to be DeepSeek in the West, says Essential AI cofounderItaly regulator probes DeepSeek over false information risksAlibaba launches new Qwen3 AI models for Apple's MLX architecture

Around the web

  • The cracks in the OpenAI-Microsoft relationship are reportedly widening
  • Alta raises $11M to bring ‘Clueless’ fashion tech to life with all-star investors
  • Spiraling with ChatGPT
  • Inexpensive AI Agents Threaten Entry-Level Coding Jobs
  • Vibe Coding Is Coming for Engineering Jobs
  • Disney and Universal Sue AI Company Midjourney for Copyright Infringement

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