Plus: Anthropic eyes a $900B valuation, the Pentagon signs seven AI deals, and the Oscars ban AI-generated actors
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Today, we've got the courtroom drama of the decade between Musk and Altman, Anthropic chasing a jaw-dropping $900 billion valuation, the Pentagon locking in seven AI companies for classified work, and the Academy saying "no thanks" to AI actors at the Oscars.
It's been one of those weeks where the AI world moves so fast, you blink and there's a new billion-dollar deal. Let's break it all down. ☕
On this day in 2025…
The tech world was gearing up for Google I/O 2025, where Google would go on to announce major Gemini updates, AI Mode for Search, and Computer Use API — setting the stage for the agentic AI era we're living in today.
⚖️ Musk vs. Altman: Week One Wraps With Fireworks
The landmark trial between Elon Musk and OpenAI kicked off in Oakland, with Musk testifying over three days that Altman and Brockman "stole a charity." The case could threaten OpenAI's upcoming IPO, and witnesses including Satya Nadella are still to come. Musk also admitted on the stand that xAI distills OpenAI's models.
💰 Anthropic Eyes $900B Valuation, Leapfrogging OpenAI
Anthropic is in talks with investors to raise funds at a staggering $900 billion valuation, which would push it past OpenAI's $852 billion. The company reported $30 billion in annualized revenue, largely driven by the explosive popularity of Claude Code.
🏛️ Pentagon Signs AI Deals With Seven Tech Giants — Anthropic Left Out
The Defense Department inked classified AI agreements with OpenAI, Google, Microsoft, Amazon, Nvidia, xAI, and Reflection AI. Notably absent: Anthropic, which remains blacklisted after refusing to drop guardrails on mass surveillance and autonomous weapons use.
🎬 Oscars Ban AI-Generated Actors and Scripts
The Academy released new rules requiring that Oscar-eligible performances must be "demonstrably performed by humans with their consent" and screenplays must be "human-authored." The move comes as AI actress Tilly Norwood continues making headlines and video generation models send shockwaves through Hollywood.
🤝 OpenAI Breaks Free From Microsoft, Deepens Amazon Partnership
OpenAI restructured its Microsoft deal — losing exclusive cloud access — and immediately made its models available on Amazon's Bedrock. Microsoft keeps a 27% stake and revenue share through 2032, but OpenAI is now free to work with rival clouds. AWS VP Anthony Liguori even switched his team from Claude Code to OpenAI's Codex.
⚡ WorkflowAI is an open-source platform that helps product and engineering teams build, test, and deploy AI features using LLMs from OpenAI, Anthropic, Google, and Mistral — all in one unified interface. It's already been used for over 1 million AI feature calls per week.
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🧑💻 Kiro is an AI-powered IDE built around spec-driven development, turning plain-language specifications into production-ready code. It features agent hooks, MCP support, and a free tier with 50 agentic requests per month.
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🚗 Gemini Hits the Road in Millions of Cars
Google is rolling out Gemini to vehicles with Google built-in, starting with 4 million GM cars from 2022 and newer. Drivers can have natural conversations, get restaurant recs along their route, and even check EV battery levels — all hands-free.
🤖 Meta Acquires Robotics Startup for Humanoid AI
Meta bought Assured Robot Intelligence (ARI), a startup building robots that understand and adapt to human behavior. The team is joining Meta's Superintelligence Labs research division. The humanoid robot market could be worth $5 trillion by 2050.
🧬 Harvard Study: AI Outperforms ER Doctors in Diagnoses
A new Harvard study found that at least one large language model offered more accurate diagnoses than two human emergency room doctors across real clinical cases. The findings raise big questions about AI's role in frontline healthcare.
🌱 DeepMind Alum Raises Record $1.1B Seed Round
David Silver's startup Ineffable Intelligence raised a record $1.1 billion seed round backed by Sequoia, Lightspeed, Nvidia, and Google. The company is pursuing AI that learns from experience rather than human data — a fundamentally different approach to today's LLMs.
That's a wrap for this week! The Musk vs. Altman trial is just getting started, billion-dollar seed rounds are the new normal, and even the Oscars are drawing lines in the AI sand. If you found something useful in here, send it to someone who'd appreciate it. 🎉
Follow us on Threads, X, and Instagram for more AI updates throughout the week.
Signing off,
— Somi AI
