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OpenAI has reached a deal with the U.S. Department of Defense to deploy its AI technology in a classified network — stepping in after Anthropic declined over ethical concerns about military AI use. CEO Sam Altman said the Pentagon agreed that OpenAI's tech won't be used for domestic mass surveillance or autonomous weapons, but the deal marks a major shift in Big AI's relationship with the military.
Shanghai-based MiniMax released its M2.5 model, which matches Anthropic's flagship Claude Opus 4.6 on key coding benchmarks at roughly 5% of the cost. But Anthropic is fighting back, accusing MiniMax and two other Chinese labs of creating over 24,000 fake accounts to train their models on Claude's outputs — reigniting the debate over AI intellectual property across borders.
World Labs, the startup from legendary AI researcher Fei-Fei Li, closed a $1 billion funding round — the largest ever for spatial AI. Autodesk alone invested $200 million. The company is building AI that can perceive and reason about 3D environments, with its first product already letting users create immersive 3D worlds from text or images.
Oracle announced plans to raise up to $50 billion this year through debt and equity to fund a massive AI data center buildout. The company is racing to serve a who's-who client list that includes Nvidia, Meta, OpenAI, and xAI — but its stock has been cut in half since September as investors question whether the aggressive expansion will pay off.
Investment giant Blackstone is launching a publicly traded acquisition company focused on snapping up AI data centers, opening the door for everyday investors to bet on the AI infrastructure boom. The move comes as Nvidia's Jensen Huang estimates that $3 to $4 trillion will flow into AI infrastructure by the end of the decade.
Amazon, Google, and Meta alone plan to spend nearly $700 billion on data center projects this year. Highlights include OpenAI's $10 billion "Hyperion" site in Louisiana, xAI's $20 billion Mississippi facility, and the $500 billion Stargate joint venture — underscoring that the AI boom has become, above all, an infrastructure story.
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