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Happy Tuesday, AI & Data Enthusiasts! Microsoft is developing its AI reasoning models to compete with OpenAI while DeepSeek remains independent as DeepSeek’s founder doesn’t want to lose control.
💰 Exclusive: We’ve included a list of 9 US AI startups that have already raised $100M+ in 2025 - a must-read if you want to see where the big bets are being placed!
In today’s edition:
💡 Microsoft Develops AI Reasoning Models to Challenge OpenAI
🚀 DeepSeek’s Founder Rejects Quick Cash Deals
🎮 Microsoft Explores 3D Gaming for Copilot
📈 9 US AI Startups Cross $100M in 2025
- Naseema Perveen
WHAT CAUGHT OUR ATTENTION MOST
🚨 Microsoft Builds AI Reasoning Models to Rival OpenAI
Microsoft is taking steps to diversify its AI strategy. The company is developing its own in-house reasoning models and evaluating alternative AI providers for CoPilot, signaling a shift away from its reliance on OpenAI’s technology.
🔑 Key Developments
Microsoft’s AI Reasoning Models – The new MAI models perform well in tasks like document editing and scheduling. Microsoft plans to offer them to developers, positioning itself as a competitor to OpenAI.
Exploring New AI Partners – Microsoft is testing AI models from Meta, xAI, DeepSeek, and Anthropic as potential alternatives to ChatGPT in CoPilot.
Tensions Over IP – OpenAI has reportedly withheld details on its o1 reasoning model, despite Microsoft’s rights under their agreement.
🔍 Why It Matters
This shift follows a recent renegotiation of Microsoft and OpenAI’s partnership, allowing OpenAI to work with other cloud providers. As Microsoft evaluates its AI investments, this move reflects broader industry competition and strategic realignment.
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WORTH WATCHING
JP JD Vance on AI Opportunity
At the AI Action Summit in Paris, VP JD Vance outlined the Trump administration’s vision for AI -emphasizing innovation, job growth, and national security. He warned against overregulation, stressed AI’s role in free speech, and vowed to protect U.S. tech from foreign threats.
📺 Watch his full speech here: YouTube
KEEP YOUR EYE ON IT
🚀 DeepSeek’s Founder Rejects Quick Cash Deals
Despite its rapid rise in the AI industry, DeepSeek’s founder Liang Wenfeng has avoided outside investment, even as VCs show strong interest. He doesn’t want to lose control. Unlike many AI startups that rely on major funding rounds, DeepSeek remains independent - for now.
🔑 Key Reasons Behind DeepSeek’s Approach
Founder Control – Liang owns 84% of DeepSeek, with the remaining shares held by individuals connected to his hedge fund, High-Flyer. His past experience with VCs - who prioritize monetization over research - has made him reluctant to give up control.
Self-Funding Model – DeepSeek has relied on High-Flyer’s profits instead of external funding. Liang has stated that access to advanced AI chips, not money, is the real challenge.
Privacy & Trust Concerns – As a Chinese AI company, DeepSeek faces government scrutiny and potential bans. Accepting funding from certain investors - especially Chinese state entities - could raise further regulatory issues globally.
🔍 Why This Might Change
DeepSeek recently signaled a shift toward monetization by announcing a theoretical profit margin. Additionally, AI chip shortages and underperformance in High-Flyer’s funds may push Liang to reconsider outside funding to keep up with global competitors.
🎮 Microsoft Eyes 3D Gaming for Copilot
Microsoft is exploring ways to integrate 3D gaming experiences into Copilot, its AI-powered chatbot platform, according to a new job listing for a senior software engineer specializing in 3D rendering engines.
🔑 Key Developments
Hiring for 3D Expertise – Microsoft is seeking engineers with experience in Babylon.js, three.js, and Unity, signaling plans to enhance Copilot with browser-based gaming experiences.
AI-Powered Gaming – In February, Microsoft showcased Muse, an AI model trained on Ninja Theory’s Bleeding Edge, capable of generating interactive gameplay rendered by AI.
Gaming Integration with Copilot – Microsoft has been embedding Copilot into games like Minecraft, assisting players with in-game tasks such as crafting and inventory management.
Character-Based Interactions – Microsoft has also been testing animated Copilot characters designed to engage users with sound effects and animations.
🔍 The Bigger Picture
These developments suggest Microsoft is betting on AI-driven gaming to boost engagement, making Copilot a more interactive and immersive experience beyond traditional chatbot functions.
9 US AI Startups Have Raised $100M or More in 2025
Nine U.S. AI startups have already secured $100M+ in funding this year, with one raising over $1B. Here’s a breakdown of the biggest rounds so far:
🔥 Major Fundraises
March
Anthropic – $3.5B (Series E, $61.5B valuation) | Investors: Lightspeed, Salesforce Ventures, General Catalyst.
February
Together AI – $305M (Series B, $3.3B valuation) | Investors: Prosperity7, Nvidia, Salesforce Ventures.
Lambda – $480M (Series D, $2.5B valuation) | Investors: SGW, Andra Capital, ARK Invest.
Abridge – $250M (Series D, $2.75B valuation) | Investors: IVP, Lightspeed, Spark Capital.
Eudia – $105M (Series A) | Investors: General Catalyst, Defy Ventures.
EnCharge AI – $100M (Series B) | Investors: Tiger Global, Samsung Ventures.
Harvey – $300M (Series D, $3B valuation) | Investors: Sequoia, OpenAI Startup Fund.
January
ElevenLabs – $180M (Series C, $3B+ valuation) | Investors: ICONIQ Growth, Andreessen Horowitz.
Hippocratic AI – $141M (Series B, $1.6B+ valuation) | Investors: Kleiner Perkins, Nvidia.
📊 The Trend
With 49 AI startups securing $100M+ rounds in 2024, this year is shaping up to be another big one. Expect more billion-dollar raises as AI investment surges.
ICYMI
Can Manus Live Up to the Hype?
Musk’s Battle with OpenAI Isn’t Over Yet
U.S. Lawmakers Flood 2025 with AI Bills
Musk’s xAI Buys Massive Property Expanding its Data Center
Apple Delays ‘More Personalized’ Siri Update
$$$ MONEY MATTERS
That’s all for now. And, thanks for staying with us. If you have specific feedback, please let us know by leaving a comment or emailing us. We are here to serve you!
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