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Happy Wednesday, AI & Data Enthusiasts! Big players are making bold moves in the AI space, but not everyone is happy about it. Musk’s latest bid for OpenAI? Altman calls it an attempt to stall progress. Meanwhile, new research challenges the idea that ChatGPT is an energy hog, Apple shifts gears in China, and Microsoft doubles down on renewables to power AI.
In today’s edition:
🚀 Altman on Musk’s Bid: "An Attempt to Slow Us Down"
⚡ ChatGPT’s Energy Use: Lower Than Expected
🌏 Apple x Alibaba: New AI Partner for China
☀️ Microsoft Goes Solar: More Power for AI
- Naseema Perveen
WHAT CAUGHT OUR ATTENTION MOST
🚀 Altman on Musk’s OpenAI Bid: "An Attempt to Slow Us Down"
The long-standing rivalry between Elon Musk and OpenAI has taken a new turn. During the AI Action Summit in Paris, OpenAI CEO Sam Altman dismissed Musk’s $97.4 billion bid to take control of OpenAI’s nonprofit, calling it a strategic move meant to slow the company down rather than a genuine takeover attempt.
🔍 Key Takeaways:
Altman’s Direct Response: Altman made it clear that he sees Musk’s offer as an attempt to hinder OpenAI’s progress rather than an earnest investment. "[Musk] obviously is a competitor," Altman said, referring to Musk’s AI company, xAI, which is raising billions to challenge OpenAI.
Personal Jab at Musk: In an unusually candid remark, Altman suggested that Musk’s aggressive moves in AI stem from personal insecurity, saying, “I think [Musk’s] whole life is from a position of insecurity […] I don’t think he’s a happy person.” The comment highlights the personal tension between the two, dating back to Musk’s split from OpenAI in 2018.
Board’s Position Still Unclear: While Altman swiftly rejected Musk’s offer in a public statement on Monday, OpenAI’s board has yet to issue a formal response. Board member Larry Summers stated that he had not received “any formal communication [about the bid] of any kind outside of media reports.” This suggests that while the bid is making headlines, it may not be taken seriously by OpenAI’s leadership.
⚡ What’s Next?
Musk’s move signals a high-stakes power struggle in the AI industry. With OpenAI leading the race and xAI trying to catch up, Musk’s bid could be seen as an attempt to disrupt OpenAI’s trajectory. However, given Altman’s firm stance and the board’s silence, it’s unlikely the bid will gain traction.
Still, Musk is known for his persistence. If he’s serious about challenging OpenAI, he may escalate his efforts—whether through legal action, further investment in xAI, or additional public pressure. One thing is clear: the AI war between Musk and OpenAI is far from over.
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WORTH WATCHING
🇺🇸 VP JD Vance on AI’s Future
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
⚡ ChatGPT's Power Consumption: Less Than Expected?
AI’s energy demands are a growing concern, but new research suggests ChatGPT might not be as power-hungry as previously believed. A recent study by Epoch AI challenges the widely cited claim that a single ChatGPT query consumes 3 watt-hours—10 times the energy of a Google search. Instead, the analysis found that ChatGPT's energy use is significantly lower.
🔍 Key Findings:
Lower Than Expected Energy Use: Epoch AI estimates that a typical ChatGPT query using OpenAI’s latest model, GPT-4o, consumes only 0.3 watt-hours—comparable to running an LED light bulb for a few minutes. This is far below previous estimates.
Outdated Assumptions Led to Overestimations: Earlier reports suggesting 3 watt-hours per query were based on older, less-efficient AI chips. Power usage has significantly improved with advancements in hardware and AI model optimization.
AI Energy Demand Will Continue to Grow: While ChatGPT is relatively efficient now, the increasing adoption of AI tools, coupled with advancements in more complex and capable AI models, could lead to higher energy consumption over time.
Reasoning Models & Future AI Trends: Unlike standard models that generate responses instantly, reasoning models—designed for deeper problem-solving—take longer to process queries. This added computation requires more power, meaning future AI tools might consume more energy per interaction.
🌍 What This Means for AI’s Future
While OpenAI and other tech companies are working to improve AI efficiency, the rapid expansion of AI infrastructure is expected to place significant demands on global energy resources. Some estimates suggest that by 2030, AI training alone could require power output equivalent to eight nuclear reactors.
For users concerned about AI’s environmental footprint, there are ways to reduce energy impact:
✅ Use AI selectively – Opt for AI when truly needed rather than for routine searches.
✅ Choose smaller models – Models like GPT-4o-mini use less power while handling basic tasks effectively.
✅ Stay informed – As AI evolves, new optimizations and best practices will emerge to balance innovation with sustainability.
🌏Apple Partners with Alibaba for China AI Launch After Rejecting DeepSeek
Apple is taking a strategic step to bring its Apple Intelligence platform to China, reportedly partnering with Alibaba after rejecting potential deals with DeepSeek and ByteDance. The move, reported by The Information, marks a shift in Apple's approach to AI integration in one of its most challenging markets.
🔍 Key Takeaways:
Why Alibaba? Apple initially planned to partner with Baidu, but technical hurdles made the collaboration unfeasible. Alibaba’s AI capabilities, combined with its deep integration into China’s digital ecosystem, likely made it a more viable option.
China’s AI Gap & iPhone Sales Decline: With Apple Intelligence still unavailable in China, CEO Tim Cook acknowledged that the lack of AI features contributed to an 11% drop in iPhone sales in the region. Meanwhile, domestic competitors like Huawei have capitalized on Apple’s AI absence.
What This Means for Apple: The timing is crucial, as Apple prepares for the launch of the fourth-gen iPhone SE, a budget-friendly model expected to boost sales in China and India—its two biggest international markets.
Apple’s AI Strategy Remains Flexible: While OpenAI’s ChatGPT powers Apple Intelligence in the U.S., Apple has expressed openness to Google Gemini and other AI partnerships for global markets.
⚡ Looking Ahead
Apple’s China-specific AI strategy reflects its need to balance innovation with regulatory challenges. If the Alibaba partnership succeeds, it could set the stage for further AI expansion in China while helping Apple regain lost ground in the competitive smartphone market.
☀️ Microsoft Expands Renewable Energy for AI Growth
Microsoft is ramping up its renewable energy push, securing 389 megawatts (MW) of solar power across three projects in Illinois and Texas. This latest move, part of its ongoing AI and cloud expansion, boosts Microsoft’s total renewable capacity to nearly 20 gigawatts.
🔍 Key Takeaways:
Powering AI Ambitions: AI requires massive amounts of electricity, and Microsoft is rapidly acquiring renewable power to support its growing data center footprint.
Why Solar? Solar farms can be deployed faster and cheaper than fossil fuel plants. Unlike gas power stations, which take years to build, solar projects can be operational within 18 months—a major advantage for AI infrastructure.
24/7 Clean Energy Challenge: Some developers are turning to hybrid installations that combine solar, wind, and battery storage to ensure consistent energy supply. Amazon recently secured such a deal in Portugal.
Sustainability & Carbon Goals: Microsoft aims to be carbon-negative by 2030, meaning it will remove more carbon than it emits. The company has also purchased 7 million tons of carbon credits from Chestnut Carbon to offset emissions.
With AI’s energy demands skyrocketing, Microsoft—and the entire tech industry—will need to scale renewable energy efforts to meet sustainability goals while keeping AI operations running smoothly.
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ICYMI
Musk’s $97.4B Bid to Take Over OpenAI
OpenAI vs. DeepSeek: A Case of Double Standards
EU's AI Champions Push for Simpler Rules
Google Expands NotebookLM Plus
DeepMind’s AI Beats Math Olympiad Champs.
$$$ MONEY MATTERS
AWS pledges to spend $5B in Mexico, launches new Mexico server region.
OpenAI is the most funded AI firm, with a total of US$14 billion raised.
Raspberry AI raises $24M from a16z to accelerate fashion design
Gumloop raised $17 million for its workflow automation platform.
Hippocratic AI raised a massive $141 million round for its healthcare LLM.
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