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Elon Musk-founded OpenAI gets $1 billion boost from Microsoft investment

[Source: OpenAI]

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Microsoft’s interest in expanding its Azure cloud computing service to include artificial intelligence (AI) supercomputing technologies has led to a new partnership agreement with the Elon Musk-backed company, OpenAI. An investment of $1 billion dollars was recently made by Microsoft into the venture to develop an Azure-based hardware and software platform that will scale to artificial general intelligence (AGI). In turn, OpenAI will use Microsoft as their exclusive cloud provider.

OpenAI is a nonprofit AI research organization co-founded by Musk, serial entrepreneur Peter Thiel, and Y Combinator’s Sam Altman with the goal of developing beneficial, open source AI to combat any future rise of harmful AI. Musk stepped down from the Board of Directors in early 2018 to avoid any conflicts with Tesla’s Autopilot program; however, he still remains as a benefactor and advisor. Tesla’s Director of AI and Autopilot Vision, Andrej Karpathy, previously worked as a neural network researcher for OpenAI.

While the venture is backed by significant private investment, the long-term goals of OpenAI require even greater resources. The company’s motivation to create the new investment partnership with Microsoft was partially due to financial constraints caused by computing hardware needs. The financial requirements to retain top talent are also significant – OpenAI’s tax filings from 2016 revealed its top researcher was paid a $1.9 million dollar salary, with others receiving significant amounts as well.

Harry Shuman of Microsoft and Sam Altman of OpenAI discuss their new partnership and the future of AI. | Image: Microsoft/YouTube

“OpenAI is producing a sequence of increasingly powerful AI technologies, which requires a lot of capital for computational power. The most obvious way to cover costs is to build a product, but that would mean changing our focus. Instead, we intend to license some of our pre-AGI technologies, with Microsoft becoming our preferred partner for commercializing them,” OpenAI’s press release announcing the new partnership explained.

The connection between Microsoft and OpenAI is not new. In 2016, the companies jointly announced they were working together to run most of OpenAI’s large-scale experiments on Azure, making it their primary cloud platform for deep learning and AI. Azure had hardware configurations optimized for AI computing needs and a roadmap to expand those capabilities even further. One of the stated joint goals between Microsoft and OpenAI is the democratization of AI, and cloud computing is a large part of making that a reality as hardware and software resources are no longer required to be local to the user.

OpenAI has already created some impressive AI capabilities. In August last year, company bots created for the video game Dota 2 defeated a team of highly skilled human players in two games out of three. To accomplish the task, serious amounts of hardware and training were required. The nonprofit research lab employed a scaled-up version of Proximal Policy Optimization running on 256 GPUs and 128,000 cores to complete roughly 180 years worth of gameplay every day through reinforcement learning, which allowed the bots to develop advanced skills for the game. An open source gym for training AI with games was also released by the company.

In 2017, OpenAI announced that it had successfully trained its AI-powered robots to perform a task after watching it once in virtual reality. After showing a robot how to stack a series of colored blocks in a virtual reality simulation, it was then able to successfully mimic the actions. To accomplish this, OpenAI trained the robot in a simulated, virtual environment with nuances like lighting, shadows and backgrounds noise so that when in the real environment, it knew to filter out noise and focus on only important elements as a human brain would.

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OpenAI also successfully taught AI bots to create their own language for communicating with each other in 2017. A paper was published on the topic which explained how the bots used reinforcement learning to accomplish simple goals through trial and error. After being given clues such as “Go to” or “Look at” by the researchers, the bots were then required to create their own machine language to communicate with each other.

The company’s latest commitment to Microsoft will now expand their access to resources to achieve even more impressive artificial intelligence feats.

Accidental computer geek, fascinated by most history and the multiplanetary future on its way. Quite keen on the democratization of space. | It's pronounced day-sha, but I answer to almost any variation thereof.

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Elon Musk’s Boring Company has big plans for Las Vegas by year’s end

Elon Musk’s Boring Company says Vegas Loop stations will double by year end once again.

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the boring company's vegas loop entrance

The Boring Company says the Vegas Loop’s station count will double by the end of the year, tying the target to a hiring push for drivers and operations managers in Las Vegas. “Vegas Loop is getting bigger – the station count will double by end of year!” the company wrote in a post on X, attaching listings for a Loop driver and a senior Loop operations manager.

The number checks out against what’s already public, with the Vegas Loop currently running 14 operational stations, while the Boring Company’s own project page lists 28 as the target for the end of 2026.

Much of that growth is tied to tunnels that are already built and waiting on an opening date. A roughly two-mile dual tunnel system under Paradise Road, connecting Westgate to a planned station at 4744 Paradise Road, is expected to open in stages over the coming weeks, Las Vegas Convention and Visitors Authority chief executive Steve Hill told the Review-Journal last week. New stations at 4744 Paradise, Virgin Hotels Las Vegas, and the former Gordon Biersch site would come online with it, several of them built to speed up rides to Harry Reid International Airport ahead of Formula 1’s Las Vegas Grand Prix.

Clark County entitled Vegas Loop for 123 stations after approving 19 more in August, as Teslarati reported at the time. Entitlement and construction move at different speeds on this project, so county approval alone does not guarantee a station opens on any particular schedule.

Clark County approved 18 additional stations back in 2023, part of a plan that pushed the system’s target to 69 stations across 65 miles, doubling the network on paper for the first time. The target kept climbing after that, to roughly 93 stations by the end of that year and 104 by last year, before August’s vote pushed it to 123. This week’s announcement is the first time that doubling language has been attached to stations actually running rather than stations merely approved on a county map.

Ridership gives some sense of what a denser network could carry. Boring Company executive Mike Baier said in July that the Vegas Loop already moves around 40,000 passengers on busy convention days, a total that tops most light rail systems in the country despite the system running on a fraction of its planned tunnel mileage. Company leadership has projected ridership could triple or quadruple once the airport connector tunnels fully open.

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Boring Company did not say which stations beyond those already under construction would open by year end, or whether the hiring push points to a fleet expansion alongside the new stops.

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Tesla looks to expand into new Asian market, strengthening presence

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Credit: Tesla Asia | X

Tesla is looking to expand into a new Asian market, strengthening its presence in a region that has been bullish on electric vehicles as a whole.

Tesla officially filed to establish a subsidiary of its business in Vietnam, a report from Reuters suggests. Tesla named the entity “Tesla Motors Vietnam Limited Liability Company.”

The planned entrance into the Vietnamese market is a good sign and move for Tesla, as it has become one of the fastest-growing EV markets in Southeast Asia. It is already among the leaders in the region in both volume and electrification rate. In the first half of this year, Vietnam led Southeast Asia in battery-electric passenger car sales at about 116,000 units, up about 71 percent year over year.

Currently, Vietnamese EV drivers rely on VinFast’s V-Green network, which has about 150,000 ports, but these are primarily reserved for VinFast vehicles. Public third-party charging is fragmented and unreliable for those who do not own chargers that are dedicated to a certain manufacturer’s vehicles.

Tesla has had mixed results in Asia as a whole, and as China remains the core part of its story in Asia, the company is evidently working on expanding its footprint on the continent. Tesla’s domestic retail deliveries fell about 12 percent year over year through the first eight months of 2026.

Model Y remains a standout individual product, holding its position as one of, if not the, best-selling vehicles in the world. However, Model 3 has been weaker than it has been in past years.

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Gigafactory Shanghai, the company’s Chinese production facility, still performs very well. Wholesale volumes in terms of exports have more than doubled and now exceed domestic retail sales; Giga Shanghai builds vehicles for Europe, South Korea, Japan, Australia, and other markets. South Korea has been an explicit bright spot, with registrations doubling year-to-date and Tesla frequently appearing as the top imported brand.

Tesla just did something in South Korea that no foreign carmaker has ever done

Tesla’s entrance into Vietnam signals a broader effort to take over the Asian market and grab more market share from rivals.

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Elon Musk’s companies made up with Apple but OpenAI still on the hook

Elon Musk’s X Corp and SpaceXAI dropped their Apple antitrust suit, leaving OpenAI as defendant.

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X Corp and SpaceXAI, Elon Musk’s social platform and AI venture, have dropped Apple from the antitrust lawsuit that they filed against the iPhone maker and OpenAI last year. In a filing in the U.S. District Court for the Northern District of Texas, attorneys for X and SpaceXAI moved to dismiss the Apple portion of the case, first reported by Reuters. The filing does not explain why the companies are dropping Apple or say whether a settlement was reached.

X and SpaceXAI say they intend to keep pursuing the case against OpenAI, which remains a defendant. That resolves the dispute with one company while leaving the core allegation intact against the other, with no public accounting of what changed in between.

The lawsuit dates to August 2025, when xAI and X sued Apple and OpenAI, arguing that Apple’s decision to make ChatGPT the only generative AI chatbot built into iOS gave OpenAI an unfair structural advantage. The complaint claimed ChatGPT controlled roughly 80 percent of the chatbot market at the time, while Grok held only a few percent. It sought billions of dollars in damages and asked the court to unwind the arrangement.

Elon Musk’s xAI and X file antitrust suit against Apple and OpenAI over AI exclusivity

The filing followed weeks of Musk publicly complaining that Grok and X weren’t appearing in Apple’s “Must Have” App Store section, though Grok ranked second in the Productivity category and X ranked first in News at the time. He accused Apple of “playing politics” and warned of immediate legal action before following through days later.

Apple and OpenAI tried to get the case thrown out, but a federal judge denied both motions in November, ruling the dispute was better suited to summary judgment than an early dismissal. That decision sent the case into discovery, which is presumably what led to Monday’s filing.

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The timing is notable given how Musk’s sentiment toward Apple has shifted, with Musk noting that he was open to letting Grok power a revamped Siri after a user suggested Apple replace its aging assistant with xAI’s model.

xAI, the AI venture Musk folded into X Corp last year, has since combined with SpaceX under the SpaceXAI brand. That structure now puts X, Grok and SpaceX’s rocket and satellite businesses under one roof as Musk pushes his AI ambitions beyond chatbots.

OpenAI remains the sole defendant going forward, and Musk’s companies have not said if there’s any changes to those original claims. Apple and OpenAI did not immediately respond to requests for comment on the filing.

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