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.

“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.
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.
News
Tesla Roadster unveiling nears, and it will fly: The Information
Tesla is nearing its long-awaited unveiling of the all-electric Tesla Roadster, a new report from The Information claims, as the company has said several times this year that the event would take place “soon.”
Now, it appears there is movement on Tesla’s end regarding when it will happen.
The report says that Tesla will unveil the Roadster as soon as this month with a SpaceX version that will utilize cold-gas thrusters to help the vehicle float for a short period of time. This is something CEO Elon Musk has talked about with the Roadster for years.
🚨 The Information is reporting this morning that Tesla is ready to unveil the “flying” Roadster as soon as this month
It’s almost here, folks. pic.twitter.com/IdL4atsucQ
— TESLARATI (@Teslarati) August 14, 2026
Additionally, due to the delays, Tesla explored “a variety of designs” for the Roadster, potentially planning to abandon the design it showed off for the first time in 2017 and adopting an entirely new aesthetic.
According to The Information, Tesla considered utilizing a repurposed Model S Plaid and even wanted to upgrade the look to something like a Lamborghini Countach.
We’ve heard all of these things before, including teases about the date and how “soon” the Roadster will finally be ready to be shown off to the world (for the second time). Musk said that the event would occur in April, then May, then Chief Designer Franz von Holzhausen continued to say it would be coming “soon.”
We do expect to see the Roadster by the end of the year, and now with this new report swirling, it appears it could be sooner rather than later.
The wait has been incredibly long, but there is likely a good reason for it. Tesla’s desire to make the Roadster the craziest vehicle on the road was non-negotiable, and it likely took a lot of time and resources to develop and perfect into something that was safe and suitable for a vehicle like this.
Featured
Tesla finally got its Nevada Robotaxi Permit but with a few catches hard to miss
Nevada granted Tesla’s robotaxi permit, but capped the fleet at just ten vehicles for now.
Tesla has received its robotaxi permit in Nevada, more than two months after regulators closed the public comment period on the company’s application. News of the approval surfaced Wednesday night when Tesla investor and longtime company watcher Sawyer Merritt posted a copy of the interim order, and the Nevada Transportation Authority’s own carrier registry now lists the permit, AVNC Permit 002 under Docket 26-05015, as active for Tesla Robotaxi, LLC.
Tesla asked Nevada in June for authority to run up to 5,000 vehicles in Clark County within a year, however the permit the NTA issued is initially capping Tesla at ten fully autonomous vehicles and confines them to a defined geofence along the Las Vegas Strip corridor. Any expansion of that operating area, or any increase to the fleet size, requires the NTA’s approval first.
Tesla has received its Autonomous Vehicle Network Company permit in Nevada.
The Nevada Transportation Authority says that operations are limited to a maximum fleet of 10 fully autonomous vehicles and shall be conducted only within the Authority-approved Operational Design… https://t.co/Cxfd6GIfDk pic.twitter.com/iOO6wSZkHF
— Sawyer Merritt (@SawyerMerritt) August 13, 2026
The order also sets rules that look more restrictive than what Tesla runs in Austin. Rides are barred on roads with posted speed limits above 45 miles per hour, pickups are off limits within a quarter mile of Harry Reid International Airport without separate authorization, and every vehicle has to carry visible “Robotaxi” markings while notifying riders before each trip that no one is driving. The order also requires “appropriate human supervision”, language that suggests Nevada isn’t ready to let Tesla offer the rides without a safety monitor that it has run in parts of Austin since January. As with standard protocol with robotaxi services, Tesla must report any accident, system failure, or vehicle that becomes stranded on a Nevada road within five business days.
Tesla is entering a market Nevada already knows well. Zoox, the Amazon owned robotaxi company, has run its own autonomous vehicle permit in the state since last year, building up to roughly 100 vehicles and 350,000 rides along the Strip. That history likely explains why the NTA started Tesla at ten cars rather than the fleet size the company asked for. The agency has a template for scaling a permit up once a company proves out its safety record.
Tesla’s Nevada application first surfaced in June, when the company filed for the permit alongside plans for a maintenance hub in southwest Las Vegas. The company has said it won’t meaningfully scale its robotaxi fleet anywhere until FSD v15 ships, expected in late 2026 or early 2027, which makes the ten vehicle cap less of a constraint today than it might look on paper. For now, Tesla has the legal right to start Nevada rides. Whether it starts before FSD v15 arrives is a separate question the permit doesn’t answer.
Energy
Tesla launches Powerwall Lease for affordable home backup
Tesla Energy has introduced the Powerwall Lease in conjunction with Tesla Electric, making the service available in Texas. This new option delivers whole-home backup power using two Powerwall units for a net monthly cost of $35 after credits, accompanied by a low fixed electricity rate.
Under the lease terms, customers pay a one-time order fee of $100. The base lease payment for the two Powerwalls is approximately $122 per month during the first year, subject to a 3 percent annual escalator thereafter. Enrollment in a qualifying Tesla Electric Backup plan or Virtual Power Plant plan provides an $87 monthly credit.
Powerwall Lease is now available with Tesla Electric in Texas
Whole-home backup for $35/month, with a low fixed electricity rate
– Two Powerwalls, $0 installation
– Storm Watch outage protection
– One app to manage it all pic.twitter.com/oTzqc6K3aF— Tesla Energy (@teslaenergy) August 13, 2026
This credit lowers the effective cost to roughly $35 per month plus applicable tax.
Installation of the standard system carries no additional charge. The package features Storm Watch for outage protection and allows complete management through a single Tesla application. The system supplies continuous whole-home backup capability.
The Powerwall system enables households to maintain electricity during severe storms that disrupt the utility grid. When outages occur, the batteries automatically provide seamless backup power to the home.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
Tesla Storm Watch monitors weather forecasts and ensures the units are fully charged ahead of anticipated severe weather events so that power remains available throughout the disruption, keeping lights, refrigeration, and other essential systems operating without interruption.
Availability is restricted to select Texas locations where retail electric choice exists. Participants must lease exactly two Powerwall units and maintain continuous enrollment with Tesla Electric. Solar panels cannot be included under this particular lease arrangement.
The monthly credit activates automatically once the system is installed, receives permission to operate, and enrollment is confirmed. To retain the credit, customers are required to stay enrolled in Tesla Electric and fulfill all program conditions.
Nonstandard installations that involve electrical upgrades or special permitting may lead to extra expenses and might impact eligibility for the credit, so be sure to check with either your installer or Tesla to ensure you will still qualify.
