TL;DR

OpenAI slashes O3 pricing, Nvidia launches major EU AI expansion, Apple delays Siri AI overhaul.

Highlights

• OpenAI cuts O3 API pricing by 80%, undercutting major rivals; launches O3-Pro with higher performance at a premium1.
• OpenAI signs multi-year Google Cloud deal to diversify compute after ChatGPT outage; Microsoft Azure remains primary provider4.
• Apple unveils on-device "Foundation Models" AI framework for developers but delays Siri overhaul to 20262.
• Nvidia announces 20 new European AI factories, German industrial AI cloud, Blue Lion supercomputer, and sovereign AI initiatives3.
• Nvidia CEO Jensen Huang says quantum computing is nearing practical use; CUDA-Q coming to Grace Blackwell 200 chips14.
• Cisco launches AI-optimized networking and security products, including 10x faster switches and new AI security tools, leveraging Nvidia and Splunk15.
• Google offers voluntary buyouts to U.S. Search and Ads staff to reallocate resources to generative AI7.
• Disney and NBCUniversal sue Midjourney for copyright infringement, the first major Hollywood action against a generative AI firm8.
• U.S. Congress advances 10-year ban on state AI regulation, but bipartisan resistance and new Florida deepfake laws highlight regulatory uncertainty9.
• EIA nearly doubles 2025 U.S. power demand forecast due to AI data centers; UN warns of 150% emissions surge10.
• Salesforce blocks Glean from long-term indexing of Slack data, tightening data access for enterprise AI competitors13.
• Glean raises $150M at $7.2B valuation for enterprise AI search; Microsoft negotiating Copilot deal for one million users1112.
• Tesla ’s driverless Model Y seen in Austin; robotaxi service targeted for June 22; xAI seeks $5B in debt funding56.

Commentary

OpenAI’s sharp O3 price reduction and the introduction of O3-Pro intensify competition among foundation model providers, pressuring API pricing and positioning OpenAI to retain developer and enterprise mindshare1. The new Google Cloud partnership, following a ChatGPT outage, indicates a pragmatic shift to multi-cloud strategies amid ongoing compute constraints, even as Microsoft remains a core partner4.

Nvidia ’s European expansion—20 new AI factories, a German AI cloud, and the Blue Lion supercomputer—signals significant investment in regional compute capacity and data sovereignty3. The company’s updated timeline for quantum computing, with CUDA-Q support for its next-generation chips, suggests growing industry confidence in hybrid quantum-classical workflows for research and enterprise14.

On the enterprise adoption front, Glean’s $7.2B valuation11 and Microsoft ’s potential million-user Copilot deal12 highlight persistent demand for AI-powered productivity tools. However, Salesforce ’s move to restrict Slack data access for external AI providers underscores the growing importance of proprietary data control as a competitive lever in enterprise AI13.

Regulatory and legal developments remain fluid. The proposed federal preemption of state AI regulation faces bipartisan resistance, while states like Florida are enacting targeted deepfake laws9. Disney and NBCUniversal ’s lawsuit against Midjourney opens a new front in generative AI copyright litigation, which could impact model training and deployment practices8. Meanwhile, Google ’s buyouts and resource shift toward AI reflect the ongoing disruption of legacy business units by generative AI7.

Energy and infrastructure remain critical. The EIA’s revised U.S. power demand forecast—driven by AI data center growth—and mounting emissions concerns from the UN highlight the environmental and operational challenges facing the industry10. Cisco ’s AI-optimized networking and security launches, leveraging Nvidia and Splunk, target these infrastructure needs for secure, scalable AI deployment15.