TL;DR

OpenAI revises Microsoft deal for IPO; Apple accelerates custom AI chips; DOJ-Google antitrust draws YC, Anthropic.

Highlights

• OpenAI is renegotiating revenue-sharing and equity terms with Microsoft to enable new funding and a potential IPO; forecasts $125B revenue by 2029, with $29B expected in 20261.
• Apple is developing custom AI chips with TSMC for smart glasses, Macs, AI servers, and wearables, targeting mass production from late 2026 and launches in 20272.
• Y Combinator filed an amicus brief in the DOJ antitrust case against Google , citing search dominance as a barrier to AI startup competition; Anthropic warned proposed DOJ remedies could chill AI investment3.
• Klarna reversed its AI-driven customer service layoffs, rehiring staff after chatbots underperformed; IBM and Settle also adjust automation strategies to increase human oversight8.
• CATL , the world’s largest EV battery maker, plans a $4B Hong Kong IPO with restrictions on U.S. investors, reflecting ongoing U.S.-China trade and investment tensions5.
• China’s April new energy vehicle sales rose 34% YoY; BYD expands globally as Tesla ’s China sales decline10.
• Ireland and France advance proposals to ban social media for under-16s, pushing for age verification and sanctions; similar restrictions expand in U.S. and UK schools7.
• Coinbase acquires Deribit for $2.9B to expand crypto derivatives, but avoids a Bitcoin -heavy treasury strategy due to liquidity concerns12.
• Elizabeth Holmes, from prison, is advising Haemanthus, a biotech startup developing AI-driven Raman spectroscopy diagnostics11.

Commentary

OpenAI’s ongoing negotiations with Microsoft mark a critical phase in the commercialization of foundational AI models. By seeking to reduce Microsoft’s revenue share and adjust equity terms, OpenAI aims to unlock new funding and set the stage for an IPO, reflecting the sector’s rapid revenue growth and the increasing complexity of major AI partnerships. These talks also underscore Microsoft’s continued dominance in AI cloud infrastructure, with Azure’s AI revenue run-rate now triple that of AWS, largely due to exclusive OpenAI integration1.

Apple ’s expanded investment in custom AI chips—spanning smart glasses, Macs, AI servers, and wearables—signals a strategic shift toward deeper hardware-software integration and reduced reliance on external suppliers. The move to in-house silicon, with TSMC as a key partner, is designed to support new AI-powered devices and services, and will likely influence the competitive landscape for AI hardware and edge computing2.

Regulatory and policy shifts remain top of mind. The DOJ’s antitrust case against Google has drawn direct input from both Y Combinator and Anthropic, highlighting the tension between fostering competition and avoiding regulatory overreach that could stifle AI investment3. Meanwhile, European governments are moving quickly to regulate youth access to social media, mandating age verification and threatening sanctions—a trend with direct implications for AI-driven content moderation and compliance tooling7.

On the operational front, Klarna’s decision to rehire customer service agents after disappointing chatbot performance, along with similar adjustments by IBM and Settle, illustrates the limits of current AI automation in customer-facing roles. The need for human oversight remains strong, especially as companies balance efficiency with service quality8.

In parallel, China’s EV sector continues to grow, with BYD expanding internationally even as Tesla ’s China sales decline10. CATL ’s decision to restrict U.S. investor participation in its Hong Kong IPO further demonstrates the impact of trade and investment barriers on global tech and AI supply chains5.