Microsoft Loses Control Over OpenAI's 'iPhone-Killer' Device, Igniting Industry Alarm

International Business TimesTuesday, October 28, 2025 at 10:26:42 PM
Microsoft's recent decision to relinquish control over OpenAI's groundbreaking AI hardware project has sent shockwaves through the tech industry. This move not only raises concerns about market stability but also signals a potential shift in the future of consumer technology. As companies grapple with the implications of this change, it highlights the growing competition and uncertainty in the AI landscape, making it a pivotal moment for both investors and consumers.
— Curated by the World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
OpenAI's character cameos will let you put pets and original personas in Sora videos
PositiveArtificial Intelligence
OpenAI has introduced a new feature that allows users to include their pets and original personas in Sora videos, enhancing the creative possibilities for content creators. This innovation not only personalizes the video-making experience but also opens up new avenues for storytelling and engagement, making it a significant development in the realm of digital content.
OpenAI's Sora app adds new features, including "character cameos" to create AI deepfakes of pets, illustrations, and more, clip stitching, and leaderboards (Jess Weatherbed/The Verge)
PositiveArtificial Intelligence
OpenAI's Sora app has just rolled out exciting new features, including 'character cameos' that allow users to create AI deepfakes of their pets and illustrations. This update also introduces clip stitching and leaderboards, enhancing user engagement and creativity. These innovations are significant as they not only expand the app's functionality but also tap into the growing interest in AI-generated content, making it easier for users to express themselves and share unique creations.
Cameo sues OpenAI for trademark infringement over new AI-generated celebrity video app
NegativeArtificial Intelligence
Cameo, a well-known celebrity video messaging platform based in Chicago, has filed a lawsuit against OpenAI, claiming trademark infringement over its new AI-generated celebrity video app that uses the same name. This legal battle highlights the ongoing tensions between traditional businesses and emerging AI technologies, raising questions about intellectual property rights in the digital age.
The Elastic Market Effect: How $100 Billion Swings Became The New Normal In US Stocks
NegativeArtificial Intelligence
The recent trend in US stocks, particularly among mega-cap technology companies like Nvidia, Microsoft, and Apple, highlights a concerning new normal where $100 billion swings are becoming routine. This volatility suggests a shift towards market instability fueled by speculation and the interconnectedness of trading systems. Understanding this trend is crucial as it could impact investor confidence and the overall economy.
Xbox sales are down again, but Microsoft doesn't seem worried
NegativeArtificial Intelligence
Xbox sales have dropped significantly, with revenue declining by nearly one-third in the last quarter compared to the same period last year. Despite this downturn, Microsoft appears unfazed, suggesting they may have a broader strategy in mind. This situation is important as it reflects the competitive landscape of the gaming industry and raises questions about the future of Xbox in a market that is rapidly evolving.
Microsoft says Xbox hardware sales dropped by 29%
NegativeArtificial Intelligence
Microsoft has reported a significant decline in Xbox hardware sales, dropping by 29% in the first quarter of fiscal year 2026. This downturn highlights the challenges the gaming division is facing, reflecting broader trends in the gaming market and potentially impacting future product strategies. Understanding these shifts is crucial for investors and gamers alike, as they may influence upcoming releases and the overall health of the gaming industry.
Meta, Microsoft Spending in AI Race Starts to Rattle Investor Confidence
NegativeArtificial Intelligence
Recent announcements from tech giants Meta, Microsoft, and Alphabet regarding their substantial investments in artificial intelligence are causing concern among investors. As these companies ramp up spending in a highly competitive AI landscape, there are fears that such aggressive financial commitments may not yield immediate returns, leading to a potential shake-up in investor confidence. This situation is crucial as it highlights the balancing act between innovation and financial stability in the tech sector.
The Sequence Opinion #746 : Could OpenAI Issue Its Own Crypto Token?
NeutralArtificial Intelligence
The latest opinion piece discusses whether OpenAI, a leading player in artificial intelligence, might consider launching its own cryptocurrency token. This speculation is significant as it highlights the intersection of AI and finance, raising questions about the potential implications for both industries. As the crypto market evolves, the idea of an AI-driven token could reshape how technology companies engage with digital currencies.
Latest from Artificial Intelligence
From Generative to Agentic AI
PositiveArtificial Intelligence
ScaleAI is making significant strides in the field of artificial intelligence, showcasing how enterprise leaders are effectively leveraging generative and agentic AI technologies. This progress is crucial as it highlights the potential for businesses to enhance their operations and innovate, ultimately driving growth and efficiency in various sectors.
Delta Sharing Top 10 Frequently Asked Questions, Answered - Part 1
PositiveArtificial Intelligence
Delta Sharing is experiencing remarkable growth, boasting a 300% increase year-over-year. This surge highlights the platform's effectiveness in facilitating data sharing across organizations, making it a vital tool for businesses looking to enhance their analytics capabilities. As more companies adopt this technology, it signifies a shift towards more collaborative and data-driven decision-making processes.
Beyond the Partnership: How 100+ Customers Are Already Transforming Business with Databricks and Palantir
PositiveArtificial Intelligence
The recent partnership between Databricks and Palantir is already making waves, with over 100 customers leveraging their combined strengths to transform their businesses. This collaboration not only enhances data analytics capabilities but also empowers organizations to make more informed decisions, driving innovation and efficiency. It's exciting to see how these companies are shaping the future of business through their strategic alliance.
WhatsApp will let you use passkeys for your backups
PositiveArtificial Intelligence
WhatsApp is enhancing its security features by allowing users to utilize passkeys for their backups. This update is significant as it adds an extra layer of protection for personal data, making it harder for unauthorized access. With cyber threats on the rise, this move reflects WhatsApp's commitment to user privacy and security, ensuring that sensitive information remains safe.
Why Standard-Cell Architecture Matters for Adaptable ASIC Designs
PositiveArtificial Intelligence
The article highlights the significance of standard-cell architecture in adaptable ASIC designs, emphasizing its benefits such as being fully testable and foundry-portable. This innovation is crucial for developers looking to create flexible and reliable hardware solutions without hidden risks, making it a game-changer in the semiconductor industry.
WhatsApp adds passkey protection to end-to-end encrypted backups
PositiveArtificial Intelligence
WhatsApp has introduced a new feature that allows users to protect their end-to-end encrypted backups with passkeys. This enhancement is significant as it adds an extra layer of security for users' data, ensuring that their private conversations remain safe even when stored in the cloud. With increasing concerns over data privacy, this move by WhatsApp is a proactive step towards safeguarding user information.