1. Perplexity’s Major Cloud Shift to Microsoft Azure Amid Ongoing Tensions AI search startup Perplexity has inked a massive $750 million deal with Microsoft to expand its operations on Azure cloud infrastructure. This comes after Perplexity faced legal challenges from Amazon over data usage, despite being one of AWS’s larger customers. The company emphasized that it will continue using AWS for certain workloads, signaling a multi-cloud strategy. The partnership highlights intensifying competition among cloud giants for AI workloads and startup alliances. Investors see this as a boost for Microsoft’s Azure growth in the generative AI era.
2. Stalled $100 Billion OpenAI-Nvidia Megadeal and Broader AI Investment Shifts Reports indicate Nvidia’s planned up to $100 billion investment in OpenAI has been put on hold, amid evolving partnership dynamics. This follows mixed market reactions to Big Tech’s heavy AI capex, with stocks like Microsoft experiencing volatility after earnings. Other players like Amazon are reportedly in talks for large OpenAI stakes, reshaping funding landscapes. The pause raises questions about the sustainability of massive AI infrastructure bets in 2026. It underscores ongoing debates over ROI from AI spending across hyperscalers and chipmakers.
3. Google’s Project Genie Disrupts Gaming with AI-Generated Playable Worlds Google has rolled out Project Genie, an AI model that turns text prompts or images into interactive, playable digital environments in real time. Videogame stocks (e.g., Take-Two, Roblox, Unity) plunged sharply on fears of disruption to traditional game development. The tech could redefine content creation by enabling instant simulations of real-world or imagined scenarios. Analysts view this as a step toward AI-driven gaming and virtual worlds, challenging established studios. It builds on Google’s broader AI push, potentially accelerating shifts in entertainment tech.