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Microsoft-OpenAI partnership on the rocks
PLUS: Pope Leo XIV warns of AI's challenges to "human dignity”
Jason Nguyen
May 13, 2025
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Good morning, AI enthusiasts. Microsoft and OpenAI are renegotiating their partnership as tensions rise over OpenAI's growing independence and push into enterprise markets—putting strain on what was once a close alliance.
With this shifting dynamic between two AI powerhouses, are we witnessing the beginning of a new competitive landscape that could redefine how AI technology is developed and commercialized?
In Today’s AI Daily:
Microsoft-OpenAI partnership fracturing
Saudi Arabia launches "Humain" AI initiative
Pope Leo XIV warns of AI's threats to human dignity
5 new AI tools & prompts
LATEST DEVELOPMENTS
OEPNAI & MICROSOFT
Image source: Getty Images
The AI Daily: Microsoft and OpenAI are renegotiating their partnership as tensions rise over OpenAI’s growing independence and push into enterprise markets—putting strain on what was once a close alliance.
Key notes:
A Microsoft employee described OpenAI’s stance as: “Give us money and compute and stay out of the way”
OpenAI is increasingly competing with Microsoft for enterprise customers.
The company is building “Stargate,” a massive AI computing project with SoftBank and Oracle.
Despite friction, Microsoft still embeds OpenAI’s models deeply across its products.
Why it matters: As OpenAI evolves from a Microsoft-backed startup into a $260B powerhouse, power dynamics are shifting. Their ability to balance collaboration and competition could shape not just their futures, but also the broader direction of enterprise AI.
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AI & SAUDI ARABIA
Image source: Getty Images
The AI Daily: Saudi Arabia’s Crown Prince Mohammed bin Salman has launched a new AI company called Humain to lead the development of artificial intelligence across the country.
Key notes:
Humain will operate under Saudi Arabia's Public Investment Fund.
The company will offer AI services including data centers and cloud capabilities.
This initiative aligns with Saudi Arabia's Vision 2030 program to reduce oil dependency.
The goal is to make the country a major AI hub outside the U.S.
Earlier this year, Salesforce announced a $500 million AI investment in Saudi Arabia.
Why it matters: This launch shows how serious Saudi Arabia is about using AI to transform its economy. By building its own AI infrastructure and bringing in global tech investments, the kingdom hopes to become a top player in the growing world of artificial intelligence.
AI BREAKTHROUGHS
AI & THE VATICAN
Image source: Getty Images
The AI Daily: The newly elected Pope Leo XIV has identified artificial intelligence one of the biggest challenges humanity faces today. In his first formal meeting with cardinals, he compared the AI revolution to the industrial changes that his papal namesake addressed over 100 years ago.
Key notes:
The first American Pope said AI brings “new challenges for the defense of human dignity, justice, and labor”
He linked today’s AI changes to the 19th-century Industrial Revolution
Chose the name Leo to honor Pope Leo XIII, who spoke up for workers during major industrial changes
Continues Pope Francis’ past concerns about AI ethics and push for global rules
Why it matters: With over 1 billion followers, the Pope’s view on AI could help shape global conversations. By talking about AI in terms of dignity and workers’ rights, Pope Leo XIV is pushing the Church to play a leading role in making sure future technologies are developed responsibly—not just quickly or profitably.
FAST TRACKS
🗞️ What matters in AI right now?
Manus AI removed its waitlist, offering all users one free daily task (300 credits) and a one-time bonus of 1,000 credits, with paid subscription plans ranging from $19 to $199 per month.
Anthropic's Claude system prompt leaked on GitHub revealed 24,000 tokens of instructions designed to define model behavior, tool use, citation format, and reduce hallucination.
OpenAI launched HealthBench, a benchmark built with 262 doctors across 60 countries to test AI performance in healthcare across 5,000 real-world conversations.
FirstQuadrant rolled out a new AI sales execution platform aimed at startup founders. Early users get 15% off for a year and $250 in AI credits.
Google’s Gemma models hit 150M+ downloads, with developers creating over 70,000 versions on Hugging Face—marking a major milestone for the open-source LLM ecosystem.
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AI PROMPTS
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Jason - The AI Daily