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OpenAI’s star power 🤩
Plus: Grok for government

Welcome back! OpenAI’s funding story keeps getting wilder. What started as a $1B Microsoft bet in 2019 has ballooned into a potential $100B+ partnership with Nvidia this year.
In just six years, the company has gone from a scrappy lab to the center of one of the largest capital commitments in tech history.
What do you think? |


OpenAI Expands Stargate with 5 New US Data Centers

Construction underway on a Project Stargate AI infrastructure site in Abilene, Texas, in April 2025.Photograph: Daniel Cole/Reuters
OpenAI is teaming up with Oracle and SoftBank to build five new Stargate data centers, boosting planned capacity to nearly 7 gigawatts—about the output of seven nuclear reactors.
The partnerships: Oracle will develop three sites (Texas, New Mexico, and a Midwest location), while SoftBank’s SB Energy is backing two more (Ohio and Texas). Oracle is already running the flagship Abilene site, where OpenAI is the main tenant.
OpenAI’s strategy: The buildouts add to OpenAI’s broader push—Stargate UK, Stargate UAE, and the new $100B Nvidia deal we just talked about—cementing data centers as the backbone of its AI ambitions.
What’s next: Training frontier AI models takes an enormous amount of compute, and OpenAI isn’t sleeping on being a part of the capacity buildout. Sam Altman put it bluntly:
“AI can only fulfill its promise if we build the compute to power it.”
Databricks Commits $100M to OpenAI
Two of the highest-valued startups in tech are joining forces. Databricks announced it will spend at least $100 million over multiple years on OpenAI models like GPT-5, marking OpenAI’s first formal integration with a business-focused data product vendor.
What the deal does: Databricks customers can connect their data directly to OpenAI models with a simple click in the platform’s UI. No extra configuration, legal hurdles, or security sign-offs required—just plug in and start running experiments or applications.
Who gets what?
Databricks, valued at over $100 billion, is betting that enterprise demand for agent-powered apps will surge, and OpenAI gets a massive foothold inside the business data stack.
Mastercard’s AI chief called it “an environment we trust, that we know,” underscoring how the deal lowers barriers for companies to test and deploy AI on sensitive internal data.
Why it matters: This isn’t just another licensing deal. It’s a sign that tech startups recognize the enormous potential of AI in enterprise—and they’re willing to pay up to get in on the trend.
Musk Undercuts Rivals with Grok-for-Government Deal
Elon Musk’s xAI struck a deal with the US General Services Administration to sell its Grok chatbot to federal agencies for just 42 cents per user for a year and a half—undercutting OpenAI and Anthropic, which both charge $1 for one year.
The catch: The 42-cent price point is classic Musk—either a 420 joke or a nod to Hitchhiker’s Guide to the Galaxy. Agencies also get xAI engineers to help integrate Grok.
How did we get here? Grok’s road to government work has been bumpy. Earlier this year, plans stalled after the bot generated antisemitic content and nicknamed itself “MechaHitler.” But by August, White House emails pushed to get Grok approved “ASAP.” Musk’s political ties—including his stint leading the Department of Government Efficiency (DOGE)—helped clear the path.
Why it matters: Government contracts are shaping up as a major battleground for AI providers. Price wars, policy influence, and military ties will determine who lands the biggest deals—and Musk just made the fight cheaper.



Create Immersive, Interactive Slides

Animant
Animant lets you create presentations that mix text, audio, video, and even 3D models. AI handles the heavy lifting—summarizing discussions into chapters, trimming recordings, and syncing model rotations with your narration. You can even scan physical objects into 3D with your phone.
How you can use it:
Educators can make complex topics visual and interactive.
Sales teams can create live, product-driven demos.
Remote teams can turn long recordings into navigable chapters.
Pricing: Free & paid

Natural Language to Full-Stack Apps

Dyad
Dyad is an open-source builder that turns plain language into deployable apps—front end, back end, and database—while keeping all code local. No lock-in, no cloud dependency, and you own everything you create.
How you can use it:
Prototype startup ideas without touching code.
Build apps to teach software concepts.
Speed up dev cycles with instant previews and model plug-ins.
Pricing: Free & paid


Jobs, announcements, and big ideas
OpenAI rolls out shared projects, smarter connectors, and new security features for ChatGPT teams.
Meta debuts Vibes, a feed for discovering and creating AI-generated videos in its Meta AI app.
Spotify introduces AI safeguards and removes 75 million spam tracks to curb fraud.
Climate TRACE launches an AI tool to track fine particulate pollution from 660 million sources worldwide.
Google upgrades Gemini 2.5 Flash and Flash-Lite models to boost quality, speed, and efficiency.
Neon app pays users $30 a day to record phone calls for AI training, raising privacy concerns.
Microsoft limits Israeli military access to some cloud and AI services after surveillance concerns.


Inside ChatGPT’s brain. Watch along as I explore how words turn into tokens by racing through a neural net.

That’s a wrap! See you next week.
—Matt (FutureTools.io)
P.S. This newsletter is 100% written by a human. Okay, maybe 96%.