Microsoft's shock decision

PLUS: Janus-Pro: The Dall-E Killer

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Zulkar Naim
January 30, 2025

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Trending AI News Today

Microsoft's shock decision

Microsoft announced that DeepSeek’s viral, powerful AI model, R1—which outpaced ChatGPT downloads and rocked US stock markets earlier this week (causing AI chip giant NVIDIA to drop $600B) because it can be trained at a fraction of the cost of other leading AI models—is available on its Azure cloud platform and GitHub, allowing Microsoft customers to integrate it into their AI applications.

Things to Know:

  •  Microsoft believes that a key advantage of using R1 “is the speed at which developers can experiment, iterate, and integrate AI into their workflows,” and confirmed they’ll also be able to run R1 on Copilot+ PCs.

  • To alleviate concerns, they confirmed that “R1 has undergone rigorous red teaming and safety evaluations, including automated assessments of model behavior and extensive security reviews to mitigate potential risks.”

  • It’s unknown if they’ve modified R1 to improve its accuracy—it reportedly provides inaccurate answers to news queries, 83% of the time—and reduce censorship—it refuses to answer 85% of questions related to China.

Microsoft has moved quickly to integrate R1 into Azure and GitHub, which comes as a surprise as, hours after Trump’s AI and crypto czar, David Sacks, announced that DeepSeek had used OpenAI models to train its own (which is a violation of its policies which state you are prohibited from using its “output to develop models that compete with OpenAI”), Microsoft—which is one of OpenAI’s biggest partners/investors—launched an investigation and found that DeepSeek may have exfiltrated data, using OpenAI’s API, in the fall of 2024.

Janus-Pro: The Dall-E Killer

DeepSeek Unveils New AI Models, Challenging OpenAI’s DALL-E 3

Things to Know:

  •  DeepSeek has released a new set of AI models called Janus-Pro, claiming they outperform OpenAI's DALL-E 3.

  • These models, available on Hugging Face, range from 1 billion to 7 billion parameters, influencing their problem-solving ability.

  • Janus-Pro models are open-source under the MIT license, allowing unrestricted commercial use.

DeepSeek’s new AI models provide an open-source alternative to proprietary systems, potentially advancing AI-generated image capabilities and increasing competition in the field.

Softbank trumps Microsoft in OpenAI deal?

Multinational Japanese tech conglomerate, Softbank, is reportedly in “advanced talks” to invest up to $25B in OpenAI.

Things to Know:

  •  According to the Times, this deal—which hasn't yet been finalized—could be part of a larger partnership, which would see Softbank investing over $40B to develop bigger AI initiatives with OpenAI.

  • It’s also said to be tied to Trump’s Stargate project, a $100B venture between OpenAI, Softbank, and Oracle, that will build AI data centers across the US and could potentially draw up to $500B over the next 4 years.

  • It’s thought that the $25B from Softbank could cover OpenAI’s commitment of $15B to Stargate, and also marks the largest amount of funding Softbank has invested since its $16B injection into WeWork, which started in 2017.

If the deal goes through, Softbank will become OpenAI’s biggest, single backer—trumping Microsoft’s measly $13B—and it will also reduce OpenAI’s reliance on Microsoft's computing power after it recently gave up its position as OpenAI’s exclusive cloud provider, perhaps strengthening escalating rumors about a growing, fractious relationship between the two.

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