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OpenAI-Microsoft Tensions Rise Over $3B Windsurf Deal 3 min read
Reports

OpenAI-Microsoft Tensions Rise Over $3B Windsurf Deal

By Agentive Studio

It's Wednesday, June 18, 2025, and you're reading the Agentive Daily Report.

Busy People's Section

OpenAI and Microsoft's relationship is faltering over the $3 billion Windsurf acquisition, with OpenAI executives considering accusations of anticompetitive behavior.
Meta has invested $14.3 billion in Scale AI to lead a new research lab focused on developing superintelligent AI systems.
Geoffrey Hinton, the "Godfather of AI," warns that AI will replace many thinking jobs while physical jobs like plumbing remain safer in the near term.
OpenAI has secured a $200 million contract with the U.S. Defense Department, marking its first public defense contract.
Prompts are now an API primitive on OpenAI's services, allowing developers to centrally manage, version, and optimize prompts across multiple services.
AI-powered tools are transforming medical diagnostics with technologies like Fragle, which can detect tiny traces of cancer in blood samples for just $39.
AI use in the workplace has nearly doubled in two years, with 40% of U.S. employees now using AI at work, according to a Gallup survey.

Today's Top Stories

OpenAI-Microsoft Tensions Reach Breaking Point Over Windsurf Deal

OpenAI executives are considering accusing Microsoft of anticompetitive behavior as the relationship between the AI leader and its biggest investor deteriorates. The flashpoint is OpenAI's $3 billion acquisition of Windsurf, whose coding IP the company wants to keep from Microsoft's GitHub Copilot.

The standoff highlights OpenAI's struggle to reduce its dependence on Microsoft's cloud services while still needing the tech giant's approval to complete its conversion to a for-profit company. This conversion must happen by year-end or OpenAI risks losing $20 billion in funding. This power struggle reflects the increasingly complex dynamics as AI companies try to maintain independence while relying on partnerships with tech giants.

Meta Invests $14.3B in Superintelligent AI Research

Meta has made a massive $14.3 billion investment in Scale AI, which will lead a new research lab focused on developing superintelligent AI systems. This strategic move signals Meta's serious commitment to advancing beyond current AI capabilities toward artificial general intelligence (AGI) and eventually superintelligence.

The company is offering up to $100 million in incentives to attract top AI talent, demonstrating how competitive the race for AI supremacy has become. This investment puts Meta on a direct collision course with other major players like OpenAI and Google in the race to develop more advanced AI systems. The scale of this investment shows just how high the stakes have become in the pursuit of next-generation AI capabilities.

"Godfather of AI" Warns Low-Level Thinking Jobs Will Be Replaced First

Geoffrey Hinton, widely regarded as the "Godfather of AI," has issued a stark warning about AI's impact on employment. He predicts that simple thinking jobs will soon be taken over by AI, while physical jobs like plumbing will remain safer in the near future. According to Hinton, this shift has already begun and represents the biggest short-term threat to human happiness.

Hinton points out that AI tools now enable one person to do the work of ten, inevitably leading to significant job cuts in sectors like legal assistance and call centers. Beyond the economic impact, he emphasizes the psychological toll of job displacement – even with safety nets like universal basic income, many people may still struggle with a sense of purposelessness. This assessment from one of AI's pioneers adds weight to concerns about AI's societal impact.

Fast Forward

  • AI-Powered Cancer Detection: Researchers at A*STAR in Singapore have developed Fragle, an AI tool that can detect circulating tumor DNA in blood samples for just $39, making early cancer detection more accessible and potentially revolutionizing cancer monitoring worldwide.
  • Character AI's Writing Evaluation Framework: Character AI has unveiled a new framework for assessing conversational storytelling, combining creative writing heuristics with objective metrics to evaluate narrative pacing, engagement, and entertainment value, establishing new standards for AI-generated content quality.
  • AI in Penetration Testing: AI is transforming cybersecurity by automating vulnerability assessments, enabling continuous, real-time security testing integrated into the software development lifecycle, though challenges remain in complex bug detection and accountability.
  • Autonomous Coding Agents: AI coding assistants have evolved from smart autocomplete tools to genuine task delegates, with developers reporting that tools like Claude Code, Cursor, and v0 have crossed a threshold of usefulness, though they amplify both good and bad design decisions.
  • TikTok's AI-Generated Product Models: TikTok has launched Symphony, a platform that generates videos featuring virtual avatars modeling products and trying on clothes, potentially disrupting the influencer market by replacing human product reviewers and models with AI-generated content.

New Tools Discovered

  • Tila AI: Create, code, search and design AI content all in one canvas with seamless workflow integration.
  • Genspark AI Browser: A specialized browser that automates web tasks, blocks ads, transcribes videos, and converts social posts into podcasts.
  • Canine: A deployment platform for Kubernetes clusters that simplifies application management with GitHub integration and one-click deployments.
  • Motia: A modern backend framework unifying APIs, events, background jobs, and AI agents using "Steps" as a core primitive.
  • SeedancePro: Creates professional videos instantly from text or images with advanced AI-generation capabilities.

Discover more tools at Agentive.Directory


That's a wrap for today! Thank you for reading this report.

Have thoughts on today's edition? Hit reply and let us know what you're thinking. Or if you've discovered a cool AI tool we should feature, drop us a line.

Until tomorrow,
Hak from Agentive.Studio