Microsoft used its own developer conference to show it can live without OpenAI, Florida's attorney general sued OpenAI and went after Sam Altman personally, researchers and a new Workday product made plain that nobody trusts AI agents yet, and Alphabet raised a record $85 billion the same week the Fed flagged AI as a systemic risk. The money is moving faster than the trust.
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The past week’s AI developments reveal a sector in the throes of a high-stakes paradox: unprecedented capital investment colliding with eroding trust and regulatory pushback. Microsoft’s pivot to in-house models like MAI-Thinking-1 isn’t just a technical milestone—it’s a strategic decoupling from OpenAI, its own largest investment, signaling that even the deepest partnerships are now competitive liabilities. This mirrors a broader trend where the "AI gold rush" is forcing companies to hedge bets...