AI Daily: OpenAI adds $100 per month Pro tier to ChatGPT subscriptions

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.

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NEW PRO TIER: OpenAI said in a post to X that, “We’re updating our ChatGPT Pro and Plus subscriptions to better support the growing use of Codex. We’re introducing a new $100/month Pro tier. This new tier offers 5x more Codex usage than Plus and is best for longer, high-effort Codex sessions. In ChatGPT, this new Pro tier still offers access to all Pro features, including the exclusive Pro model and unlimited access to Instant and Thinking models. To celebrate the launch, we’re increasing Codex usage for a limited time through May 31st so that Pro $100 subscribers get up to 10x usage of ChatGPT Plus on Codex to build your most ambitious ideas.

IPO: Microsoft told CNBC that the ChatGPT maker intends to reserve a portion of shares for individual investors in what’s anticipate to be a major IPO. Friar said the company has started testing the waters with retail in its latest funding round and saw “really strong demand” from individuals. “AI needs to garner trust in everything that we do. That is part of why retail particularly speaks to me,” Friar added. “It has to be that everyone partakes, that it isn’t just that a very small group, and everyone else gets left behind.” Meanwhile, OpenAI chief revenue officer Denise Dresser told CNBC that enterprise, which currently makes up 40% of the company’s revenue, is slated to equal consumer revenue by the end of this year.

CHIPS BUSINESS: In his annual letter to shareholders, Andy Jassy, CEO of Amazon (AMZN), states in part: “Having our own hotly demanded AI chip opens up many possibilities, but perhaps none larger than the ability to lower costs for customers and secure better economics for AWS. At scale, we expect Trainium will save us tens of billions of capex dollars per year, and provide several hundred basis points of operating margin advantage versus relying on others’ chips for inference. Our annual revenue run rate for our chips business (inclusive of Graviton, Trainium, and Nitro-our EC2 NIC) is now over $20 billion, and growing triple digit percentages YoY. To dimensionalize this versus other chips companies, that run rate is somewhat understated by our currently only monetizing our chips through EC2. If our chips business was a stand-alone business, and sold chips produced this year to AWS and other third parties (as other leading chips companies do), our annual run rate would be ~$50 billion. There’s so much demand for our chips that it’s quite possible we’ll sell racks of them to third parties in the future.”

NEGOTIATIONS: AI cloud company Nebius (NBIS) is in talks to acquire Israeli AI company AI21 Labs after Nvidia (NVDA) pulled out of negotiations with the firm, The Information reports, citing sources. AI21, which previously denied talks on a sale to Nvidia, is looking for an exit after failing to penetrate the market with language models but gaining relative success with its AI agent management product Maestro.

BEHAVIORAL INTELLIGENCE: Yobi announced a strategic partnership with Microsoft (MSFT) to unlock predictive consumer intelligence for U.S. enterprises. Built on the Microsoft Azure cloud computing platform, Yobi has compiled the largest consented consumer database in the U.S., helping organizations ethically access vast behavioral datasets to develop predictive AI models without compromising consumer privacy. “Yobi enables brands to reach net-new audiences earlier in the customer journey, converting previously untapped shoppers into high-LTV customers and driving actual incremental growth,” the company said. For Wolverine Worldwide (WWW) partnering with Yobi is delivering some of the strongest incremental returns its brands have recorded outside of paid search and social.

AI HARDWARE: AlphaTON Capital (ATON) announced an AI hardware and financing agreement with Vertical Data. The transaction, valued at approximately $43M, is a cornerstone of AlphaTON’s mission to scale its privacy-preserving AI infrastructure. The deal is expected to close in Q2, subject to customary closing conditions. This agreement marks an expansion of the existing collaboration between AlphaTON and Vertical Data. By leveraging Vertical Data’s expertise in high-performance compute and capital-efficient deployment, AlphaTON will accelerate the build-out of its sovereign AI capabilities. The partnership focuses on the deployment of a high-performance GPU cluster featuring the Nvidia (NVDA) B300 architecture. Financing for the initiative will be facilitated through Vertical Data’s GPUfinancing.com platform, providing AlphaTON with a streamlined, asset-backed approach to infrastructure growth with non-recourse financing.

AI INFRASTRUCTURE: Intel (INTC) and Google (GOOGL) announced a multiyear collaboration to advance the next generation of AI and cloud infrastructure, reinforcing the critical role of CPUs and custom infrastructure processing units in scaling modern, heterogeneous AI systems. As AI adoption accelerates, infrastructure is becoming more complex and heterogeneous, driving increased reliance on CPUs for orchestration, data processing and system-level performance. Through this collaboration, Intel and Google will align across multiple generations of Intel Xeon processors to improve performance, energy efficiency and total cost of ownership across Google’s global infrastructure.

EXPANDED AGREEMENT: CoreWeave (CRWV) announced an expanded, long-term agreement with Meta Platforms (META) to provide AI cloud capacity through December 2032 for approximately $21B. With this deal, the two companies are continuing their existing relationship, increasing support for Meta’s development and deployment of AI. The dedicated capacity will be deployed across multiple locations and will include some of the initial deployments of the NVIDIA Vera Rubin platform. This distributed approach is designed to optimize performance, resilience, and scalability for Meta’s AI operations.