Welcome to Daily Zaps, your regularly-scheduled dose of AI news ⚡️ 

Here’s what we got for ya today:

• 💔 Best bromance in tech could be ending

• 🎖️ U.S. Army to use AI in its operations

• 🗣️ Google NotebookLM update

• 🤖 Generative AI startups get 40% of all VC investments

Let’s get right into it!

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BIG TECH

Best bromance in tech could be ending

Tensions have emerged between OpenAI and Microsoft as OpenAI seeks more funding and computing power while Microsoft reconsiders its investment after internal turmoil at OpenAI. The two companies, once tightly partnered, are now experiencing strain due to financial pressures, exclusivity in their contract, and growing competition.

OpenAI secured additional computing resources through a $10 billion deal with Oracle, while Microsoft hedged its bets by hiring staff from an OpenAI competitor. Despite the friction, both companies remain tied by their need for each other’s technologies, although OpenAI continues to explore new partnerships.

GOVERNMENT

U.S. Army to use AI in its operations

The U.S. Army has become the first Department of Defense branch to deploy a generative AI platform across its operations. Implemented on the Army's cARMY cloud environment, the platform allows personnel to code faster, analyze data more efficiently, and complete tasks at unprecedented speeds.

This AI integration has significantly increased productivity, enabling developers to code 35 times faster and acquisition experts to complete tasks 50 times more quickly. Army officials emphasize that AI will enhance human capacity, not replace it, helping to reduce long-standing backlogs and improve mission execution.

BIG TECH

Google NotebookLM update

Google's NotebookLM now allows users to customize its AI-generated Audio Overviews by providing instructions on specific topics or tailoring discussions for different audiences. These overviews feature two AI hosts offering dynamic discussions based on user-provided sources and instructions.

Users can personalize the conversations through the app's "Deep dive conversation" feature. Additionally, Google has introduced background listening, enabling users to hear these discussions while working in other areas of the app. NotebookLM also supports deeper exploration of YouTube videos with transcriptions.

BUSINESS

Generative AI startups get 40% of all VC investments

Generative AI startups are receiving 40% of all venture capital funding for cloud companies, with AI driving much of the growth in the cloud industry. According to Accel's Euroscape report, cloud venture funding in the U.S., Europe, and Israel is projected to reach $79.2 billion in 2023, a 27% increase from the previous year.

This surge is fueled by the excitement around AI, as major companies like OpenAI and Anthropic lead the way in securing large investments. AI is reshaping IT budgets, with many funds now directed towards building AI applications and foundational models.