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

Here’s what we got for ya today:

• 🤖 OpenAI o3-mini released

• ❌ DOJ sues to block HPE’s $14B acquisition of Juniper Networks

• 📜 AI generated content can be copyrighted

• 🧞‍♂️ Alibaba says Qwen 2.5 as superior to Meta, DeepSeek

Let’s get right into it!

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STARTUPS

OpenAI o3-mini released

OpenAI has released o3-mini, a smaller, cost-effective AI model with enhanced reasoning capabilities, marking the first time free ChatGPT users can access reasoning features. The launch follows DeepSeek’s release of its R1 model, intensifying the U.S.-China AI race. o3-mini offers three levels of reasoning and improved response speed while using fewer resources.

Designed to outperform o1 in coding and complex reasoning tasks, o3-mini is 93% cheaper and offers lower latency. Users can select from three reasoning effort levels—low, medium, and high— to balance speed and complexity. With a 200,000-token context window and a max output of 100,000 tokens, it’s optimized for agentic and coding use cases.

OpenAI also introduced Chain-of-Thought (CoT) reasoning, similar to DeepSeek’s approach, to improve problem-solving accuracy. Meanwhile, OpenAI is actively raising funds, reportedly in talks with SoftBank for a multi-billion-dollar investment, reinforcing its push to lead in AI innovation.

BIG TECH

DOJ sues to block HPE’s $14B acquisition of Juniper Networks

Hewlett Packard Enterprise’s (HPE) $14 billion acquisition of Juniper Networks is widely seen as a strategic move to strengthen its AI-driven networking capabilities, positioning it as a serious competitor to Cisco. The overwhelming demand for AI-powered networking solutions since the deal’s announcement, with many Cisco customers eager for an alternative. The ability to use AI for real-time network diagnostics and automation could significantly disrupt the industry.

However, concerns over potential antitrust challenges from the Department of Justice have cast uncertainty over the deal’s approval. HPE remains optimistic, arguing that the merger fosters competition and enhances national security. Meanwhile, partners like Shelley and Rob Schaeffer of e360 have already invested in Juniper’s platform, emphasizing that AI-driven networking is the future, regardless of regulatory hurdles.

DOJ lawsuit PDF.

GOVERNMENT

AI generated content can be copyrighted

The U.S. Copyright Office has clarified that AI-generated content can receive copyright protection, but only when a human has made substantial contributions or modifications. This update, outlined in the "Copyright and Artificial Intelligence, Part 2: Copyrightability" report, reaffirms that human creativity remains central to copyright law, ensuring that works incorporating AI assistance—such as edited AI-generated images, structured narratives, or refined musical compositions—can qualify for protection.

However, simply providing a text prompt to an AI system is not enough to establish authorship. The Copyright Office sees no need for new legislation but will continue monitoring developments. This decision provides reassurance to creators and businesses that their intellectual property remains protected, even as AI tools become more prevalent in creative industries. While celebrated by AI artists and filmmakers, the ruling leaves open questions about the legal implications of training AI on copyrighted material, which will be addressed in a future report.

Full PDF here.

BIG TECH

Alibaba says Qwen 2.5 as superior to Meta, DeepSeek

Alibaba has unveiled Qwen 2.5-Max, its latest AI model, claiming it outperforms OpenAI’s GPT-4o, DeepSeek-V3, and Meta’s Llama-3.1-405B across multiple benchmarks. While details remain scarce, the release comes amid the rapid rise of DeepSeek, which has disrupted the AI landscape with its competitive performance and cost efficiency.

The timing of Alibaba’s announcement—on the first day of the Lunar New Year—suggests growing pressure on both international and domestic AI competitors. As DeepSeek’s popularity soars and OpenAI launches new government-focused AI tools, the AI race between U.S. and Chinese companies continues to intensify.