Wednesday’s AI Report
• 1. 👀 Microsoft swaps OpenAI for Anthropic?
• 2. 🏠 Invest in this real estate start-up, Pacaso
• 3. 🌍 How ESPN expanded sports coverage with AI
• 4. 💼 Build an AI consultancy career with Innovating with AI
• 5. 💡 Partner Perspectives
• 6. ⚙️ Trending AI tools
• 7. 🧠 NVIDIA reveals biggest AI chip yet
• 8. ⚖️ Judge halts Anthropic’s $1.5B settlement
• 9. 📑 Recommended resources
Read Time: 5 minutes
❓Wednesday’s Partner Perspective: Are NVIDIA’s scaling opportunities within NVIDIA itself, or in its supply chain? Scroll down to find out what The AI Report’s Director of Partnerships, Kyle Mair, thinks ⬇️
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Microsoft swaps OpenAI for Anthropic?
🚨 Our Report
Microsoft has struck a partnership with one of OpenAI’s biggest rivals, Anthropic, to use its AI models to power features within its Office 365 suite. This move highlights Microsoft's intent to reduce reliance on one single-provider, OpenAI, which could further intensify potential tensions between the two.
🔓 Key Points
Anthropic’s latest AI model, Claude Sonnet 4, will power certain features in Microsoft’s Word, Excel, Outlook, and PowerPoint applications, which were previously, solely, powered by OpenAI’s GPT-5 model.
Insiders revealed that this isn’t a bargaining tactic from Microsoft: Rather, Microsoft feels that Anthropic’s models outperform OpenAI’s in areas like automating tasks in Excel and generating effective PowerPoints.
Microsoft already uses Anthropc’s Claude and xAI’s Grok to power GitHub Copilot, and it recently released its first, in-house models (MAI-Voice-1 and MAI-1-preview), to diversify and reduce reliance on providers.
🔐 Relevance
Reports about rising tensions between OpenAI and its biggest backer, Microsoft, for many months, as both make moves to reduce dependency and become more independent: OpenAI, for instance, is reportedly building its own infrastructure to reduce reliance on Microsoft’s Azure Cloud, has plans to mass-produce its own AI chips with Broadcom, and is even venturing into areas that directly compete with Microsoft, including building a LinkedIn alternative (LinkedIn is a subsidiary of Microsoft). Despite this, Microsoft insists that “OpenAI will continue to be our partner on frontier models and we remain committed to our long-term partnership."
Do you think Microsoft's new partnership with Anthropic is a smart move?
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NVIDIA’s Supply Chain - Part 1
By Kyle Mair · Director of Partnership at The AI Report
The AI Report Partner Perspectives Column
“When NVIDIA announces production targets, TSMC's capacity allocation becomes the bottleneck that determines whether those targets are realistic.”
NVIDIA’s dominance relies on a fragile but powerful supply chain spanning TSMC, ASML, Applied Materials, Micron, and Samsung. But these firms represent chokepoints, and their strategic roles make NVIDIA’s scaling plans dependent on just a handful of partners.
How ESPN expanded sports coverage with AI
ESPN, a US sports media brand, wanted to scale its coverage by including under-served sports, without overtaxing editorial resources.
They deployed an AI system that analyzed structured data like box scores, play-by-play logs, rosters, schedules, and audio transcripts.
The system produced game recaps for under-covered sports, so ESPN just needed to review AI copy for tone and accuracy, before publishing.
Recaps are now regularly generated for overlooked sports, broadening content reach, without incurring huge increases in editorial effort.
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At the annual AI Infrastructure Summit, NVIDIA, revealed its newest chip, called Rubin CPX, which has been specifically designed for context windows bigger than 1M tokens, and will be available next year.
What this means is that AI models powered by this new chip will be able to handle and process around 750 words at once (which is the equivalent of about 3,000–4,000 book pages), before giving its response.
For context, older models like GPT-3.5, for example, could process just 12,000 words before forgetting earlier parts, meaning this new chip could perform better on tasks like video generation or software development.
Earlier this week, we reported that Anthropic had agreed to pay $1.5B to three authors, as part of a lawsuit which alleged the start-up had breached copyright laws by illegally training their AI models on pirated books.
Now, federal Judge, William Alsup, needs “further information,” before he can approve the settlement, and warned both parties that if he doesn’t receive this information by September 25, the case will proceed to court.
Judge Alsop slammed the proposed settlement as “nowhere near close to complete,” claiming he felt “misled” by a lack of detail, particularly around whether the settlement funds would actually reach the authors.
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