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Monday’s top story: OpenAI has shot down rumors that they’re announcing a ChatGPT-powered search engine (a day before Google’s major developer conference), but will be announcing updates that “people will love.”

🤔🤔🤔🤔

🌤️ This Morning on AI Tool Report

1. 😲 ChatGPT search rumors killed...BUT…

2. 💰 Microsoft fined $240M!

3. 👶 Anthropic AI available for kids

4. 📲 ChatGPT on iPhones IS happening

Read Time: 5 minutes

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😲 ChatGPT search rumors killed...BUT…

Our Report: OpenAI’s CEO, Sam Altman, has shot down rumors that OpenAI will announce a ChatGPT-powered search engine—one day before Google’s flagship conference, Google I/O—but did confirm that they will announce something “people will love!”

🔑 Key Points:

• Altman confirmed that OpenAI will be hosting a live demo on their website, on Monday, May 13th, at 10 am PT (1 pm ET), but it will not be about GPT-5 or a search engine.

• It’s expected that the live stream will “demo some ChatGPT and GPT-4 updates” with some speculation that it will be the announcement of GPT-4.5, to address current knowledge limits.

• Others believe that it could be an update to text-to-video model, Sora, or the announcement of a multimodal digital assistant, but whatever it is, Altman said it “feels like magic.”

🤔 Why you should care: Although we will not see a ChatGPT-powered search engine, if OpenAI does announce an upgraded GPT model that provides faster, more accurate responses with image input and audible responses packaged into one app, it will directly threaten Google’s Gemini.

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LAWSUITS

💰 Microsoft fined $240M! 

Our Report: After a week-long court case, a US jury has found Microsoft guilty of patent infringement and has hit them with a $242M fine.

🔑 Key Points: 

• IPA Technologies filed a lawsuit against Microsoft in 2018, claiming they had violated its voice recognition technology patent with Microsoft’s Cortana virtual assistant.

• They originally acquired the voice recognition patent from SRI International’s Siri Company, which Apple then acquired in 2010, using the technology for Siri, its own virtual assistant.

• Microsoft has announced that they plan to appeal the decision, claiming the patent was invalid, and that they “remain confident that Microsoft hasn’t infringed on IPA's patents.”

🤔 Why you should care: This isn’t the first time IPA Technologies has filed a lawsuit like this: They previously sued Google and Amazon over similar patents, and while Amazon was successful in its case in 2021, Google’s case is still ongoing.

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REGULATIONS

👶 Anthropic AI available for kids

Our Report: AI startup and OpenAI rival, Anthropic, is changing its policies to allow teens and preteens to use third-party AI tools powered by its AI models, believing that “AI tools can provide significant benefits to younger users, such as test preparation or tutoring support.”

🔑 Key Points:

• Anthropic has put strict safety measures, features, and limitations in its updated policies that developers—leveraging its AI models to build AI-powered apps—must follow.

• These include implementing age verification systems, content moderation and filtering, and educational resources on “safe and responsible” AI use for minors.

• They must also comply with child safety and data privacy regulations such as the Children’s Online Privacy Protection Act, a US law that protects children under 13.

🤔 Why you should care: Anthropic's decision comes as kids are increasingly using AI tools to help with things like schoolwork and personal issues, and its rival OpenAI formed a child safety team and is collaborating with Common Sense Media to create kid-friendly AI guidelines.

DEALS

📲 ChatGPT on iPhones IS happening

Our Report: According to an industry analyst, Apple is about to finalize an agreement with OpenAI to integrate ChatGPT into its future operating system: iOS 18.

🔑 Key Points:

• Insiders believe that Apple will use ChatGPT technology to improve existing apps and services, like giving summarization capabilities for Messages and Safari.

• Apple is also reportedly in talks with Google about bringing Gemini to Apple devices, meaning both OpenAI and Google could bring AI features to iOS 18-powered devices.

• It’s expected that Apple will officially announce iOS 18 at its Worldwide Developers Conference (WWDC) in June, which will reveal what its AI features will look like.

🤔 Why you should care: Apple has been working on its own large language model—codenamed “Ajax”—to power its devices, but it’s thought that it will not be ready in time for the launch of iOS 18, so it's turning to OpenAI and Google so it doesn’t get left behind in the AI race.

🍔 Quick hits

• Anthropic’s iOS mobile app—which provides access to Claude 3—has received a lukewarm reception, compared to rival OpenAI’s ChatGPT iOS debut.

•  Apple is improving Siri so it handles tasks like setting timers, creating calendar appointments, and adding items to grocery lists, better.

• The UK's AI Safety Institute has released a toolset designed to evaluate the safety of AI models: the first state-backed AI safety testing platform to be made publicly available.

• Microsoft plans to spend $4.3B on cloud and AI infrastructure in France, aiming to train 1M people and support 2,500 startups by 2027.

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