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    Microsoft and OpenAI’s Close Partnership Shows Signs of Fraying

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    The “best bromance in tech” has had a reality check as OpenAI has tried to change its deal with Microsoft and the software maker has tried to hedge its bet on the start-up.Last fall, Sam Altman, OpenAI’s chief executive, asked his counterpart at Microsoft, Satya Nadella, if the tech giant would invest billions of dollars in the start-up.Microsoft had already pumped $13 billion into OpenAI, and Mr. Nadella was initially willing to keep the cash spigot flowing. But after OpenAI’s board of directors briefly ousted Mr. Altman last November, Mr. Nadella and Microsoft reconsidered, according to four people familiar with the talks who spoke on the condition of anonymity.Over the next few months, Microsoft wouldn’t budge as OpenAI, which expects to lose $5 billion this year, continued to ask for more money and more computing power to build and run its A.I. systems.Mr. Altman once called OpenAI’s partnership with Microsoft “the best bromance in tech,” but ties between the companies have started to fray. Financial pressure on OpenAI, concern about its stability and disagreements between employees of the two companies have strained their five-year partnership, according to interviews with 19 people familiar with the relationship between the companies.That tension demonstrates a key challenge for A.I. start-ups: They are dependent on the world’s tech giants for money and computing power because those big companies control the massive cloud computing systems the small outfits need to develop A.I.No pairing displays this dynamic better than Microsoft and OpenAI, the maker of the ChatGPT chatbot. When OpenAI got its giant investment from Microsoft, it agreed to an exclusive deal to buy computing power from Microsoft and work closely with the tech giant on new A.I.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Can Math Help AI Chatbots Stop Making Stuff Up?

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      Chatbots like ChatGPT get stuff wrong. But researchers are building new A.I. systems that can verify their own math — and maybe more.On a recent afternoon, Tudor Achim gave a brain teaser to an A.I. bot called Aristotle.The question involved a 10-by-10 table filled with a hundred numbers. If you collected the smallest number in each row and the largest number in each column, he asked, could the largest of the small numbers ever be greater than the smallest of the large numbers?The bot correctly answered “No.” But that was not surprising. Popular chatbots like ChatGPT may give the right answer, too. The difference was that Aristotle had proven that its answer was right. The bot generated a detailed computer program that verified “No” was the correct response.Chatbots like ChatGPT from OpenAI and Gemini from Google can answer questions, write poetry, summarize news articles and generate images. But they also make mistakes that defy common sense. Sometimes, they make stuff up — a phenomenon called hallucination.Mr. Achim, the chief executive and co-founder of a Silicon Valley start-up called Harmonic, is part of growing effort to build a new kind of A.I. that never hallucinates. Today, this technology is focused on mathematics. But many leading researchers believe they can extend the same techniques into computer programming and other areas.Because math is a rigid discipline with formal ways of proving whether an answer is right or wrong, companies like Harmonic can build A.I. technologies that check their own answers and learn to produce reliable information.Google DeepMind, the tech giant’s central A.I. lab, recently unveiled a system called AlphaProof that operates in this way. Competing in the International Mathematical Olympiad, the premier math competition for high schoolers, the system achieved “silver medal” performance, solving four of the competition’s six problems. It was the first time a machine had reached that level.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      He Made a Game About a Joyous Journey. He Also Got a Bit Lost.

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      Anthony Tan was 16 when his idea for a video game about a deer caught the industry’s eye. Nine years later, he’s still working on it.Anthony Tan’s hands shook as he took his seat in a dark Los Angeles theater. The neon green lights sporadically illuminated the 7,000 faces around him.Tan, a solo video game developer, was just 20 years old. Yet a trailer for his game, Way to the Woods, was about to share screen time with dozens of other coming Xbox titles, including those from mega-franchises like Gears of War and Halo. Unlike those games, created by teams of hundreds with eight- or nine-figure budgets, Tan had built his alone in his spare time, buoyed by grant funding.By the time he sat down in the theater at Microsoft’s annual hype-building event, in June 2019, Tan had watched his trailer more than 100 times. He knew every note, every camera pan. As the lights dimmed and the screen faded to black, he was too nervous to look. Everyone else watched his game’s stars — a deer and a fawn — appear onscreen, pushing a railway handcar across a golden plain.Even before the event was over, Tan’s phone blew up with Twitter messages from strangers. Millions of people had been watching the livestream online. Some praised the game’s art style, which Tan said was inspired by the Studio Ghibli movies “Princess Mononoke” and “Spirited Away”; others were intrigued by its unusual main characters.Tan was now shaking from adrenaline, not nerves.“It was absolutely exhilarating,” he said.Tan’s game about animals navigating an abandoned world had struck a chord. The final seconds of his stylish, mysterious trailer made a promise, or as close to one as the world of video game development allows: “Coming 2020 … for real this time.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Why Google, Microsoft and Amazon Shy Away From Buying A.I. Start-Ups

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      Google, Microsoft and Amazon have made deals with A.I. start-ups for their technology and top employees, but have shied from owning the firms. Here’s why.In 2022, Noam Shazeer and Daniel De Freitas left their jobs developing artificial intelligence at Google. They said the tech giant moved too slowly. So they created Character.AI, a chatbot start-up, and raised nearly $200 million.Last week, Mr. Shazeer and Mr. De Freitas announced that they were returning to Google. They had struck a deal to rejoin its A.I. research arm, along with roughly 20 percent of Character.AI’s employees, and provide their start-up’s technology, they said.But even though Google was getting all that, it was not buying Character.AI.Instead, Google agreed to pay $3 billion to license the technology, two people with knowledge of the deal said. About $2.5 billion of that sum will then be used to buy out Character.AI’s shareholders, including Mr. Shazeer, who owns 30 percent to 40 percent of the company and stands to net $750 million to $1 billion, the people said. What remains of Character.AI will continue operating without its founders and investors.The deal was one of several unusual transactions that have recently emerged in Silicon Valley. While big tech companies typically buy start-ups outright, they have turned to a more complicated deal structure for young A.I. companies. It involves licensing the technology and hiring the top employees — effectively swallowing the start-up and its main assets — without becoming the owner of the firm.These transactions are being driven by the big tech companies’ desire to sidestep regulatory scrutiny while trying to get ahead in A.I., said three people who have been involved in such agreements. Google, Amazon, Meta, Apple and Microsoft are under a magnifying glass from agencies like the Federal Trade Commission over whether they are squashing competition, including by buying start-ups.“Large tech firms may clearly be trying to avoid regulatory scrutiny by not directly acquiring the targeted firms,” said Justin Johnson, a business economist who focuses on antitrust at Cornell University. But “these deals do indeed start to look a lot like regular acquisitions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Congress Calls for Tech Outage Hearing to Grill Executive

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      The House Homeland Security Committee called on the chief executive of the cybersecurity firm CrowdStrike to testify on the disruption.A Congressional committee called on the chief executive of CrowdStrike to testify at a hearing about its role in a tech outage that roiled the global economy, in one of the first attempts to hold the cybersecurity company responsible.CrowdStrike sent a faulty security update to its customers Thursday night, resulting in millions of Microsoft Windows devices shutting down and disruptions to airlines, hospitals, logistics companies and others.Americans “deserve to know in detail how this incident happened and the mitigation steps CrowdStrike is taking,” wrote Representative Mark Green of Tennessee, the Republican chairman of the Homeland Security Committee, and Representative Andrew Garbarino, Republican of New York.The letter was sent to George Kurtz, CrowdStrike’s chief executive. Mr. Green and Mr. Garbarino asked the company for a response to scheduling the hearing this week, but did not specify when it would take place.“CrowdStrike is actively in contact with relevant congressional committees,” said a company spokeswoman. “Briefings and other engagement timelines may be disclosed at members’ discretion.”The request came as the world continued to deal with the fallout from the widespread outages. Delta Air Lines canceled more than 800 flights on Monday, leaving more passengers stranded. And other industries were still recovering after being knocked offline for hours.The outage underscores how the world has become reliant on a small group of companies to maintain its digital infrastructure. CrowdStrike, while little-known to most consumers, is the second largest American cybersecurity company. More than half of Fortune 500 companies use its products.“This incident demonstrates the interconnected nature of our broad ecosystem — global cloud providers, software platforms, security vendors and other software vendors, and customers,” said a Microsoft executive, David Weston, in a blog post on Saturday. “It’s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist.”CrowdStrike’s products are used primarily by large businesses, not consumers. Its flawed update sent computers running Microsoft’s Windows operating system into a spiral where they continually rebooted. Although CrowdStrike sent a fix, many computers didn’t get it because of the loop. In many cases, businesses had to delete the damaging file from each machine manually.Mr. Kurtz on Friday told NBC’s “Today” show that the incident was not a cyberattack and was the result of the faulty update. But the congressional committee said in its letter to Mr. Kurtz on Monday said that the incident still presented vexing security questions.“Malicious cyber actors backed by nation-states, such as China and Russia, are watching our response to this incident closely,” the lawmakers said. “Protecting our critical infrastructure requires us to learn from this incident and ensure that it does not happen again.”Representative Ritchie Torres, Democrat of New York, on Friday also asked the Department of Homeland Security to investigate the outages. More

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      Counting the Costs of the Microsoft-CrowdStrike Outage

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      A “historic” tech failure alarmed investors, after a security update caused problems for Microsoft devices and services, and took down businesses worldwide.A major IT outage involving Microsoft and CrowdStrike has caused major delays at airports around the world.Clemens Bilan/EPA, via ShutterstockThe glitch felt around the world Grounded flights, emergency services unreachable, payment systems not functioning — the world is assessing the damage caused by a cascade of IT outages that is spooking investors and grinding many businesses and government services to a halt.“This outage is historic in scale,” Mikko Hypponen, a research specialist at the software company WithSecure and a cybercrime adviser to Europol, told DealBook.The problem is being attributed to a tech upgrade gone wrong. All eyes are on CrowdStrike, the cybersecurity company. It issued a software update that is causing Microsoft systems, including its Azure cloud service, to crash or not function properly. George Kurtz, the C.E.O. of CrowdStrike, said on X that a fix is being deployed, adding it’s “not a security incident or cyberattack.”Here’s the latest: American, United and Delta had grounded flights, according to the F.A.A. Airlines in Europe and Asia, including Air France-KLM and Japan Airlines, also had reported delays or cancellations. Some had reported a partial return to service.Long queues of airline passengers could be seen at airports around the world, with some resorting to manual check-in. In France, the television networks TF1 and Canal+ told the public on X that they could not go on the air on Friday morning. Comcast’s Sky News in the U.K. also went dark for a spell.The incident points to how reliant the global economy is on a handful of major tech companies to run vital infrastructure. CrowdStrike, a major cybersecurity vendor, is taking the brunt of the hit. Its stock was down nearly 12 percent in premarket trading. Microsoft was down about 1.4 percent, and also said a resolution was forthcoming.Security has become a big focus in the cloud wars. Google is trying to bolster its cloud operations with an eye on cybersecurity. The company is in talks to buy Wiz, a New York-based cybersecurity firm, in what would be its biggest acquisition ever, and an effort to take market share from Microsoft.Expect tough questions about the business world’s computing systems. Financial regulators in the U.K. have already begun speaking with financial services companies to learn the extent of the damage on banks and payment companies, The Financial Times reports.In other IT news: A U.S. judge dismissed most claims against SolarWinds, an IT security company, and its chief information security officer; the S.E.C. had sued the company after it was hacked by Russian agents in 2020.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Frontier Airlines Briefly Grounds All Flights Amid Microsoft Outage

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      A problem with Microsoft’s Azure system also hit check-in and booking systems at Allegiant and Sun Country Airlines.Frontier Airlines briefly grounded all flights on Thursday amid a major outage in Microsoft networks, which also knocked out some computer systems at low-cost carriers Allegiant Air and Sun Country Airlines.Microsoft said on the status page for Azure, its flagship cloud computing platform, that the problem began at 5:56 p.m. and affected multiple systems for customers in the central United States.“Our systems are currently impacted by a Microsoft outage, which is also affecting other companies. During this time booking, check-in, access to your boarding pass, and some flights may be impacted,” Frontier said in a post on X.The airline issued a ground stop for all its flights, according to a notice posted on the Federal Aviation Administration’s website. The ground stop was lifted about 35 minutes later.Airlines sometimes issue these orders to temporarily halt flights because of technical issues.Frontier did not specify how many flights and passengers have been affected so far. The Denver-based airline operates a fleet of more than 100 planes, according to its website.The Microsoft outage hit at least two other airlines.“One of our information vendors is experiencing a global outage affecting multiple airlines. As a result, some of our services are temporarily unavailable,” Sun Country said.Allegiant said on X that customers may face problems with check-ins, bookings and issuing boarding passes. More

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      Autistic Employees Find New Ways to Navigate the Workplace

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      As diagnoses of autism rise, Microsoft and other large companies are working to better support autistic workers so they can thrive without “masking.”When Chelsia Potts took her 10-year-old daughter to a psychologist to be tested for autism spectrum disorder, she decided almost as an afterthought to be tested herself. The result came as a surprise. Like her daughter, Ms. Potts was diagnosed with autism.Ms. Potts, 35, thought she might have had anxiety or some other issue. A first-generation college student, she had earned a doctor of education degree and risen through academia to become a high-level administrator at Miami University in Oxford, Ohio. But after her visit to the psychologist, she had to figure out how her diagnosis would affect her work life.“Initially, I was confused, and I did keep it to myself,” Ms. Potts said. “I had a picture of what someone with autism looked like, and that did not look like me.”She considered the ways she had compensated in the past in an effort to hide her disability and come across as a model employee — a coping mechanism known as “masking.”For years, she had angled to meet with co-workers one on one, because she felt ill at ease in group settings. She reminded herself to smile and appear enthusiastic, knowing that some people found her speaking voice overly serious. She also tried to avoid bright lights and noise in the workplace.After wrestling with her diagnosis for six months, Ms. Potts met with a university official. That conversation “was one of the most difficult experiences of my life,” she said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More