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February 21, 2025

Report: OpenAI plans to shift compute needs from Microsoft to SoftBank

OpenAI is forecasting a major shift in the next five years around who it gets most of its computing power from, The Information reported on Friday.

By 2030, OpenAI expects to get three-quarters of its data center capacity from Stargate, a project that’s expected to be heavily financed by SoftBank, one of OpenAI’s newest financial backers. That represents a major shift away from Microsoft, OpenAI’s biggest shareholder, who fulfills most of the startup’s power needs today.

The change won’t happen overnight. OpenAI still plans to increase its spending on Microsoft-owned data centers in the next few years.

During that time, OpenAI’s overall costs are set to grow dramatically. The Information reports that OpenAI projects to burn $20 billion in cash during 2027, far more than the $5 billion it reportedly burned through in 2024. By 2030, OpenAI reportedly forecasts that its costs around running AI models, also known as inference, will outpace what the startup spends on training AI models.

Keep reading the article on Tech Crunch


Report: AI coding assistants aren’t a panacea

As they gain in popularity, AI coding assistants such as GitHub Copilot may appear to be boosting productivity. But in reality, they could be causing overall code quality to decline.

That’s the top-line finding from a new report released by software engineering platform GitClear, which analyzed 211 million code lines from 2020 to 2024. According to GitClear’s analysis, there was a remarkable decline in code reuse last year — a potential cause for concern, given that code reuse is a common practice to help build redundant systems.

Several recent surveys have shown that AI coding assistants tend to produce mixed results.

One from software vendor Harness found the majority of devs spend more time debugging AI-generated code and security vulnerabilities compared to human-written contributions. A Google report, meanwhile, found that AI can quicken code reviews and benefit documentation, but at the cost of delivery stability.

Keep reading the article on Tech Crunch


February 20, 2025

Amazon shuts down Chime, its Zoom alternative

Amazon Chime, the tech giant’s underwhelming alternative to Zoom and Google Meet, is shutting down for good. The company on Wednesday confirmed it will end support for Chime, including its Business Calling features, on February 20, 2026.

As part of this transition, Amazon stopped accepting new Chime accounts as of February 19, 2025.

From now until Chime’s end of life, existing customers will still be able to schedule and host meetings, add and manage users, and take advantage of features in the Amazon Chime administration console, a company blog post explains. The Amazon Chime SDK, however, will not be impacted.

Customers are advised to delete their data before the shutdown and make the move to another web meetings service. Amazon recommends other solutions like AWS Wickr, Zoom, or Salesforce’s Slack.

News of the shutdown was first reported by Business Insider, which notes that Amazon will make Zoom its official meeting app going forward.

Launched in 2017 with a focus on business usage, Chime had little adoption outside of Amazon. This factor largely contributed to its shutdown, a spokesperson told the outlet.

Keep reading the article on Tech Crunch


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