The Observation Engine

AI data centres are quickly becoming one of the most important and expensive pieces of our digital future. Worldwide, around $3 trillion will be spent on AI-ready data centres between now and 2029, rivalling the value of the French economy. Why Are AI Data Centres Different? Specialised Hardware & Massive Power : AI is extremely power-hungry; one ChatGPT prompt uses 10x the electricity of a Google search. These centres rely on cabinets full of GPUs (like Nvidia chips), each costing around $4 million. AI data centres demand “hyperscale” or even “gigawatt” levels of electricity, enough to power entire cities. Extreme Density and Low Latency : Unlike regular centres (storing photos, emails, apps), AI centres must pack thousands of chips close together for “parallel processing.” Even a meter of extra distance slows down learning and response times; every nanosecond counts when training massive AI models. Network and Edge Demands : Data transfer speeds and hyper-fast internal...

Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) that paves the way for a significant restructuring of their partnership, as OpenAI seeks to transition into a for-profit entity and expand its future business. Key Points of the New Partnership From Nonprofit to For-Profit: OpenAI is moving toward a more traditional governance and fundraising model, with plans to go public in the future. Microsoft’s approval is crucial due to its prior investments and contract structure. Microsoft Remains a Key Partner: Microsoft has invested over $13 billion in OpenAI since 2019 and will continue to offer cloud support and infrastructure. However, Microsoft is also building its own AI models and exploring partnerships beyond OpenAI. Expanded Cloud Capacity: OpenAI can now engage additional partners, evidenced by its recent $300 billion data center deal with Oracle and a cloud partnership with Google, marking an end to Microsoft’s exclusive rights as OpenAI’s...

OpenAI has signed what is reported to be one of the largest cloud computing contracts in history, a $300 billion agreement with Oracle spanning roughly five years starting in 2027. This deal is a cornerstone of OpenAI’s ambitious infrastructure initiative called Project Stargate, aimed at building massive AI data centers across the United States. Key Details The $300 billion contract covers computing resources Oracle will provide to OpenAI to power its AI models and services. The deal aligns with building 4.5 gigawatts of new data center power capacity , which is enough electricity to power more than four million U.S. homes. Project Stargate involves partners including OpenAI, Oracle, SoftBank, and former President Trump and envisions investing over $500 billion into AI infrastructure over the next few years. This cloud computing pact far exceeds OpenAI’s current revenues and signals the skyrocketing costs and scale required to develop and deploy advanced AI systems. ...

Sam Altman (OpenAI CEO) and Vinod Khosla (Khosla Ventures) recently discussed the future of AI, moving from today’s chatbots toward AGI (artificial general intelligence), the rapid change of technology, and how AI may rewrite what it means to build, learn, and create in the upcoming decades. Major Takeaways 2035 and Beyond: An Unrecognizable World? Altman and Khosla imagine a world by 2035-2050 where technology changes so fast it’s hard for today’s minds to even grasp the pace or consequences. Software may be created “just in time”; type what you want, and a new app appears instantly, possibly rendering many traditional software companies obsolete. Physical world changes (like manufacturing) will lag behind, but over the next 10+ years, both software and some physical industries may be radically reshaped. Companies and Jobs: Who Will Survive? Large, slow Fortune 500 firms may face their “fastest demise ever,” with new companies forming and scaling faster than ever befo...

A new animated movie called "Critterz" is making history as one of the first feature films created mainly with artificial intelligence tools. Backed by OpenAI and expected to premiere at the Cannes Film Festival , this film could transform how movies are made and how quickly they reach the big screen. What Makes "Critterz" So Special? AI at the Core: Most of the movie’s creation, from animation to design, is powered by OpenAI’s advanced tools like Dall-E. This is not just a short demo, it's a full-length cinematic adventure about forest creatures on a quest. Speed and Savings: With a budget of less than $30 million, it's much cheaper than big Hollywood films (for example, Disney’s "Tangled" cost over $200 million). Plus, the film will be made in just nine months, a fraction of the typical three to four years it usually takes to produce an animated feature. Creative Vision: Chad Nelson, an OpenAI creative specialist, started "Crit...

OpenAI has announced plans to launch an AI-focused job search platform by mid-2026, aiming to revolutionize how employers find talent and job seekers connect with the right opportunities. The move puts OpenAI in direct competition with LinkedIn, Microsoft’s professional networking giant, despite Microsoft being one of OpenAI’s largest investors. What is the OpenAI Jobs Platform? The platform will use AI to match employers with candidates based on skills, experience, and company needs rather than just keywords or resumes. It will feature a dedicated track for small businesses and local governments to access AI talent, helping them compete with larger organizations. The service plans to integrate with OpenAI’s certification programs , offering validated credentials in AI fluency, prompt engineering, and workplace AI skills through the OpenAI Academy , a free online learning platform. OpenAI aims to certify millions of workers by 2030 to help close the AI skills gap and su...

OpenAI, the creator of ChatGPT, is set to open its first-ever India office in New Delhi later this year . This move represents a landmark moment—not just for OpenAI’s global expansion, but also for the growth of India’s AI ecosystem and its 1.4 billion residents, who make India OpenAI’s second-largest user market after the US . Why India, and Why Now? User Growth: India’s adoption of ChatGPT is explosive. Weekly active users in India have quadrupled in the past year, and the country boasts the largest population of student users on the OpenAI platform globally. Developer Community: India now ranks among the top five developer markets for OpenAI, with strong enthusiasm from tech professionals, startups, and students. Expanding Access: OpenAI recently launched its most affordable monthly subscription for ChatGPT, priced at ₹385 ($4.60), targeting nearly a billion internet users. IndiaAI Mission: Led by the Indian government, this initiative aims to position India as a ...

On August 7, 2025, OpenAI unveiled GPT-5 , its most advanced artificial intelligence model yet, an announcement that’s being hailed as a major leap in the fast-evolving AI landscape. Praised for unprecedented intelligence, reasoning, and flexibility, GPT-5 is not just an upgrade; it’s a statement about where artificial intelligence is headed next. What Makes GPT-5 Stand Out? 1. Smarter, Faster, More Reliable OpenAI describes GPT-5 as its “smartest, fastest, and most useful” model to date, now available to all ChatGPT users, including those on the free plan. It excels in writing, coding, health advice, and even advanced research , with PhD-level reasoning on complex topics. With a massive 272,000-token context window , GPT-5 can handle long documents and chats without losing track, making deep conversations and research much smoother. 2. Reduced Hallucinations, Safe and Transparent One of the biggest leaps: GPT-5 is about 45% less likely to fabricate information (“hal...

In 2025, Hollywood isn’t just making sci-fi about intelligent machines—it’s deep in a very real struggle with AI. This clash isn’t just about technology; it’s about who creates, who controls art, and who gets paid. As artificial intelligence transforms every part of the filmmaking and entertainment process, Hollywood’s old structure is facing its biggest disruption ever. Why Is Hollywood Worried? AI has already revolutionized filmmaking. Algorithms can write scripts, generate storyboards, de-age actors, produce special effects, compose music, and even generate full video scenes in minutes. Tools like OpenAI’s Sora, Runway’s Gen-4 Turbo, and Google’s Veo 3 can make short but impressive video clips using text prompts. Studios and indie filmmakers alike are thrilled by the promise of reducing costs, streamlining production, and enabling creative risks that would have been impossible a decade ago. But these gains come with real risks: Job Loss and Devaluation of Talent: AI handles v...