Figure drops OpenAI in favor of in-house models

Figure AI, a company striving to introduce general-purpose humanoid robots for both commercial and residential applications, announced on X that it is ending its collaboration with OpenAI in favor of its own in-house AI development. The Bay Area-based robotics firm cited a “major breakthrough” in AI as the primary reason for this shift. While details remain scarce, founder and CEO Brett Adcock assured Techfulnews that Figure AI will unveil a groundbreaking humanoid AI advancement within the next 30 days.

Strategic Shift Away from OpenAI

OpenAI has played a notable role in Figure AI’s journey, previously collaborating on next-generation AI models for humanoid robots. In 2023, Figure AI secured $675 million in funding, bringing its valuation to $2.6 billion. To date, the company has raised $1.5 billion from investors, highlighting the immense financial backing behind its ambitious projects.

The decision to sever ties with OpenAI is unexpected, given the latter’s dominant position in artificial intelligence. Simply being associated with OpenAI typically offers companies a significant visibility boost. Just last August, Figure AI confirmed that its Figure 02 humanoid would utilize OpenAI’s models for natural language interactions.

The Challenge of Integration

Despite OpenAI’s expertise in AI-driven applications, Adcock pointed out that the integration process posed serious challenges. OpenAI operates on a massive scale, focusing primarily on general AI applications rather than embodied AI, which integrates artificial intelligence into physical systems such as robots. According to Adcock, vertical integration is the key to successfully scaling humanoid robotics.

“To solve embodied AI at scale in the real world, you have to vertically integrate robot AI,” Adcock told Techfullnews. “We can’t outsource AI for the same reason we can’t outsource our hardware.”

OpenAI’s Expanding Interest in Humanoid Robotics

Interestingly, OpenAI has been diversifying its investments in humanoid technology. The company is a major backer of 1X, a Norwegian robotics startup that focuses on humanoids for home applications. While many humanoid robot firms target industrial and warehouse automation, 1X has pivoted toward residential use cases.

Furthermore, OpenAI’s latest trademark application, filed with the U.S. Patent and Trademark Office (USPTO), suggests an interest in humanoid robotics. The filing references “user-programmable humanoid robots” and “humanoid robots with communication and learning capabilities”, fueling speculation that OpenAI might be developing its own hardware.

Figure AI’s Focus: Industry Over Homes

Although Figure AI has explored residential applications for its robots, its primary focus remains industrial deployments. This strategy aligns with automakers’ greater financial resources for testing and implementing emerging technologies. BMW, for example, began deploying Figure robots at its South Carolina factory in 2023, marking a significant milestone for the company.

The Competitive Landscape: Proprietary AI vs. Partnerships

The robotics industry remains divided on whether to develop proprietary AI models or rely on external partnerships. While Figure AI is doubling down on in-house development, other leading humanoid firms continue collaborating with AI specialists.

For instance, Boston Dynamics has partnered with the Toyota Research Institute to enhance its Atlas humanoid robot with advanced AI capabilities. The approach mirrors Apple’s vertically integrated ecosystem, where software is optimized specifically for proprietary hardware. However, achieving seamless hardware-software synergy is both complex and resource-intensive.

The Road Ahead for Figure AI

With its deep financial backing, Figure AI has been able to rapidly scale its hardware and software teams, recently relocating to a larger Bay Area office to accommodate its growth. The company’s shift away from OpenAI marks a pivotal moment in its mission to redefine humanoid robotics through proprietary AI models.

The next 30 days will be crucial, as Figure AI promises to showcase a technological advancement that has never been seen on a humanoid robot. If successful, this move could position the company as a leader in the humanoid robotics space, setting a new standard for vertically integrated AI-powered robots.

After a five-year hiatus, Fortnite is back on the US App Store

A program is launched by Meta to promote the adoption of their Llama AI models by companies

Signal’s latest Windows version stops the system from taking chat screenshots

Burnout in PlayStation Stars

News

Without the Google search agreement, Firefox may be gone, according to an executive

by George Mensah 2025-05-04

The future of Mozilla Firefox hangs in the balance as the U.S. Department of Justice (DOJ) pushes for sweeping restrictions on Google’s search monopoly. Eric Muhlheim, Mozilla’s Chief Financial Officer, testified in court that the proposed remedies—including banning Google from paying to be the default search engine in third-party browsers—could devastate Firefox’s revenue and potentially force it out of business.

Why Firefox’s Survival Is at Risk

Firefox, the only major browser not controlled by a tech giant, relies heavily on its partnership with Google. According to Muhlheim:

90% of Mozilla’s revenue comes from Firefox.
85% of that revenue is tied to its Google search deal.

If the court enforces the DOJ’s demands, Mozilla would face immediate financial turmoil, leading to deep cuts in engineering, innovation, and user experience improvements. This could trigger a “downward spiral”, making Firefox less competitive and accelerating its decline.

The Domino Effect on Web Competition

The Loss of Gecko: A Threat to an Open Web

Firefox’s Gecko engine is the only independent browser engine not owned by Apple (WebKit) or Google (Chromium). If Firefox collapses:

Big Tech’s control over the web grows stronger—exactly what antitrust regulators are trying to prevent.
Fewer choices for users—reducing competition in browser innovation and privacy features.
Less funding for Mozilla’s nonprofit initiatives, including open-source web tools and AI-driven climate research.

Why Switching to Bing (or Another Search Engine) Isn’t a Viable Solution

Mozilla has explored alternatives, but the reality is grim:

Bing doesn’t monetize searches as effectively as Google, meaning lower revenue share for Mozilla.
Past experiments with Yahoo as the default led to mass user abandonment.
Without Google’s bids, Mozilla would have less leverage in negotiations, further reducing income.

The DOJ’s Dilemma: Fixing Google’s Monopoly Without Killing Competitors

The DOJ’s goal is noble—breaking Google’s stranglehold on search—but the unintended consequences could be catastrophic. If Firefox disappears:

✅ Google Chrome’s dominance grows—fewer competitors mean less incentive for privacy and performance improvements.
✅ Apple’s Safari remains the only alternative, further consolidating power in the hands of tech giants.
✅ Innovation suffers—Firefox has been a pioneer in privacy features like Enhanced Tracking Protection.

Can Mozilla Survive Without Google’s Money?

Muhlheim’s testimony paints a bleak picture:

“We would be really struggling to stay alive… waiting on a hypothetical future where more search competitors emerge.”

The harsh truth? Regulators must act carefully—if they dismantle Google’s monopoly too aggressively, they might inadvertently strengthen it by eliminating its biggest rival.

The Path Forward: Balancing Antitrust Enforcement & Browser Survival

To preserve a diverse, competitive web, regulators should consider:

Phasing out Google’s default deals gradually—giving Mozilla time to adapt.
Mandating revenue-sharing transparency—ensuring fair competition in search monetization.
Supporting independent browsers—through grants or antitrust settlement funds.

Final Thoughts: Why Firefox’s Survival Matters

Firefox is more than just a browser—it’s a guardian of an open, decentralized internet. If it falls, the web becomes a duopoly of Google and Apple, with fewer choices for users and developers.

The DOJ’s case against Google is necessary, but the remedy must protect competitors, not destroy them. Otherwise, the cure could be worse than the disease.

News

Microsoft anticipates good growth for Azure cloud business, shares soar 7%

by George Mensah 2025-05-01

In a stunning display of corporate resilience, Microsoft (NASDAQ: MSFT) has silenced doubters with blockbuster quarterly earnings that sent shares soaring 7% in after-hours trading. The tech giant’s cloud division delivered 33% revenue growth – significantly outpacing analyst expectations of 29.7% – adding a staggering $200 billion to Microsoft’s market valuation in a single trading session.

Key Performance Highlights:

Azure revenue growth accelerates to 33% YoY (vs. 29.7% consensus)
AI services contribute 16 percentage points to Azure growth (up from 13 last quarter)
Commercial bookings surge 18% fueled by expanded OpenAI partnership
Q4 cloud revenue guidance of 28.75B−28.75B−29.05B exceeds projections
Capital expenditures skyrocket 53% to $21.4 billion for AI infrastructure

The AI Growth Engine: Separating Fact from Fiction

Contrary to recent market concerns about an AI slowdown, Microsoft’s results paint a different picture. CFO Amy Hood revealed that while AI performance met expectations, the “real outperformance in Azure this quarter was in our non-AI business.” This suggests Microsoft’s cloud dominance extends well beyond artificial intelligence.

Three critical insights emerge from the earnings call:

The OpenAI Effect
Microsoft’s deepening partnership with ChatGPT creator continues bearing fruit, though the company remains tight-lipped about specific contract values. Industry analysts estimate the expanded deal could be worth billions annually.
Infrastructure Strategy Shift
The company is pivoting investments toward shorter-lived assets like Nvidia GPUs and AMD chips rather than long-term data center leases. As VP Jonathan Neilson explained: “You plug in CPUs and GPUs, and then you can start recognizing revenue immediately.”
Economic Impact
J.P. Morgan analysts calculate that Microsoft’s data center spending alone could contribute 10-20 basis points to U.S. GDP growth in 2025-2026, highlighting the company’s macroeconomic importance.

Debunking the AI Slowdown Narrative

Recent analyst concerns about canceled data center leases appear overblown. CEO Satya Nadella framed these adjustments as routine: “Microsoft has a long history of constantly adjusting its data center plans.” The numbers support this view – while the company reduced some physical infrastructure commitments, overall capex grew dramatically with a focus on immediately productive assets.

Market Misconceptions vs. Reality:

Concern	Actual Finding
AI demand plateauing	AI contribution to Azure growth increased
Data center pullback	Strategic shift to more flexible infrastructure
Tariff impacts	Commercial bookings grew 18% despite economic headwinds

Strategic Implications for Investors

Cloud Wars Heating Up
Microsoft’s results set a high bar for upcoming reports from AWS and Google Cloud. The Azure growth rate now exceeds both competitors’ most recent figures.
Chipmaker Bonanza
Microsoft’s infrastructure spending confirms continued strong demand for Nvidia, AMD and Intel processors, particularly in AI-optimized configurations.
Enterprise Software Advantage
The robust non-AI cloud performance suggests Microsoft’s enterprise products (Office 365, Dynamics) continue driving significant Azure adoption.

Expert Analysis: What Comes Next?

“Microsoft is executing one of the most remarkable business transformations in corporate history,” notes technology analyst Mark Henderson. “They’ve successfully evolved from a legacy software company to the clear leader in enterprise cloud computing while simultaneously building the world’s most comprehensive AI platform.”

Looking ahead, investors should watch for:

Details on Microsoft’s custom AI chip development (Project Athena)
Adoption rates for Copilot AI assistants across Microsoft’s product suite
Potential impacts from evolving U.S. and EU tech regulations

Why This Matters Beyond Wall Street

Microsoft’s performance carries broader significance:

For businesses: Demonstrates the accelerating ROI from cloud and AI investments
For policymakers: Highlights the growing economic importance of tech infrastructure
For workers: Signals continued strong demand for cloud and AI skills

The Bottom Line: Microsoft’s earnings prove the company is firing on all cylinders, with Azure’s growth acceleration particularly impressive given its massive scale. While AI captures headlines, the strength of Microsoft’s broader cloud business may be the more important long-term story.

Load More Posts