OpenAI is building the Next AI Operating System

But Microsoft battle, legal troubles and disturbing allegations remain.

Studies, Reports and Papers I recommend for Weekend Reading 📝

• State of Consumer AI - Menlo Ventures.

• According to a recent study by scientists from MIT, we have a very clear warning. Using ChatGPT to help write essays, the researchers say, can lead to “cognitive debt” and a “likely decrease in learning skills”. Read entire thing.

• Datacenters and Energy: Can US infrastructure keep up with the AI economy? Deloitte Report. (worth reading)

• Epoch AI on AI Supercomputers.

• The OpenAI Files. The OpenAI Files is the most comprehensive collection to date of documented concerns with governance practices, leadership integrity, and organizational culture at OpenAI.

• On the Extinction Risk of Artificial Intelligence (🚨 RAND, May, 2025)

• I’m not a huge Podcast consumer or of Hard Fork necessarily, but the intro to this live episode is hilarious.

This article will explore OpenAI’s complicated partnership relationship with Microsoft that has the capability of jeopardizing its future and why the stakes are so high. Meanwhile the energy problem in the U.S. for the great datacenter boom is highlighted in a new Deloitte report:

“ By 2035, Deloitte estimates that power demand from AI data centers in the United States could grow more than thirtyfold, reaching 123 gigawatts, up from 4 gigawatts in 2024. - Read it

GPT-5 and the Future Operating System of ChatGPT

How do we place the stage of innovation and adoption that ChatGPT’s wide success places OpenAI in as of July, 2025? Sam Altman has promised GPT-5 is coming soon, likely this summer. Meanwhile it seems the models of Anthropic and Google have reached parity with OpenAI’s models. If you wanted to use AI right now, you wouldn’t necessarily be using ChatGPT.

OpenAI continues also to do reckless things. OpenAI, the most valuable pure-play AI software company in the world, has fired members of its team responsible for safeguarding its intellectual property. The team is called the insider risk team, and it ensures that details about OpenAI's software, such as the model weights used to develop it, are not shared with external entities.

The relationship between Microsoft and OpenAI also looks very broken, it’s gotten so bad OpenAI plans to add Alphabet's Google cloud service and CoreWeave to meet its growing needs for computing capacity. Meanwhile OpenAI wants to forge a new kind of AI based Operating System via the popularity of ChatGPT.

With the controversial death of Suchir Balaji, a former OpenAI employee who became a whistleblower, and the mounting legal troubles, OpenAI has turned into a highly controversial technology company. The various podcasts with Suchir’s mother are highly disturbing and could eventually incriminate OpenAI in his death. OpenAI is in even more legal trouble following two flashy acquisitions, with a trademark dispute lawsuit filed this month by iyO, a Google-backed hardware startup developing custom-molded earpieces that connect to other devices. Iyo alleged that OpenAI, Altman and Ive had engaged in unfair competition and trademark infringement. Over the weekend, OpenAI pulled promotional materials related to its $6.5 billion acquisition of Jony Ive’s io startup in order to comply with a court order involved in the suit.

OpenAI is working on a line of AI devices, although the first one (not expected in the next year) is itself in terms of form factor “not expected to be a wearble” but rather something you’d carry and place on your desk. OpenAI is also reportedly working on a Twitter clone, and even a competitor to Microsoft windows and Google workspace. Of course these are things you do if you want to become a BigTech company and replace incumbents, like the one that gave you a $13 Billion lifeline to scale, Microsoft.

GPT-5, Scale and the first native AI Operating System

We know GPT-5 will be a more united interface, but that it will turn into an AI based Operating System is should we say, inevitable? OpenAI is developing productivity features for ChatGPT that would position the company as a competitor to Google Workspace and Microsoft Office and Sam Altman is suddenly talking about digital Ads in ChatGPT in a more positive light.