OpenAI Stargate Stalled by Tariffs

Welcome to another edition of AI PlanetX.

Stargate Project Stalls Due to Tariff Challenges; Trump Dismisses Copyright Office Director Amid AI Training Concerns, UN Advocates for Autonomous AI Weapons Regulation.

• Hottest AI News

• Top AI & SaaS Tools

• Top AI & Tech News

• AI Art Spotlight

• Prompt of the Day: Claude’s System Prompt!

• AI Video Tutorial

• F-R-E-E AI Course of the Day: HarvardX - CS50's Intro to AI with Python

Hottest AI News

OpenAI

Stargate Project Faces Early Hurdles as Tariffs Create Roadblocks

SoftBank's $100B AI infrastructure plan with OpenAI, announced in January, has stalled. The ambitious Stargate project, once set for rapid deployment and eventual $500B investment, remains mostly on paper amid growing economic uncertainty.

Details:

• SoftBank formed a 20–30 person team, led by Vikas J. Parekh, to drive the project. Talks with major financiers like JPMorgan and Apollo have yet to yield deals. SoftBank aimed to provide 10–20% equity, with heavy reliance on debt

• Trump’s aggressive trade stance is complicating projections. Tariffs on servers, chips, and cooling gear could raise data center costs by 5–15%, while fears of recession and high capital costs have made lenders wary

• Cheaper models from startups like DeepSeek and pullbacks by Microsoft and Amazon are reshaping the market. Turmoil at OpenAI, including Altman’s abandoned for-profit shift, adds to the uncertainty

Despite setbacks, groundwork is underway. Altman told Congress he visited Stargate’s first site in Abilene, Texas—an Oracle-led project aiming to be the world’s largest AI training facility.

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AI and Copyright

Trump Ousts Copyright Office Director Following AI Training Concerns

President Donald Trump has dismissed U.S. Copyright Office director Shira Perlmutter, sparking controversy over the timing and potential connection to a report on AI training using copyrighted works.

Details:

• The firing came just after a Copyright Office report called for limits on AI firms using copyrighted content, saying such use exceeds fair use if it harms original markets

• Rep. Joe Morelle tied the firing to Elon Musk, claiming Trump acted soon after she opposed Musk’s push to mine copyrighted works for AI training

• It follows Trump’s earlier firing of Librarian Carla Hayden and comes as AI firms like OpenAI face copyright lawsuits; Musk has backed scrapping all IP laws

The Copyright Office suggests AI firms should pay for content use, while OpenAI pushes for government-backed fair use protections.

AI and Global Security

UN Members Seek Controls on Autonomous AI Weapons

Nations met at the UN today to renew efforts to regulate AI-powered autonomous weapons, as technology races ahead of global rules. With such systems already used in conflicts from Ukraine to Gaza, experts warn that urgent action is needed.

Details:

• UN held its first session on autonomous weapons since 2014. UN Secretary-General Guterres set a 2026 deadline for clear rules, but consensus is still elusive

• Countries like the US, Russia, China, and India prefer national guidelines. A Pentagon spokesperson argued existing laws are enough, though 164 nations supported a 2023 UN resolution for urgent action

• The Future of Life Institute reports 200 autonomous weapons deployed, including 3,000 Russian drones in Ukraine. Human Rights Watch warns unregulated development could spark an arms race and legal issues

Consultations in New York will cover issues beyond the CCW, including ethics and non-state actors. Campaign groups see this as a test before September’s CCW talks, pushing for a treaty to prevent machines from making life-or-death decisions.

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Top AI & Tech News

• Apple’s Eddy Cue said AI could make the iPhone obsolete in 10 years, replaced by AI wearables and AR devices

• Three observations about Sam Altman’s kitchen setup that hint at possible inefficiencies and questionable choices reflecting concerns about OpenAI’s management

• Honor launched an AI image-to-video generator powered by Google's Veo 2, available first on the Honor 400 and 400 Pro phones

• Google's Gemma AI models have surpassed 150 million downloads since their launch in February 2024

• Chegg announced it will lay off 22% of its workforce (248 employees) due to declining web traffic and increasing competition from tools like ChatGPT

AI Art Spotlight

Model: Midjourney V7

Prompt:

A heroic fantasy character inspired by 'Ranger's Apprentice' , standing on a rocky hill in a dynamic pose, wearing a dark cloak and hood, bow slung on his shoulder, knives on the belt, blending into a misty background. Inside his silhouette, a double exposure effect shows medieval castles, dense forests, campfires, epic battles, and a mysterious figure in the shadows. Cinematic lighting, moody atmosphere, high detail, transparent or neutral background. --chaos 15 --ar 3:4 --stylize 350 --v 7

AI Prompt of the Day

Claude’s System Prompt 🤯

The entire system prompt for Claude, spanning 24,000 tokens, has been leaked on GitHub. It outlines the model’s behavior, provides guidelines for tool usage, and specifies the required citation format.

Top AI Video Tutorial

Clone Any Voice for F-R-E-E Using AI (NO LIMIT)

Complimentary AI Course of the Day

HarvardX: CS50's Introduction to Artificial Intelligence with Python

This course introduces key AI concepts and algorithms through hands-on Python projects, covering topics like machine learning, graph search, and language models. Students gain practical skills and experience with AI tools to build their own intelligent systems.