Microsoft is expanding its relationship with OpenAI, entering what it calls “the third phase of our long-term partnership” with a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.” Although the companies did not disclose financial terms, Microsoft’s investment was previously reported as $10 billion. The New York Times reports OpenAI is also in talks to complete a tender offer for as much as $300 million (contingent on the number of employees selling stock), “which would value the company at around $29 billion.” Read more

Disney touted its capabilities this week at the company’s Tech & Data Showcase for advertisers, part of the company’s Road to the Upfront. Among the disclosures, Disney in April will begin adding some Hulu ad-targeting capabilities to Disney+, with Hulu’s “full suite of ad products and services” available throughout the entire Disney streaming portfolio by July. Since last year Hulu has been deploying a proprietary ad server Disney is said to have built from the ground up, putting it to work on the ad-supported Disney+ Basic tier launched in December. Read more

The algorithm powering TikTok’s vaunted For You page is reportedly getting help from human collaborators. Although the personalized feed was said to be based on user interests and selections, “employees regularly engage in ‘heating,’ a manual push that ensures specific videos ‘achieve a certain number of video views,’ according to six sources and documents reviewed by Forbes.” What’s more, while the algorithm does have a say in what goes viral, staff at TikTok and ByteDance are also hand-picking specific videos to give preferential treatment, saturating their distribution throughout the user base. Read more

Google seems to view ChatGPT as a threat to its $149 billion annual search business. OpenAI’s chatbot is said to have amazed those who’ve seen its ability to grasp concepts and generate ideas, which Google execs are concerned might translate to “a compelling new search experience,” according to reporting by The New York Times. Sundar Pichai, CEO of Alphabet and Google, is said to have wrangled Google founders Larry Page and Sergey Brin for “several meetings” focused on ratcheting up Google’s AI development in an effort to overtake ChatGPT’s first-mover advantage. Read more

The Supreme Court of the United States has delayed its decision in a request to hear three cases that would test the constitutionality of Texas and Florida laws that propose to allow lawsuits on the basis of political censorship by online platforms. Although the cases would not be heard until the court’s next session, which extends into 2024, the laws remain blocked in the interim. Rather than deciding outright whether it will grant certiorari, SCOTUS on Monday asked the Justice Department to file the Biden administration’s position, forestalling immediate deliberations. Read more