Top stories today:

1. OpenAI said to project $115B cash burn by 2029
2. Anthropic settles AI copyright case for at least $1.5B, plus interest
3. DOC weighs annual China chip supply approvals for Samsung, Hynix
4. OpenAI researchers blame training bias for model hallucinations
5. Aging acceleration in transplanted brain cells reversible: Calico study

0. Data and calendar

Listen to our AI-generated podcast summarizing today’s newsletter (beware of hallucinations):

1. OpenAI said to project $115B cash burn by 2029, ~$80B above prior forecast

Cloud computing and data center costs have driven OpenAI’s cash burn projections higher:

• ~$20B in additional stock compensation charges projected between 2025-2030.

• $8B+ in 2025 cash burn, ~$1.5B above its prior estimate.

• Cash burn will 2x to $17B+ in 2026.

• ~$100B is earmarked for server-related costs later this decade.

• $9B+ is planned for AI training this year.

OpenAI has also raised its 2030 revenue forecast to $200B, +15% from its prior projection

2. Anthropic settles AI copyright case for at least $1.5B, plus interest

• Anthropic will pay ~$3K for each of about 500K books in the class, per the terms of the deal.

• The total payout could grow if more claims are submitted.

• Anthropic has also agreed to destroy the data it was accused of illegally downloading.

• Felt “inordinate pressure” to cut a deal to avoid a potentially business-ending trial, Anthropic said.

• The accord “far surpasses any other known copyright recovery,” a lawyer representing the plaintiffs said.

• 12 PM ET: a hearing on the proposed settlement is set.

4. Department of Commerce weighs annual China chip supply approvals for Samsung, Hynix

South Korean chipmakers have sizable production facilities in China: