SunBrief#34: OpenAI Tapped to Build AI Weapons for War

xAI Eyes $4.3B Raise as Burn Rate Nears $13B while OpenAI and Microsoft Hit Breaking Point.

June 22, 2025

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Welcome to the SunBrief

Today in SunBrief 🌞

  • UNLEASH YOUR INNER HERO – MASTER YOUR TIME WITH AI AGENTS

  • OpenAI Tapped to Build AI Weapons for War

  • Stock Updates

  • Effortless Tutorial Video Creation with Guidde

  • xAI Eyes $4.3B Raise as 2025 Burn Rate Nears $13B

  • AI Highlights of the Week

  • OpenAI and Microsoft Hit Breaking Point Over AI Deal

  • Too Important to Miss

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OpenAI Tapped to Build AI Weapons for War

The Article: OpenAI Awarded $200 Million Defense Contract

OpenAI has secured a $200 million, one-year contract to provide AI tools for the U.S. Department of Defense. The contract focuses on developing AI capabilities for national security, warfighting, and enterprise operations.

Key Points:

  • AI for National Security: The contract will help prototype AI systems to improve military and administrative operations, including healthcare and cyber defense.

  • OpenAI for Government: This contract is part of OpenAI’s new initiative, OpenAI for Government, aimed at providing customized AI solutions to U.S. government bodies.

  • Collaboration with Anduril: OpenAI is also collaborating with Anduril to deploy advanced AI for national security missions.

Why It Matters:

This contract marks OpenAI's first major defense deal and reflects the growing role of AI in U.S. national security and military operations.

How comfortable are you with AI being used in military and defense operations?

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Stock Updates

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xAI Eyes $4.3B Raise as 2025 Burn Rate Nears $13B

The Article: Elon Musk's xAI in Talks for $4.3 Billion Equity Investment

Elon Musk's AI startup xAI is negotiating a $4.3 billion equity investment on top of its $5 billion debt funding plans. Since its founding in 2023, xAI has raised $14 billion in equity funding to support its expensive AI systems.

Key Points:

  • Funding Needs: xAI is seeking additional funding due to high costs associated with training and deploying AI systems.

  • Debt Sale: xAI expects to burn through $13 billion in 2025, with $5 billion in debt commitments due soon.

  • Valuation: xAI’s valuation rose to $80 billion by Q1 2025, up from $51 billion at the end of 2024.

Why It Matters:

xAI’s financial struggles reflect the high costs of developing AI, with Musk’s startup seeking significant new investments to stay competitive in a rapidly evolving industry.

Do you think xAI will successfully secure the $4.3 billion equity investment?

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AI Highlights of the Week

  • New ‘OpenAI for Government’ Targets Public Sector Efficiency

    OpenAI has launched OpenAI for Government to provide U.S. agencies with secure access to advanced AI tools, including ChatGPT Gov and custom models for national security.

    The goal is to boost efficiency and empower public servants to focus on more meaningful work.

  • Meta AI Users Get Privacy Wake-Up Call

    Meta AI has added a clearer warning pop-up alerting users that prompts they share are public, after reports showed sensitive conversations—including breakups and medical queries—appearing in its Discovery feed.

    The new message appears when users tap Share and reminds them to avoid posting personal information.

    While users can opt out in settings, Meta urges caution, reinforcing the rule: assume chatbot interactions aren't private.

  • Groq Challenges Cloud Giants with Hugging Face

    Groq has launched support for Alibaba’s Qwen3 32B model with a 131,000-token context window and joined Hugging Face as an official inference provider, aiming to challenge major AI cloud platforms.

    Powered by custom LPU hardware, Groq delivers faster, cheaper inference with support for top models like Llama and Gemma, making it attractive for developers handling large-scale AI tasks.

    Groq now faces the challenge of scaling its infrastructure to match demand and compete with AWS and Google, while betting on performance and pricing to win market share.

  • Honda Joins Space Race with Successful Reusable Rocket Test

    Honda successfully tested a reusable rocket in Japan, reaching 900 feet and landing just 15 inches from its target, becoming the first non-U.S./China company to achieve this VTVL milestone.

    The 21-foot rocket used fins and retractable landing gear, showcasing tech similar to SpaceX. Honda may pursue a small satellite launcher by 2025–2026.

    It’s a bold move from Honda’s R&D team, building on past projects like the HondaJet and its space partnership with Japan’s space agency.

  • TikTok Survives as Trump Issues Another Reprieve

    President Trump will extend TikTok’s sale-or-ban deadline by 90 days, allowing the app to remain in the U.S. while negotiations continue. The move marks his third such extension.

    Despite bipartisan concerns over data security and Chinese ownership, Trump expressed support for TikTok, crediting it with youth voter support in the 2024 election.

    While potential buyers like Oracle and MrBeast-backed groups explore bids, analysts say the threat of a ban is fading and TikTok appears confident in its future.

OpenAI and Microsoft Hit Breaking Point Over AI Deal

The Article: OpenAI and Microsoft Tensions Grow Over Strategic Partnership

OpenAI and Microsoft, once close allies, are now heading toward a potential clash. OpenAI is considering antitrust complaints to pressure Microsoft over the terms of their partnership, particularly regarding Microsoft's equity stake as OpenAI transitions into a public-benefit corporation.

Key Points:

  • Dispute Over Equity: Microsoft is asking for a larger stake in OpenAI as the company transitions, leading to tensions.

  • Antitrust Concerns: OpenAI is considering accusing Microsoft of anticompetitive behavior regarding the exclusive rights to sell OpenAI’s technology.

  • Tech Competition: OpenAI is wary of Microsoft's acquisition of the AI coding startup Windsurf, which competes with OpenAI's Codex AI.

Why It Matters:

The growing tension between OpenAI and Microsoft could reshape the future of their partnership and potentially lead to regulatory scrutiny over their business practices.

Too Important to Miss

Last Week’s Poll Result

  • Should the U.S. government prioritize AI adoption even if it raises privacy concerns?

    No, privacy concerns should take precedence, 51.92%.

    Maybe, but privacy protection must be strengthened, 34.62%.

    Yes, the benefits of AI outweigh privacy risks, 13.46%.

  • Do you think AI-generated content should be exempt from traditional copyright laws?

    Yes, AI should not be restricted by old copyright laws, 39.39%.

    No, AI should respect traditional copyright laws, 33.33%.

    Maybe, but there needs to be a balance to protect creators, 27.28%.

  • Do you think competition between AMD and Nvidia will benefit the AI industry?

    Yes, it will drive innovation and lower costs, 50.00%.

    No, it could slow down progress in the industry, 37.50%.

    Maybe, but it could lead to fragmentation, 12.50%.

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