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OpenAI announced on Friday it’s launching a research preview of Codex, the company’s most capable AI coding agent yet. Codex is powered by codex-1, a version of the company’s o3 AI reasoning model optimized for software engineering tasks. OpenAI says codex-1 produces “cleaner” code than o3, adheres more precisely to instructions, and will iteratively run tests on its code until passing results are achieved. The Codex agent runs in a sandboxed, virtual computer in the cloud. By connecting with GitHub, Codex’s environment can come preloaded with your code repositories. OpenAI says the AI coding agent will take anywhere from one to 30 minutes to write simple features, fix bugs, answer questions about your codebase, and run tests, among other tasks. Codex can handle multiple software engineering tasks simultaneously, says OpenAI, and it doesn’t limit users from accessing their computer and browser while it’s running. What users see when they open up CodexImage Credits:OpenAI Codex is rolling out starting today to subscribers to ChatGPT Pro, Enterprise, and Team. OpenAI says users will have “generous access” to Codex to start, but in the coming weeks, the company will implement rate limits for the tool. Users will then have the option to purchase additional credits to use Codex, an OpenAI spokesperson tells TechCrunch. OpenAI plans to expand Codex access to ChatGPT Plus and Edu users soon. AI tools for software engineers, also known as vibe coders, have surged in popularity in recent months. The CEOs of Google and Microsoft claim that roughly 30% of their companies’ code is now written by AI. In February, Anthropic released its own agentic coding tool, Claude Code, and in April, Google updated its AI coding assistant, Gemini Code Assist, with more agentic abilities. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW All that vibe coding has made the businesses behind AI coding platforms some of the fastest-growing in tech. Cursor, among the most popular AI coding tools, reached annualized revenue of around $300 million in April and is reportedly raising new funds at a $9 billion valuation. Now, OpenAI wants a piece of the pie. The ChatGPT maker has reportedly closed on a deal to acquire Windsurf, the developer behind another popular AI coding platform, for $3 billion. The launch of Codex shows very clearly that OpenAI is building out its own AI coding tools, in addition. Users with access to Codex can find the tool in ChatGPT’s sidebar, and assign the agent new coding tasks by typing a prompt and clicking the “Code” button. Users can also ask questions about their codebase and click the “Ask” button. Below the prompting bar, users can see other tasks they’ve assigned Codex to do, and monitor their progress. In a briefing ahead of Codex’s launch, OpenAI’s Agents Research Lead, Josh Tobin, told TechCrunch the company eventually wants its AI coding agents to act as “virtual teammates,” completing tasks autonomously that take human engineers “hours or even days” to accomplish. OpenAI claims it’s already using Codex internally to offload repetitive tasks, scaffold new features, and draft documentation. OpenAI’s new coding agent, CodexImage Credits:OpenAI OpenAI Product Lead Alexander Embiricos says a lot of the safety work for the company’s o3 model applies to Codex as well. In a blog post, OpenAI says Codex will reliably refuse requests to develop “malicious software.” Furthermore, Codex operates in an air-gapped environment, with no access to the broader internet or external APIs. This limits how dangerous Codex could be in the hands of a bad actor — but it may also hamper its usefulness. It’s worth noting that AI coding agents, much like all generative AI systems today, are prone to mistakes. A recent study from Microsoft found that industry-leading AI coding models, such as Claude 3.7 Sonnet and o3-mini, struggled to reliably debug software. However, that doesn’t seem to be dampening investor excitement in these tools. OpenAI is also updating Codex CLI, the company’s recently launched open source coding agent that runs in your terminal, with a version of its o4-mini model that’s optimized for software engineering. That model is now the default in Codex CLI, and will be available in OpenAI’s API for $1.50 per 1M input tokens (roughly 750,000 words, more than the entire Lord of the Rings book series) and $6 per 1M output tokens. Codex’s launch marks OpenAI’s latest effort to beef up ChatGPT with additional products besides the notorious chatbot. In the past year, OpenAI has added priority access to the company’s AI video platform, Sora, its research agent, Deep Research, as well as its web browsing agent, Operator, as benefits for subscribers. These offerings could entice more users to sign up for a ChatGPT subscription, and, in the case of Codex specifically, convince existing subscribers to pay OpenAI more money for increased rate limits.

Spotify announced last week that it would roll out public play counts on all podcasts as a way of “helping attract new fans.” But podcasters swiftly responded with criticism of the new feature — mainly, that it would further promote podcasts that already have large audiences while making smaller shows less appealing to new listeners. On Friday, Spotify changed course on its plans, but did not completely eschew the idea. Now, play counts will only appear on shows with at least 50,000 plays each. Instead of showing an exact play count, the designation will only update at specific milestones, like 100,000 or 1 million plays. “We plan to roll this newly evolved version of play counts over the coming week,” the company wrote in a blog post. “This update reflects our evolving efforts to provide the best insights for creators and a clear experience for their fans.” For decades, podcast hosting platforms have not shared many public indicators of a show’s popularity — Apple Podcasts, for example, has had reviews and charts on its app, but it would be challenging for a listener to know if a show had an audience in the tens or the tens of thousands. Though Spotify takes the angle that this ambiguity is a detriment, creators have been drawn to the podcasting medium in part because it’s refreshingly different from other forms of online media. When someone clicks play on a YouTube video, for example, they are approaching the media with the existing knowledge of how many views the video has, and how many people have subscribed to that channel. But podcasting can level the playing field for more niche creators. Podcasters have also expressed frustration with the lack of a clear metric for what counts as a “play” or a “stream” among various different platforms. The Interactive Advertising Bureau (IAB) works with podcast platforms to establish a clear metric for what is defined as a “play,” creating more consistency for dealmaking among podcasters and advertisers. But according to Podnews, the definition of what counts as a “play” is different on Spotify and YouTube — two of the most popular podcast listening platforms — than the IAB standard. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW Spotify said that play counts will refer to the number of times “people actively tried” the content, whereas streams and downloads only count after 60 seconds of engagement.

TechCrunch is joining forces with VivaTech, Europe’s biggest startup and tech event, to select startups for the prestigious VivaTech Innovation of the Year at VivaTech 2025. This partnership will highlight exceptional creativity, technological ingenuity, and industry-transforming potential among exhibiting startups. The VivaTech Innovation of the Year Award acknowledges and celebrates exhibiting startups at VivaTech 2025 that showcase outstanding innovation, advanced technological capabilities, and significant potential to revolutionize their respective industry. Image Credits:VIVA Technology TechCrunch will curate a shortlist of the top 30 candidates, appoint a jury member to help select the final top five, and participate onstage at VivaTech on June 11 alongside the full jury during the final award presentation. On June 12, TechCrunch will also serve as the official host of the VivaTech Global Awards Ceremony, where the winners of the five VivaTech Awards will be announced, providing the Master of Ceremony to lead the event with introductions, award transitions, and the closing moment. Five finalists will receive a valuable opportunity to pitch on the VivaTech stage on June 11, gain introductions to venture capitalists, enjoy exclusive networking with jury members, achieve high visibility across VivaTech marketing channels, and receive two additional four-day passes to attend VivaTech 2025. The Innovation of the Year award winner will also secure a place in the highly competitive Disrupt Startup Battlefield 200, with eligibility to present at TechCrunch’s flagship annual event held in San Francisco in October 2025. VivaTech Innovation of the Year Award eligibility guidelines: Must be an exhibiting startup at VivaTech 2025 Founded in or after 2020 Fewer than 50 employees Selection of five Finalists – June 4 Finalists’ Pitch Session at VivaTech – June 11 VivaTech Global Awards Ceremony – June 12 Book your pass now About Viva Technology VivaTech accelerates innovation by connecting startups, tech leaders, major companies, and investors responding to our world’s biggest challenges. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW Each year, over four exciting days in Paris, VivaTech creates Europe’s biggest technology and startup event, exploring the most disruptive topics in tech with world-premiere demos, launches, and conferences in a collaborative ecosystem. This is where business meets innovation. Take part in the ninth edition of VivaTech 11-14 June 2025.

Roughly a month after Moonvalley, a Los Angeles-based startup developing AI tools for video creation, said it secured $43 million in new funding, the company has raised more, according to a filing with the SEC. The filing, submitted Thursday, reveals that Moonvalley actually landed (so far) around $53 million total from a group of 14 unnamed investors. The filing indicates that this is an additional $10 million in cash, rather than a whole new round. It brings the company’s total raised to about $124 million, estimates PitchBook, following on the heels of Moonvalley’s $70 million seed round last November. Moonvalley declined to comment. The wide availability of tools to build video generators has led to such an explosion of providers that the space is becoming saturated. Startups such as Runway, Lightricks, Genmo, Pika, Higgsfield, Kling, and Luma, as well as tech giants like OpenAI, Alibaba, and Google, are releasing models at a fast clip. In many cases, little distinguishes one model from another. Moonvalley’s Marey model, built in collaboration with a new AI animation studio called Asteria, offers customization options like fine-grained camera and motion controls and can generate “HD” clips up to 30 seconds long. Moonvalley claims it’s also lower risk than some other video-generation models from a legal perspective. But where Moonvalley is attempting to differentiate itself — hence the high VC interest — is on the data it’s using to train its models, as well as the safeguards in its video creation tools. Many generative-video startups train models on public data, some of which is invariably copyrighted. These companies argue that fair-use doctrine shields the practice, but that hasn’t stopped rights holders from lodging complaints and filing cease and desists. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW Moonvalley says it’s working with partners to handle licensing arrangements and package videos into datasets that the company then purchases. The approach is similar to Bria’s and Adobe’s, the latter of which procures content for training from creators through its proprietary Adobe Stock platform. Moonvalley is also crafting an interface for its model. The company’s software, which it hasn’t previewed publicly yet, has storyboarding and “granular” clip adjustment tools, Moonvalley’s co-founders revealed in recent interviews. Marey can generate videos from not only text prompts but also from sketches, photos, and other video clips, claims Moonvalley. Naeem Talukdar, who previously led product growth at Zapier, founded Moonvalley with former DeepMind scientists Mateusz Malinowski and Mik Binkowski. John Thomas joined as Moonvalley’s COO — he and Talukdar had founded another startup, Draft, several years ago. Moonvalley also counts Asteria head Bryn Mooser as a co-founder. Many artists and creators are understandably wary of video generators, as they threaten to upend the film and television industry. A 2024 study commissioned by the Animation Guild, a union representing Hollywood animators and cartoonists, estimates that more than 100,000 U.S.-based film, television, and animation jobs will be disrupted by AI by 2026. Moonvalley intends to allow creators to request their content be removed from its models, let customers delete their data at any time, and offer an indemnity policy to protect its users from copyright challenges. Unlike some “unfiltered” video models that readily insert a person’s likeness into clips, Moonvalley is also committing to building guardrails around its tools. Like OpenAI’s Sora, Moonvalley’s models will block certain content, like NSFW phrases, and won’t allow users to prompt them to generate videos of specific people or celebrities. “We founded Moonvalley to make generative video technology that works for filmmakers and creative professionals,” Moonvalley wrote in a blog post in March. “That means addressing fear and distrust, as well as solving technical problems that keep generative AI from being a realistic tool for professional production.”

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Elon Musk isn’t the only tech billionaire with power over the federal agencies that regulate his businesses. Since Donald Trump took office, more than three dozen employees, allies, and investors of Musk, Peter Thiel, Marc Andreessen, and Palmer Luckey have taken roles at federal agencies, helping direct billions in contracts to their companies. Companies owned, founded, or invested in by Musk, Thiel, Andreessen, and Luckey have collected more than a dozen federal contracts totaling about $6 billion since Trump’s inauguration in January, according to a Wall Street Journal analysis. And they’re actively pursuing billions more. Those appointments, which are in departments that oversee, regulate, and award business to the four men’s companies, raise a number of red flags. They could violate conflict-of-interest laws or government ethics regulations, both of which prohibit federal employees from using public office for private gain. And while it’s not unusual to install trusted allies in government roles, Musk’s network has moved in at an unprecedented rate and scale. TechCrunch has previously reported on all of the people in Musk’s universe who have joined him at DOGE, where he has shuttered federal agencies and slashed workforces in departments that regulate his businesses. At least 19 others with Silicon Valley connections, be they founders or investors, have also joined DOGE. “The second Trump administration is actually the first in recent years to not impose any sort of additional ethics safeguards on high-level appointees,” Daniel Weiner, director of the Brennan Center’s Elections and Government Program, told TechCrunch. He noted that Trump fired the director of the Office of Government Ethics and 17 inspectors general who served as watchdogs for fraud and abuse, immediately after taking office. “It certainly does potentially increase the risk that you have people working on matters that do impact, at least indirectly, their bottom lines,” Weiner said. “But this is a long-term issue in our government that’s not unique to this administration.” Innovation versus accountability Peter Thiel speaks during the Bitcoin 2022 Conference.Image Credits:Marco Bello / Getty Images Some may argue that it makes sense for employees and associates of Musk, Thiel, Andreessen, and Luckey to join government agencies. Their insiders are talented individuals who are behind the cutting-edge technology the government genuinely needs, and they understand how to innovate quickly and compete globally. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW More serious questions arise when favoritism threatens to undermine competition, when policy is created or destroyed to protect market dominance, or when regulations that would serve the public good are waylaid to promote business interests. For instance, the Consumer Financial Protection Bureau recently retreated from pursuing rules that would restrict data brokers, despite growing privacy concerns — a shift that stands to benefit companies involved in AI, surveillance, and data analytics. Another example is DOGE’s firing of staffers at the National Highway Traffic Safety Administration who investigate autonomous vehicle safety, including several probes into Tesla. “One of the defining structural challenges the government of the United States has right now is that we have a system in which the very wealthiest interests have so much power to shape our elections and then turn around and shape government policy,” Weiner said. Another Silicon Valley appointee, Mike Kratsios — a former Thiel employee — is now leading technology policy for the U.S. government. In an April speech, he spoke about throwing away bad regulations that “weigh down our innovators,” particularly those who are innovating in AI. “Many people in Silicon Valley tend to think that whatever worked in Silicon Valley is also going to work for administering the United States government,” Weiner said. “And as we’re seeing now, the danger is a lot of people are going to get hurt because of the assumptions they make.” “The fact that you had a successful startup after five others failed doesn’t necessarily mean you know how to run the Social Security Administration,” he continued. A network inside and a payoff outside Marc Andreessen, co-founder and general partner of Andreessen Horowitz.Image Credits:David Paul Morris/Bloomberg / Getty Images All of the businesses between Musk, Thiel, Andreessen, and Luckey are related. Musk’s SpaceX was backed by Thiel’s Founders Fund and Andreessen’s a16z (which also invested in X and xAI). Both of those VCs also backed Anduril, Luckey’s defense startup. The overlapping network of founders, funders, and insiders extends into several federal agencies. And in many cases, those agencies are steering billions in federal contracts back to those companies. The Journal found that across Washington, people from Musk’s network, including Tesla, X, and SpaceX, are in more than a dozen agencies, from the executive office of the president and Office of Personnel Management all the way down to the Department of Transportation and the Department of Energy. SpaceX employees are also in agencies that could provide the company new business. For example, the Journal reports that SpaceX senior engineer Theodore Malaska got an ethics waiver in February that lets him take a temporary job at the Federal Aviation Administration while still working at the rocket company. The FAA hasn’t given any contracts to SpaceX yet, but Malaska said on X the agency has used Starlink to upgrade a weather-observing system in Alaska. SpaceX is also the main commercial provider that transports crew and cargo for NASA. Despite national security concerns — like the company’s secret backdoor for Chinese investment and Musk’s reported drug use — SpaceX in April won $5.9 billion of a $13.7 billion multi-year contract from the U.S. Space Force to launch Pentagon missions. The DOD, which is currently a Starlink customer, also plans to buy SpaceX’s Starshield satellites, a militarized version of the internet satellites. Employees at Thiel-backed firms have found themselves in roles in the State Department, the Office of Management and Budget, Health and Human Services, and Social Security, per The Wall Street Journal. Thiel’s Palantir has already been awarded nearly $376 million since 2020 from the Department of Health and Human Services. In 2024, the company was also awarded at least $1.2 billion in Department of Defense contracts in 2024 and is in the running for another $100 million deal. Anduril, Palantir, and SpaceX recently submitted a multibillion-dollar proposal for Trump’s “Golden Dome” missile-defense program, which would also add to Anduril’s existing contracts with the U.S. Army. Recently, Anduril and Microsoft took over a 2021 contract worth up to $22 billion to develop AR headsets, per the Journal. An Anduril executive, Michael Obadal, has been nominated to a top role at the Department of Defense. In his ethics disclosure, he stated that he would retain his Anduril stock if appointed. TechCrunch has reached out to Anduril, Andreessen Horowitz (a16z), Palantir, and SpaceX for comment. “This sort of concentration of private wealth and political power is ultimately very risky for our economy,” Weiner said. “Because instead of the government making decisions that are intended to foster competition, foster economic growth, you run the real risk that government decisions are going to instead be structured around protecting particular companies and particular industries from full economic competition.”

It’s Friday afternoon and I’m listening to Bowdoin College’s radio station, interspersed with ambient car honking noises. I am not in Maine. I am not in a car. I am at my desk. This is Internet Roadtrip. Internet Roadtrip is what I will call an MMORTG (massive multiplayer online road trip game). Neal Agarwal, the game’s creator, calls it a “road-trip simulator.” Every 10 seconds, viewers vote on what direction for the “car” to drive on Google Street View — or, you can vote to honk the horn or change the radio station. The direction with the most votes gets clicked, and the car continues on its scenic path to … wherever the chat decides to go. Internet Roadtrip is reminiscent of Twitch Plays Pokémon, an iconic stream from over 10 years ago in which viewers voted on what button to press as part of a collective Pokémon Red game. But Internet Roadtrip is far less chaotic — both because only a thousand or so people are playing at a time, and because we have better organizational tools than we did in the Twitch Plays Pokémon era (thank you, Discord). A radio station in Maine (WBOR) is currently curating songs for us in the in-game radio — Neal Agarwal (@neal.fun) 2025-05-12T19:56:38.315Z Progress on the virtual roadtrip is slow. The car moves at a pace slower than walking. Discord moderators have had to temper newcomers’ expectations, explaining that it’s pointless to suggest driving to Las Vegas from Maine, since it would likely take almost 10 months of real-world time to get there. The same goes for Alaska, but it’s not just a matter of time that’s the issue. “Google Street View works by taking multiple pictures and putting them together. In some areas of the roads leading to Alaska, there are gaps in pictures available and so we would get stuck there, were we to go to these roads,” the Discord FAQ reads. “All potential roads to Alaska have these gaps. We checked.” There is no objective on Internet Roadtrip, as opposed other Street View-based games like GeoGuessr. Some Discord members discussed driving to Canada, which is a somewhat realistic goal, given our current position in Maine. But the destination isn’t the goal — it’s the joy of spontaneously listening to a college radio from a liberal arts school with a thousand strangers on the internet, while taking in the scenic backroads of Blue Hill, Maine.

Google I/O, Google’s biggest developer conference of the year, is nearly upon us. Scheduled for May 20 to 21 at the Shoreline Amphitheatre in Mountain View, I/O will showcase product announcements from across Google’s portfolio. Expect plenty of news relating to Android, Chrome, Google Search, YouTube, and — of course — Google’s AI-powered chatbot, Gemini. Earlier this week, Google hosted a separate event dedicated to Android updates: The Android Show. The company announced new ways to find lost Android phones and other items, additional device-level features for its Advanced Protection program, security tools to protect against scams and theft, and a new design language called Material 3 Expressive. Here’s what else you can expect. Gemini and AI Image Credits:Thomas Fuller/SOPA Images/LightRocket / Getty Images AI is the tech du jour, and Google, like its rivals, has been investing heavily in it. A shoo-in for I/O is a new addition (or several) to Google’s flagship Gemini family of AI models. Leaks over the past few weeks suggest that an updated Gemini Ultra model is on the way, Gemini Ultra being Google’s top-of-the-line Gemini offering. With this upgraded Gemini Ultra may come a pricier Gemini subscription. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW Google offers a single premium tier, Gemini Advanced ($20 per month), to unlock additional capabilities in its Gemini chatbot, which is powered by the company’s Gemini models. But Google may soon launch two new plans, Premium Plus and Premium Pro. It’s not yet clear what benefits might be attached and how these plans might be priced relative to Gemini Advanced. Google will almost certainly talk about Astra, its wide-ranging effort to build AI apps and “agents” for real-time, multimodal understanding. Also probably on the agenda is Project Mariner, Google’s AI “agents” that can navigate and take action across the web on a user’s behalf. Folks on X spotted references to “Computer Use” in the code for Google’s AI Studio developer platform, which could well pertain to Mariner. Everything else Going by the official I/O schedule, Google will have plenty to discuss following The Android Show and I/O keynote addresses. The schedule lists sessions dedicated to Chrome and Google Cloud, Google Play (the Android app store), Android development tools, and Gemma, Google’s collection of “open” AI models. Last year, Google unveiled a few AI-themed surprises at I/O, including a set of models fine-tuned for education applications called LearnLM. An upgrade to Google’s viral podcast-generating NotebookLM could be one such surprise. Leaked code reveals a “Video Overviews” tool that presumably would create video summaries, most likely leveraging Google’s Veo 2 video-generating model. Updated: 3:19 p.m. Pacific: Added a list of new Android features announced during The Android Show.

OpenAI is poised to help develop a staggering 5-gigawatt data center campus in Abu Dhabi, positioning the company as a primary anchor tenant in what could become one of the world’s largest AI infrastructure projects, according to a new Bloomberg report. The facility would reportedly span an astonishing 10 square miles and consume power equivalent to five nuclear reactors, dwarfing any existing AI infrastructure announced by OpenAI or its competitors. (OpenAI has not yet returned TechCrunch’s request for comment, but to put that into perspective, that’s bigger than Monaco.) The UAE project, developed in partnership with G42 — an Abu Dhabi-based tech conglomerate — is part of OpenAI’s ambitious Stargate project, a joint venture announced in January that could see OpenAI, SoftBank, and Oracle build massive data centers around the globe stocked with powerful computer chips to support AI development. While OpenAI’s first Stargate campus in the U.S. — already under development in Abilene, Texas — is expected to reach 1.2 gigawatts, this Middle Eastern counterpart would more than quadruple that capacity. The project is emerging amid broader AI ties between the U.S. and UAE that have been years in the making, and have made some lawmakers nervous. OpenAI’s relationship with the UAE dates back to a 2023 partnership with G42 aimed at driving AI adoption in the Middle East. During a talk earlier that same year in Abu Dhabi, OpenAI CEO Sam Altman praised the UAE, saying it “has been talking about AI since before it was cool.” As with much of the AI world, these relationships are… complicated. Founded in 2018, G42 is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security advisor and younger brother of the country’s ruler. Its embrace by OpenAI raised concerns in late 2023 among U.S. officials, who feared that G42 could enable China’s government to gain access to advanced U.S. technology. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW These concerns focused on G42’s “active relationships” with blacklisted entities, including Huawei and Beijing Genomics Institute, as well as ties to individuals connected to China’s intelligence efforts. Following pressure from U.S. lawmakers, G42’s CEO told Bloomberg in early 2024 that the company was shifting its strategy, saying: “All of our China investments that were previously made are already divested. Because of that, of course, we have no need anymore for any physical China presence.” Soon after, Microsoft — a major shareholder in OpenAI with its own broader interests in the region — announced a $1.5 billion investment in G42, and its president, Brad Smith, joined G42’s board of directors.

Sonali De Rycker, a general partner at Accel and one of Europe’s most influential venture capitalists, is bullish about the continent’s prospects in AI. But she’s wary of regulatory overreach that could hamstring its momentum. At a TechCrunch StrictlyVC evening earlier this week in London, De Rycker reflected on Europe’s place in the global AI race, balancing optimism with realism. “We have all the pieces,” she told those gathered for the event. “We have the entrepreneurs, we have the ambition, we have the schools, we have the capital, and we have the talent.” All that’s missing, she argued, is the ability to “unleash” that potential at scale. The obstacle? Europe’s complex regulatory landscape and, in part, its pioneering but controversial Artificial Intelligence Act. De Rycker acknowledged that regulations have a role to play, especially in high-risk sectors like healthcare and finance. Still, she said she worries that the AI Act’s broad reach and potentially stifling fines could deter innovation at the very moment European startups need space to iterate and grow. “There’s a real opportunity to make sure that we go fast and address what we’re capable of,” she said. “The issue is that we are also faced with headwinds on regulation.” The AI Act, which imposes stringent rules on applications deemed “high risk,” from credit scoring to medical imaging, has raised red flags among investors like De Rycker. While the goals of ethical AI and consumer protection are laudable, she fears the net may be cast too wide, potentially discouraging early-stage experimentation and entrepreneurship. That urgency is amplified by shifting geopolitics. With U.S. support for Europe’s defense and economic autonomy waning under the current Trump administration, De Rycker sees this moment as a decisive one for the EU. Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | June 5 REGISTER NOW “Now that Europe is being left to fend [for itself] in multiple ways,” she said, “we need to be self-sufficient, we need to be sovereign.” That means unlocking Europe’s full potential. De Rycker points to efforts like the “28th regime,” a framework aimed at creating a single set of rules for businesses across the EU, as crucial to creating a more unified, startup-friendly region. Currently, the mishmash of labor laws, licensing, and corporate structures across the countries creates friction and slows down progress. “If we were truly one region, the power you could unleash would be incredible,” she said. “We wouldn’t be having these same conversations about Europe lagging in tech.” In De Rycker’s view, Europe is slowly catching up, not just in innovation but in its embrace of risk and experimentation. Cities like Zurich, Munich, Paris, and London are starting to generate their own self-reinforcing ecosystems thanks to top-tier academic institutions and a growing base of experienced founders. Accel, for its part, has invested in over 70 cities across Europe and Israel, giving De Rycker a front-row seat to the continent’s fragmented but flourishing tech landscape. Still, on Tuesday night, she noted a stark contrast with the U.S. when it comes to adoption. “We see a lot more propensity for customers to experiment with AI in the U.S.,” she said. “They’re spending money on these kinds of speculative, early-stage companies. That flywheel keeps going.” Accel’s strategy reflects this reality. While the firm hasn’t backed any of the major foundational AI model companies like OpenAI or Anthropic, it has focused instead on the application layer. “We feel very comfortable with the application layer,” said De Rycker. “These foundational models are capital intensive and don’t really look like venture-backed companies.” Examples of promising bets include Synthesia, a video generation platform used in enterprise training, and Speak, a language learning app that recently jumped to a $1 billion valuation. De Rycker (who dodged questions about Accel’s reported talks with another big name in AI), sees these as early examples of how AI can create entirely new behaviors and business models. “We’re expanding total addressable markets at a rate we’ve never seen,” she said. “It feels like the early days of mobile. DoorDash and Uber weren’t just mobilized websites. They were brand new paradigms.” Ultimately, De Rycker sees this moment as both a challenge and a once-in-a-generation opportunity. If Europe leans too heavily into regulation, it risks stifling the innovation that could help it compete globally – not just in AI, but across the entire tech spectrum. “We’re in a supercycle,” she said. “These cycles don’t come often, and we can’t afford to be leashed.” With geopolitical uncertainty rising and the U.S. increasingly looking inward, Europe has little choice but to bet on itself. If it can strike the right balance, De Rycker believes it has everything it needs to lead. Asked by an attendee what EU founders can do to be more competitive with their U.S. counterparts, she didn’t hesitate. “I think they are [competitive],” she said, citing companies Accel has backed, including Supercell and Spotify. “These founders, they look no different.” You can catch catch the full conversation with De Rycker here :

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