Microsoft shipped seven new AI models on Tuesday—and not one of them came from OpenAI.
At its Build developer conference in San Francisco, the company announced MAI-Code-1-Flash, its inaugural model in the AI coding space, alongside reasoning, transcription, voice, and image models , according to CNBC. The reasoning model is "built for high efficiency and performance, but importantly, at a low-token cost," Microsoft's developer marketing chief Kyle Daigle wrote . Microsoft is attempting to play at more layers of the AI stack as OpenAI and Anthropic continue to record historic growth and push toward the public market, having invested $13 billion in OpenAI and $5 billion in Anthropic .
The timing is not subtle. Anthropic confidentially filed its IPO prospectus with the SEC on Monday, setting up a potentially historic share sale , CNBC reported. The company's revenue run rate has ballooned to $47 billion, up from $10 billion in annual revenue last year, and it closed a funding round last week at a $965 billion valuation, topping OpenAI . OpenAI, valued at $852 billion in March, is preparing its own confidential filing. SpaceX is expected to launch its IPO roadshow on June 4, targeting about $75 billion in proceeds at a valuation of roughly $1.75 trillion—which would surpass Saudi Aramco's 2019 listing as the world's largest IPO , according to IndexBox.
Microsoft is hedging. It has poured billions into the two leading AI labs, but it also needs leverage—and its own models provide that.
Can the Market Absorb $200 Billion in AI Offerings?
Goldman Sachs CEO David Solomon told CNBC on Tuesday that markets currently show more greed than fear as OpenAI, Anthropic and SpaceX prepare for IPOs that could value the companies at trillion-dollar levels: "We are definitely in a moment where there's more greed than there is fear" .
The three IPOs together could demand north of $200 billion from public markets, while the entire US IPO market raised just $45 billion in all of 2025, though Goldman Sachs analysts project 2026 IPO proceeds could reach approximately $160 billion , per IndMoney. That projection was made before the current wave fully materialized. The trillions of dollars needed to fund AI data centers and power infrastructure dominated discussions last week at Goldman Sachs Group's 11th annual leveraged finance and credit conference , Bloomberg reported.
The liquidity argument is straightforward: there is an estimated $8 trillion sitting in US money market funds, and SpaceX's $75 billion raise represents roughly 1% of that . But many analysts believe whichever company makes it to the markets first will perform better in the funding race, because both Anthropic and OpenAI will be seeking tens of billions of dollars in new capital in short succession , NBC News noted. Anthropic moved first.
Meanwhile, Nvidia's announced entry into the PC chip market sent shares of AMD, Intel and Qualcomm lower on Monday as Wall Street recognized the threat, with CEO Jensen Huang signaling his intent to "reinvent the PC" , CNBC reported. Nvidia is pushing into PCs with a new processor, the RTX Spark superchip, which will debut on laptop models from Microsoft, Dell, HP, ASUS, Lenovo and MSI . Huang suggested that AI agents might run perfectly well locally, where they'll be cheaper than in the cloud: "Look how beautiful it is—this agent could run 24/7, meter free. No meter anxiety" .
Every layer of the AI stack is now contested.
Why Is Florida Suing Sam Altman Personally?
OpenAI and its CEO, Sam Altman, were sued by the Florida attorney general on Monday, in a first-of-its-kind state litigation effort over ChatGPT's alleged links to a number of violent incidents, with the lawsuit accusing OpenAI of looking the other way on safety concerns as it has sought to prioritize winning "the AI arms race and amass large fortunes" , TechCrunch reported.
The lawsuit accuses OpenAI of aiding and abetting mass shooters, including a shooter at Florida State University who allegedly used ChatGPT to plan his attack, encouraging vulnerable people to commit suicide, and addicting children "to a tool that feigns human compassion to collect their data with no parental oversight" , according to NPR. Florida is also seeking to hold Altman personally liable . Florida Attorney General James Uthmeier said he believes Altman and the company could be liable "for potentially up to billions of dollars" in penalties .
OpenAI spokesperson Kayla Wood said in an emailed statement: "Losing a child is the most devastating tragedy that can happen to a family and we know that no words can come close to addressing the pain of such a loss. AI is a new and powerful technology, and we believe minors need significant protection, which is why we have put in place industry leading protections and policies" .
More than 20 lawsuits have been filed against OpenAI over harms allegedly stemming from ChatGPT use, including by families of victims killed and injured in a mass shooting at a school in Tumbler Ridge, Canada, in February , NPR noted. The Florida suit is the first brought by a state.
