This follows reports that CEO Sam Altman declared a “code red” inside the company in early December, halting side projects and pulling teams into a faster development sprint. 

The urgency was linked to Google’s latest innovations, which had placed Gemini 3 at the top of key performance rankings across reasoning, coding and multimodal tasks.

OpenAI says GPT-5.2 brings stronger general intelligence, better coding results, and far longer context handling. The company believes these improvements will help users complete more demanding work, particularly tasks that involve spreadsheets, complex documents, and project-heavy workflows. 

Interestingly, the new model stretches to handle up to a million tokens, a big difference from the previous model.

Google has been keen to highlight what Gemini 3 is capable of across text, audio, images and video, and analysts say its tight integration with Workspace and Android gives it an advantage with corporate users. 

Even with that, Altman played down the internal panic when he spoke on CNBC, saying: “Gemini 3 has had less of an impact on our metrics than we feared.” Google has not responded to requests for comment.

OpenAI is rolling out GPT-5.2 in three versions: Instant for quick responses, Thinking for slower but more reasoned answers, and Pro for enterprise-level performance. Paid ChatGPT users will receive them first. The company also states it will continue to support GPT-5.1, GPT-5 and GPT-4.1 on its API, giving developers more flexibility.

Away from the technical competition, OpenAI is also moving into entertainment. Disney has confirmed a $1 billion investment in the company and will allow its Sora video generator to use characters and worlds from Star Wars, Pixar and Marvel. 

This is one of the largest licensing deals yet between Hollywood and an AI firm, and it sets up OpenAI as a direct partner in digital content production. Microsoft, still OpenAI’s biggest backer with about $13 billion committed since 2019, continues to host the company’s models on Azure.

Industry forecasts show spending on cloud-based AI services is expected to rise sharply, with Gartner estimating it will exceed $723 billion next year. Many companies are already relying on GPT models for coding assistance, document processing and data insights. According to OpenAI, enterprise usage has climbed roughly 40% in the past year.

However, regulators in the US and Europe are examining safety standards, competition risks and copyright issues, with Disney’s licensing deal likely to draw even closer attention.

Morgan Stanley, which led the deal, confirmed on Monday that xAI had closed a $5 billion debt financing round made up of secured notes and term loans. 

The deal, according to the bank, was oversubscribed and attracted major institutional investors across the globe.

Simultaneously, xAI closed a separate $5 billion strategic equity investment. Though the identities of the backers have not been disclosed, Bloomberg previously reported that the startup had been negotiating a $4.3 billion equity round with investors. 

That conversation is part of a larger funding goal, Musk’s team is reportedly looking to raise as much as $20 billion in equity that could push the company’s valuation beyond $120 billion. Some insiders are even betting on a $200 billion ceiling.

The funds are earmarked for aggressive expansion. A key priority is scaling up computing infrastructure through data centres tailored to handle vast AI workloads. 

The capital will also accelerate development of Grok, xAI’s core conversational platform integrated into X (formerly Twitter), and help the company move toward building its own custom chips, codenamed “Gigafab”, to reduce dependence on Nvidia’s high-demand GPUs.

Musk launched xAI in 2023 after parting ways with OpenAI, the company he co-founded. He has positioned xAI as a rival not just to OpenAI, but also to players like Google DeepMind and Anthropic. 

His approach is more unorthodox, Grok is marketed as a “rebellious” chatbot, an alternative to the more filtered responses seen in other models.

The debt raise and equity injection together represent one of the largest combined funding moves by a private tech startup in recent memory. 

It comes as global competition increases. OpenAI has a $51 billion partnership with Microsoft, while Amazon has poured $4 billion into Anthropic. These alliances are about access to compute power, chips, and distribution.

“The deal was oversubscribed and included prominent global debt investors,” Morgan Stanley stated in a post on X.

Musk has previously argued that building AGI, artificial general intelligence, requires vertical control over data, chips, energy, and distribution. This latest funding round gives xAI the firepower to attempt just that.

xAI has not issued a formal statement regarding the funding, and representatives did not respond to requests for comment at the time of filing. 

But then, we see that Musk is going all-in on building a scalable AI ecosystem, and investors, despite earlier doubts, are willing to put serious money behind it.

The Meta CEO is personally building a new team aimed at artificial general intelligence (AGI), machines that can think and operate at or beyond human capability.

At the heart of this development is a covert “superintelligence” unit made up of roughly 50 top-tier engineers and researchers. 

According to multiple reports, Mark Zuckerberg is leading recruitment himself. That includes closed-door meetings with experts at his homes in Lake Tahoe and Palo Alto, strategic restructuring of Meta’s offices to keep the team close, and eye-watering compensation offers ranging from millions to tens of millions of dollars.

The motivation is the frustration over Meta’s perceived stagnation in the AI space. Meta’s flagship large language model, Llama 4, hasn’t produced the breakthrough results the company hoped for. 

In fact, a planned release of a more powerful version, nicknamed “Behemoth”, was recently delayed due to issues about its real-world capabilities. 

Meanwhile, competitors like OpenAI, Anthropic, and Elon Musk’s xAI are thriving hard to expand their influence, drawing talent and investment with growing momentum.

Zuckerberg is determined not to be left behind. Reports from Bloomberg and The New York Times confirm that Meta is in advanced talks to invest over $10 billion in Scale AI, a startup founded by Alexandr Wang. 

Once the deal is sealed, Wang is expected to join the AGI group, which operates separately from Meta’s existing AI research division.

“I heard of at least three instances last week where Meta lost out on AI talent to competitors offering over $2 million a year,” Menlo Ventures partner Deedy Das wrote on X.

Zuckerberg reportedly believes that Meta has the infrastructure, data scale, and financial muscle to match and surpass the progress of others in the AGI arms race. 

If achieved, the technology would likely be embedded into Meta’s ecosystem, impacting everything from WhatsApp and Instagram to the company’s Ray-Ban smart glasses and enterprise AI tools.

However, the plan leaves users questioning. How will this “superintelligence” group integrate with Meta’s existing AI teams? What risks are involved in placing so much responsibility, and expectation, on one internal unit? And is AGI even within reach? 

The field is divided and some experts believe we’re close. Others say we’re decades away, if not longer, with no clear path forward.

Still, for Zuckerberg, this is a mission.