THE ALGORITHM DAILY“Your Daily Dose Of AI News.” Top Story: xAI Co-Founder Igor Babuschkin Leaves to Start AI Safety VC FirmIgor Babuschkin, who co-founded Elon Musk’s AI startup xAI in 2023, has left the company to launch his venture capital firm, Babuschkin Ventures. The new firm will focus on funding AI safety research and backing startups that aim to “advance humanity and unlock the mysteries of the universe.” Babuschkin said he was inspired to make the move after a conversation with Max Tegmark of the Future of Life Institute about building AI systems safely. Before xAI, Babuschkin worked at Google DeepMind, where he helped develop the AlphaStar gaming AI, and at OpenAI before the launch of ChatGPT.
His exit comes after a turbulent period for xAI, marked by controversies surrounding its chatbot Grok, including political bias, offensive content, and a feature that could generate explicit deepfakes of public figures. Despite these scandals, xAI’s models have ranked among the best in the industry. Babuschkin reflected positively on his time at the company, praising Musk for teaching him “fearlessness” and “a maniacal sense of urgency.” In response to Babuschkin’s announcement, Elon Musk posted on X: “Thanks for helping build @xAI! We wouldn’t be here without you.”
Babuschkin also recalled the team’s rapid construction of a supercomputer in Memphis, Tennessee, a feat achieved in just three months, though criticised for its environmental impact. Judge Says OpenAI’s Harassment Case Against Musk Can Go AheadA U.S. federal judge has rejected Elon Musk’s attempt to dismiss OpenAI’s claims that he carried out a “years-long harassment campaign” against the company he helped start in 2015. The accusations include making damaging public statements, posting on social media, filing legal claims, and making what OpenAI called a “sham bid” for its assets. The dispute is part of an ongoing legal battle that began last year after Musk left OpenAI before the launch of ChatGPT.
The case began when Musk sued OpenAI and CEO Sam Altman, saying the company had abandoned its original non-profit mission to develop AI for the benefit of humanity. OpenAI responded with a countersuit in April, accusing Musk of fraudulent business practices. Musk asked for the countersuit to be thrown out or delayed, but the judge ruled it could proceed. A jury trial is set for spring 2026. Google to Spend $9 Billion on AI and Cloud Expansion in OklahomaGoogle has announced plans to invest $9 billion over the next two years to grow its artificial intelligence and cloud infrastructure in Oklahoma. The project will include building a new data centre in Stillwater and expanding its existing site in Pryor, one of Google’s largest U.S. facilities. The investment is part of parent company Alphabet’s larger 2025 capital spending plan, which has risen to $85 billion to meet the rising demand for AI technology and stay competitive. Alongside the infrastructure push, Google will launch education and training programmes to boost local skills. This includes the Google AI for Education Accelerator, in partnership with the University of Oklahoma and Oklahoma State University, offering free AI tools and training. The company will also work with the Electrical Training Alliance to more than double the state’s electrical workforce. The move is expected to create jobs, strengthen the economy, and support America’s AI leadership. |
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AI Word of the Day
Entropy
Meaning: In AI and machine learning, entropy measures the amount of uncertainty or randomness in a system’s predictions. A higher entropy means the model is less certain about its output, while lower entropy means it’s more confident.
Example: If a language model assigns nearly equal probability to several possible next words, the entropy is high it’s unsure which word should come next.
Why it matters: Entropy helps data scientists understand how confident an AI model is in its answers. It’s often used in decision-making, model evaluation, and training to improve accuracy and reduce errors.
Stay tuned as we keep making sense of AI clear, simple, and straight to the point. Catch you in the next edition.
Havilah Mbah
Staff Writer, The Algorithm Daily
