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The Crazy Story Of How OpenAI Lost Everything In One Week

Author
Jack Houghton
Published
Thu 17 Jul 2025
Episode Link
https://podcasters.spotify.com/pod/show/anna-kocsis1/episodes/The-Crazy-Story-Of-How-OpenAI-Lost-Everything-In-One-Week-e35lol2

Episode Description:

In just ten days, OpenAI went from market leader and top dog to a series of very painful events that threaten its market leadership.

This episode breaks down the dramatic collapse of their $3 billion Windsurf acquisition, the power play from Microsoft that unraveled it, and how Google swooped in for a surgical “hackquisition.” But that was just the beginning.


We unpack how Elon Musk’s Grok 4 leapfrogged OpenAI’s GPT lineup to become the best AI model in the world (for now), and how Meta pulled off the most aggressive talent raid in recent memory with jaw-dropping offers and the promise of research freedom.


This isn't just a bad week. It might be the turning point where OpenAI's grip on the AI race starts to slip.



⏭️ Episode Highlights

(00:35) - $3 billion Windsurf AI acquisition deal collapses

(03:00) - The Microsoft partnership agreement lands Windsurf AI's technology in Google's hands

(07:35) - Elon Musk's Grok 4 beats the best ChatGPT models

(09:45) - Meta talent war continues: Mark Zuckerberg pouches 20+ AI researchers from OpenAI

(11:40) - What does this all mean for OpenAI?


🔗 Links & Resources

Episode transcript with more resources on the Mindset AI blog


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Jack Houghton

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