Microsoft Weighs Legal Action Against Amazon and OpenAI

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.LEGAL ACTION:Microsoftis weighing legal action against Amazonand OpenAI over a $50B deal that may breach its exclusive cloud partnership with OpenAI, Stephen Morris, George Hammond, and Madhumita Murgia of The Financial Times reports. The issue centers on whether Amazon Web Services can offer OpenAI's commercial product without violating an agreement that requires all access to the start-up's models to be routed through Microsoft's Azure.AI TOOLS:Amid Anthropic's spat with the U.S. Department of Defense recently over the use of AI in warfare, a top Googleexecutive has quietly met with Pentagon officials to present the tech giant as a defense partner, the New York Times' Kate Conger and Julian Barnes. On February 26, Google Cloud CEO Thomas Kurian met with Emil Michael, a DoD official overseeing the selection of AI tools for the Pentagon, the authors say. Google already had business with the department, and Kurian offered an expanded supply of AI tools without all the noise, the authors say, citing two people with knowledge of the meeting.COPILOT EXECUTIVE GROUP:Microsoftis reorganizing its Copilot executive group, with former Snapexecutive Jacob Andreou heading up the Copilot AI assistant experience for commercial and consumer clients, Microsoft CEO Satya Nadella said in a memo, CNBC's Jordan Novet. Mustafa Suleyman, head of the Microsoft AI group, will focus more on developing generative AI models. "The model is the product," Suleyman said in an interview.GROQ AI:Nvidiais preparing a version of its Groq AI chips to be sold to the Chinese market, Max Cherney, Stephen Nellis and Liam Mo of Reuters, citing two sources familiar with the matter. Nvidia licensed technology from Groq last year in a $17B deal and showed a new lineup of products around its chips at a conference this week.AI FACTORY:Coupangannounced at the Nvidia AI Conference & Expo that its collaboration with Nvidiahas helped Coupang create an "AI factory" which is accelerating new innovations across the company's e-commerce logistics and delivery services. The collaboration leverages the Coupang Intelligent Cloud system, launched in July 2025, and Nvidia DGX SuperPOD to create a self-service AI ecosystem that allows engineers and other data experts to test and build new models quickly across Coupang's global organization, including engineering teams in Seattle and Mountain View, California. Coupang is also supporting Nvidia as a launch partner for Dynamo, the open source software for agentic inference that delivers unmatched scale, efficiency and speed. "Coupang's business is centered on fulfilling our 'Rocket Delivery' promise to customers - providing them with an unprecedented combination of speed, selection and price," said Ashish Suryavanshi, Coupang's VP of Engineering, who spoke at the conference. "This promise requires constant evolution. By working with NVIDIA, Coupang's engineers can build upon the advanced AI models and machine learning already powering our operations and unlock new levels of innovation for our company and our customers."AI-DRIVEN IOT:AT&Tand Ciscoannounced a collaboration to advance the next phase of AI-driven IoT, which the companies say will combine "intelligent networking, edge AI compute, and zero-trust security to enable real-time decision-making across distributed, mission-critical environments with NvidiaAI infrastructure." The companies added that "at the center of the solution is AT&T's dedicated IoT core alongside Cisco's Mobility Services Platform, built to support localized traffic breakout, deterministic performance, and zero trust security for regulated and critical use cases. The Cisco AI Grid with Nvidia is designed to bring on-demand AI inference closer to where data is generated. Built for developers and enterprises deploying AI in real-world environments, it provides a highly secure, end-to-end pathway from edge devices across the AT&T network, and into Nvidia accelerated compute. This network-driven approach reduces complexity, improves performance, and provides the operational scale required to move edge AI from pilots into full production.AI GRID:HPEannounced its AI Grid, saying it is built on the Nvidiareference architecture to connect AI factories and distributed inference cluster. "The HPE AI Grid enables service providers to deploy and operate thousands of distributed inference sites, turning AI installations into a single intelligent system," the company said in a statement. It added, "The HPE AI Grid solution, part of Nvidia AI Computing by HPE portfolio, delivers predictable, ultra-low latency performance at scale for real-time AI services, zero-touch provisioning, and automated security with integrated orchestration."MANUS ACQUISITION:The Chinese government has begun to penalize people linked to Meta's$2B acquisition of Manus in a move meant to discourage Chinese AI executives from moving businesses offshore, Ana Swanson, Meaghan Tobin, Paul Mozur, and Eli Tan of The New York Times, citing two people with knowledge of the matter. The scope of the Chinese government's actions is not yet clear, but efforts include restricting Manus executives from departing China for Singapore, one source said.