This week in AI: From Chennai to ChatGPT, Zoho’s robotics play, and xAI’s $10B bet
This week, we highlighted how former OpenAI research lead Arvind Neelkantan helped shape GPT-3 and why Microsoft conducted its biggest layoffs in two years.
From former OpenAI research lead Arvind Neelkantan helping shape GPT-3 at OpenAI to Microsoft’s biggest layoffs in two years, AI Story brings a recap of major developments and emerging trends in the sector this week.
Here’s a recap of key stories:
How a Chennai-born researcher helped build ChatGPT
In 2022, ChatGPT altered the software world forever. While the AI chatbot quickly became a household name, very few realised that its meteoric rise was built on a quieter, earlier revolution: the creation of GPT-3, or Generative Pre-trained Transformer 3.
This powerful model laid the groundwork for modern conversational AI, becoming the invisible engine behind the scenes. At the heart of this foundational leap was Arvind Neelakantan, a Chennai-born engineer whose early fascination for making computers “do complicated things” helped architect one of the most crucial breakthroughs of our time.
With a PhD in Computer Science from the University of Massachusetts Amherst, a Master’s from Columbia University, and a Bachelor's from NIT Tiruchirappalli, Neelakantan’s academic journey mapped a path through some of the most respected institutions in the world, eventually landing him key roles at Google Brain, Meta, and OpenAI.
How HyperVerge taps AI to streamline KYC, simplify user onboarding
Since 2009, Kishore Natarajan has had a deep passion for computer vision technology, which truly came to life when he met like-minded individuals—Kedar Kulkarni, Vignesh Krishnakumar, Praveen Kumar, and Sai Venkatesh—at IIT Madras' Centre for Innovation.
The then-young engineers tackled an eclectic mix of challenges, or as Natarajan puts it, ‘toy problems’. The group of friends first built a hairstyle modification system for US salon apps using cutting-edge deep learning. They also built volumetric analysis for Kerala's rubber plantations and created automated weld inspection systems for car manufacturer Renault-Nissan. Despite their technical brilliance, the team struggled to build a sustainable business around their innovations.
“We locked ourselves in our pantry in the IKP startup incubator in Koramangala in Bengaluru, and asked ourselves, if societal pressures weren't a problem, if money wasn't a problem, what would you want to spend the rest of your life energy doing?” Natarajan recalls the incident from 2016.
Zoho Corp acquires Asimov Robotics, expands R&D footprint
Zoho Corporation, the parent company of Zoho and ManageEngine, has acquired Kochi-based deeptech startup Asimov Robotics. Founded in 2012, Asimov Robotics develops robotic solutions for industries to handle hazardous and repetitive tasks.
Following the acquisition, Asimov Robotics and its employees will continue their R&D work from Zoho’s campus in Kottarakkara, Kerala, with guidance and mentorship from Zoho’s in-house team, Zoho Corporation said in a statement. The move is aimed at strengthening the firm’s R&D capabilities in the field of robotics and expanding its expertise in emerging technologies.
Exclusive: Terex Ventures, Tokyo AI to fuel AI investments across India
Global investment and advisory firm Terex Ventures has collaborated with Tokyo AI, an AI community based in Japan, to fuel $200 million in cross-border investments in artificial intelligence across India, Japan, and the UAE.
The joint effort aims to connect prominent investors and AI-focused enterprises with growth-stage companies, strengthening market expansion in key global hubs, it said in a statement.
“We have established this collaboration with the Tokyo AI community in Japan to bring maximum resources for the companies that are developing innovative AI products in India. This initiative aims to create a platform for Indian startups to enter and establish their businesses in the Japanese market,” Priyanka Madnani, Founder and CEO of Terex Ventures, told YourStory.
Elon Musk’s xAI secures $10B in debt and equity funding
Elon Musk’s artificial intelligence venture, xAI, has raised $10 billion in a mix of debt and equity financing, according to a statement released by Morgan Stanley on Tuesday. The financial services firm confirmed that firm has secured $5 billion through debt and an additional $5 billion through a strategic equity transaction.
“Morgan Stanley is pleased to announce the successful completion of a $5 billion financing of Secured Notes and Term Loans for xAI, a leading innovator in artificial intelligence technology. This transaction, which was oversubscribed and included prominent global debt investors, reflects confidence in xAI’s vision to accelerate scientific discovery and advance humanity's collective understanding of the universe,” it said in a statement.
Oracle signs cloud services deal, eyes over $30B in revenue: Report
US multinational tech firm Oracle has signed a single cloud-services deal expected to generate over $30 billion in annual revenue starting in 2028, reported CNBC on Monday. Chief Executive Safra Catz told investors in a filing with the US Securities and Exchange Commission that revenue from Oracle Database running on rival clouds is already growing at over 100% year-on-year.
She added that the firm has signed multiple large cloud services agreements since April 1, the start of its 2026 financial year. The CEO officially announced the deal during a company meeting on Monday.
Microsoft begins another wave of layoffs, hitting Xbox and global teams
Technology giant Microsoft is firing thousands of workers, its second mass layoff in months and its largest in over two years. The Windows maker began sending out layoff notices on Wednesday that hit the company's Xbox video game business and other divisions.
Microsoft declined to say how many people would be laid off but said that it will comprise less than 4% of the workforce it had a year ago. It said the cuts will affect multiple teams around the world, including its sales division.
“We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace,” it said in a statement.
Edited by Kanishk Singh