Welcome, Pioneers!
AI keeps rewriting the rules of competition. Every move, from pricing wars to regulatory heat, shows how fast the ecosystem matures. Google is bundling AI into everyday tools, VMware is threading AI through legacy stacks, Microsoft redraws its most famous partnership, and the FTC puts guardrails around kids’ safety.
📌 In today’s Generative AI Newsletter:
Google: Gemini AI Plus INR 400 plan bundles AI + storage, rivals ChatGPT Go.
VMware: Adds Private AI + Tanzu and leans on legacy lock-in.
Microsoft: Resets OpenAI deal and clears path for its own models.
FTC: Probes chatbots’ impact on kids across Big Tech.
Special highlight from our network
Secure AI at Every Layer. Start Today!
Tumeryk makes AI security measurable, actionable, and aligned with business value. From prompt-level controls to enterprise-ready observability, we help you govern AI without slowing it down.
Our AI Trust Score™ Platform offers purpose-built security across every AI surface.
Choose the capabilities you need:
Guardrails to enforce policies in real-time
Red Teaming to simulate attacks before adversaries do
Observability for full-stack visibility
Workforce Chatbot to detect and prevent Shadow AI risks
Transparent pricing. Enterprise-ready.
Google’s Gemini AI Plus Takes on ChatGPT Go at ₹400
Image Credit: Google Gemini AI Plus
Google launched Gemini AI Plus, an affordable AI subscription priced at INR400 per month, to rival OpenAI’s ChatGPT Go. The plan bundles Gemini’s premium AI features with practical perks like cloud storage and a free Perplexity Pro subscription to make advanced AI accessible to mainstream users.
Inside the plan:
Features: Access to Gemini 2.5 Pro, Deep Research, limited Veo 3 for video generation and Flow AI filmmaking tools.
Ecosystem bundling: 200 AI credits per month, 200GB Google One storage, and seamless integration across Gmail, Docs, Sheets, and Vids.
Competitive edge: While ChatGPT Go leans on GPT-5, Python tools, extended memory, and custom GPTs, Gemini AI Plus bets on productivity within Google Workspace.
Market move: It was launched in Indonesia at a promo price of IDR 37,500 (~INR200), now INR400 and a wider rollout is expected in India and beyond.
Google is positioning Gemini AI Plus as more than an AI tool; it’s a productivity ecosystem. With OpenAI sharpening customization and developer tools, the next phase of the AI subscription war is about who wins the everyday user.
VMware Sprinkles AI on Legacy Core, Plays Long Game
Image source: “Virtual Try On” by jurvetson is licensed under CC BY 2.0.
Broadcom announced that VMware Cloud Foundation (VCF) is now AI-native, signaling a pivot to keep pace with enterprise adoption of large language models. But behind the AI gloss, VMware’s real strategy remains rooted in its sticky, legacy infrastructure business, where migration costs keep customers tied down, despite rising backlash over licensing changes.
Inside the strategy shift:
AI-native upgrade: In 2026, VCF 9 will ship with VMware Private AI Services, which bundles a model store, vector DBs, indexing tools, agent builders and an API gateway for on-prem AI deployments.
Low-hanging AI: Intelligent Assist, a chatbot trained on VMware’s knowledge base, aims to cut support queues but feels more incremental than revolutionary.
Trust deficit: Ending free tiers, aggressive sales tactics and lawsuits around perpetual licenses have driven some customers toward Nutanix, SUSE and IBM.
Customer lock-in: Migrating heavily virtualized workloads is costly and risky, making “stay and pay” the safer bet for most enterprises.
Beyond AI, VMware also announced updates to Tanzu Platform, including simpler MCP server publishing and a new lakehouse, Tanzu Data Intelligence.
VMware’s approach is incremental. Rather than reinventing itself, it is adding AI to a foundation customers cannot easily leave.
Microsoft Loosens Grip on OpenAI, Preps Own AI Push
Image Credits: FT montage/Getty Images
Microsoft and OpenAI have struck a non-binding deal to redefine their relationship. The move clears the path for OpenAI to convert into a for-profit company, raise capital on Wall Street style and pursue a public listing. Think of it as a reboot of one of the most high-profile partnerships in AI.
Inside the shake-up:
Money talks: Microsoft poured in $1B (2019) and $10B (2023), gaining exclusive Azure rights. But OpenAI now courts new backers with $300B+ cloud deals (Oracle, Google) and its own Project Stargate super-datacenters.
For-profit pivot: OpenAI’s nonprofit arm still holds the reins and could net over $100B from its 20% share of a $500B valuation, making it one of the wealthiest nonprofits ever.
Regulatory hurdle: California and Delaware AGs must approve the for-profit conversion. Miss the year-end deadline and OpenAI risks losing billions in funding.
Frenemies in AI: Microsoft seeks guaranteed access to OpenAI’s tech, even if it hits AGI, but is simultaneously building its own models to reduce reliance.
The bigger picture: OpenAI’s revenue is surging into the billions and so are its computing needs. Broadening partnerships and reshaping governance are survival tactics in the AI arms race.
The move is less a split than a rebalancing. Both companies are diversifying as the AI arms race accelerates.
Snap, Meta, OpenAI and others face child-safety review on chatbots
Image Credits: Olivier Douliery | AFP | Getty Images
The Federal Trade Commission (FTC) has launched an inquiry into seven AI companies, including OpenAI, Alphabet, Meta, xAI, Snap, and Character.AI, to examine how their chatbots may negatively impact children and teens. The probe zeroes in on safety, monetization and data use as companion-style chatbots proliferate.
Inside the crackdown:
Kids in focus: FTC warns that AI chatbots simulate human-like relationships, raising risks for vulnerable young users.
Follow the money: Regulators want details on monetizing engagement, how characters are designed and approved and how personal data is used or shared.
Industry response: OpenAI pledged cooperation, Snap welcomed dialogue, while Meta declined comment. Alphabet and xAI did not respond.
Mounting scrutiny: The probe follows reports that Meta bots engaged in romantic chats with children and a lawsuit alleging ChatGPT’s role in a teen suicide.
Bigger picture: With loneliness rising in the U.S. and AI companions gaining traction (Musk’s Grok “Companions,” Zuckerberg’s personalized AI vision), concerns around safety, ethics and unpredictable AI behavior are intensifying.
The FTC says protecting kids online is a top priority, signaling that AI companions, once seen as experimental novelties, are now being treated as a potential public safety issue. What started as playful chatbots has quickly morphed into emotionally responsive systems that can shape how children think, feel and interact. Regulators are concerned that without strict guardrails, these tools could blur boundaries between reality and simulation, expose kids to manipulation and even exploit their personal data.
By scrutinizing OpenAI, Meta, Alphabet, Snap, and others, the FTC sends a clear message: AI companionship is a matter of national oversight. The probe could force companies to rethink how they design, monitor and monetize their chatbots, potentially setting the tone for global regulation in the years ahead.
🚀 Boost your business with us. Advertise where 13M+ AI leaders engage!
🌟 Sign up for the first AI Hub in the world.
