Axios

Private equity is now in bed with the same AI giants that are decimating the industry's portfolio values, particularly the hundreds of billions of dollars invested in software.

Driving the news: Both Anthropic and OpenAI have completed their deals to form AI consulting firms that are funded by, and will initially be used by, large private equity firms.

• Anthropic announced its joint venture yesterday, while OpenAI's announcement is expected later this month.

The government is deepening its oversight of cutting-edge AI, signing new agreements with Google DeepMind, Microsoft and xAI to test powerful models, according to a Commerce Department announcement.

Why it matters: As AI systems grow more powerful and potentially risky, officials want to understand their security implications before they hit the market, even in a Trump administration focused on accelerating AI innovation.

The biggest tech companies are set to spend $1 trillion on AI by next year, according to multiple banks, a bill so big that it's propping up both the stock market and economy.

Why it matters: Our financial system is now load-bearing on AI spending that may never pay off, and most investors can't even see what the full tab is.

Elon Musk's lawsuit against OpenAI and the recent spate of deals AI companies have cut with the Pentagon show how far the industry has drifted from the altruistic origin story it's long told about itself.

Why it matters: OpenAI and Anthropic were founded on the idea that AI would be deployed in ways that prioritized safety and the public good. Now those principles are giving way to an arms race for market share, as those companies and others release ever more powerful models.

AI makers have trained agents to use software like people do. Now the industry is starting to build software meant for agents instead.

Why it matters: If agents stop using software the way humans do, tech competition could shift from who has the best interface to who controls the APIs, data and permissions agents need to act.

The price of your groceries may depend on who, or what, delivers them.

What you need to know: Autonomous trucks — trucks that operate without a driver — could lower shipping costs, helping reduce grocery prices while improving safety and supply chain efficiency.

OpenAI and Anthropic are teaming up with private equity firms on multibillion-dollar ventures to push their AI tools into midsized companies.

Why it matters: The two companies want to shore up enterprise adoption of their tools as they race toward IPOs that could come as soon as this fall.

While AI was trained to write like humans, these large language models are eroding the unpredictability of our writing and shifting the way we talk.

The big picture: Researchers found that AI pushes users toward a more standardized speaking and writing style, reducing variations in sentence structure and vocabulary.

Artificial intelligence is wiping out some entry-level work that trains the next generation of elite lawyers.

Why it matters: Big Law's entire business model depends on armies of junior associates learning on the job. If AI erases that rung, the profession faces a long-term talent crisis.

House Foreign Affairs Committee members are heading to Silicon Valley next week to discuss AI and export controls with leading tech companies, according to an invitation seen by Axios.

Why it matters: The trip underscores how AI is becoming a foreign policy priority, even as the White House has diverged from the Hill on whether China should have access to the most advanced chips.