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Microsoft Strikes $3B AI Deal with U.S.
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Good Morning, AI Enthusiast!
Today’s headline that’s got everyone talking? Microsoft and the U.S. General Services Administration (GSA) have signed a major agreement to expand AI that is expected to drive billions in savings and accelerate secure AI adoption at scale.
Let’s break it down.
Today’s Unfiltered Report Features:
Top Stories Including: Another One Bites the Dust: 4,000 Jobs Cut by AI at Salesforce and Colorado Presses Pause on AI Law
Microsoft Strikes $3B AI Deal with U.S. Government
Back to School With a Side of AI
Read Time: 5 Minutes
Top Stories
Image Credit: Salesforce
Another One Bites the Dust: 4,000 Jobs Cut by AI at Salesforce: Salesforce CEO Marc Benioff admitted he’s slashed 4,000 customer support jobs thanks to AI agents, trimming headcount from 9,000 to 5,000. He called the layoffs part of the “most exciting months” of his career, bragging that bots are now chasing down 10,000 leads a week something humans couldn’t scale. This marks the third big story this year of AI eating jobs, proving the pink slips are arriving faster than the hype cycle.
$1B Alliance Backs India’s Deep Tech Future: Eight major U.S. and Indian investors including Accel, Blume Ventures, Celesta Capital, and Premji Invest have formed the India Deep Tech Investment Alliance, committing over $1 billion to early-stage startups over the next decade. The coalition will channel funding, mentorship, and networks into India-domiciled companies in AI, semiconductors, space, biotech, and more, while aligning with the government’s new $11B RDI scheme. Despite geopolitical strains, the group is betting big on India’s potential to emerge as a global hub for foundational technologies.
Colorado Presses Pause on AI Law: Colorado has delayed its landmark AI law until June 2026 after lawmakers failed to agree on revisions during a special session. The statute, which requires businesses to manage risks tied to high-stakes AI systems like hiring tools, has faced backlash from both local industries and federal pressure. The pause gives businesses breathing room, but it also highlights the growing clash between state-level rules and calls for a unified national standard.
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Microsoft Strikes $3B AI Deal with U.S. Government
Microsoft and the U.S. General Services Administration (GSA) have signed a major agreement to expand AI, cloud, and productivity tools across federal agencies including free access to Microsoft 365 Copilot for up to 12 months. The deal is expected to drive billions in savings and accelerate secure AI adoption at scale.
Key points:
$3B savings: Unified governmentwide pricing projected to cut costs in the first year alone.
AI at scale: Millions of federal workers gain access to Microsoft 365 Copilot, Azure, Dynamics 365, and AI agents.
Modernization push: Agencies can automate workflows, modernize infrastructure, and streamline citizen services.
Security first: All tools meet FedRAMP High standards, including identity and threat protection.
Long-term value: Initiative expected to deliver $6B in benefits over three years, with $20M in added support services.
This marks one of the largest government AI modernization efforts to date, aligning with the America’s AI Action Plan and GSA’s OneGov strategy.
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What’s Trending
Back to School With a Side of AI
As students file back into classrooms, AI is becoming as common as backpacks and calculators. A recent survey found 6 in 10 teachers leaned on AI last year for lesson planning, grading, and assignments, while major districts like New York City have even reversed bans to let students use the tech. Big Tech is cashing in on the shift, Microsoft, OpenAI, and Anthropic are funding AI training for hundreds of thousands of teachers, while Google is rolling out $1 billion in free AI access for college students. Still, the rollout is uneven: some schools are betting on AI tutors, others are banning the tools over privacy risks and fears that students will outsource their critical thinking. For now, AI in the classroom feels less like a passing trend and more like the new permanent fixture gum under the desk included.
That’s a Wrap for Today 👋
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Future AI Team
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