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Welcome to The Prompt by Kuro House, your daily AI update. Today, we’re diving into some major moves and moments in AI from outages to billion-dollar deals and new tech launches. Let’s get right into it.
First up, Cloudflare just explained what caused Tuesday’s massive outage that temporarily took down ChatGPT and other major sites. The Verge broke down the details in a blog post from Cloudflare’s CEO, Matthew Prince. Turns out, the problem wasn’t a cyberattack or DNS failure, but a change in their Bot Management system’s database permissions. This change caused duplicate data rows that overwhelmed memory limits, crashing the core proxy system that handles traffic for customers using the bots module. As a result, legitimate traffic was mistakenly blocked, knocking down services like ChatGPT, X, and Downdetector for hours. Cloudflare is now planning several fixes, including hardening configuration file ingestion and adding global kill switches to prevent this from happening again.
Next, Senator Elizabeth Warren is pressing the Trump administration for clarity on whether there are plans to bail out major AI companies with taxpayer money. The Verge reported that Warren wrote to White House AI advisors, concerned about close ties between Trump and AI executives. She points to OpenAI’s CFO suggesting government backstops for AI investments, though the company later walked that back. Warren highlights OpenAI’s request to expand government tax credits for AI server production, raising questions about potential public funding support. Despite OpenAI CEO Sam Altman denying any desire for government guarantees, Warren remains skeptical and is seeking answers by December 1st. This could shape how government policy interacts with the rapidly evolving AI industry.
In a major commercial move, Intuit has signed a deal worth over $100 million with OpenAI to integrate its financial apps into ChatGPT. TechCrunch covered this, noting that tools like TurboTax, Credit Karma, QuickBooks, and Mailchimp will be accessible directly through ChatGPT. With user permission, these apps will access financial data to answer questions, estimate tax refunds, review credit options, and even send marketing messages or invoice reminders. Intuit emphasizes rigorous validation to minimize AI errors and continues to back the accuracy of its products. This partnership expands Intuit’s AI integration while offering users a new, conversational way to manage finances. It also deepens Intuit’s use of OpenAI’s models internally and externally, including ChatGPT Enterprise for employee workflows.
Databricks is reportedly in talks to raise funding at a valuation exceeding $130 billion, according to The Information. This would be a 30 percent increase over their last $100 billion valuation just months ago. The company is focusing on two key projects: a database for AI agents and an AI agent platform. Databricks CEO Ali Ghodsi highlighted that AI-created databases now make up 80 percent of the market, up sharply from 30 percent last year. This surge is driving consolidation, like Databricks’ $1 billion acquisition of Neon earlier this year. The company declined to comment on the new funding talks, but this signals strong investor confidence in AI data infrastructure.
Finally, Google has launched Gemini 3, its smartest AI model yet, aiming to make search smarter and more interactive. WIRED reported that Gemini 3 excels at reasoning, video generation, and coding, and is already integrated into Google Search and the Gemini app. Google says it’s seeing double-digit growth in natural language queries and a 70 percent jump in visual search, powered by Gemini 3. The model outperforms OpenAI’s GPT-5 on key benchmarks and is being rolled out to Google AI Plus and Pro subscribers soon. Google also introduced Antigravity, a new AI programming tool powered by Gemini 3, signaling a broad push to embed AI across its products. Despite talk of an AI bubble, Google’s leadership remains confident this technology will underpin future breakthroughs toward full AGI.
That’s all for today’s top AI stories. From outages to billion-dollar deals and next-gen models, the AI landscape keeps evolving rapidly. Thanks for tuning in to The Prompt by Kuro House. We’ll catch you tomorrow with more updates.
