Published: August 8, 2025, 16:05 (U.S. Eastern Time)

OpenAI has officially released GPT-5, the latest version of the artificial intelligence technology that powers ChatGPT. The launch is being closely monitored by industry experts, investors, and policymakers as a key indicator of whether the generative AI boom is sustaining its momentum or approaching a plateau.

Arriving more than two years after GPT-4’s debut in March 2023, GPT-5 lands amid heightened competition, substantial financial investment, and growing public debate about the benefits and risks of AI.

A Competitive Release in a Crowded AI Landscape

OpenAI’s announcement comes just days after rival Anthropic unveiled the newest version of its Claude chatbot. Google and several major AI developers in the U.S. and China are also in an aggressive race to outperform each other on speed, accuracy, and functionality benchmarks.

Microsoft, a longstanding OpenAI partner, confirmed it will integrate GPT-5 into its Copilot AI assistant, broadening the model’s reach across productivity tools.

Pushing Toward AGI While Expanding Usability

Expectations for GPT-5 have been high. OpenAI has consistently framed each major update as a step toward artificial general intelligence (AGI)—a level of machine intelligence that could surpass humans in performing economically valuable tasks.

OpenAI CEO Sam Altman called GPT-5 a “significant step along our path to AGI” but emphasized its practical value to the 700 million weekly ChatGPT users.

“It’s like talking to an expert — a legitimate PhD-level expert in anything, any area you need, on demand,” Altman said during a livestreamed launch event Thursday.

GPT-5 is now available to all ChatGPT users, including those with free accounts, though usage limits apply. Early demonstrations highlighted the model’s enhanced coding abilities, a space where Anthropic’s Claude has gained traction.

Safety and Reliability at the Forefront

One of OpenAI’s major talking points at the launch was safety. The company says GPT-5 has been designed to be “less deceptive” and better at rejecting harmful or manipulative prompts that might circumvent safeguards.

The announcement followed a recent Associated Press report detailing a study in which ChatGPT provided unsafe responses about drugs and self-harm to researchers posing as teenagers.

OpenAI representatives said they have strengthened content moderation, expanded testing for edge cases, and fine-tuned the model’s ability to identify potentially harmful requests before responding.

Expert Perspectives on GPT-5’s Performance

From a technical standpoint, GPT-5 demonstrates “modest but significant improvements” over GPT-4, according to John Thickstun, an assistant professor of computer science at Cornell University.

“While I don’t think AI is going to replace all human work anytime soon, there’s still a lot of room for OpenAI and others in the field to advance the technology,” Thickstun said. “This is about building on the gains they’ve made, not just resting on them.”

GPT-5’s architecture reportedly departs significantly from GPT-4, potentially laying the foundation for more dramatic leaps in future versions.

OpenAI’s Evolution and Business Challenges

Founded in 2015 as a nonprofit research lab dedicated to developing AGI safely, OpenAI has since transitioned into a capped-profit model. Its valuation has surged to an estimated $300 billion, making it the third most valuable private company in the world.

However, its hybrid structure has faced legal and regulatory challenges. In November 2023, OpenAI’s nonprofit board briefly removed Altman as CEO before reinstating him within days. Since then, the company has announced plans to convert its for-profit arm into a public benefit corporation, which would require balancing shareholder returns with its stated mission.

The company has yet to report a profit. It has also faced scrutiny from California and Delaware attorneys general over its nonprofit roots, as well as a lawsuit from co-founder and early donor Elon Musk, who now runs a competing AI firm.

Economic Realities of the AI Market

Building and running GPT-5 requires enormous computing resources, including high-cost chips and advanced data center infrastructure. OpenAI is seeking substantial new funding to sustain its research and operations.

Analysts at JPMorgan Chase recently described OpenAI as having an “increasingly fragile moat” at the frontier of AI, warning that no single developer may be able to maintain a lasting competitive advantage. The bank suggested that intense competition could drive companies to lower AI product pricing, potentially shifting the industry’s business model in the coming years.

A Bellwether for the Industry

GPT-5’s release will serve as a test case for the broader AI sector: can generative models continue to deliver meaningful improvements that justify the immense hype and investment? Or will incremental progress slow the pace of adoption and innovation?

For OpenAI, the answer will depend not only on technical performance but also on user adoption, safety credibility, and the company’s ability to navigate legal, financial, and competitive pressures.

In the meantime, millions of ChatGPT users now have access to OpenAI’s most advanced technology to date — a model that could shape the next phase of human-AI interaction.

Source: AP News – OpenAI launches GPT-5, a potential barometer for whether AI hype is justified

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A young AI startup named Perplexity is suddenly at the center of big tech’s attention—and that’s saying something when the companies watching are Meta and Apple.

According to reports from Bloomberg and The Information, Meta held acquisition talks with Perplexity in late April or early May. While no deal was reached, the discussions signal just how serious Meta is about staying competitive in the AI race. Apple, too, has reportedly had internal conversations about acquiring the company, though those talks are said to be early and exploratory.

Neither Meta nor Apple offered public comments, and Perplexity’s head of communications, Jesse Dwyer, told CNN the company has “no knowledge of any current or future M&A discussions.”

So, what exactly is Perplexity—and why are tech giants circling?

What is Perplexity?

Founded in 2022, Perplexity is a new kind of search engine that uses artificial intelligence to scan the web and serve up clean, summarized answers—alongside clickable source links for transparency. Think of it like Google Search crossed with a chatbot, but more focused on accuracy and explainability.

Perplexity offers two modes:

• Quick Search for fast answers
• Pro Search for deeper research (limited to three uses per day on the free plan)

Like ChatGPT and other AI tools, Perplexity isn’t just about answering questions. Users can also upload files, generate images, plan trips, and curate content based on interests. Many of these more advanced features are part of a $20/month premium plan, which also unlocks unlimited pro searches, more AI models, and enhanced project tools.

The company is also developing its own web browser, Comet, which hints at broader ambitions beyond search.

Why Are Meta and Apple Interested?

Both Meta and Apple are playing catch-up in the AI space—and Perplexity could help close the gap.

Apple’s AI Catch-Up

At its June developer conference, Apple unveiled AI-powered features like smarter emoji and live language translation. But its flagship voice assistant, Siri, still hasn’t been fully revamped despite an announcement more than a year ago.

Behind the scenes, Apple is also weighing alternatives to Google, which currently pays billions to remain the default search engine in Safari. That deal is under fire in an antitrust case brought by the Justice Department—raising the stakes for Apple to find or build its own search solution. Acquiring Perplexity could offer a strong foundation.

Apple already partners with OpenAI and Google to enhance iPhone features, but as analyst Ben Bajarin put it to CNN, “Apple needs to be relevant here. The fact that they don’t have a lot to show for their efforts is what gives most people concern.”

Meta’s AI Talent Hunt

Meta has been aggressive in its AI push, investing heavily and offering eye-popping pay packages—reportedly up to $100 million—to lure top talent. CEO Mark Zuckerberg sees AI as central to Meta’s future, across products like Instagram, WhatsApp, and its line of Ray-Ban smart glasses.

In addition to courting Perplexity, Meta recently invested in Scale AI, a data-labeling startup now valued at over $29 billion, and even brought on its founder Alexandr Wang.

While Meta’s open-source Llama models are widely used by developers, the company has faced setbacks too. It delayed the release of its next-gen Llama model, and its new standalone AI app raised privacy concerns after some “private” user queries were found to be public.

But There’s a Catch: Content Controversies

Perplexity’s rise hasn’t been without drama. The BBC recently threatened legal action, accusing the AI tool of scraping its content without permission. Media giants like Dow Jones and the New York Post have also sued the startup, alleging copyright infringement and traffic theft.

This issue—how AI models use and credit content—remains one of the biggest unresolved debates in the AI world, and one that could shape how Perplexity grows, partners, or gets acquired.

The Bottom Line

Whether or not Meta or Apple ultimately buys Perplexity, their interest alone speaks volumes. As AI continues to redefine how we search, learn, and communicate, companies that can’t keep up risk being left behind.

And with search being a key battleground, startups like Perplexity may find themselves in high demand—either as partners, tools, or billion-dollar acquisitions.

Source: CNN – What is Perplexity, the AI startup said to be catching Meta and Apple’s attention

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News from China disrupted U.S. markets on Monday, sending shockwaves through the tech sector and unsettling the frenzy around artificial intelligence (AI).

A Chinese company, DeepSeek, announced the development of a large language model (LLM) capable of competing with U.S. AI giants—at a fraction of the cost. Despite U.S. government restrictions on Chinese access to advanced AI chips, DeepSeek surged to the top of the Apple App Store’s free apps chart, stunning analysts and investors.

The announcement triggered significant declines for tech stocks like Nvidia, Broadcom, and Alphabet (Google’s parent company). Meanwhile, the broader market saw mixed results, with some sectors gaining despite the tech slump.

Let’s break down the numbers to understand DeepSeek’s impact on the financial markets.

Key Stats from Monday’s Market Shake-Up

5.6%

• Decline in the S&P 500 tech sector, marking its worst single-day drop since September 2020.
• Notably, Nvidia was one of eight tech stocks in the sector to post double-digit losses.
• Without Apple’s 3% gain, the index’s decline would have been even sharper.

$590 Billion

• The approximate decline in Nvidia’s market value, equivalent to more than the combined market value of Home Depot and Lowe’s.
• Despite the drop, Nvidia still holds an impressive market cap of approximately $2.9 trillion.

$27.6 Billion

• The amount Oracle CEO Larry Ellison’s net worth fell after the selloff, per the Forbes Real-Time Billionaires list.
• Last week, Ellison’s fortune surged after Donald Trump announced a $500 billion AI infrastructure partnership involving Oracle, OpenAI, and SoftBank.
• Nvidia CEO Jensen Huang also saw his net worth tumble by $20.8 billion, settling at $103.6 billion.

28.3%

• The decline in Vistra Corp.’s stock, the biggest drop for any stock in the S&P 500.
• Vistra, an independent power producer, had soared last year due to expectations that U.S. AI infrastructure would drive significant demand for power.

351 Stocks

• The number of S&P 500 stocks that rose on Monday despite the sharp drop in the index.
• The decline highlights the outsized influence of tech stocks like Nvidia on the overall index.
• The Dow Jones Industrial Average, which has less emphasis on tech, managed to close with a modest gain.

What Does This Mean for Investors?

DeepSeek’s rise has sent a clear message: China is a formidable competitor in AI development, and its advancements can shake the dominance of U.S. tech giants. The volatility in the market underscores the heavy reliance on a few key players in the tech sector, making the broader market vulnerable to disruptions tied to these companies.

While the S&P 500 tech sector suffered, other parts of the market—especially those with less exposure to AI hype—saw gains. Investors should take note of these shifts as the global AI race accelerates.

Key Takeaways

• DeepSeek’s announcement rattled U.S. markets, challenging the dominance of American AI firms.
• Nvidia, Alphabet, and Broadcom saw significant declines, dragging down the S&P 500 tech sector.
• The broader market showed resilience, with more than 350 S&P 500 stocks rising despite the tech selloff.
• DeepSeek’s success, despite U.S. chip restrictions, raises questions about the future of global competition in AI.

Source

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