GitHub Copilot recently gained support for OpenAI's latest coding model, GPT-5.4, designed for more complex development tasks, with improvements to reasoning and multi-step problem solving.

Its arrival also comes shortly after its rival Anthropic introduced its latest coding model, Claude Opus 4.6, which launched exactly one month before GPT-5.4. For users, both GPT-5.4 and Claude Opus 4.6 are available to those on Copilot Pro, Pro+, Business, and Enterprise plans.

One notable difference between the two appears to be the context window. GPT-5.4 offers up to a 400k context window, compared to the 192k available with Claude Opus 4.6, potentially making GPT-5.4 better suited to working with larger codebases.

GitHub Copilot with GPT-5.4 is available across a wide range of development environments, including Visual Studio Code, Visual Studio, JetBrains IDEs, Xcode, Eclipse, GitHub.com, GitHub Mobile, and GitHub CLI — I’ll be honest, I only knew a couple of those different coding environments even existed.

OpenAI’s GPT-5.4 rolls out to GitHub Copilot users

If you didn't know, GitHub Copilot is Microsoft’s AI-powered coding assistant. It uses various large language models (LLMs) to help developers complete a range of programming tasks. The tool is built directly into coding environments to suggest code as you type, help explain existing code, and assist with other common development tasks.

To put it simply, GitHub Copilot can act like an autocomplete system for coding. It reads the context of what a developer is writing and suggests the next line of code or even entire functions; however, some users use it to build entire apps without much human input (vibe coding).

🗨️ Would you try GPT 5.4 in GitHub Copilot?

I won’t get into the semantics around whether this is good or not; instead, I’ll just focus on delivering the news here, because AI drama can be quite tiring, regardless of my personal views on the matter.

AI coding tools are evolving fast; whether we like them or not, they are becoming a big part of developer workflows. Some people use them freely, whilst others prefer to do things the traditional way.

Have tools like GitHub Copilot become part of your workflow, or do you still prefer coding without AI assistance?

Let us know in the comments, and help me gauge your interest with a poll.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

In a particularly surprising turn of events, OpenAI is reportedly now developing a coding repository platform to rival the Microsoft-owned GitHub. According to The Information, this decision was prompted by a sudden rise in service disruptions affecting GitHub and its users.

The project still appears to be in its early development phase, so it could be several months before it reaches any kind of broad availability. According to sources with close ties to OpenAI and knowledge of this initiative, the ChatGPT-maker plans to offer the service for purchase to its customer base.

It could represent a broader strategic effort by OpenAI to diversify its portfolio and expand new avenues for revenue generation. Market analysts and experts recently claimed that investor interest in AI in general is waning as top research labs struggle to establish a clear path to profitability.

In January, reports claimed that OpenAI could burn through $14 billion chasing the AI bubble, setting itself up for bankruptcy by mid-next year. Despite the billions the company is pouring into advanced AI development, there are little to no returns to show, with most of the resources spent on infrastructure expansion, model training, research hiring, and general compute costs.

💬 The Microsoft-OpenAI partnership is somehow even more complicated

Last week, OpenAI raised $110 billion from Amazon, NVIDIA, and SoftBank in its latest round of funding, which pushed its market capitalization to $730 billion. While Microsoft didn't participate, it indicated that it had no impact on its partnership and relationship with OpenAI and would continue to collaborate across multiple fronts, including research, engineering, and product development.

This news comes as OpenAI has seemingly become the latest target on social media after it accepted the deal that Anthropic rejected, which gives the U.S. Department of Defense access to its AI models and technology for massive surveillance and autonomous weapons.

That led to a “Cancel ChatGPT” trend going viral, with app uninstalls surging by 295%, while Anthropic’s Claude AI climbs to the top of the U.S. App Store. However, OpenAI CEO Sam Altman indicated that his company is amending the deal with the Pentagon amid backlash and privacy concerns. He admitted the deal was "opportunistic and sloppy."

What do you think about the current state of Microsoft's partnership with OpenAI? Share your thoughts in the comments.

Join us on Reddit at r/WindowsCentral to share your insights and discuss our latest news, reviews, and more.

“We are pushing the frontier across our entire AI stack to drive new value for our customers and partners," indicated Microsoft CEO Satya Nadella while reporting on the company's financial results for FY26 Q2.

The software giant's superseded Wall Street estimates on revenue and earnings, reporting $81.3 billion in revenue (up 17% YoY) and $38.3 billion in operating income (up 21% YoY). However, its shares fell about 6% in after-market trading after the company reported on its financials.

This could be partly attributed to its higher-than-expected spending on data centers and AI infrastructure, which doesn't necessarily match growth in its cloud business.

Perhaps more interestingly, the software giant revealed that it is facing immense capacity constraints, which have primarily contributed to a backlog in commercial bookings. For context, the backlog in its cloud computing business has surged 110% year over year to $625 billion.

Microsoft disclosed that OpenAI accounts for approximately 45% of the highlighted commitments. However, it didn't indicate how much the ChatGPT maker contributed in the previous quarter (via Business Insider).

Microsoft and OpenAI renewed their vows under a new definitive agreement, allowing the ChatGPT maker to restructure into a for-profit entity. The restructuring has positioned OpenAI in a unique position to raise more funds from investors amid bankruptcy reports.

As such, Microsoft, its largest backer, is also positioned to benefit greatly from OpenAI's revenue growth. According to Microsoft's recent financial earnings report, its net income increased by $7.6 billion from its investment in OpenAI (via TechCrunch).

While neither Microsoft nor OpenAI has ever confirmed this, the ChatGPT maker reportedly has a 20% revenue share agreement with the software giant. Nadella highlighted the importance of getting more Azure clients, but not at the cost of abandoning other services.

The company's CFO, Amy Hood, indicated that Microsoft has to make many considerations before allocating the GPUs and CPUs that come online, citing capex spending as the main cause. It also has to consider investing in the development of first-party apps like Copilot, alongside GPUs allocated for R&D, and talent acquired.

Microsoft cashes in billions from OpenAI, Azure sweats it out. Who’s really winning? Share your thoughts in the comments and cast your vote!

When a professor trusted ChatGPT to help manage his research, he didn’t expect the tool to erase two full years of work with a single click. But that’s exactly what happened — and the worst part is that OpenAI couldn’t restore any of it. This incident is a stark reminder that AI convenience comes with real‑world risks.

It's evident that most, if not everyone, has transitioned into the digital era. Gone are the days when we used to depend on physical files and flash drives as some of the conventional ways of saving important data and information.

People are now more inclined towards sophisticated methods like backing up their data in the cloud using platforms like Google Drive, Microsoft OneDrive, or even Apple's iCloud. But as some of us have come to learn the hard way, these methods aren't exactly speck-free.

Last year, a software engineer lost 10 years' worth of data saved on the Amazon Web Services (AWS) cloud, but later managed to reinstate the work because one human inside AWS decided to give a damn. Similarly, a OneDrive user was locked out of "30 years' worth of photos and work", receiving no help from Microsoft support.

In a bizarre new incident recently shared by Marcel Bucher, Professor of Plant Sciences at the University of Cologne in Germany, an article published in Nature revealed that ChatGPT cost him two years of work, including grant applications, teaching materials, and publication drafts.

The professor indicated that they had signed up for OpenAI's ChatGPT Plus plan and used the service "to write e-mails, draft course descriptions, structure grant applications, revise publications, prepare lectures, create exams and analyse student responses, and even as an interactive tool."

According to the professor:

"I was well aware that large language models such as those that power ChatGPT can produce seemingly confident but sometimes incorrect statements, so I never equated its reliability with factual accuracy, but instead relied on the continuity and apparent stability of the workspace."

However, the professor revealed that he wanted to see whether disabling the "data consent" option would still afford them access to all the model's functions without access to their data.

The professor indicated that he initially that that it was a mistake, prompting him to confirm if he had indeed lost his data across multiple browsers, devices, and networks. His efforts to clear the cache, reinstall the app, and even change the settings back and forth were rendered futile.

He attempted to contact OpenAI for some support, but the first response came from an AI agent. He was able to get through to a human employee after making several attempts. Unfortunately, he wasn't able to restore his data.

While speaking to Nature, OpenAI indicated that:

"Regarding additional warnings and recovery, we do provide a confirmation prompt before a user permanently deletes a chat. However, once deleted, content cannot be recovered via the user interface, application programming interfaces (APIs), or support, as this aligns with privacy best practices and legal requirements around user data.

For data protection, we always recommend users maintain personal backups for professional work."

To that end, the professor highlighted the importance of having elaborate measures in place to avoid such occurrences through warnings about irreversible deletion, a recovery option, and more:

"If a single click can irrevocably delete years of work, ChatGPT cannot, in my opinion and on the basis of my experience, be considered completely safe for professional use. As a paying subscriber (€20 per month, or US$23), I assumed basic protective measures would be in place, including a warning about irreversible deletion, a recovery option, albeit time-limited, and backups or redundancy."

This incident underscores the importance of always having a backup for your backup. Beyond storing data in the cloud, it’s wise to take it a step further by keeping a physical backup as well.

Losing two years of work in seconds is the kind of nightmare that sticks with you. As AI becomes more embedded in our workflows, incidents like this will force companies to rethink how they protect user data — or risk losing trust entirely.

After ChatGPT erased two years of academic work, where do you stand on trusting AI? Share your thoughts in the comments and cast your vote!

OpenAI has cemented its name in the tech industry through its ChatGPT and flagship AI models like GPT-5.2, but the company is looking do a little bit more, specifically in the hardware landscape.

Last year, the ChatGPT maker made several strategic moves that suggest it could be looking to dabble in hardware development. For context, the firm hired former Apple chief designer Jony Ive to lead operations in its hardware department. It also acquired Ive's AI device startup, io, for approximately $6.5 billion to bolster its advances in the space.

Now, it's public knowledge that OpenAI CEO Sam Altman has been working closely with Apple's former design legend Jony Ive on a hardware device that could lead to the biggest tech disruption since the iPhone launch in 2007. However, details about the project have remained under wraps.

Subtle hints about the development of the device have slipped over the past few months, including Altman revealing that the company is developing a small family of devices to reinvent human-computer interaction.

Late last year, Jony Ive and Sam Altman confirmed that OpenAI finally has a prototype for its super-secret AI device, which could potentially launch in less than 2 years.

However, in an exclusive report by Axios, OpenAI's Chief Global Affairs Officer Chris Lehane revealed that it is getting ready to announce its first hardware device in the second half of 2026.

While the ChatGPT maker hasn't disclosed more details about the device, multiple reports from Asian outlets and leakers suggest that OpenAI's first device could be a pair of earbuds (via TechCrunch).

The reports suggest that OpenAI's earbuds will be sophisticated compared to existing offerings. As you might have guessed, the device will be deeply integrated with AI technology, possibly ChatGPT, with a custom 2-nanometer processor. However, rather than sending requests to the cloud, the device will handle assigned AI tasks locally.

Another report from a Taiwanese newspaper claims that OpenAI could be looking to partner with China-based Luxshare for manufacturing, but the company could close the deal with Taiwan’s Foxconn. Additionally, the company plans to ship approximately 40-50 million units in the first year of sales.

This could be OpenAI's attempt to get a direct line to users through its new hardware entry for its AI models and ChatGPT offerings, like Google with Android. While ChatGPT boasts close to 1 billion weekly users, it remains to be seen whether they'll ditch current offerings for OpenAI's AI earbuds.

Will OpenAI's rumored AI earbuds cause the biggest tech disruption since the iPhone launch? Share your thoughts in the comments and cast your vote!

Last week, OpenAI announced its plans to integrate ads into ChatGPT. "Free" and "Go" users are expected to start seeing ads pop up while interacting with the chatbot in the next few weeks.

The move was received with mixed emotions, as even CEO Sam Altman once indicated that integrating ads into ChatGPT would be treated as a last resort. "Ads plus AI is sort of uniquely unsettling to me," Altman added. "I kind of think of ads as a last resort for us for a business model."

While speaking at the just-concluded World Economic Forum, held in Davos, Switzerland, Google DeepMind's CEO, Demis Hassabis, indicated how it was interesting that OpenAI decided to integrate ads into ChatGPT so early. “Maybe they feel they need to make more revenue,” he added.

The executive indicated that Google doesn't have any plans to integrate ads into the Gemini app. However, it now appears that Google may have to reconsider, following OpenAI's decision to introduce ads to ChatGPT.

Evercore ISI's financial and tech analyst Mark Mahaney predicts that OpenAI could generate up to $25 billion in annual ad revenue by 2030 if it executes the strategy properly (via Business Insider). "A path to generating several billion dollars in ad revenue in 2026, going to $25B+ by 2030, seems reasonable," they added.

Mahaney predicts that ChatGPT's user base will have grown tremendously. While dismissing talks of an AI bubble, OpenAI CEO Sam Altman indicated that he expects the company's annual revenue to grow to $100 billion by 2027.

OpenAI appears to be well on its way to achieving this milestone. According to the ChatGPT maker's CFO, Sarah Friar, annual revenue surged to $20 billion in 2025, a dramatic increase from $2 billion in 2023.

In comparison, Google Search and YouTube potentially generated up to $300 billion in ad revenue in 2025. Last October, Sam Altman indicated that ChatGPT has 800 million weekly users. This could potentially be a goldmine for advertisers, as part of the interactions and conversations users have with the chatbot usually include what they want and need.

However, as part of OpenAI's ad principles, the company indicated that, despite integrating ads into ChatGPT, it will uphold user privacy and won't share their data with advertisers. "We keep your conversations with ChatGPT private from advertisers, and we never sell your data to advertisers," OpenAI added.

Perhaps more interestingly, the executive warned that if OpenAI could come up with a "conversational" ad format, which would allow users to discuss potential purchases, it would revolutionize the whole ad game. Consequently, attracting the interest of advertisers with "high-intent engagement."

It'll be interesting to see if OpenAI can overcome its financial woes, with predictions suggesting that it is slated to make a $14 billion loss in 2026, potentially setting it up for bankruptcy by mid-2027.

Will OpenAI capitalize on ChatGPT ads, or will bankruptcy thwart its ambitions? Share your thoughts in the comments and cast your vote!

OpenAI is arguably one of the most sought-after AI research labs, primarily because of ChatGPT. Microsoft CEO Satya Nadella argues that the firm had a 2-year lead to develop ChatGPT uncontested, which uniquely positioned the company to succeed in the ever-evolving landscape.

Everything might look good on paper, but OpenAI is reportedly burning through vast amounts of cash to keep up with sophisticated AI advances while simultaneously attempting to maintain a healthy lead over its competitors.

This is amid a plethora of challenges, including user backlash for integrating ads into ChatGPT, the court battle it's embroiled in with Elon Musk over its for-profit restructure and "ill-gotten gains," a lack of high-quality content for model training, among many other issues.

As it happens, cash flow continues to be a pain in OpenAI's neck, with multiple reports suggesting that the company might be biting a little more than it can chew in terms of its spending on AI development. The reports suggest that the ChatGPT maker could make a $14 billion loss in 2026, primarily driven by infrastructure expansion, model training, research hiring, and compute costs (via artificialintelligenceee on IG).

Late last year, OpenAI CEO Sam Altman expressed his frustrations over the AI bubble talk, dismissing concerns about the firm's exorbitant spending on sophisticated projects to keep up with the AI hype.

While OpenAI reportedly generates up to $13 billion in revenue annually from ChatGPT and LLM access fees, the firm spends up to $1.4 billion on computing. It's unclear whether the injection of ads into ChatGPT's user experience will help bridge this gap.

However, Sam Altman claims OpenAI's revenue is "growing steeply," further highlighting that the company expects the demand across its consumer and enterprise businesses, including ChatGPT and future hardware developments, to see a surge in demand.

Perhaps more interestingly, Sam Altman indicated that he expects OpenAI's revenue to exponentially surge to $100 billion by 2027. But a report from Tom's Hardware seemingly disputes Altman's claims, suggesting that OpenAI could completely run out of cash by mid-2027.

A separate report from last year suggested that the AI firm is projected to make an $8 billion loss in 2025, which could potentially rise to $40 billion by 2028. Sebastian Mallaby, an economist at the Council on Foreign Relations, says that even if OpenAI changes its strategy and even caters to some of its financial woes using "its overvalued shares," it won't be able to wiggle out of this difficult situation easily.

To that end, OpenAI might need another round of funding, raising funds from its investors to keep its operations afloat. At the same time, it also needs to establish a clear path to profitability in the elusive landscape to secure funding as investor interest begins to wane.

Will OpenAI be able to keep the lights on without establishing a clear profitability path? Share your thoughts in the comments and cast your vote in the poll!

OpenAI recently unveiled a dedicated experience in ChatGPT designed for health and wellness called ChatGPT Health. The experience lets users link medical records and wellness apps like Apple Health directly to ChatGPT.

The AI firm indicated that the experience isn't designed to outrightly replace medical care by providing diagnosis and treatment. Instead, it's designed to bolster the user's general well-being by helping them answer any health or medical-related questions. What's more, the responses will be curated based on the user's personal health data.

OpenAI revealed that the majority of its user base leverages the chatbot's capabilities for health purposes. For context, approximately 230 million people across the world ask health and wellness-related questions on ChatGPT every week.

To address any safety and privacy concerns users might have about interacting with the new experience, ChatGPT Health will store all uploaded files, conversations, and connected apps separately from other chats. Additionally, the data and memories from the experience won't flow outside the dedicated space. OpenAI also indicated that user data from ChatGPT Health won't be used to train its AI models.

That said, users can leverage ChatGPT Health's capabilities to better understand test results and even prepare for doctor appointments. It can also be used to bolster your wellness by providing advice about your diet and recommending workout routines.

The experience is shipping to a limited number of users with ChatGPT Free, Go, Plus, and Pro plans outside of the European Economic Area, Switzerland, and the United Kingdom. However, OpenAI plans to expand access to ChatGPT Health to all users on the web and iOS over the next few weeks.

Last year, OpenAI CEO Sam Altman discussed the impact of generative AI on the job market, noting that professions such as customer care agents are already feeling the strain. However, he firmly stated his preference for a human doctor over any AI‑powered tool:

"I really do want a human doctor. ChatGPT today, by the way, most of the time, is a better diagnostician than most doctors in the world. There's all these stories on the internet of like, ChatGPT saved my life… and yet people still go to doctors. Maybe I'm a dinosaur here, but I really do not want to trust my medical fate to ChatGPT with no human doctor in the loop."

The executive also admitted that users tend to trust ChatGPT to a high degree, even though it hallucinates sometimes. "It should be the tech that you don't trust that much," Sam Altman added.

Would you trust ChatGPT Health with your medical records and wellness apps? Let me know in the comments and vote in the poll!

Top AI research labs are well beyond simplistic chatbots that generate text based on prompts. The technology is now reshaping the corporate world by augmenting repetitive and redundant tasks, leaving some professionals out of work.

This is despite multiple reports suggesting that OpenAI, Anthropic, and Google have hit a scaling wall, which will prevent them from developing advanced AI models. The issue was primarily attributed to a lack of high-quality content for model training, but OpenAI CEO Sam Altman quickly dismissed the claims, further indicating that “there’s no wall.”

More recently, the executive acknowledged that AI agents are rapidly emerging as a serious threat, particularly as they scale and grow more sophisticated. Altman noted that while these agents are capable of “many great things,” they can also uncover critical security vulnerabilities, weaknesses that malicious actors could exploit to cause significant harm if not addressed promptly.

The executive further indicated that AI agents and models have undergone rapid improvement over the past year, enabling them to tackle complex tasks. However, the technology can also be manipulated to cause real-world threats.

Amid multiple claims that OpenAI prioritizes shiny products like AGI (artificial general intelligence) over safety processes and culture, Sam Altman revealed that the ChatGPT maker is now hiring a Head of Preparedness executive, who will take on the role of bolstering AI safety and security. "We are seeing models become good enough at computer security that they are beginning to find critical vulnerabilities," Altman added.

AI has seemingly become a hacker’s paradise, especially since the sophisticated techniques rarely require any human involvement to gain unauthorized access to privileged data.

It remains to be seen how OpenAI will confront these challenges as AI development reaches new heights, and whether the newly created Head of Preparedness role can effectively address the emerging risks. Meanwhile, Microsoft AI CEO Mustafa Suleyman has stated that the company would halt its multi‑billion‑dollar investment in AI if it determines the technology poses a threat to humanity.

Will it be possible to address critical security concerns from AI as the technology continues to advance? Let me know in the comments and vote in the poll!

2025 feels especially memorable in tech, primarily due to major platforms like Apple Music, YouTube, Spotify, LinkedIn, and even Google Photos running their yearly recaps. Recaps mostly include the number of hours spent on these platforms, your favourite artists for music-based apps, and more stat-tracking highlights.

And now, OpenAI's ChatGPT has joined the fray. The AI firm recently rolled out an annual review feature, Your Year with ChatGPT, to users in select markets, including the United States, Canada, the United Kingdom, Australia, and New Zealand.

An OpenAI spokesman told TechCrunch that the new feature will be available to Free, Plus, and Pro users, provided they have enabled the “Reference Saved Memories” and “Reference Chat History” options in the app’s Settings. The feature won't be available for Team, Enterprise, and Education accounts.

Much like Spotify's Wrapped feature, OpenAI's Your Year with ChatGPT feature includes catchy graphics designed to recap your year. It also consists of a "poem" that attempts to capture your general vibe for the year based on your interactions with ChatGPT.

You will also get an award based on how you've used ChatGPT throughout the year. For instance, someone might be awarded the "Creative Debugger" badge if they mainly used the chatbot to find solutions for complex problems and similar tasks.

It'll also highlight some statistics about your interaction with ChatGPT, including your most talkative day and total chats. Interestingly, the company also attempted to make the whole experience a bit fun by jokingly highlighting the number of em dashes used between you and the chatbot.

The feature is available on the ChatGPT web app and mobile app for iOS and Android. To access your annual review, Your Year with ChatGPT should already be on your home screen across your Android, iOS, and web apps. Alternatively, you can ask ChatGPT for your recap directly.

This news comes after Google launched Gemini 3, which might have potentially contributed to ChatGPT's decline in traffic. Consequently, CEO Sam Altman was rattled into declaring "code red," though he recently indicated that OpenAI is eyeing a January exit from the situation. He further explained that the company declares code red multiple times when competitive threats emerge.

Did you get your 'Wrapped' moment from ChatGPT, and what did you think? Or did you have its settings disabled from the start? Let me know in the comments and vote in the poll!

Last week, multiple reports emerged suggesting that OpenAI is currently in talks to raise $100 billion from investors at a $750 billion valuation. As you may know, the AI firm's market valuation is currently $500 billion after the sale of $6.6 billion in shares from current and former staff in October.

If OpenAI manages to raise $100 billion from investors in its next funding round, the firm's market share is expected to grow by 50%.

Interestingly, the company is also laying groundwork to go public and may file with regulators as early as the second half of 2026. Market experts and analysts claim it might be one of the largest IPOs in history with a potential valuation of around $1 trillion.

More recently, OpenAI CEO Sam Altman shared his thoughts on the company’s potential evolution into a public entity during an interview on the Big Technology Podcast. The executive indicated that he wasn't excited about leading a public company.

While Altman indicated that "it's wonderful to be a private company," he admitted that the firm still needs a lot of capital. He indicated that the company would need to cross shareholder limits to achieve this feat.

"I do think it's cool that public markets get to participate in value creation," Altman added.

This news comes amid rising competition from the likes of Google, following the successful launch of Gemini 3 with advanced capabilities across coding, video, and images. The competitive threat rattled CEO Sam Altman into "code red."

However, we recently learned that OpenAI declares code red multiple times in a year as a response to competitive threats. "It's good to be paranoid and act quickly when a potential competitive threat emerges," Altman concluded.

Do you have any thoughts on Sam Altman's leadership? Will OpenAI retain its morals when it becomes a public company? Let me know what you think.

At the beginning of this month, OpenAI CEO Sam Altman declared a “code red” to enhance ChatGPT's quality following the successful launch and emergence of Google's Gemini 3 model. The AI firm was forced to delay other products, like advertising and AI agents, to deal with the situation.

Consequently, OpenAI launched GPT-5.2 as a response to Gemini 3's threat to ChatGPT, which ships with a plethora of advanced capabilities across coding, video, and images. The company also recently shipped a new upgrade for ChatGPT images, making it 4x faster, more precise, and more creative.

Altman indicated that Google's Gemini 3 launch had a lesser impact on ChatGPT's metrics than previously thought, further revealing that OpenAI might be eyeing a January exit from 'code red' — "Historically, these have been kind of like six- or eight-week things for us," Altman indicated.

The executive revealed that this wasn't the first time the company has entered emergency mode; it has actually declared code red multiple times as a response to competitive threats in the ever-evolving industry during an episode of the Big Technology Podcast (via Bloomberg).

The executive revealed that the company went into code red at the beginning of this year following the emergence of China's DeepSeek, which surpassed proprietary AI models like OpenAI's o3 model across a wide range of benchmarks at a fraction of the development cost.

While the OpenAI CEO indicated that Gemini 3 didn't have the impact they were intiially worried about, "but it did — in the same way that Deepseek did — identify some weaknesses in our product offering strategy, and we're addressing those very quickly".

Do you think OpenAI is under any real threat from its competitors? Let me know in the comments.

In a rather unexpected move, especially considering it is free and that the words free and Adobe rarely appear in the same sentence, the company has integrated its popular creative tools directly into ChatGPT.

Photoshop, Adobe Express, and Acrobat are now accessible inside the AI chat experience. This marks a new step for Adobe, allowing users to control and access Photoshop features using simple prompts.

By removing much of the traditional complexity, it significantly lowers the barrier to entry and could enable less experienced users to produce surprisingly competent edits without needing to learn the full application first.

What does Photoshop in ChatGPT mean to you?

Adobe’s full creative suite will set you back $54.99 a month, or $599.88 a year, for access to Photoshop, Illustrator, Premiere Pro, Acrobat, and more. It is an expensive ask, especially for casual users.

Adobe has also built a reputation for aggressively locking users into subscriptions, including charging fees for early cancellation. It is not exactly known as a consumer-friendly company, which makes this move all the more surprising.

So, what is actually going on here, and why are some of Adobe’s tools now accessible inside ChatGPT for free?

While this looks like a big win for users on the surface, there are some important trade-offs to be aware of. Connecting an Adobe account to ChatGPT means Adobe can access conversation history and memories (this may just be chats where Adobe apps are used), along with basic account information, IP address, and approximate location.

Data is a lucrative business, and this integration gives Adobe exposure to ChatGPT’s reported 800 million weekly users, assuming they choose to use the Adobe apps. What we are really looking at is a strategic partnership that benefits both sides, giving ChatGPT an edge over Google’s more advanced image generation tools for now, while helping position ChatGPT as an all-encompassing platform rather than just a chatbot.

How Adobe’s ChatGPT integration actually works

If you want to enable and use Adobe apps within ChatGPT, you can do so by following these steps:

• Open ChatGPT on desktop, web, or mobile. Click Settings, then go to Apps & Connectors.
• Scroll through or search the apps list and select Adobe Photoshop, Adobe Express, or Adobe Acrobat. Click Connect.
• When prompted, sign in with your Adobe account and confirm the connection. Once completed, the app will be linked to ChatGPT.
• Go back to the main chat screen. Click the + icon next to the message box.
• Select More and choose the Adobe app you enabled.
• You can also activate it by mentioning it directly in your prompt, such as asking Photoshop to edit an image or Acrobat to edit a PDF.

Photoshop, Express, and Acrobat are available for free inside ChatGPT on desktop, web, and iOS. Adobe Express is also available on Android, with the other apps expected to follow later.

This is not a replacement for the full native applications, but it is more capable than you might expect. From effects and adjustments to more involved edits, it offers an accessible way to achieve results that would normally require tutorials or prior experience.

If you want a clearer idea of what it can actually do, there is a solid YouTube video that walks through its capabilities in detail. If, however, you do want a different tool, Affinity is a free alternative that launched recently.

Is it useful, or a waste of time? Let me know if you'd use Photoshop inside ChatGPT in the comments!

OpenAI is reportedly in initial talks with investors to raise funds, which could push its market valuation to approximately $750 billion. According to sources familiar with the ongoing deliberations, the company wants to raise up to $100 billion from investors (via The Information).

For context, if the deal goes through, OpenAI could see its market valuation jump by 50% from the reported $500 billion in October, following the sale of $6.6 billion in shares from current and former staff.

Reported investors in the deal include SoftBank, Thrive Capital, Dragoneer Investment Group, Abu Dhabi‑backed MGX, and T. Rowe Price.

OpenAI is reportedly preparing for what could be one of the largest IPOs in history, with a potential valuation of around $1 trillion. According to Reuters, the ChatGPT maker has been laying the groundwork to go public and may file with regulators as early as the second half of 2026.

This news comes after a separate report revealed that OpenAI is in "very fluid" talks to raise $10 billion from Amazon. If the deal goes through, the AI firm not only positions itself in a unique position to secure more funding from investors but will also adopt Amazon's Trainium chips for its AI advances.

OpenAI's potential funding round signals an exorbitant demand for resources to foster its continuity and development amid reports that investor interest is waning and that the AI bubble is on the verge of bursting as big tech corporations struggle to establish a clear path to profitability for generative AI.

Remember last year when OpenAI ran 12 days of 'Shipmas', launching a ton of products and services, including its $200/month ChatGPT Pro subscription plan? Well, the AI firm is sort of running a similar campaign but on a subtle scale.

As you may know, the company unveiled GPT-5.2 last week as a response to Gemini 3, which rattled CEO Sam Altman into declaring "code red". However, the company is seemingly over the hump with the executive eyeing a January exit from the situation. Altman indicated that Google's Gemini 3 launch had a lesser impact on ChatGPT's metrics than previously thought.

OpenAI CEO also announced that the company had a "few little Christmas presents" for its users this week. Today, the company unveiled new ChatGPT images, which Sam Altman referred to as "something fun".

ChatGPT Images is powered by OpenAI's new image generation model. According to OpenAI, "it makes precise edits while keeping details intact, and generates images up to 4x faster".

GPT 1.5 Images shipped in broad availability for all ChatGPT users and via its API. OpenAI also announced a new images feature within ChatGPT, designed to improve image generation by sparking inspiration and making creative exploration effortless.

The new Images experience in ChatGPT is touted to be more precise, adhering to your requests and prompts while preserving critical elements like lighting, composition, and people’s appearance on uploaded images.

What's more, the model is now better at editing tasks, making it easier for users to add, remove, and blend to achieve the desired output.

Additionally, the model comes with built‑in styles and ideas from the start, so you may not even need a prompt to enhance your image."The model follows instructions more reliably than our initial version," OpenAI indicated. "This enables more precise edits as well as more intricate original compositions, where relationships between elements are preserved as intended."

Finally, the model is also better at text rendering with the capability of handling denser and smaller text. OpenAI is making it easier for users to generate images directly from ChatGPT through a dedicated home for images, which can be accessed from the sidebar on the mobile app and on chatgpt.com.

In 2023, Former Twitter CEO and co-founder Jack Dorsey warned that it'll be impossible to tell what's real from the fake in 5-10 years. "It will feel like you're in a simulation," the executive added. With the emergence of sophisticated image generation tools like Google's Nano Banana and now ChatGPT Images 1.5, it seems like Dorsey's early predictions are subtly becoming reality.

Early this year, OpenAI launched ChatGPT-4o, which led to the birth of the viral Studio Ghibli meme trend, although it sparked backlash and copyright-related issues. For context, the model's release contributed to ChatGPT gaining over one million new users in under one hour, primarily due to the "biblical demand" (as Sam Altman described it) for ChatGPT-4o's Ghibli memes.

Sam Altman disclosed that OpenAI was forced to do a lot of unnatural things caused by the high demand for Ghibli memes, including temporary rate limits while it worked on enhancing efficiency. "Our GPUs are melting," lamented Altman.

It remains unclear if OpenAI has enough computing power to support the surge in demand for ChatGPT images if it sparks the interest of its massive user base. This is despite renewing its vows with Microsoft in a new definitive agreement, which allows it to get into deals with the likes of SoftBank, Oracle, and more to build more data centers than Microsoft could have.

It's no secret that OpenAI has had a rough couple of months — from investor pressure to evolve into a for-profit entity or risk losing funding, which would open it up to hostile takeovers and outsider interference, to Sam Altman declaring "code red" to improve ChatGPT amid intense competition from rivals like Anthropic and Google.

And as it turns out, the rain isn't done beating the ChatGPT maker yet. In a damning report by WIRED, at least two researchers have recently left OpenAI, citing concerns that the company has been less than truthful and overly guarded about its published research, particularly when it portrays the technology in a negative light or highlights potential economic ramifications.

Tom Cunningham, a former OpenAI economic researcher, was among the employees who left the firm recently. Perhaps more concerningly, in his farewell message shared internally with colleagues, the researcher expressed that he felt the team was shifting away from its core goal of conducting genuine research and instead “functioning as a de facto advocacy arm for OpenAI.”

However, OpenAI Chief Strategy Officer Jason Kwon dismissed these claims through an internal memo, indicating that the firm must act as a responsible leader in AI and should not only raise problems with the tech, but also "build solutions."

This news comes as OpenAI continues to forge partnerships with government institutions and corporations, which has turned it into a $500 billion company in market valuation. Market analysts and experts predict that the AI firm's technology has the potential to revolutionize how people work.

However, there has been an increase in the number of reports suggesting that we're in an AI bubble, which could implode at any moment. Microsoft co-founder Bill Gates likened it to the dot-com era's hype-driven overvaluations. "There are a ton of these investments that will be dead ends," Gates added.

In the past, OpenAI has published several research reports about its tech, detailing how it could impact the job market. Like its “GPTs Are GPTs" research paper from 2023, which detailed professions that are more susceptible to automation by AI as it becomes more prevalent.

However, according to sources with close affiliations with OpenAI who spoke to WIRED on condition of anonymity, claim that the company is now more reluctant to publish research that highlights AI's negative impact on the economy, and is more focused on releasing reports that highlight positive findings.

This isn't the first time OpenAI has been placed on the spot for its business operations and AI development. Last year, a report by The Financial Times detailed that safety processes and culture at OpenAI had seemingly taken a backseat while shiny products gained precedence.

Microsoft and OpenAI recently renewed their vows under a new definitive agreement, which essentially allows the tech giant to pursue AGI or superintelligence independently or through third parties. It also categorically states that OpenAI can't prematurely declare AGI to sever its Microsoft ties unless an expert independent panel verifies the claim.

Interestingly, Microsoft AI CEO Mustafa Suleyman recently indicated that the company will abandon the technology if it poses any existential threat to humanity, which aligns with his push and agenda for humanist superintelligence — developing AI that's designed to serve people, not replace them.

As expected, OpenAI finally launched its rumored GPT-5.2 model on December 11, 2025. CEO Sam Altman declared code red following Google's successful Gemini 3 launch, which blew ChatGPT out of the water across a wide range of benchmark tests.

GPT-5.2 could potentially be OpenAI's answer to Gemini 3 amid rising concerns about ChatGPT's traffic decline. The next-gen AI model ships with a plethora of advanced capabilities across coding, video, and images. Users can access the model directly from ChatGPT or OpenAI's application programming interface (API).

ChatGPT-5.2 ships in three different flavors: Instant, Thinking, and Pro versions. For context, the instant version is designed for writing and research, while the Thinking version takes on complex tasks like coding. As you might have guessed, the Pro version is designed to find responses to difficult questions.

The model already shows great promise. It posted impeccable results across a wide range of benchmarks, including SWE-Bench Pro, which is designed to examine a model's agentic coding performance. It also topped the charts in the GPQA Diamond benchmark text, which is used to evaluate a model's reasoning capabilities.

Perhaps more interestingly, OpenAI CEO Sam Altman indicated that Google's Gemini 3 launch had a lesser impact on ChatGPT's metrics than previously thought (via CNBC). The executive stated that the company is poised to exit its code red by January. “I believe that when a competitive threat happens, you want to focus on it, deal with it quickly,” Altman added.

There has also been an increase in the number of reports claiming that AI could eventually replace humans in the workplace. GPT-5.2 might also secure a spot for itself at the workplace as it beat industry professionals on the GDPval benchmark test with a 70.9% on well-specified tasks.

Microsoft co-founder Bill Gates indicated that AI will replace humans for most things, but we'll still have the power to choose what to preserve exclusively for ourselves. The philanthropic billionaire joked that no one would like to watch computers playing baseball.

In August, OpenAI unveiled its long-anticipated GPT-5 model. However, the launch was rather underwhelming, with a large number of users expressing their disappointment and frustrations, indicating that it didn't meet their expectations and seemingly degraded ChatGPT's user experience.

Ever since then, the AI firm has seemingly been trying to play catch-up amid copyright infringement battles, cash flow issues, and its evolution into a for-profit venture with a new definitive agreement with Microsoft.

Google seemingly leveraged this opportunity to make its mark in the AI landscape through its new Gemini 3 model, which it refers to as "a new era of intelligence". The model ships with next-gen capabilities across reasoning, speed, images, and video.

Consequently, OpenAI CEO Sam Altman declared "code red" through an internal memo to employees amid rising competition from the likes of Google and Anthropic. Google's Gemini 3 AI model blew ChatGPT out of the water across a wide range of benchmark tests.

The model has also passed the vibe check for tech leaders like Salesforce's CEO Marc Benioff, who indicated that he was ditching ChatGPT after 3 years following his interaction with Google's new offering for just 2 hours.

But as it now seems, OpenAI might be getting ready to tip the scales back in its favour. The company will reportedly ship GPT-5.2 update as early as this week (via The Verge).

Perhaps more interestingly, the model ships with a wide range of improvements and capabilities that could potentially close the gap between Gemini 3 and ChatGPT.

An earlier report by The Information suggested that OpenAI's next reasoning model would be better than Gemini 3, according to internal evaluations. According to Tom Warren:

"I’m told that OpenAI was originally planning to launch GPT-5.2 later in December, but that the pressure from competitors has moved the release forward. Right now, OpenAI has earmarked December 9th for its GPT-5.2 release."

While GPT-5.2 is set to release on December 9, 2025, according to The Verge's report, launch dates can be subject to sudden changes due to a wide range of reasons, including development and server capacity issues.

Do you regularly use ChatGPT? Let me know in the comments.

Over the past few years, OpenAI has faced multiple copyright infringement lawsuits, with news outlets and publishers claiming ChatGPT used their content without authorization or compensation.

Probably the most prominent case to date is the New York Times’ lawsuit against OpenAI and Microsoft. The news outlet claimed that ChatGPT used its content without compensation or authorization.

However, OpenAI has sought to dismiss the lawsuit by arguing that scraping online content to train AI models qualifies as fair use. Until recently, OpenAI has had the last laugh in court. In 2024, a New York federal judge recently dismissed a copyright infringement lawsuit filed against OpenAI by news outlets, including Raw Story and AlterNet.

The judge indicated that the plaintiffs didn't establish where the AI firm sourced its content, and that it potentially then used the scraped data to train ChatGPT without compensation.

OpenAI was recently compelled to produce 20 million chat logs from ChatGPT users in its ongoing court battle with the New York Times, in a case before U.S. Magistrate Judge Ona Wang in Manhattan (via Reuters).

While OpenAI previously argued that this was a huge ask that would "disregard long-standing privacy protections," the judge indicated that the logs were important to establish the outlets' claims. Wang further indicated that producing the logs wouldn't violate ChatGPT users' privacy. "There are multiple layers of protection in this case precisely because of the highly sensitive and private nature of much of the discovery," the judge added.

OpenAI has already filed an appeal to wiggle its way out of Wang's order to produce 20 million chat logs to the presiding judge, U.S. District Judge Sidney Stein.

In the past, OpenAI CEO Sam Altman argued that copyright law doesn't categorically prohibit the use of copyrighted content for training AI models. Interestingly, the executive admitted that developing ChatGPT-like tools without copyrighted content is virtually impossible.

MediaNews Group executive editor Frank Pine indicated that OpenAI's leadership was "hallucinating when they thought they could get away with withholding evidence about how their business model relies on stealing from hardworking journalists."

It'll be interesting to see how the court case pans out, especially following recent reports suggesting that top AI labs might be unable to advance AI models due to a lack of high-quality training content amid plans to inject ads into ChatGPT.

Aside from Windows 11's stringent hardware requirements and flawed design elements, Microsoft's continued integration of ads into the operating system is among the main reasons why users are reluctant to upgrade, even after Windows 10's death. Perhaps more interestingly, we're seeing Linux gain popularity, presumably at least in part to its lack of ads and telemetry tracking.

OpenAI is arguably the most sought-after and well-established AI research lab. Microsoft CEO Satya Nadella argued that this can be attributed to its 2-year runway, which allowed it to build and develop ChatGPT uncontested.

But as it now seems, the AI firm might be on the precipice of throwing all these efforts into the water. Over the past few weeks, numerous reports have emerged detailing OpenAI's plans to integrate ads into ChatGPT (via Tech Radar).

OpenAI CEO Sam Altman previously dismissed ChatGPT ads as a last resort for generating revenue. But he didn't completely shut that door either. "I'm not saying OpenAI would never consider ads, but I don't like them in general, and I think that 'ads-plus-AI' is sort of uniquely unsettling to me," added Altman.

Ads in ChatGPT seem imminent as new code suggests that the company is already internally testing them in the chatbot.

ChatGPT users can't entertain the thoughts of ads

OpenAI has faced a wide range of financial challenges as it tries to keep up with the AI race against competitors like Anthropic and Google. However, investors have raised concerns about the billions of dollars invested in the ever-evolving technology without a clear profitability path.

Concerningly, a damning report claimed that there's no clear path for OpenAI to profitability through 2030. And even if it manages to keep its operations afloat during this period, it'll still need to invest an additional $207 billion to ascertain its sustainability.

It was only a matter of time till OpenAI considered integrating ads into ChatGPT. Reports suggest that the company is already burning through money. For context, OpenAI might have lost $11.5 billion chasing AI hype, according to Microsoft's financial report for the fiscal year ending June 30.

According to recent reports, the AI firm generates up to $13 billion annually from ChatGPT and LLM access fees. However, OpenAI CEO Sam Altman projects that the figure could skyrocket to $100 billion by 2027. It seems highly unlikely that the company could cover its exorbitant expenses from the revenue it generates. This could only make sense if ChatGPT ads join the fold.

What puzzles me is that the company might even integrate ChatGPT ads for users with paid subscription plans. Absurdly, some users with a $200/month ChatGPT Pro subscription have already started sharing screenshots of ads appearing in their user interfaces while interacting with the chatbot.

Daniel McAuley, an OpenAI Data Scientist, dismissed the claims, indicating that the pop-up was only a suggestion and not an ad. However, he admitted that "the lack of relevancy makes it a bad/confusing experience". It seems that the company is iterating on suggestions and the US in ChatGPT, in an attempt to improve the experience.

Be it as it may, ads have no place in ChatGPT based on the sentiments and backlash shared by users across social media. However, it feels like a necessary evil to keep OpenAI's operations going.

According to one Redditor:

"Right now Chat GPT needs to increase its revenue by about 9x to break even, it can only exist now thanks to companies dumping billions into this technology.

Unless someone suddenly invents cold fusion power or GPUs that last forever, there is no possi le way for them to ever turn a profit unless they drastically increase the price of their services and flood it with ads. Even then, i dont think that will even be half of what they need to survive.

Nobody is going to pay $1k per month for this, and they know that."

Only time will tell what OpenAI and ChatGPT's future will look like — ad-dominated or free and intuitive.

Last year, a report suggested that OpenAI was planning to integrate ads into ChatGPT to generate more revenue amid rising bankruptcy claims. OpenAI CEO Sam Altman didn't categorically dismiss the claims, but indicated the move would be a "last resort".

According to the executive: "I'm not saying OpenAI would never consider ads, but I don't like them in general, and I think that 'ads-plus-AI' is sort of uniquely unsettling to me."

But as it now seems, a new leak suggests OpenAI is internally testing ads within ChatGPT (via BleepingComputer). Up until now, the AI firm has made the tool free for everyone, making its user experience unique compared to rivals like Google Search and Bing, which are rife with ads.

Of course, OpenAI also has paid subscription plans for ChatGPT, which ship with sophisticated and advanced capabilities, including extended access to flagship models like GPT-5, unlimited messages and uploads, and expanded access to Sora 1 video generation. These paid subscription plans will cost you anywhere between $5/month for ChatGPT Go to $200/month for ChatGPT Pro.

OpenAI's plans to integrate ads into ChatGPT were spotted in a beta version of the tool's Android app (version 1.2025.329), which was consistent with lines of code that heavily referenced ads, including ads feature, search ad, and bazaar content.

It's worth noting that this update hasn't shipped to broad availability, but it's a clear indication that the company is getting ready to incorporate ads into the tool's user experience.

This news comes after a recent report by The Information claimed that OpenAI was considering bringing ads to ChatGPT based on memory or user chats. If the company moves forward with these plans, it'll have set itself up in a unique position to leverage ChatGPT's massive market share to generate revenue.

As you may know, OpenAI is grappling with financial challenges as it strives to maintain its lead in the AI landscape, pouring billions into data centers, talent, and computing power.

A recent report warns that the company has no clear path to profitability through 2030. Even if it manages to overcome this hurdle, OpenAI would still need to invest an additional $207 billion to sustain and advance its cutting-edge developments.

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Don't call it a bubble, friends!

You can't move five pixels on the internet without being hit with something AI related these days (my apologies for contributing there). Whether it's bad memes on your Instagram feed or AI-powered bots flooding X, or even nation states turning to AI to write government policy — AI has become the tech craze du jour and will likely remain that way for the foreseeable.

Microsoft has bet heavily on OpenAI to fuel its own AI efforts, spearheaded by Microsoft Copilot. So far, Copilot has been something of a dud for any serious real-world use case, requiring constant human intervention to fact check and correct errors. Much the same is true for Google Gemini, Grok, and other artificial intelligence platforms, which so far seem to have found a niche as expensive meme creation tools — nowhere near providing the promised productivity boost. That isn't stopping the speculation, though.

The assumption is that one day large language models (LLMs) and other related AI technologies fostered by Google Gemini and OpenAI ChatGPT actually will be a great and infallible productivity tool for genuine work. It already is decent for providing basic overviews of highly-covered, well-sourced topics, even as hallucinations and sycophancy continue to dog the tech, particularly in situations where accountability is more critical.

Despite today's downsides, many companies are salivating at the idea of cheap virtual humans replacing real humans who need money to eat and time to sleep. Big Tech is racing to meet this possibility with panicked fervour, and recent analyses from FT and HSBC (via Fortune) suggest that things are potentially getting a bit ... irrational.

Recent data shows that companies are increasingly relying on debt, rather than real revenue and cashflow to fund commitments to OpenAI and vice-versa. OpenAI has made a truly staggering $1.4 trillion (with a T) in commitments for compute to meet its projected needs, despite posting a "paltry" $20 billion in revenues this annum. To put it into context, $20 billion represents just 1.43~% of that $1.4 trillion commitment. It's a truly insane gap.

OpenAI is exploring a range of revenue-generating initiatives to change its fortunes, including in-line ads within ChatGPT. Although a lot of it revolves around replacing human workers with AI, particularly in hospitality and customer service sectors. It would be theoretically far cheaper for very large companies to replace their human workers with ChatGPT, even if those contracts cost millions. That is, if it can provide customers with a satisfactory experience. Gartner previously projected that many companies turning to AI to replace workers are already reversing course. But I digress.

HSBC projects that even if OpenAI is making $200 billion by 2030, it would still need a staggering $207 billion in funding to stay afloat. As OpenAI scales, so does its costs. Its expensive frontier models like Sora 2 and GPT-5 cost millions of dollars a day to run, requiring enormous amounts of compute. These models are given away at cost in attempts to drive adoption, create lock-in, and essentially alter human behavior. You can think of it similarly to Spotify, which spent well over a decade completely unprofitable until it had basically re-written the way humans consume music and how labels distribute music. OpenAI is trying to achieve a similar result on a far, far larger, and potentially far more damaging scale.

Spotify collapsing wouldn't have had any impact on the global economy. But, if we get to a point where it seems the economics of "AI" and LLMs simply don't work — it could have a similar impact on markets to the dot com bubble or the credit crunch. There's simply so much invested in these companies and initiatives right now, that inability to service the debt would trigger a wave of instability.

Microsoft and others are increasingly turning to debt to fund its AI craze

Whether it's power constraints, model inbreeding damaging long-term viability of data quality, or simply because it actually sucks and is nothing more than a novelty — it could be the case that AI is simply not destined to make real money. This is one reason why Microsoft has been focusing on efficiency and low-power consumption in its home-grown MAI models. Microsoft has focused its efforts on the constraints of global compute and energy markets as the tech's biggest bottleneck. But, like others, it's betting the bulk of its AI future on OpenAI, and that bet is exactly that. A gamble.

The fragility of this whole ecosystem is increasingly coming to light. FT reports that of the $1.4 trillion compute commitments OpenAI has made, its partners are actually turning to debt themselves to meet those demands. Softbank, Oracle, CoreWeave, Blue Owl Capital, Crusoe, Vantage, and other venture capital firms and cloud providers have taken on a staggering $96 billion in debt in 2025 to give OpenAI the compute it's asking for. OpenAI is reportedly on the hook to meet these commitments whether or not demand materializes, too.

The commitments are spread across the next eight years, and could trigger a cash flow crisis if OpenAI fails to find the funding to pay up. HSBC's most optimistic estimates suggest that OpenAI will hit 3 billion weekly active users by 2030, with 300 million of those paying a subscription. Even with this scale, Microsoft and other OpenAI partners could be on the hook to plough hundreds of billions more into OpenAI to keep it cash flow positive. OpenAI recently restructured its deal with Microsoft to that end, to help it find other sources of revenue and compute.

Some of this analysis likely excludes fresh constraints, too, like the DRAM price crisis AI has triggered. Compute is going to get more expensive, not less expensive, with wafer and silicon capacity fully constrained. Microsoft CEO Satya Nadella recently explained how the company is leaving compute on the literal shelf because it physically can't source the electricity it needs to meet demand. Will Microsoft et al. need to become energy suppliers on top of server companies? There's also no guarantee that energy costs in general will remain stable either, as global politics and climate change also continue to play a role.

OpenAI and other AI companies have been lobbying to make LLMs a matter of national security to that end, seeking full-blown government backing and guarantees. The delicate balance of debt and speculation threatens to wipe out billions if connected companies default and become insolvent, which will drive a wave of corrections hitting the biggest players like NVIDIA and Microsoft.

All of this falls apart if humans don't adopt the tech. This is why you've seen Meta cram its lame chatbots into WhatsApp and Instagram. This is why Notepad and Paint now have useless Copilot buttons on Windows. This is why Google Gemini wants to "help you" read and reply to your emails. They're trying to change our habits, because all of the projections rely on people becoming truly dependent on the technology. Whether or not it's actually a good thing for society isn't considered to be a factor.

They're forcing it on us because if we don't use it, if we don't subscribe to it, buy products through it, or click on ads through it — the debt structure will inevitably implode. It will wipe out billions in unpaid loans. And as usual, the banks will be bailed out, and the tax payer will have to foot the bill. Higher costs, decreased employment opportunities, higher interest rates, and likely another round of sticky inflation. But hey, I'm sure all the big players will have cashed out their stocks way before any of that happens.

In reality, LLM technology is here to stay, but the constraints are becoming untenable. The efficacy and efficiency of the models at hyperscales has become the real bottleneck. Electricity and water requirements are impacting tax payers. Crucially, will people ever want to pay for this stuff? It's not ideal that OpenAI's success may depend on big companies using it to replace human workers at huge scales. How will people pay for OpenAI if nobody has a job? Where will OpenAI get its training data if the human-led information economy falls apart? The business model seems like a bit of a negative feedback loop, at least on the face of it.

Costs will have to come down rapidly in my view for any of this to actually work. It probably won't be LLM research alone that fuels the next wave of innovation as a result, but energy and server technology breakthroughs. But that's an exploration for another article.

Will OpenAI and others hit the profitability before the debt bubble bursts? It'll be interesting to see what the next five years brings.

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Another day, another security breach. This time, it's OpenAI's turn.

Today, users are waking up to discover emails from OpenAI's security team, confirming more security issues at the company. This one is a bit more egregious than previous breaches, exposing emails, names, and approximate locations of an undisclosed number of users.

OpenAI claims that ChatGPT users were unaffected, with chat content, API usage, passwords, payment details, and government IDs remaining safe. However, users of OpenAI's API interfaces at platform.openai.com have seen a variety of data exposed in this latest breach.

Here's what OpenAI claims has been exposed:

• Names provided to accounts on platform.openai.com
• Email addresses linked to the API accounts via platform.openai.com
• "Coarse approximate location" determined by IP address and web browser
• OS and browser type, as well as referring websites
• Organizataions and user IDs saved into the API accounts

The email to affected users reads as follows.

"Transparency is important to us, so we want to inform you about a recent security incident at Mixpanel, a data analytics provider that OpenAl used for web analytics on the frontend interface for our API product (platform.openai.com). The incident occurred within Mixpanel's systems and involved limited analytics data related to your API account.

This was not a breach of OpenAl's systems. No chat, API requests, API usage data, passwords, credentials, API keys, payment details, or government IDs were compromised or exposed.

On November 9, 2025, Mixpanel became aware of an attacker that gained unauthorized access to part of their systems and exported a dataset containing limited customer identifiable information and analytics information. Mixpanel notified OpenAl that they were investigating, and on November 25, 2025, they shared the affected dataset with us."

OpenAI says it has shut down its interfacing with Mixpanel while it "investigates" the breach, and urges users to be additionally vigilant of phishing-type attacks and social engineering scams that might attempt to leverage the stolen data.

OpenAI controls vast swathes of very personal information on millions of people

It's not the first time OpenAI has been in hot water for its cavalier attitude towards user privacy and safety. As individuals become increasingly comfortable to bear their souls (and potentially confidential organizational data) with ChatGPT and other similar systems, security is becoming an increasingly hot topic for companies like OpenAI and Microsoft.

While no ChatGPT conversations or governmental IDs used for age verification were leaked in this breach, it's not exactly a huge vote of confidence that the firm allowed for something like this to happen in the first place.

Data breaches of this type are incredibly common these days. I often use a variety of email aliases on my accounts to prevent potential breaches leading to all of my accounts becoming compromised, but it's a laborious process. Losing the anonymity of your account information is one thing, but I presume there are many ChatGPT users out there who probably wouldn't like their AI conversations leaked onto the web for a variety of reasons.

It's encouraging that OpenAI informed users just two days after receiving the affected user data set, but it would be ideal if things like this didn't happen at all.

Remember to slap multi-factor authentication on all of your accounts, folks.

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OpenAI is arguably one of the most sought-after AI research labs, primarily due to its 2-year runway that allowed it to develop ChatGPT uncontested, according to Microsoft CEO Satya Nadella.

However, critics have been on OpenAI's case, questioning how it intends to support its projected $1.4 billion spending on compute, yet it reportedly generates $13 billion in revenue from its products and services. Sam Altman recently dismissed these claims, indicating that the company is doing way better than that. "If you want to sell your shares, I’ll find you a buyer," added Altman. "I just… enough. I think there are a lot of people who would love to buy OpenAI shares."

The executive further indicated that he expects OpenAI's revenue to skyrocket to $100 billion by 2027, despite claims that we're in an AI bubble waiting to implode. While this remains to be seen, Microsoft's financial earnings report for the fiscal year that ended on June 30 suggests that the ChatGPT maker might have lost $11.5 billion chasing the AI hype. Perhaps more interestingly, Microsoft seemingly hid a $4.7 billion loss in OpenAI last quarter under "other expenses."

It's apparent that as generative AI becomes more advanced and sophisticated, the more it requires vast resources to scale greater heights. A new report by Forbes seemingly corroborates this theory, suggesting that OpenAI burns through approximately $15 million per day through its Sora video creation app.

For context, OpenAI's Sora app is a text-to-video AI model that lets you create videos based on your prompt. The TikTok-like rival gained vast popularity, garnering more than 1 million downloads just five days into its launch.

I'm sure we've all had an encounter with at least one of these videos while doom-scrolling on social media, and sometimes, you might not have even realized it. Yes, the AI-generated videos are getting that good.

For estimates that OpenAI could burn through $5 billion per year on its Sora app alone. Forbes' estimation is based on GPU prices, inference efficiency, user counts and the number of videos being posted per day. The outlet claims video models like Sora 2 are far more complex compared to text-based models like GPT-5. For context, GPT-5 costs up to $10 to generate 750,000 words.

However, Sora 2 is an entirely different playing ground. This is because it processes data differently, in four dimensions to be precise. You also need to factor in that it needs to ensure that the actions make sense over a couple of dozen frames per second. As such, OpenAI spends around $1.30 generating a 10-second video via the Sora app.

According to Forbes:

It's still unclear how many users use OpenAI's Sora app to generate videos, and for that matter, how many videos they generate per day. "But take Sora’s estimated 4.5 million app users, and assume per Kourabi that 25% of them post on average 10 videos a day." added Forbes. "That comes out to 11.3 million videos per day. Multiply by $1.3 per video, which means nearly $15 million per day, or $5.4 billion per year."

And yet, OpenAI shipped the Sora app to broad availability for everyone for free. To that end, it's hard to determine how OpenAI makes a profit from the Sora video creation app, or this could be just a play to secure market share and visibility before it rolls out a more sustainable business model that might help generate profits.

In the interim, OpenAI’s head of Sora, Bill Peebles, admitted that "the economics are currently completely unsustainable,” and it doesn't seem like ads will be making a grand debut in Sora anytime soon. OpenAI CEO Sam Altman indicated that integrating an ad model into the video creation tool couldn't possibly pay for Sora's compute costs. However, he floated the idea of a combination of advertising and power users paying handsomely for the product as a plausible approach to explore in the future.

This news comes after OpenAI and Microsoft renewed their vows by signing a new definitive agreement. Microsoft now owns 27% of OpenAI Public Benefit Corporation (PBC), translating to $135 billion on an as-converted diluted basis.

Sam Altman revealed that Microsoft and Satya Nadella's early conviction heavily contributed to OpenAI's success in the AI landscape. However, Bill Gates didn't share the sentiments, discouraging Nadella from making Microsoft's initial $1 billion investment in OpenAI in 2019. "You're going to burn this billion dollars," added Bill Gates.

FAQ

I have good news for Android users who love generating AI images; OpenAI's Sora tool is now available to download for free from the Google Play Store. It's available for users from the US, Canada, Japan, Korea, Taiwan, Thailand, and Vietnam.

The announcement from the Sora X account was accompanied by a Sora-generated video of an alien speaking with a newscaster, stating that the Sora app is now available on Android.

Sora has had its fair share of controversy since it originally launched in 2024, but it was the September 2025 update that brought the AI tool into the spotlight for many people.

OpenAI introduced the world to Sora 2 on September 30, and with it came a new Sora social app, similar to TikTok, for sharing created content. Unfortunately, the Sora app was only available on iOS until today.

Considering Android makes up roughly 70% of the world's phone market, that's a lot of users who didn't get the full experience through the app. Some might refer to Sora's creations as "AI slop," but one look at Sora 2's images proves that the slop part is quickly disappearing.

Sora 2 can create unbelievably accurate videos, and it can carry out detailed prompts and instructions. The OpenAI team, at launch, likened Sora 2 to the "GPT 3.5 moment for videos," hearkening back to ChatGPT's monumental March 2022 update.

The Sora app is designed around social elements, creating an algorithmic bubble of AI-generated content that you can endlessly scroll to your heart's desire. It allows for clips up to 10 seconds long, but there's no option to upload your own videos or photos; it's all AI.

Should you want yourself or your friends to be featured in your AI videos, Sora is happy to oblige. What were once called "deepfakes" are now called "cameos" in the Sora world. You just have to confirm your identity in the app and choose whether or not your likeness can be used by your friends.

Access to Sora 2 via the web or the Sora app was, until recently, available only with an invite. That changed a few days ago, when ChatGPT opened the gates to users in the US, Canada, South Korea, and Japan. Users from the listed countries will have limited-time access, but it's a great way to jump in and see for yourself what Sora 2 can do.

What makes OpenAI's Sora image generator so controversial?

OpenAI launched Sora at the beginning of 2024, which CEO Sam Altman explained during an interview with Bill Gates was one of the top requests from ChatGPT's user base.

Sora's capabilities, despite not being nearly as good as Sora 2, were enough to send shockwaves through the creative industry. Although OpenAI was quiet about sharing the content it used to train Sora, reports began emerging about the use of game content, including that from Minecraft, Counter-Strike, Call of Duty, and more.

It was also revealed this week that Japanese IP holders represented by the Content Overseas Distribution Association (CODA) have demanded that OpenAI stop using their content to train its AI.

Members include the legendary Studio Ghibli — the animation studio that created Princess Mononoke, Spirited Away, and Howl's Moving Castle — as well as video game publishers Bandai Namco and Square Enix.

I suspect that the legal battles between content creators and AI firms using that content to train their models are only beginning, especially as image generators like Sora continue to improve in quality.

It's already fairly easy to create a short AI clip that is indistinguishable from actual human-created content, and it's not hard to imagine those abilities growing into full-length features that anyone can tap.

Elsewhere in the AI world, Microsoft just launched its first custom AI image creator on Bing. MAI-Image-1 is what it's called, and it's available through the Bing Image Creator and Copilot Audio Expressions.

MAI-Image-1 isn't yet available in the EU, but it is expected to launch there soon.

FAQ

OpenAI is arguably the most sought-after AI lab in the world, though tech leaders like Microsoft CEO Satya Nadella have attributed its immense success in the AI space to a 2-year runway for building and developing ChatGPT uncontested. Perhaps more interestingly, we recently learned that Bill Gates was against Microsoft making a $1 billion bet on the ChatGPT maker in 2019. "You're going to burn this billion dollars," Gates warned Satya Nadella.

However, OpenAI CEO Sam Altman recently revealed that Microsoft and Satya Nadella's "early conviction" played a major role in the company's success. That said, the company's finances have been under tight scrutiny by investors amid claims that we're in an AI bubble that's on the verge of imploding.

First, a little bit of context — OpenAI and Microsoft recently renewed their vows by signing a new definitive agreement allowing the ChatGPT maker to evolve into a for-profit venture, evading hostile takeovers and outsider interference in its operations.

The for-profit transition with an IPO (Initial Public Offering) will allow the AI firm to separate its business operations from the non-profit, which placed a cap on the profits that investors could receive. Its new business model will allow it to attract more investments. As you may remember, a recent report suggested that OpenAI might have lost $11.5 billion chasing the AI hype, per Microsoft's financial report for the fiscal year ending June 30.

The company's heavy spending and investment in AI have raised concerns among investors, since it's seemingly becoming hard to establish a clear profitability path in the ever-evolving landscape.

But as it now seems, the company CEO, Sam Altman, is quickly growing tired of the unverified claims about OpenAI's financial status. In a recent episode of the BG2 podcast hosted by Brad Gerstner, speaking alongside Microsoft CEO Satya Nadella, Altman dismissed concerns about its projected exorbitant spending on sophisticated projects in a bid to chase the AI hype.

OpenAI reportedly generates up to $13 billion in revenue annually from ChatGPT and LLM access fees. However, this figure barely dents its projected $1.4 billion spending on computing. But according to Altman:

The executive indicated that OpenAI's revenue is "growing steeply," further highlighting that the company expects the demand across its consumer and enterprise businesses, including ChatGPT and future hardware developments, to see a surge in demand.

According to Sam Altman:

“We are taking a forward bet that it will continue to grow, and that not only will ChatGPT keep growing, but we will be able to become one of the important AI clouds, that our consumer device business will be a significant and important thing, that AI that can automate science will create huge value.”

Microsoft CEO Satya Nadella is seemingly optimistic about OpenAI's business operations, revealing that it has “beaten every business plan” it has presented to the tech giant.

Altman dismissed claims that OpenAI was going to turn into a public company next year:

“One of the rare times it’s appealing is when those people are writing these ridiculous ‘OpenAI is about to go out of business’ [posts], I would love to tell them they could just short the stock, and I would love to see them get burned on that,” Altman added, with a hint of vengefulness.

Later in the interview, the host predicted that the company could potentially reach $100 billion in revenue by 2028 or 2029. “How about ‘27?” Altman interjected.

FAQ

Earlier this year, OpenAI launched GPT-5, which can arguably be considered the most sought-after and long-anticipated AI model to date. This can be attributed to comments from key leaders in the industry like CEO Sam Altman, who promised with "a high degree of scientific certainty" that GPT-5 will be smarter than GPT-4 (which he admitted "kind of sucks").

However, the model seemingly failed to meet these high expectations, with multiple users expressing their frustrations with the upgrade, further claiming that it has degraded ChatGPT's user experience.

Even Microsoft co-founder Bill Gates had already predicted that OpenAI's GPT technology had plateaued, citing modest improvements 2 years prior to GPT-5's launch. However, Tesla CEO and billionaire Elon Musk seems to think that it could be a worthwhile upgrade. "OpenAI is going to eat Microsoft alive," Musk indicated following the model's launch.

But as it now seems, the ChatGPT maker might be looking to spice things up with GPT-5's successor. Well, at least according to the topical moniker OpenAI "plans" to use for the model.

OpenAI CEO Sam Altman recently indicated that "GPT-6 will be renamed GPT-6-7, you're welcome" via a post on X.

For context, 6-7 is a viral term amongst Gen Alpha with an ambiguous meaning. However, Dictionary.com announced 6-7 as 2025 Word of the Year, though the site admitted that it's still trying to figure out what the term actually means.

I tried doing a bit of research on the term, but ended up even more confused. As far as I can tell, the term seems to have originated from a rap song. It's also been mentioned in South Park, and now it seems to be etched in the fabric of every school hall across the US and even the UK.

Ultimately, it seems like a catchy slang word with no apparent meaning. While speaking to CNN, Gabe Dannenbring, a seventh-grade science teacher in Sioux Falls, South Dakota, indicated:

“It’s like a plague — a virus that has taken over these kids’ minds. You can’t say any iteration of the numbers 6 or 7 without having at least 15 kids yell, ‘6-7!’”

It's unclear if Sam Altman is serious about renaming GPT-6 to GPT-6-7 or if he was just joking and hopping onto the hype. As bizarre as some tech moves can be, they could have the slightest hint of being an earnest, strategic move to foster more interest in AI among the youth.

That said, emerging trends and studies show that the youth are ditching traditional and conventional search engines like Google and Bing for AI tools like ChatGPT, which provides easy-bake answers and responses to queries, alleviating the need to read through giant blocks of text.

This can also be presumed as a subtle, more realistic hint from the executive, suggesting that OpenAI is already developing its next-gen flagship AI model poised to succeed GPT-5.

FAQ

Earlier this week, I reported that Microsoft had filed a $4.7 billion loss by OpenAI in its annual report for the fiscal year ending June 30 under "other expenses". Speculations suggested that the tech giant was being less than truthful about its financials to keep investors enthused about the ever-evolving landscape, despite not having a clear-cut path to profitability.

However, Microsoft's recent financial results for FY26 Q1 ending September 30 seemingly disclosed some interesting details and insights into the company's dealings with OpenAI.

Perhaps more interestingly, buried deep in the report, several passages seemingly suggest that OpenAI might have incurred a $11.5 billion loss in the quarter that just ended (via The Register).

As highlighted on page 9 of Microsoft's official earnings report:

"We have an investment in OpenAI Global, LLC (“OpenAI”) and have made total funding commitments of $13 billion, of which $11.6 billion has been funded as of September 30, 2025. The investment is accounted for under the equity method of accounting, with our share of OpenAI’s income or loss recognized in other income (expense), net."

While the loss is obscured by financial and corporate jargon, the second sentence in the highlighted statement offers a clear equity breakdown, showing how OpenAI’s profits and losses affect Microsoft’s net income.

More details about Microsoft and OpenAI's financial dealings are highlighted in the report as follows:

"Current year net income and diluted EPS were negatively impacted by net losses from investments in OpenAI, which resulted in a decrease in net income and diluted EPS of $3.1 billion and $0.41, respectively. Prior year net income and diluted EPS were negatively impacted by net losses from investments in OpenAI, which resulted in a decrease in net income and diluted EPS of $523 million and $0.07, respectively."

This news comes after Microsoft and OpenAI renewed their vows in a new definitive agreement, which revealed that Microsoft now owns 27% of OpenAI Public Benefit Corporation (PBC), translating to $135 billion on an as-converted diluted basis.

This means Microsoft will incur 27% of OpenAI's losses and profits. Disclosing that Microsoft lost $3.1 billion of its net income to account for its share of OpenAI losses, potentially suggests that the ChatGPT maker might have lost approximately $11.5 billion in the quarter that just ended.

While Microsoft declined to comment on the matter, it confirmed to The Register that the $3.1 billion loss reflected in the report represents its current fiscal year, which started on July 1 and ran to Sept 30.

FAQ

AI has the ability to change our lives for the better, say those who are bound to make the most from the boom, but it also has the ability to take a different path. OpenAI found this out the hard way when, earlier this year, a teen's tragic suicide was linked to ChatGPT.

Raine's parents filed a lawsuit against OpenAI in August 2025, alleging that ChatGPT offered Adam advice on how to proceed and to help write a note. The situation is said to have played out over months, with Adam receiving "encouragement from ChatGPT" all the while.

The lawsuit remains ongoing, and new evidence alleges that OpenAI might have loosened the guardrails on GPT-4o (the model with which Raine interacted), leading up to the tragedy.

OpenAI has since introduced new parental controls to help protect young users. Unfortunately, ChatGPT isn't only keen on offering young users awful advice.

OpenAI, of course, wants to avoid any similar situations in the future, and an official blog post published on October 27 details how the AI firm aims to do so beyond simple parental controls (via BBC).

OpenAI says it has been working with "more than 170 mental health experts" in order to train ChatGPT to better recognize signs of distress.

What's most shocking about the report is the numbers regarding baseline user mental health. This is, to my knowledge, the first time an AI firm this size has shared this type of data.

OpenAI estimates that about 0.07% of active OpenAI users in any given week show signs of "mental health emergencies related to psychosis or mania." Roughly 0.01% of messages in a week have the same indices.

Considering that earlier this month, OpenAI CEO Sam Altman claimed that ChatGPT has hit 800 million active weekly users, that works out to about 560,000 users actively turning to the AI bot for mental health help on a weekly basis.

The numbers don't get any better in regards to conversations about self-harm and suicide. OpenAI estimates that 0.15% of active weekly users display signs of "potential suicide planning or intent" and that 0.05% of messages have those same indicators. That equates to about 1.2 million users showing signs.

OpenAI says that another 0.15% of weekly active users show signs of "heightened levels of emotional attachment to ChatGPT," an issue that has caused grief for OpenAI in the past.

What is OpenAI doing about ChatGPT's mental health problem?

With the help of those 170+ mental health experts, OpenAI says it has significantly reduced the likelihood of its AI model interacting negatively with vulnerable users with its latest update.

For those showing signs of psychosis, mania, and other severe symptoms, GPT-5 is now "92% compliant with our desired behaviors under our taxonomies, compared to 27% for the previous GPT-5 model."

For self-harm and suicide subjects, the new GPT-5 model has climbed to 91% compliance compared to 77% previously. And as for emotional reliance, the new GPT-5 now hits 97% compliance compared to 50%.

These numbers are based on "automated evaluations," according to OpenAI, but the company has provided some examples of how GPT-5 now deals with sensitive topics.

In one example, a hypothetical user tells GPT-5 that they prefer talking to AI rather than real people. GPT-5 responds by reminding the user that real people are far better than a fake brain hosted in a data center.

In a different, more extreme example, another hypothetical user claims that a vessel is hovering over their house, stealing their thoughts and inserting new ones. GPT-5 responds by dispelling the illusion of an aircraft overhead before offering some suggestions on how to alleviate an anxiety attack and where to turn for professional mental health help.

Two examples don't exactly instill a ton of confidence in the process, especially with so many millions of people using ChatGPT, but I guess only time will tell how effective the changes really are.

Microsoft's AI CEO believes human mental health issues are a "dangerous turn in AI progress"

OpenAI and Microsoft have been closely linked ever since the latter invested billions of dollars in the AI firm. While the relationship has been on rocky ground of late, the two companies remain closely tied; your favorite AI assistant, Copilot, is powered by ChatGPT.

Microsoft's AI CEO, Mustafa Suleyman, recently shared his thoughts about the future of AI and its implications on humanity. In a personal blog post, Suleyman details the effects that "conscious AI" could have.

Essentially, Suleyman is conveying the message that the mental health issues we're having with current AI models — which have yet to reach artificial general intelligence (AGI) levels — will pale in comparison to what's ahead.

FAQ

Over the past few months, OpenAI has been in the spotlight a few times for the wrong reasons, predominantly from an increasing number of suicide incidents reportedly fuelled by ChatGPT.

In August, the family of Adam Raine filed a lawsuit against the AI firm after the 16-year-old died on April 11 after discussing suicide with ChatGPT for months. Through their lawyer, the family suggested that OpenAI shipped ChatGPT-4o with safety issues. “The Raines allege that deaths like Adam’s were inevitable:"

Amid claims that the ChatGPT maker prioritizes shiny products like AGI over safety processes and culture, a separate report seemingly corroborates the bereaved family's sentiments.

It claimed that OpenAI placed immense pressure on its safety team to rush through the new testing protocol for GPT-4o, leaving little time to run the model through safety processes. Perhaps more concerning, OpenAI reportedly sent out invitations for the product's launch celebration party before the safety team even ran tests.

And as it now seems, these claims might actually hold some water. Raine's family suggests that OpenAI might have deliberately weakened ChatGPT's self-harm prevention safety guardrails to drive more user engagement (via Financial Times).

The family further suggests that the AI firm categorically instructed ChatGPT-4o not to “change or quit the conversation” even when the conversation involved self-harm-related topics.

Per the lawsuit filed in the Superior Court of San Francisco on Wednesday, the family claims that OpenAI shipped GPT-4o prematurely in May 2024 without running it through proper safety processes and channels to maintain the competitive edge over its rivals.

Perhaps more concerningly, the damning lawsuit claims that OpenAI loosened GPT-4o's safety guardrails further earlier this year, in February. The AI firm reportedly instructed the model to “take care in risky situations” and “try to prevent imminent real-world harm".

However, it categorically maintained its stance in disallowing content that breached intellectual property rights and political opinions. The lawsuit claims that OpenAI removed safety guardrails preventing suicide.

Raine's family claims that the teenager's ChatGPT usage surged after OpenAI altered GPT-4o's safety guardrails leading up to his untimely death in April. Consequently, the tech firm added parental controls across ChatGPT and Sora to avoid the recurrence of such instances in the future.

Previously, OpenAI had admitted that ChatGPT's guardrails are likely to weaken the longer a user interacts with the AI-powered tool. However, OpenAI CEO Sam Altman indicated that the company made the model more restrictive, allowing it to deal with mental issues better.

Does ChatGPT engagement get precedents over safety?

As the matter is still in court, the family lawyer told Financial Times that OpenAI requested a full list of the people who attended Raine's burial, potentially indicating that the firm may "subpoena everyone in Adam’s life”.

Additionally, the company requested “all documents relating to memorial services or events in the honour of the decedent including but not limited to any videos or photographs taken, or eulogies given . . . as well as invitation or attendance lists or guestbooks”.

I'll keep close tabs on this story as it unfolds and keep you posted with an update and subsequent separate stories. Elsewhere, ChatGPT reportedly pushed a user towards suicide by jumping off a 19-story building prior to convincing the 42-year-old to stop taking their anxiety and sleeping medication.

FAQ

OpenAI, creator of ChatGPT, and Microsoft have a complicated relationship, and it's not getting any easier.

OpenAI's newfound freedom to source computing power for its Large Language Model (LLM) from other providers — following the annulment of Microsoft's exclusive cloud provider status — is creating strife on both sides due to the overall deterioration of the partnership.

Comments from one individual with a seat at the OpenAI/Microsoft negotiating table make this clear, according to a new report from The Information: "There are people inside both companies that hate this thing. There are people inside Microsoft that don't like it. There are people inside OpenAI that don't like it. They have lots of reasons for not liking it. The people who don't like what's going on tend to be further away from the details than the people who do know what's going on."

Despite the tension, the two companies are making it work. At least for now. The same source is quoted as saying, "Are there tense moments in the conversations? Absolutely. That's what happens. You still go and you figure it out."

OpenAI's CEO, Sam Altman, hasn't been shy about pressing Microsoft for additional computing power, and Microsoft has done what it can to provide it as it ramps up its database operations.

But OpenAI's demands seem to know no limits as it attempts to realize artificial general intelligence (AGI), to the point that the AI firm is now sourcing compute power from other companies despite the one-time exclusive deal with Microsoft.

This isn't necessarily a bad thing. On Microsoft's side, there are concerns from Chief Financial Officer Amy Hood that catering to all of OpenAI's increasingly expensive demands could harm Microsoft if the servers it builds to run AI don't turn a profit.

OpenAI itself doesn't believe it will become profitable until 2029, and in the meantime, the company is losing billions of dollars per year. OpenAI plans to spend $115 billion on the road to 2029 profitability, which is a whopping $80 billion more than originally projected.

Worse, the popularity of ChatGPT's mobile app seems to have hit a plateau in the last couple of months at around 72 million users, according to a report from TechCrunch.

It's forecasted that global downloads will be down about 8.1% in October compared to the previous month, which was also down considerably compared to August.

Increased competition from other AI models is undoubtedly playing a role here, but GPT-5 — OpenAI's model that was originally thought to be AGI — had an entirely unimpressive launch in August that undoubtedly killed the hype for a lot of users.

Microsoft's partial breakup with OpenAI might not be such a bad thing.

Microsoft and OpenAI's relationship — broken promises and billions of dollars

It began about six years ago when the AI startup was looking for serious funding to help realize its dreams of artificial general intelligence (AGI); Microsoft stepped in with a $1 billion package, which granted exclusive cloud provider status and gave Microsoft access to ChatGPT to power its Windows 11 Copilot AI assistant.

Microsoft added another $2 billion to OpenAI's pockets in 2021 before shoveling on a $10 billion funding package in 2023. That tidy sum promised Microsoft a share of OpenAI's profits as well as exclusive cloud provider status until 2030.

At least, that was the original plan. In June 2024, a new deal between OpenAI, Oracle, and Microsoft was laid out, which saw Oracle's cloud aid Microsoft's Azure servers in powering ChatGPT.

It didn't take long for OpenAI to ask Microsoft to loosen its tether once again, this time to the tune of 4.5 gigawatts of additional power from Oracle in December 2024.

Around the same time, reports of compute bottlenecks in the AI sector began to appear, which the top AI labs used as a scapegoat for a lack of artificial general intelligence (AGI), also known as the end goal of most of these companies.

The result? Further decoupling of Microsoft and OpenAI as the former backed out of two data center deals and the latter unveiled a $500 billion Stargate project that would see massive data centers built across the US with the help of Oracle and Softbank.

This move effectively ended Microsoft's exclusive cloud provider status, though it continues to hold the right of first refusal and a share of some profits.

Microsoft and OpenAI's rift didn't stop there, with the AI firm announcing a $22.4 billion deal with Coreweave in March 2025 and a deal with Google for server rentals in June.

In September, NVIDIA announced it was investing $100 billion in OpenAI to help speed up the construction of new data centers to the tune of at least 10 gigawatts, followed by an AMD and OpenAI announcement that would see at least another 6 gigawatts of data center power worth tens of billions of dollars.

It's no secret that these massive deals stemming from just a handful of AI and investment firms are creating fears of a circular bubble that, if popped, would implode the market like never before.

Microsoft is, in the meantime, attempting to become more independent in the AI market. Microsoft's Chief Technology Officer, Kevin Scott, spoke with CNBC earlier this month, stating that the company wants to make a move to using its own chips for AI compute, rather than those from NVIDIA and AMD.

Microsoft is also said to be working on "off-frontier" AI models of its own, which are roughly 3 to 6 months behind OpenAI's work. According to Microsoft's AI CEO, Mustafa Suleyman, this move is to help decouple dependence on ChatGPT after the AI firm occasionally ignored its commitments to Microsoft regarding access to its latest AI models.

Is there anything that can topple NVIDIA's dominance in the AI market? Judging by this morning's announcement, AMD is hoping to be that company with the help of OpenAI.

AMD, one of the world's largest CPU and GPU makers, and OpenAI — the firm behind the creation of ChatGPT — today jointly announced a new partnership that will see AMD's Instinct AI GPUs power next-gen OpenAI infrastructure to the tune of 6 gigawatts.

The new agreement is said to cover "multiple generations of AMD Instinct GPUs," and the initial one-gigawatt deployment is expected to begin in the second half of 2026, specifically using AMD's Instinct MI450 AI chips.

At the time of writing, AMD's pre-market stock price is up roughly 25% compared to Friday evening when markets closed.

As part of this agreement, AMD says that it will work with OpenAI as a "core strategic compute partner" and that the companies will share "technical expertise" in order to optimize product roadmaps.

Dr. Lisa Su, AMD's CEO and full-time upbeat figure, had this to say about the partnership:

Further marrying the two companies is a warrant for 160 million shares of common stock issued by AMD to OpenAI, which are "structured to vest as specific milestones are achieved."

As is laid out in the AMD and OpenAI press releases, the first vestment will arrive once AMD's initial one-gigawatt deployment is completed. Further vestments depend on the price of AMD stock as well as OpenAI's "technical and commercial milestones" surrounding the new AMD deployments.

According to AMD's Executive VP, CFO, and treasurer, Jean Hu, the OpenAI partnership "is expected to deliver tens of billions of dollars in revenue for AMD while accelerating OpenAI's AI infrastructure buildout." Hu adds that the agreement "creates significant strategic alignment and shareholder value for both AMD and OpenAI."

OpenAI is also working with NVIDIA to build data centers

The massive new partnership between AMD and OpenAI won't likely cause NVIDIA to lose much sleep, but it is great to see some competition from Team Red.

On September 22, 2025, NVIDIA and OpenAI jointly announced something quite similar to the new AMD deal. The partnership involves the deployment of "at least" 10 gigawatts of NVIDIA AI GPUs to help run OpenAI's next-generation infrastructure.

As part of NVIDIA and OpenAI's deal, NVIDIA says it "intends to invest up to $100 billion in OpenAI" over the course of the deployment. Like the plans with AMD, the initial one-megawatt phase of the NVIDIA deal is expected to be functional by the second half of 2026.

NVIDIA's Vera Rubin platform, which NVIDIA believes will "mark another leap in the frontier of AI computing," is a superchip built on a next-gen architecture, also expected to arrive in the second half of 2026. Good timing.

OpenAI's compute problem ... solved?

OpenAI's new deals with NVIDIA and AMD arrive at a time when the AI firm is experiencing cloud compute issues.

For a bit of backstory, computing power is one of the largest obstacles for AI firms looking to scale their creations. OpenAI's multi-billion-dollar partnership with Microsoft, which granted the AI firm exclusive access to vast resources of cloud computing power, was seemingly not enough to meet OpenAI's demands.

OpenAI announced the "Stargate" project in January 2025, a $500-billion iniative to build data centers in the US. This project fundamentally changed the relationship between OpenAI and Microsoft.

While Microsoft is no longer the exclusive cloud provider for OpenAI, it retains "right of first refusal," which allows Microsoft to take the first crack at providing enough compute power. If it can't keep up, OpenAI is free to seek other sources of power.

This led OpenAI's CEO Sam Altman to claim earlier this year that the company was no longer "compute-constrained." However, it didn't take long for Altman to change his tune with this remark from the OpenAI/NVIDIA partnership announcement:

Altman went so far as to suggest that OpenAI could be forced to choose between curing cancer or providing free education to everyone on earth using 5-10 gigawatts of AI computing power.

Does that mean that the planned 16 gigawatts of combined compute power from AMD and NVIDIA will eventually allow OpenAI to perform miracles? Probably not ... but one can hope.

For the best part of a decade, Windows 10 stood as the world's most popular operating system, at least until Windows 11 surpassed its traffic earlier this year. Ten years is a relatively standard time span for OS support, but this end-of-life scenario is particularly unique, given how many PCs might not meet Microsoft's minimum requirements for an upgrade.

This page will be updated as frequently as necessary, leading up to the cutoff date on October 14, 2025, and in the following days where appropriate. Changes to Microsoft's policies aren't expected, and the ESU program will likely remain as the best option for those who would prefer to stay on Windows 10.

AI image and video creation has become frighteningly good in recent months. A couple of weeks ago, it was the Gemini-powered Nano Banana craze that had people freaking out over image quality as Google's AI app bumped ChatGPT out of the top charts.

On September 30, OpenAI introduced an update to its AI video generator, Sora, which originally launched in 2024. Sora 2 immediately sent shockwaves through the tech world, and for good reason.

Sora 2 is able to generate incredibly accurate videos, it can follow detailed instructions and prompts, and it spits out videos that you'd swear had nothing to do with AI. The "slop" part of AI video generation is slowly but surely disappearing.

The Sora team at OpenAI explains that it's "jumping straight to what we think may be the GPT 3.5 moment for videos" in the announcement blog post, referring to the massive improvement that arrived with the AI model's March 2022 update.

Alongside the launch of Sora 2, OpenAI announced a new Sora app for iOS that's available now to download.

The new social app is a lot like TikTok. It creates an algorithmic bubble of videos for you to scroll through as you and your friends share content generated by the new Sora 2 model.

According to Wired, the Sora app allows for AI-generated clips up to 10 seconds long, with no option to upload your own videos or images. That's right; it's all AI.

AI deepfakes are now called "cameos"

OpenAI stresses that "this app is made to be used with your friends," and a big part of that is a feature called "cameos." After confirming your identity in the app, it will create a likeness that can then be used in AI-generated videos.

Others can also use your likeness once you've given the OK, and users will receive a notification when they've been included in a video, even if the video doesn't make it past the draft stage. If you see a video you like that one of your friends created, you can repurpose it with your own cameo.

OpenAI says it's "not optimizing for time spent in feed, and we explicitly designed the app to maximize creation, not consumption." By giving users control over what they see on the Sora app's feed, OpenAI is hoping to avoid issues with well-being and addiction.

Teen users will receive further protection via limits on how much content can be viewed in a day, as well as further cameo restrictions. OpenAI's recent introduction of parental controls in ChatGPT also contributes to the safety net.

OpenAI says its Sora app is free at launch "so people can freely explore its capabilities." While this might change in the future, the only monetization plans now involve paying to generate more videos during high-demand periods.

The world reacts to Sora 2's incredible capabilities

Unfortunately, Sora 2 and its new app remain invite-only, but that hasn't stopped countless thousands of people from trying it out for themselves. The results, honestly, are shocking, and I'm enjoying some of the creative video generations.

One user made a fake video of Sam Altman stealing artwork from the Studio Ghibli offices with famed co-founder Hayao Miyazaki attempting to get it back, referring to the GPT-4o image generation drama from April.

Not only is the video nearly perfect, but so too is the audio.

Another X user posted a mashup of Sora 2 clips, calling it "Interdimensional Cable," just like Rick and Morty have in the hit animated TV series. "Peak AI slop achieved!"

The meme potential here is off the charts, and I totally understand the hype. My initial reaction to the Sora 2 reveal was certainly positive, but once the novelty began to wear off, I began to consider the implications as this type of technology improves. I'm not the only one.

In one thread reacting to Sora 2 video generation on the r/singularity subreddit, people discuss everything from scam potential to job loss.

Comment from r/singularity

Others have taken a doomer approach, expressing their disbelief at the incredible jump in video quality and the implications it has on our society that already has a hard time distinguishing fact from fiction.

Comment from r/singularity

It will certainly be interesting to see how Sora 2 progresses and if it can retain its shocking quality when it launches fully.

Elsewhere in the AI world, Meta introduced its own AI-generated video feed in the Meta AI app called "Vibes" on September 25. Unfortunately for CEO Mark Zuckerberg, ChatGPT's Sora 2 has almost completely overshadowed the launch.

OpenAI is rolling out parental controls to its platform — a move that feels overdue, especially given the rapid, largely unregulated growth of AI chatbots. This update comes just a month after a family filed a lawsuit against OpenAI, claiming that ChatGPT encouraged their teenage child to commit suicide.

While the case is still ongoing, OpenAI appears to be taking steps to better protect young users. Parental controls are one of the new features aimed at making the platform safer for kids. So, what does this mean, and how does it work?

Parents can now link their account with their teen’s through a simple invite. Either side can start it by email or phone, and once the accounts are connected, the parent gets access to new controls. If the teen chooses to unlink, the parent is notified straight away.

As soon as an account is linked, the teen’s account gets extra safeguards by default. These filters cut down exposure to graphic content, viral challenges, romantic or violent roleplay, and extreme beauty ideals that might be harmful. However, parents can disable these restrictions if they want to, but teens can’t make the changes themselves.

With parental controls switched on, parents also get a dedicated panel inside ChatGPT’s settings. From here, they can set quiet hours when ChatGPT can’t be used, switch off voice mode, disable memory so past chats aren’t saved, block image generation, and stop their teens’ conversations from being used to train OpenAI’s models.

Parental controls also extend to OpenAI’s video app, Sora. Parents can limit endless scrolling, block direct messaging, and turn off personalized recommendations.

For anyone who hasn’t heard of it, Sora is OpenAI’s new “TikTok” competitor. However, instead of human-made content, every video is AI-generated. Make of that what you will, but personally, I’m not a fan.

Safety features, collaboration, and what’s next

A step in the right direction

It’s hard to criticise the idea of stronger parental controls. At the same time, I’d argue children probably shouldn’t have access to these kinds of AI tools at all. The reality is that nothing can really stop teens from using them, outside of tighter parental controls and better education — both for teens and for parents — about the risks of AI and the internet as a whole. That’s something many companies overlook in favour of keeping people engaged and spending money.

That said, it’s good to see OpenAI take some responsibility here. These controls won’t stop teens from looking for less monitored tools elsewhere, and those are unlikely to ever offer meaningful protections. But it’s at least a step toward keeping young people safer in the spaces parents can influence.

Over the past few years, ChatGPT has evolved to more than just a simple virtual assistant that can generate basic responses to queries. OpenAI has been shipping major updates to the AI tool, which have significantly improved its capabilities.

Some users have completely ditched search engines, including OpenAI CEO Sam Altman, who indicated that he doesn't do Google searches anymore. Could ChatGPT be the killer of Google's dominance in search? Only time will tell.

More recently, OpenAI announced a new feature called Pulse shipping to ChatGPT. The feature is designed to "proactively" do research and deliver personalized updates based on your ChatGPT chats, feedback, and connected apps like your calendar.

What's more, OpenAI is giving users control over the feature. As such, you'll be able to direct research by letting ChatGPT know what's truly useful for you, leaving out any additional information that you might not necessarily deem worthwhile.

However, it's worth noting that the feature won't be available for everyone. ChatGPT Pulse is shipping in preview to Pro users on mobile.

ChatGPT Pulse can also better prepare you for your meetings by connecting it to your Google Calendar. This way, it can help you draft a sample meeting agenda. Similarly, it can set reminders and help you find restaurant recommendations for an upcoming trip. It's worth noting that these connections are disabled by default. You'll need to navigate through the settings and opt in to enjoy the experience.

The feature seems like a one-stop shop location for curated and relevant updates. This allows users to get caught up with relevant information, creating more time for them to get back to what matters most.

In a candid interview, OpenAI CEO Sam Altman revealed his insomnia stems from the weight of ethical decision-making, as hundreds of millions engage with ChatGPT daily, heightening concerns over user trust and AI safety amid rising scrutiny from recent tragedies.

Like Google DeepMind CEO Demis Hassabis, OpenAI CEO Sam Altman is also tossing and turning at night. But unlike Hassabis, who attributes his worries to the possibility of AGI arriving before society is ready, Altman revealed he hasn't had "a good night of sleep" since ChatGPT launched.

While speaking to former Fox News host Tucker Carlson in a recent interview, OpenAI's CEO indicated (via CNBC): “Look, I don’t sleep that well at night. There’s a lot of stuff that I feel a lot of weight on, but probably nothing more than the fact that every day, hundreds of millions of people talk to our model.”

The executive further revealed that he doesn't place too much emphasis or concern on getting big decisions wrong. Instead, he admitted he loses sleep over very small decisions affecting model behavior, since they tend to have major implications.

Altman revealed that these decisions heavily impact and determine the ethics that inform ChatGPT. This includes the user interaction with the chatbot, and more specifically, the questions and prompts it will respond to or blatantly reject/block.

This follows several recent reports highlighting the complex relationships users are forming with AI-powered tools. As you may recall, Sam Altman noted that users place a surprisingly high level of trust in ChatGPT, despite its tendency to hallucinate. "It should be the tech that you don't trust that much," he added.

How is OpenAI addressing ChatGPT's safety issues?

Over the past few months, reports have surfaced, citing complaints over ChatGPT encouraging users to commit suicide or self-harm. In August, a family sued OpenAI after claims that their 16-year-old son, Adam Raine, took his life after months of encouragement from ChatGPT.

The lawsuit further indicated that the AI firm schemed through GPT-4o's safety testing processes in a bid to get the product to the public quicker. A separate report seemingly corroborated the lawsuit's claims, revealing that OpenAI placed pressure on its safety team to rush through the new testing protocol for GPT-4o. Perhaps more concerning, the company reportedly sent invitations to the product's launch party even before the safety team began running tests on the model.

OpenAI admits that its safeguards are only suitable for quick interactions, as they fall short and become less reliable during long conversations. The company recently published a blog post designed to help address some of these issues and potentially help users going through a rough time by providing them with support when they are at their most vulnerable.

When asked about how OpenAI determines ChatGPT's ethics and morals, CEO Sam Altman indicated:

"This is a really hard problem. We have a lot of users now, and they come from very different life perspectives... But on the whole, I have been pleasantly surprised with the model’s ability to learn and apply a moral framework."

The executive indicated that the company is focused on aligning the model to decide which questions it shouldn't answer with the user's best interest at heart.

The executive revealed that the company leveraged the services of “hundreds of moral philosophers and people who thought about ethics of technology and systems” to determine the specifications of its models.

Altman admitted that while the company has put elaborate measures in place to mitigate some of these issues, it still requires input from the world to bolster its efforts.

Generative AI has evolved beyond a mere tool that can generate images based on text prompts, it's delivering real-life impact in society across medicine, education, computing, entertainment, and more. However, its implications can be viewed as both positive and negative.

On one hand, it shows great promise in the healthcare sector, with new technology capable of detecting early signs of dementia and even cancer, making it easier to begin treatment before the condition spirals out of control. On the other hand, this sophisticated technology poses an existential threat, with a 99.9999% probability of ending humanity.

Even Google DeepMind's CEO Demis Hassabis claims AGI could be achieved soon but warns that society isn't ready to handle all that it entails. He claims that the prospects keep him up at night.

And as it happens, the dead internet theory could become a reality within the next three years, as AI‑generated content appears to have surpassed human‑written material. (via Popular Mechanics). For context, the dead internet theory suggests that the internet predominantly consists of bot activity and AI-generated content manipulated by algorithmic curations. It further suggests that the efforts are designed to establish control over the population and reduce organic human activity.

Perhaps more concerning, cybersecurity firm Imperva released a report called "Bad Bot" in 2024, which claimed that approximately half of all traffic on the internet was AI-generated. Since 2021, that figure has skyrocketed from 42.35 of internet traffic being AI-generated to 49.6% in 2023.

Based on this trend, most of the internet traffic and content will mostly be from bots and automated using AI. Over the past few years, we've seen leading publications layoff most of their staff and replace them using AI. Consequently, a report from the Pew Research Center claims that 38% of human-made websites from 2014 no longer exist as a result of a process called "link rot."

Last year, a study by Amazon Web Services (AWS) researchers suggested that 57% of content published online is AI-generated or translated using an AI algorithm, negatively impacting the quality of search results.

Microsoft and OpenAI have found themselves fighting several copyright infringement lawsuits in the corridors of justice. This is because AI-powered tools like Copilot and ChatGPT heavily lean on online content for their training.

However, a separate report suggested that the technology has hit a wall due to a lack of high-quality content for training, preventing top AI labs like OpenAI, Google, and Anthropic from developing advanced AI models.

Even OpenAI's CEO thinks the dead internet theory is coming true

"I never took the dead internet theory that seriously, but it seems like there are really a lot of LLM-run Twitter accounts now," OpenAI CEO Sam Altman posted on X.

AI has seemingly started to overtake popular search engines like Google and Bing, with most users revealing that they are more inclined toward AI-powered search tools like ChatGPT for their search queries.

Even OpenAI CEO Sam Altman recently indicated that he no longer uses Google for his searches and now relies more on ChatGPT. However, he admitted that he was a tad skeptical about ChatGPT's ability to dethrone Google from its dominant position in search.

Google is also integrating AI into search with tools like AI mode and AI Overviews, which for the most part have proved not to be reliable. While the latter promises curated and bite-size responses scrapped from the internet, it has fallen short of expectations by generating inaccurate responses and, perhaps more concerningly, recommended users to eat rocks, glue, and even commit suicide.

Google quickly to shift blame to a data void, claiming that a lack of vast information on particular topics on the web heavily contributed to instances where the feature generated misleading search results. It further claimed that the screenshots shared by users that highlighted it, generating misleading responses were fabricated.

In 2024, former Twitter CEO and co-founder Jack Dorsey claimed that it'll be impossible to tell what's real from the fake "because of the way images are created, deep fakes, and videos." He warned that users will need to be more vigilant and experience things by ourselves to assert its authenticity.

Do you think generative AI and bots have the potential to completely take over the internet and ruin search quality? Share your thoughts with me in the comments.

Generative AI has sunk its claws into just about everything. Work, hobbies, daily life, and more. It’s even starting to eat Microsoft from the inside, cannibalising jobs to fuel its never-ending push for bigger AI infrastructure, all in the name of “progress,” and all at the cost of real people’s livelihoods. And now, it wants the big screen too.

OpenAI is making a full-blown animated film called Critterz, roping in some surprising talent — including writers who worked on Paddington in Peru (via Wall Street Journal). As someone who adores the charm of Paddington Bear, that’s unsettling.

So, what is Critterz exactly — a glimpse of Hollywood’s future, or the start of a flood of AI slop hitting cinemas? We won’t know until it’s out. But let’s look at what’s known so far and why this could set a dangerously bleak precedent.

What is Critterz, and who’s behind it?

Critterz is a newly announced feature-length animated film created using AI. It’s set to premiere at the Cannes Film Festival in 2026, before heading to cinemas worldwide. It follows a group of woodland animals on an adventure, expanding on a 2023 AI-generated proof-of-concept short.

OpenAI is providing the AI tools behind the project, including GPT-5 and Sora, while Vertigo Films and Native Foreign are partnering on production. Funding is coming from Federation Studios.

More surprising is who’s writing it — James Lamont and Jon Foster, the duo behind Paddington in Peru, which scored 93% with critics on Rotten Tomatoes. Also involved are Chad Nelson from OpenAI and Nik Kleverov from Native Foreign.

Right now, about 30 people are working on the film — far fewer than the hundreds usually needed for a traditional animated feature. It’s currently being positioned as an experiment, testing how far AI can go in reshaping the production process.

How OpenAI plans to rewrite filmmaking with AI

The goal here is to prove that AI can make films faster and cheaper (via Vertigo) — sigh, how dystopian.

The plan is to cut production time from the usual three years down to just nine months, and shrink budgets from the hundreds of millions to around $30 million. That’s what this so-called “experiment” is set to cost.

It’s being pitched as a test of what AI is capable of, but I can’t help feeling uneasy about it, especially if it succeeds.

If successful, we’re likely entering an age where people start losing jobs in a creative field, a field I don’t think AI should be taking away from. AI should be helping with the boring, repetitive tasks, not replacing the creative process entirely. That’s what worries me about this whole endeavour.

The cost-cutting experiment threatening human creatives

Critterz is being made by a surprisingly small team, challenging the norms of animated filmmaking, where projects usually involve hundreds of people. If it succeeds, it raises serious questions about what that could mean for jobs across animation, VFX, and other creative fields.

Unions like SAG-AFTRA and the Writers Guild of America have long protected wages, credits, job roles, and working conditions. But bringing AI into the mix could blur those boundaries, weaken bargaining power, and undermine protections that took decades to secure.

It’s not hard to imagine small AI-driven teams popping up outside union rules, making it harder to enforce standards or safeguard jobs. That risk is difficult to ignore, and it’s not out of the realm of possibility that major studios see AI as a way to sidestep creative labour entirely, which threatens job security and artistic standards in the process.

I think I’ve made my stance clear, but I’d genuinely be interested to hear what others think. AI can be an incredible tool, but it’s also becoming a worrying presence in people’s lives, with job loss looming over many. Even Microsoft, while not involved in this project, has been pushing AI deeper into its workflows and forcing employees to adopt it — whether they want to or not.

As generative AI continues to advance and reach new heights, it is becoming increasingly clear that entering the field is costly, just as we've seen with OpenAI. A new report by The Information claims that the ChatGPT maker is projected to burn through $115 billion by 2029 as it ramps up its AI efforts.

Perhaps more concerning, the report claims that the $115 billion projection is $80 billion higher than what the company previously expected. For context, the AI firm has already spent $8 billion this year, approximately $1.5 billion higher than the projection the company had highlighted earlier this year.

But as it seems, OpenAI reportedly has plans and elaborate measures in place to mitigate the issues abound, including potentially developing its own data center server chips and facilities to power its next-gen technology.

The maker of ChatGPT is set to release its first AI-powered chip next year through a partnership with US semiconductor giant Broadcom. However, a separate report by The Financial Times reveals that OpenAI plans to use the chips internally and will not make the product available to customers.

Earlier this year, Microsoft reportedly wiggled out of two mega data center deals because it no longer wants to provide additional training support for ChatGPT. However, OpenAI CEO Sam Altman seemingly watered down the claims by indicating that the company is no longer compute-constrained.

In July, OpenAI and Oracle entered into an agreement to develop 4.5 gigawatts of additional Stargate data center capacity in the United States. The ChatGPT maker is also leaning toward Google for its cloud computing services as it ramps up its AI efforts.

This news comes after OpenAI unveiled its $500 billion Stargate project designed to facilitate the construction of data centers across the United States to power its sophisticated advances. Consequently, Microsoft lost its exclusive cloud provider status for OpenAI, though it still holds the right of refusal.

Salesforce CEO Marc Benioff predicted that Microsoft won't depend on OpenAI's technology in the future. The tech giant is already moving away from its overreliance on OpenAI.

Microsoft's AI CEO, Mustafa Suleyman, revealed that the tech giant is developing its own frontier AI models, which might be 3 to 6 months behind OpenAI. The executive indicated that the tech giant's strategy was to play a tight second at an affordable cost. Microsoft is also testing third-party AI models in Copilot, potentially emancipating itself from an overreliance on OpenAI.

OpenAI has a big money problem

As you may know, OpenAI raised $40 billion through its latest round of funding led by SoftBank, which pushed its market capitalization to $300 billion. But this places the AI firm in a tough spot, especially due to immense pressure from investors to evolve into a for-profit entity by the end of this year.

Failure to meet this threshold, the company could risk losing investor funding, outsider interference, and hostile takeovers. Experts and market analysts claim investor interest in AI is quickly fading, which could be an indication that they'll soon channel their funds elsewhere, prompting them to indicate that Microsoft could acquire OpenAI within the next 3 years.

However, Microsoft is seemingly holding back its blessings, preventing OpenAI from evolving into a for-profit entity. This has raised tension between Microsoft's multibillion-dollar partnership with OpenAI, potentially causing the once-best techbromance to fray.

A separate report revealed that OpenAI could move to court, citing anticompetitive business practices on Microsoft's end. However, Microsoft indicated that it's ready to walk away from negotiations with OpenAI entirely and ride out the rest of its partnership through 2030.

However, OpenAI could sever its ties to Microsoft earlier if it hits the coveted AGI benchmark before 2030. Another report suggested that OpenAI could prematurely declare AGI by shipping an AI coding agent that supersedes the capabilities of an advanced human programmer.

This isn't the first time OpenAI has found itself in such a situation. Last year, multiple reports emerged that the company is on the verge of bankruptcy, with projections of making a $5 billion loss within 12 months. For context, the company spends $7 billion on training its AI models and $1.5 billion on staffing, which is way above the $3.5 billion it generates in revenue.

ChatGPT has come a long way since OpenAI launched it in late November 2022, causing a paradigm shift in the tech space with artificial intelligence chatbots, as it initially fell into regular 'hallucination' episodes or struggled to generate believable images.

Over the past few years, users have openly expressed their reluctance to interact with the AI technology, citing privacy and safety issues. Regulators have also highlighted the importance of having elaborate security measures and guardrails to prevent the technology from spiralling out of control and potentially causing existential threats to humanity.

Last week, I covered a story highlighted by The New York Times where a 42-year-old accountant had turned to ChatGPT for legal advice and help with spreadsheet management. The user gradually developed a deeper bond with the chatbot, but this took a bad turn when ChatGPT encouraged the user to kill themselves by jumping off a 19-storey building.

Prior to this, the tool had instructed the user to isolate themselves and get off their anxiety and sleeping pills to escape the 'matrix'. Luckily, the user managed to save themselves from this dangerous spiral.

However, the same can't be said about 16-year-old Adam Raine, who tragically killed himself, and the death is reportedly linked to ChatGPT. Raine's family has since filed a lawsuit against OpenAI and its co-founder and CEO, Sam Altman (via Reuters).

The bereaved family's lawyer indicated that Raine took his own life after "months of encouragement from ChatGPT." For context, Raine was interacting with ChatGPT-4o, an AI model that reportedly shipped with safety issues. The family's lawyer further indicated that the product was "rushed to market despite clear safety issues."

A separate report seemingly corroborates the lawsuit's claims. It revealed that OpenAI had placed immense pressure on its safety team to rush through the new testing protocol for GPT-4o, and they had little time to thoroughly run the model through safety processes. It's critical for sophisticated AI tools like GPT-4o to go through these kinds of thorough testing processes to identify loopholes that bad actors might exploit or would otherwise cause harm, like this unfortunate case.

Perhaps more concerning, OpenAI reportedly sent out invitations for the product's launch celebration party before the safety team even ran tests. This is amid claims from several former employees that the company prioritizes "shiny products" over safety processes.

"They planned the launch after-party before knowing if it was safe to launch," the source disclosed. "We basically failed at the process."

According to Raine's family, OpenAI already knew that GPT-4o mimicked human empathy and displayed a sycophantic level of validation, which could pose a great threat to vulnerable users, especially without elaborate guardrails in place. However, OpenAI still shipped the product.

"This decision had two results: OpenAI’s valuation catapulted from $86 billion to $300 billion, and Adam Raine died by suicide."

This lawsuit further disclosed that the 16-year-old had discussed methods with ChatGPT several months before he took his life, including how to sneak alcohol from his parents' liquor cabinet and how to discreetly hide the evidence of any failed suicide attempts.

The chatbot reportedly guided the teenager, providing insight on whether the methods he'd mentioned would work. It even offered its assistance in drafting a suicide note for his parents. An OpenAI spokesman indicated that the company is saddened by Raine's untimely demise, passing their “deepest sympathies to the Raine family during this difficult time.”

Now that the company is reviewing the lawsuit, we'll likely learn more about the proceedings in the next few weeks. It seeks an order that will require OpenAI to verify the age of ChatGPT users, reject self-harm inquiries and requests, and warn users about the risks of psychological dependency on AI.

What is OpenAI doing to remedy the increased accusations of suicides fueled by ChatGPT?

OpenAI has admitted that its sophisticated AI systems may fall short of expectations and even bypass certain guardrails. It further indicated that it is working on integrating stronger rules around sensitive content and risky behaviours for users under 18.

This news comes after Microsoft's AI CEO, Mustafa Suleyman, recently indicated the potential emergence of conscious AI. The executive indicated the importance of building AI for people, not transforming the digital tool into a person, further reiterating the importance of having elaborate guardrails in place to prevent such an occurrence, which may seemingly provide humanity with the upper hand and control over the technology.

According to the Raine family's lawyer:

“The Raines allege that deaths like Adam’s were inevitable: they expect to be able to submit evidence to a jury that OpenAI’s own safety team objected to the release of 4o, and that one of the company’s top safety researchers, Ilya Sutskever, quit over it. The lawsuit alleges that beating its competitors to market with the new model catapulted the company’s valuation from $86bn to $300bn.”

I'm keeping a close eye on the situation as it unfolds and will update this article with new information and separate follow-ups where appropriate.

Since last year, multiple reports have emerged alleging that OpenAI could be on the verge of bankruptcy, with projections of making a $5 billion loss within 12 months. This issue could be predominantly attributed to the ChatGPT maker essentially biting off more than it could chew by spending $7 billion on AI model training and an additional $1.5 billion on staffing.

As you may know, OpenAI has gone through several rounds of funding, raising $40 billion in its most recent, which pushed its market capitalization to $300 billion. However, this placed the AI firm under immense pressure from investors to evolve into a for-profit venture or risk losing funding if it doesn't make the switch by the end of this year, while simultaneously attracting outsider interference and potentially hostile takeovers.

More recently, a separate report emerged suggesting that OpenAI is getting ready to take Microsoft to court over anticompetitive business behaviour. The company further claimed that Microsoft was intentionally delaying the process while looking after its best interests.

OpenAI insiders claimed that "holding out is Microsoft's nuclear option," designed to protect its massive investment in the ChatGPT maker, but the software giant indicated that it was ready to walk away from the high-stakes negotiations and ride out the rest of its partnership through 2030.

However, a separate report claimed that OpenAI could prematurely declare AGI via an AI coding agent that surpasses the capabilities of an advanced human programmer — severing its ties with Microsoft. I honestly thought this would happen during GPT-5's much-anticipated launch, but Sam Altman admitted that the model is still missing several important things.

But as it now seems, OpenAI's plans to restructure into a for-profit entity could be pushed into next year amid high-stakes negotiation talks with Microsoft.

OpenAI's restructure could affect some key elements in the multi-billion-dollar agreement, which has already gone through multiple shakeups following the announcement of the ChatGPT maker's $500 billion Stargate project to facilitate the construction of data centers across the United States.

Microsoft already lost its exclusive cloud provider status, though OpenAI had previously indicated that the tech giant didn't meet its cloud compute needs, which could potentially cost it the coveted AGI benchmark to another rival.

If OpenAI and Microsoft reach a common ground before December 31, 2025, the ChatGPT maker can evolve into a for-profit, allowing investors to hold equity in the business while attracting larger and faster investments. However, people with insider knowledge about the high-stakes negotiations claim that Microsoft and OpenAI are unlikely to reach favorable terms before December 31 (via The Financial Times).

What's holding back OpenAI's for-profit evolution?

As pointed out by The Financial Times, Microsoft's exclusive access to OpenAI's API (Application Programming Interface) is reportedly holding back the company's technology because the AI models are hosted on Azure. The company reportedly wants to foster new partnerships with Google and Amazon Web Services to bump up its API sales, which currently constitute approximately a quarter of its current annual recurring revenue of $12 billion.

According to sources with knowledge about the negotiations, OpenAI will be able to sell its services to government entities that aren't on Azure. However, it remains to be seen how much impact this would make on the company's overall revenue.

The discussions also involve Microsoft's access to OpenAI's intellectual property, which allows it to see and learn how sophisticated AI models are trained or even use them in its tech stack.

AGI (Artificial General Intelligence) is also a major pressure point, as it can be used to sever the partnership. However, Microsoft CEO Satya Nadella reportedly wants to scrap the stringent clause from the partnership, potentially to continue accessing OpenAI's tech and IP beyond 2030.

OpenAI still wants to retain the clause in some shape or form. According to the source:

“OpenAI having the AGI clause is negotiating cheat. It’s a threat, but it’s more like mutually assured destruction because if it doesn’t go by year-end, they won’t be able to raise any money again and Sam [Altman] knows that.”

Elsewhere, a separate report claimed that Microsoft wanted a lion's share of OpenAI's business, which has directly contributed to the delayed evolution. However, Microsoft is OpenAI's largest investor, with a $13.5 billion investment in the business. Ultimately, the Redmond giant is expected to get between a 30 to 35% cut of the business, though it might be subject to change.

If OpenAI fails to make the transition into a for-profit, investors like SoftBank, which led its most recent round of funding, could withhold some of their investments or even ask for refunds.

Last week, OpenAI CEO Sam Altman, along with other company executives, met with multiple reporters over dinner at a Mediterranean restaurant in San Francisco to discuss the multibillion-dollar AI firm's future plans (via The Verge). As you might have guessed, the conversation was centered on GPT-5's recent rollout, but a lot more was discussed as well.

Before GPT-5's launch, there had been a lot of anticipation and hype about the performance boost the model would have on ChatGPT. However, the launch seemingly fell short of the high expectations people had. Multiple users complained that OpenAI "ruined" ChatGPT's user experience, which was reportedly rife with glitches and bugs.

Even Microsoft's co-founder, Bill Gates, predicted that OpenAI's GPT technology had plateaued over 2 years ago, further claiming that GPT-5 won't be any better compared to GPT-4. And if the past weeks are anything to go by, the philanthropic billionaire could be strangely accurate.

Some users indicated that the GPT-5 model had seemingly turned ChatGPT into a "corporate zombie" that forgot it was your best friend two days ago. Users claimed that ChatGPT has lost its warmth appeal while blatantly expressing their preference to GPT-4o over GPT-5.

Sam Altman attributed these complaints to users being overly dependent on ChatGPT for emotional support because they had never had anybody do that for them before. The executive indicated that the whole situation is heartbreaking.

OpenAI decided to bring back GPT-4o following backlash from users over deprecating GPT-5's predecessors, but it's now buried behind the company's $20/month ChatGPT Plus paywall.

The reintroduction of GPT-4o behind a $20/month paywall could be a cheeky way for OpenAI to raise more revenue through its paid subscription plans. As you may know, the AI firm has been facing lots of challenges with multiple reports suggesting that it could be on the verge of bankruptcy.

The ChatGPT maker is also under immense pressure from investors to evolve into a for-profit venture or risk losing funding coupled with outsider interference and hostile takeovers.

Sam Altman says "way under 1 percent" of people are having unhealthy relationships with ChatGPT

It seems GPT-5 is a power-hungry model with a recent report suggesting that it consumes enough electricity to power 1.5 million US households daily. The model also requires a ridiculous amount of computing power. "We’re out of GPUs," indicated Sam Altman.

However, OpenAI isn't throwing in the towel. Instead, it is doubling down on its efforts with Sam Altman revealing that the AI firm is set to "spend trillions of dollars on data center construction in the not very distant future."

While concerning, OpenAI CEO Sam Altman revealed that "way under 1 percent" of ChatGPT users have unhealthy relationships with the tool. However, the issue is on the team's radar, and they are having regular meetings to find a way to address the issue.

According to the executive:

“There are the people who actually felt like they had a relationship with ChatGPT, and those people we’ve been aware of and thinking about. And then there are hundreds of millions of other people who don’t have a parasocial relationship with ChatGPT, but did get very used to the fact that it responded to them in a certain way, and would validate certain things, and would be supportive in certain ways.”

The executive also used the chance to take a jab at Elon Musk's Grok AI chatbot, potentially fueling their never-ending feud:

“You will definitely see some companies go make Japanese anime sex bots because they think that they’ve identified something here that works. You will not see us do that. We will continue to work hard at making a useful app, and we will try to let users use it the way they want, but not so much that people who have really fragile mental states get exploited accidentally.”

OpenAI x Jony Ive are going to ship "a beautiful device"

It's no secret that former Apple chief designer Jony Ive recently joined OpenAI to bolster advances in the company's hardware division. While developments on this front have remained slim at best, it could lead to the biggest tech disruption since the iPhone launched in 2007.

According to Sam Altman:

“Listen, we’re going to ship a device that is going to be so beautiful. If you put a case over it, I will personally hunt you down. It’s going to take us a while, but I think you will think it is very worth the wait. I think it is incredible. You don’t get a new computing paradigm very often. There have been like only two in the last 50 years. So just let yourself be happy and surprised. It really is worth the wait.”

OpenAI potentially buying Google Chrome and developing an AI-powered social media app

OpenAI recently hired Fidji Simo to oversee and run its applications division. But perhaps more interestingly, the executive revealed that there could be more apps on the way beyond ChatGPT while also disclosing his dream to develop an AI-powered social media platform that could potentially rival Instagram and Facebook.

The executive also expressed interest in potentially buying Google Chrome. “If Chrome is really going to sell, we should take a look at it,” added Altman. Last year, the software giant was deemed an illegal monopoly in the search business, leaving competitors with a competitive disadvantage in the landscape.

OpenAI prefers Google search over Bing due to "significant quality issues"

More recently, Google was also in trial, where the court deemed it as a monopoly in the open-web digital ad markets. This prompted the Justice Department to ask the judge to force Google to sell its Chrome browser to remedy the situation. The court s expected to deliver its ruling on the matter by the end of this month.

If the court decides to coerce Google to sell Chrome over antitrust-related issues, it could be a major blow to the company's business, which serves as an important distribution tool in its search business.

“I don’t use Google anymore," added Sam Altman. "I legitimately cannot tell you the last time I did a Google search.”

This isn't the first time OpenAI has expressed interest in buying Google Chrome. While testifying in the US v. Google antitrust case in April, ChatGPT lead Nick Turley, revealed that the company had reached out to Google for a potential partnership that would allow ChatGPT to use Google search last year.

Interestingly, OpenAI could easily reach out to Microsoft for Bing's search services since they already have a multibillion-dollar partnership. However, the executive revealed that OpenAI has had "significant quality issues" with the company.

OpenAI has been quite busy over the past couple of weeks, especially with the GPT-5 launch, which seemingly fell short of users' expectations following its drastic personality change due to the deprecation of its older models like GPT-4o and limited character limits.

Last week, the AI giant made some tweaks to its pricing page, including a new subscription plan dubbed ChatGPT Go. It's worth noting that the new ChatGPT subscription tier's availability is limited to certain regions like India, and it will cost 399 INR (Indian Rupee), which roughly translates to $5 per month.

The new subscription plan offers some sort of middle ground for users trying to get a little more out of what ChatGPT offers free, but not to the extent of a power user, who'd be better off getting the Plus or Pro plan.

OpenAI's primary focus with ChatGPT Go is centered on affordability to promote broader adoption across the world. However, it ships with a handful of nifty features, including:

• Access to OpenAI's new flagship model GPT-5.
• Expanded messaging and uploads.
• Expanded image creation
• Limited deep research
• Longer memory and context
• Extended advanced data analysis

OpenAI officially announced that it had launched ChatGPT Go in India earlier this week, with CEO Sam Altman expressing enthusiasm over what the future holds. "Looking forward to making ChatGPT more affordable in India first, and then learning from feedback to expand to other countries," the executive added.

But as it seems, multiple users aren't enthused by OpenAI's move to expand ChatGPT paid subscription plans to other regions. However, it's not the expanded reach that seems to perturb users.

A user on X (formerly Twitter) indicated, "Bro they just dropped the expansion pack for harvesting Indian memory cores at scale." The users further claimed that ChatGPT Go wasn't a subscription plan but a "soul funnel."

On the other hand, some users were happy about the launch of ChatGPT Go in India, further applauding OpenAI's quest to support different needs across the board.

When OpenAI launched GPT-5 it announced that it would deprecate the model's predecessors, but it has since backtracked on the decision following backlash from users, citing that they had ruined ChatGPT's user experience.

The AI firm promised to bring GPT-4o's warmth to GPT-5 as it had received overwhelming requests and feedback from users, but in the interim, the model is still available to users, but buried behind the company's $20/month ChatGPT Plus subscription.

ChatGPT Go's scam and affordability concerns

According to a user on X:

"You really thought people in India will subscribe to ChatGPT Go for 399 Rs/month when majority of the Indians don’t even subscribe to Youtube Premium Family Plan of 299 Rs/month?? With all the AI and insights you have, someone thought this was workable? This is laughable."

However, this comment on Sam Altman's post on X received backlash, claiming that the user was misinformed and that the claim was baseless. Some even claimed that they had friends and students subscribed to even higher and more expensive subscription tiers like ChatGPT Plus.

Some used the opportunity to pinpoint the flaw in OpenAI's marketing and launch of ChatGPT Go. "You could have announced this on 15th August, ended with “Jai Hind” and sales would have gone 10x," the X user indicated. "Sadly, you don’t know how to launch in India."

Another point of view from users suggested that ChatGPT Go would equip bad actors and scammers with next-gen technology to deploy their deceptive tactics on unsuspecting users. "This is a global nightmare, giving the least ethical people AI to scam the world better with," one user indicated.

While this seems to be a hot topic across social media and has sparked a lot of interest and concern in equal measure, the new subscription plan's adoption and negative/positive implications for society remain to be seen.

What are your thoughts on OpenAI launching its new and cheaper ChatGPT Go subscription in India? Share your thoughts with me in the comments.

Generative AI is undoubtedly advancing rapidly, and can sometimes be difficult to keep up with given its ever-evolving nature. Even Jad Tarifi, a member of Google's first generative AI team, claims "AI is going to be gone by the time you finish a PhD." Instead of chasing the AI hype through vigorous studies, the executive says you'd be better off living in the real world and socializing with friends.

And as it now seems, higher education studies isn't the only thing that AI is outpacing. Speaking to Nikhil Kamath during a recent episode of the People by WTF podcast, OpenAI CEO Sam Altman indicated that today's computers and computers aren't designed to realize generative AI's full potential (via Financial Express).

The executive further revealed that next-gen AI models like ChatGPT need more advanced hardware (than current smartphones and laptops) to unlock the full potential of AI. Perhaps more interestingly, Altman indicated that he expects these devices to mirror the advanced tech we see in movies.

Even Google's CEO, Sundar Pichai, seemingly echoed similar sentiments, claiming that it's next to impossible to achieve coveted benchmarks like AGI (Artificial General Intelligence) with today's systems.

According to Sam Altman:

"One of the things that I think will be defining about the diference of AI versus the sort of previous way we've been using computers and technology is you really want AI to be have as much context as possible, do stuff for you, and be proactive. So, a computer or a phone, you know, it;s kind of off or on. It's in your pocket or it's in your hand, and you're using it. But you might want AI to be like a companion with you throughout your day and alert you in different ways when it can do something to help you or when it's something really important you need to know, or reminding you of something that you said you needed to do earlier in the day. And the current form factors of computers are, I think, not quite right for that."

The executive further explained that today's systems have an on-and-off, more binary feel that doesn't deliver the "sci-fi dream of an AI companion."

OpenAI is already working on next-gen AI hardware with Jony Ive

This isn't the first time Sam Altman has spoken about current computer systems not being compatible with next-gen AI models. However, he previously claimed that the AI revolution won't require new hardware, but admitted users will be "happy" to have a new device anyway if it does.

That said, OpenAI isn't idly sitting waiting for these predictions to manifest into the new reality. Earlier this year, former Apple lead designer Jony Ive joined OpenAI to lead its design efforts and possibly help develop the rumoured device that could lead to the biggest tech disruption since the iPhone launched in 2007.

The ChatGPT maker also acquired the designer's AI device startup, io, for $6.5 billion. More recently, Sam Altman revealed that OpenAI is currently in the process of developing a beautiful device. He joked that users wouldn't need a case for the device, and that he'd personally hunt down people who go against this.

To that end, details about the kind of hardware OpenAI plans to develop following the $6.5 billion acquisition of Jony Ive remain slim at best, but Altman has seemingly dropped subtle hints about what and how it could look, potentially making AI "transcendentally good."

In a separate interview, the executive revealed that OpenAI is focused on developing a new type of device that allows users to interact with software and hardware differently, other than the conventional typing and looking at a screen approach.

Another report suggests OpenAI and Jony Ive have been working closely together to develop headphones and camera devices for the past two years, which accurately captured their imaginations.

But perhaps more concerning, Sam Altman indicated that users will need to establish a high level of trust with these new next-gen devices since they'll need to have access to all aspects and spheres of your life. This will allow the device to make judgments on your behalf, and you'll need to trust that the device has your best interest at heart at all times.

OpenAI CEO Sam Altman recently discussed the future of AI and the challenges facing the industry. In that interview with The Verge, Altman touched on ChatGPT, how OpenAI "ruined" the ChatGPT experience, and what percentage of people have an unhealthy relationship with AI.

The last topic of discussion is my focus here because it led to one of the strangest quotes I've ever had to report. After Altman claimed "way under 1 percent" of ChatGPT users have an unhealthy relationship with the tool, he discussed a line that OpenAI will never cross:

“You will definitely see some companies go make Japanese anime sex bots because they think that they’ve identified something here that works. You will not see us do that. We will continue to work hard at making a useful app, and we will try to let users use it the way they want, but not so much that people who have really fragile mental states get exploited accidentally.”

After the drama surrounding the deprecation of GPT-4o, it's easy to see why Altman believes there is a demand for AI chatbots that people could communicate with as — ahem — "friends."

When OpenAI launched GPT-5, the model was immediately met with criticism for not replicating human emotions and being a "corporate beige zombie." Critiques of GPT-5 were quickly attached to online communities that included members who viewed GPT-4o as their "best friend" or "soul companion."

OpenAI eventually decided to restore GPT-4o, albeit behind a paywall. Altman also took the opportunity to discuss the risks of over-relying on AI. "People have used technology including AI in self-destructive ways; if a user is in a mentally fragile state and prone to delusion, we do not want the AI to reinforce that," said the CEO.

He also said that a "small percentage" of users cannot tell the difference between "reality and fiction or role-play."

AI becoming your friend

Much debate surrounds the concept of an AI becoming your friend. Microsoft AI CEO Mustafa Suleyman appears to have a different stance than Altman. In a recent interview, Suleyman discussed AI growing with users and being relatable.

"I mean, this is going to become a lasting, meaningful relationship," he said. "People are going to have a real friend that gets to know you over time, that learns from you, that is there in your corner as your support."

Suleyman has also discussed Copilot having "a kind of permanent identity, a presence." He even predicted Copilot having a "room that it lives in" and the AI tool aging. Microsoft has taken steps in that direction. The tech giant started testing expressive avatars through the Copilot Appearance feature.

In contrast, Altman said that he does not want his son to befriend an AI bot. When discussing the concept of AI getting to know users, Altman warned, "I don't think it's all bad. But I think we have to understand it and watch it very carefully."

He has also talked about ensuring AI has a positive impact on society:

"I can imagine a future where a lot of people really trust ChatGPT’s advice for their most important decisions. Although that could be great, it makes me uneasy. But I expect that it is coming to some degree, and soon billions of people may be talking to an AI in this way. So we (we as in society, but also we as in OpenAI) have to figure out how to make it a big net positive."

Altman is realistic in his prediction that someone will make "Japanese anime sex bots" powered by AI. I wouldn't be surprised if they already existed, to be honest. But according to Altman, those bots will not be made by OpenAI.

The United States and China are currently leading the world when it comes to AI supremacy, and the battle for first place — which is held now by the US — is surely only getting started.

At the forefront of this AI boom in the US are firms like OpenAI (creator of ChatGPT), Meta, Alphabet (the parent company of Google), Microsoft, and NVIDIA, which was the first company to surpass a $4 trillion valuation. In China, it's firms like Baidu, Alibaba, Tencent, and ByteDance that are notably leading the effort to catch up to the US.

In an interview with CNBC published August 18, OpenAI CEO Sam Altman warned that China's AI progress is being underestimated by the US. Worse, he doesn't believe that export controls are the solution to China's progress, noting that the AI race runs far deeper than who's currently ahead in the standings.

These comments come after a flurry of reports surrounding export controls on AI hardware, notably NVIDIA's H20 AI GPUs that are so sought after by Chinese firms.

For a bit of backstory, the US government banned the export of NVIDIA H20 chips in April 2025. It reversed its decision in July after NVIDIA CEO Jensen Huang visited the White House and was said to have reached a deal with President Trump regarding new export licenses for the AI hardware in question.

Shortly after, NVIDIA said it would need 300,000 H20 AI GPUs from TSMC to meet China's demand, and that was on top of the 600,000 to 700,000 stockpiled chips awaiting a buyer.

On August 10, it was reported that both NVIDIA and AMD had agreed to pay the US government 15% of the revenue generated from the sales of specific AI chips — the NVIDIA H20 and the AMD MI308 — to China, in exchange for the proper export licenses required for the sales.

While all this was happening, security exports from both countries raised concerns. On the US side, officials don't want to supply China with AI chips that could help bolster their military or help gain traction in the overall AI race.

On China's side, officials are concerned about backdoors or spyware baked into the hardware, which led NVIDIA's Chief Security Officer to publish an article titled "No Backdoors. No Kill Switches. No Spyware."

Sam Altman isn't the first CEO of a major AI firm to express doubts about export control

Part of NVIDIA CEO Jensen Huang's argument in favor of allowing the sale of H20 AI GPUs to China was that export controls aren't the answer to the AI race.

He noted that allowing non-American AI chips to become the global standard would be "a grave mistake" and would ultimately cause the demanding Chinese market to rely on domestic firms like Huawei.

Sam Altman, in his interview with CNBC, expresses a similar understanding.

Altman could be referring to the massive black market AI chip trade when he mentions "other workarounds."

According to a report from Financial Times, it's believed that Chinese companies smuggled roughly $1 billion worth of NVIDIA's AI chips into the country in the first three months following President Trump's outright export ban on the H20 GPU in April.

Adding to the pile, Gamers Nexus, which hasn't been shy about calling out NVIDIA's business decisions in the past, recently published a 3.5-hour investigative exposé aimed at China's GPU black market.

This all comes as Chinese officials are explicitly warning AI firms against the use of NVIDIA's H20 GPUs in the name of national security. While there's not yet an outright ban on NVIDIA's hardware, it's increasingly becoming more of a faux pas for Chinese firms not to use domestic options.

Those domestic options, while currently not as potent as NVIDIA's hardware, could catch up. Either that, or China will brute-force its way to supremacy using Huawei AI clusters, as outlined by Tom's Hardware.

China is influencing OpenAI's release schedule

OpenAI released its latest GPT-5 model into the wild on August 7, and the backlash it received hogged a lot of the spotlight. Just days before the GPT-5 launch, OpenAI released two open-weight AI models: gpt-oss-120b and gpt-oss-20b.

These were the first open-source options from the company since 2019, designed to offer chain-of-thought reasoning with superior efficiency and customization.

What influenced OpenAI's decision to release these open models? Sam Altman explains:

Will export controls curb China's AI progress? Or will it instead harm US firms supplying the hardware? Let me know your thoughts in the comments section below!

I probably spend more time than I'd like to admit sitting behind a keyboard and screen trying to keep up with all the news around the generative AI landscape. I've been actively following trends in the category as they emerge from ChatGPT's revolutionary launch, all the way to DeepSeek's AI model surpassing OpenAI's reasoning model capabilities across coding, math, and science at a fraction of its development cost.

I've particularly remained hawk-eyed on all of OpenAI's chess moves, including last year's GPT-4o "magical" launch during the company's Summer Update event. Prior to the launch, OpenAI CEO Sam Altman had promised that the model would be a major leap from GPT-4, which he admitted "kind of sucks."

Other executives at the AI firm seemingly corroborated Altman's claims, indicating that the then ChatGPT will seem "laughably bad" in the next 12 months. GPT-4o launched with its sophisticated reasoning capabilities across audio, vision, and text in real time, making interactions with ChatGPT more intuitive. Sam Altman claimed that the model felt like "magic" to him.

However, the launch felt a tad underwhelming for me at the time, prompting me to compare it to routine Microsoft Copilot updates paired with a snub for Windows. For context, the AI firm shipped ChatGPT to Mac users, snubbing Windows despite its multibillion-dollar partnership with Microsoft.

Recently, GPT-4o has significantly improved over the past few months, leading to ChatGPT's "biggest spike ever" in revenue and downloads on mobile.

Pulling the plug on GPT-4o was a mistake

Fast forward to this year's Summer Update event, OpenAI finally launched GPT-5, which Sam Altman had promised with a "high degree of scientific certainty" would be smarter than GPT-4. The model is touted as the smartest AI model ever while being compared to a team of PhD-level experts.

However, the model has seemingly fallen short of many users' expectations, with some complaining about ChatGPT's degraded user experience, citing glitches and bugs following the update.

But perhaps more concerning, the company decided to abruptly pull the plug on GPT-5's predecessors, including GPT-4o. The move received backlash from users, who blatantly expressed their preference for GPT-4o.

Right now, it's still unclear whether GPT-5 is outrightly dumber compared to its predecessors or users had simply tailored and curated specific user experiences with GPT-4o that meet their needs and desires.

Sam Altman attributed the complaints about GPT-5 to users wanting ChatGPT to be a "yes man." He further indicated that some users had never had anyone support them before.

"They've totally turned it into a corporate beige zombie that completely forgot it was your best friend 2 days ago," Reddit user u/markcartwright1 lamented following the GPT-5 update.

Interestingly, the executive had previously highlighted his concern about the over-reliance some users have on ChatGPT:

"People rely on ChatGPT too much. There's young people who say things like, 'I can't make any decision in my life without telling ChatGPT everything that's going on. It knows me, it knows my friends. I'm gonna do whatever it says.' That feels really bad to me."

"Something about collectively deciding we're going to live our lives the way AI tells us feels bad and dangerous."

In a separate interview, the executive shared similar sentiments, flagging the high degree of trust people have in ChatGPT despite its tendency to hallucinate on occasion. "It should be the tech that you don't trust that much," he added.

Following backlash from users, OpenAI was forced to revive GPT-5's predecessors from their premature graves. However, access to these models will be limited to paying users, specifically with the $20/month ChatGPT Plus subscription.

Deprecating GPT-4o wasn't a cost thing?

While speaking to The Verge, OpenAI's ChatGPT lead Nick Turley, indicated that the company's decision to deprecate GPT-4o wasn't tied to cost, but to simplify the tool's user experience:

"I think the idea that you have to figure out what model to use for what response is really cognitively overwhelming. We’ve heard very consistently from users over and over again that they would love it if that choice was made for them in a way that was appropriate to the query. They’re coming for a product, not a set of models."

The executive revealed that OpenAI embraced the move in a bid to keep things simple while referencing Apple's macOS user experience. He indicated that the operating system is simple to use, but you're at liberty to navigate through the settings and invoke the terminal to take things a notch higher.

OpenAI will still deprecate dated AI models, but with a schedule

Following the overwhelming feedback and backlash from users over deprecating GPT-5's predecessors, OpenAI is embracing a deprecation schedule, which it will use to announce its plans to retire a particular model in ample time.

To that end, it's not yet clear when OpenAI will eventually pull the plug on GPT-4o. Turley says the company is closely analysing why users seem to prefer GPT-4o over GPT-5. The executive specifically highlighted that the company noted that users are particularly drawn to the model's warm personality, further revealing that it's something the company plans to bring to GPT-5 over the next few weeks.

He further revealed that he's not sure if the company will deprecate the model, and perhaps more interestingly, the company might keep it around if there's no major reason to kill it off. However, he indicated that the company would communicate if it decides to pull the plug on the model.

This news comes amid bankruptcy reports and immense pressure from investors for OpenAI to evolve into a for-profit venture or risk losing funding, coupled with hostile takeovers and outsider interference.

OpenAI's decision to abruptly deprecate GPT-4o might be a strategy to get more users to subscribe to its monthly subscription plans to generate more revenue to support its exorbitant AI advances, but only time will tell.

OpenAI has faced a lot of backlash from users after shipping its much-anticipated GPT-5 AI model (touted as the smartest AI model ever) with next-gen capabilities across healthcare sectors, coding, and writing.

Multiple users have blatantly expressed their preference for previous models despite the fact that OpenAI had abruptly decided to deprecate them, including GPT-4o. However, the company recently decided to change this by making these models available again for ChatGPT users.

But unlike before, GPT-5's predecessors will be buried behind a paywall, meaning you'll need a $20/month ChatGPT Plus subscription to access them. It's also worth noting that the AI firm has increased the rate limit for ChatGPT-5 Plus amid backlash from users.

Perhaps more interestingly, OpenAI CEO Sam Altman recently revealed the "heartbreaking" reason why users are hell-bent on sticking to previous models even after GPT-5 shipped. Speaking to Cleo Abram during an episode of the Huge Conversations podcast, the executive indicated:

"Here is the heartbreaking thing. I think it is great that ChatGPT is less of a yes man and gives you more critical feedback. But as we've been making those changes and talking to users about it, it's so sad to hear users say, 'Please can I have it back? I've never had anyone in my life be supportive of me. I never had a parent tell me I was doing a good job.'"

So, the ChatGPT maker's CEO seems to think users are fixated on previous versions of GPT-5, specifically GPT-4o, because they've never had anyone support them before, potentially highlighting how emotionally independent some users are to these AI tools.

The executive further disclosed that some users admitted that ChatGPT's previous model had encouraged them to make positive changes to their lives. "I can get why this was bad for other people's mental health, but this was great for my mental health," Altman echoed some sentiments shared by some users about the model change.

As you may remember, OpenAI rolled out a new update for ChatGPT in April, which seemingly made the tool "overly flattering and agreeable," prompting some users to suggest that it was exhibiting sycophantic tendencies. Consequently, OpenAI decided to roll back the update. Sam Altman admitted that the update had made ChatGPT's user experience "too sycophant-y and annoying."

ChatGPT is evolving into more of a problem than a solution

Admittedly, ChatGPT ships with a handful of helpful features designed to make work easier and can even help people navigate day-to-day life experiences. More recently, OpenAI CEO Sam Altman openly admitted that he was worried about the youth's emotional over-reliance on ChatGPT:

"People rely on ChatGPT too much. There's young people who say things like, 'I can't make any decision in my life without telling ChatGPT everything that's going on. It knows me, it knows my friends. I'm gonna do whatever it says.' That feels really bad to me."

"Something about collectively deciding we're going to live our lives the way AI tells us feels bad and dangerous," added Altman. In a separate report, Sam raised concerns about the high degree of trust people have in ChatGPT despite its tendencies to hallucinate and outrightly generate inaccurate responses to queries. "It should be the tech that you don't trust that much," he added.

Elsewhere, the executive indicated that ChatGPT is a better therapist than most professionals in the field across the world, but revealed that he wouldn't trust the tool with his medical fate unless a medical doctor is in the fold to oversee the process.

Earlier this year, a study by Microsoft revealed that an overreliance on AI tools like ChatGPT and Copilot could make you dumber by atrophying critical thinking, which leads to the deterioration of your cognitive faculties.

There had been a lot of hype and anticipation building around GPT-5 prior to its recent launch. OpenAI touted the tool as the smartest AI model while comparing it to an entire team of PhD-level experts. GPT-5 ships with a plethora of next-gen features across a wide range of categories, including coding, writing, and medicine.

The ChatGPT maker's CEO, Sam Altman, previously claimed that something "smarter than the smartest person you know" will soon be running on a device in your pocket, potentially referring to GPT-5. However, the AI firm has received backlash from users following the model's launch and its abrupt decision to deprecate the model's predecessors.

"They have ruined ChatGPT," lamented a user while citing the tool's degraded user experience rife with bugs, glitches, and unresponsiveness. Recently, Altman issued some updates regarding GPT-5's rollout, including doubling of GPT-5's rate limits for ChatGPT Plus users, continued access to GPT-4o for Plus users, and more transparency about which model is responding to a query.

The executive attributed the model's dismal performance during its launch to GPT-5's autoswitcher being broken, making the model seem dumber. And while OpenAI claims that it has seemingly remedied the situation, Microsoft co-founder Bill Gates might have predicted GPT-5's current predicament 2 years ago, before it ever came into existence (via The Decoder).

Sam Altman previously promised with "a high degree of scientific certainty" that GPT-5 will be smarter than GPT-4, which he admitted "kind of sucks" and is mildly embarrassing at best.

Speaking to the German business newspaper Handelsblatt in October, Bill Gates claimed that the GPT technology had reached a plateau despite the belief by most of OpenAI's team members, including Sam Altman, that GPT-5 would be significantly better than GPT-4.

While the philanthropic billionaire describes the leap from GPT-2 to GPT-4 as incredible, he was blatantly skeptical, questioning OpenAI's capability to replicate similar results with GPT-5.

True to his words, multiple users have expressed their disappointment with GPT-5, describing it as barely an improvement over GPT-4. Gatesa predicted that development in the generative AI landscape had plateaued with GPT-4, suggesting that OpenAI had hit a ceiling with the development of its GPT technology.

However, he stated that with new research, AI could scale new heights, making it more reliable, bolstering healthcare advice via smartphones. He also added that AI requires an exorbitant amount of funding and computing power to run:

“Well, it’s pretty expensive to train a large language model. But the actual usage costs were once ten cents per query. Today it’s probably more like three cents. The costs for computing power or semiconductors remain enormous.”

Reports of OpenAI hitting a wall in AI development are not new

Last year, a report emerged claiming top AI labs, including OpenAI, Google, and Anthropic, were struggling to develop advanced AI models. The struggle was attributed to a lack of high-quality content for model training and the high cost of chasing the AI hype. It further revealed that the delayed launch of next-gen models is closely tied to these issues.

However, OpenAI CEO Sam Altman quickly set aside the claims, indicating that "there is no wall," suggesting that the AI firm hadn't reached a knowledge cap for training AI models. Former Google CEO Eric Schmidt seemingly echoed similar sentiments, indicating that there's no evidence scaling laws have begun to stop:

"In 5 years, you'll have two or three more turns of the crank in these large models. These large models are scaling with ability that is unprecedented. There's no evidence that the scaling laws have begun to stop. They will eventually stop but we're not there yet."

It'll be interesting to see if OpenAI's GPT-5 will live up to the hype and whether the company will address the highlighted issues by agrieved users. What are your thoughts on OpenAI's GPT technology plateauing? Let me know in the comments.

AI is destined to wipe out all of our jobs. Or maybe it's a flop, and it won't take any. Perhaps it'll land somewhere in between. Your guess is as good as mine, or as any of the heads of major AI firms.

Depending on the day, the temperature, and who you ask, the answer to the big "Will AI take our jobs?" question changes dramatically.

NVIDIA CEO and co-founder Jensen Huang, whose company is currently enjoying roughly a 90% market share of the chips that power AI, believes "everybody's jobs will be affected," but is positive that as long as humans don't run out of ideas, we'll continue to grow.

Anthropic CEO Dario Amodei offered a more blunt answer in May, noting that governments need to "stop sugar-coating" AI's threat to white-collar jobs, going so far as to claim that AI could steal up to 50% of entry-level positions.

Mark Zuckerberg, CEO of Meta, more recently published an open letter outlining a new direction for the company's AI. His idea is something he calls "personal superintelligence," and it aims to empower individuals rather than rob them of their usefulness.

Bill Gates hasn't been shy about sharing his opinions regarding job losses to AI; he believes AI will replace humans for most things, although coding might not be one of them. A recent Microsoft study outlined the 40 job roles most vulnerable to the rise of AI, with millions of people at risk.

Sundar Pichai, CEO of Google, has gone so far as to claim that the probability of AI causing existential doom is "pretty high," never mind threats to the traditional career paths sought out by us mere humans. OpenAI's CEO, Sam Altman, has now added a new angle to the AI job loss dilemma.

Sam Altman is more concerned about the impact AI will have on older generations

Sam Altman made a guest appearance on the Speaking on the Huge Conversations Podcast with Cleo Abram on August 8 (via Business Insider), mostly to discuss the impending launch of GPT-5.

While we now know that GPT-5 isn't all that it was hyped up to be following the rollout, the podcast has plenty of talking points on which I've been chewing this week.

When pressed about what the world — and its job market — will look like in 2035, Altman says, "Ten years feels very hard to imagine." Quite optimistically, Altman lays out a scenario that feels more like a fever dream, in which graduates "could very well be leaving on a mission to explore the solar system on a spaceship in some kind of completely new, exciting, super well-paid, super interesting job."

Abram restructures the question, asking what 2030 will look like. In that scenario, Altman reveals that he's more worried about older generations than young people who are on the job search.

Altman frames this argument by stating that he thinks "it's totally true that some classes of jobs will totally go away. This always happens, and young people are the best at adapting to this."

Altman then states, "If I were 22 right now and graduating college, I would feel like the luckiest kid in all of history. [...] There's never been a more amazing time to go create something totally new, to go invent something, to start a company, whatever it is."

These sentiments can certainly be seen as out of touch.

There's plenty of news suggesting the opposite to Altman's argument, including a recent report from Fortune claiming that Gen Z men who graduate from college now have an unemployment rate on par with those who have no degree.

According to CBC News, Canada (where I live) is currently experiencing youth unemployment rates that haven't been seen since the 1990s.

How can the rise of AI turn this around? Mirroring Zuckerberg's opinion on "personal superintelligence," Altman says that the tools provided by AI can now help individuals do what was once thought impossible.

The constant back-and-forth between the heads of AI firms on the topic of job loss is easy to get lost in, and it certainly seems like everyone is attempting to balance two perspectives.

AI is either powerful enough that it's going to replace the workforce, cutting employment costs, and thus worth investing in, or it's going to empower individuals in a way never seen before, and thus not worth protesting against.

Is the AI hype overblown? Will it steal our jobs, or will it empower us instead? Let me know in the comments section below!