EP 586: OpenAI releases GPT-5 in ChatGPT, Google’s impressive Genie 3 and more AI News That Matters

Topics Covered in This Episode:

1. OpenAI Releases GPT-5—Smarter, Faster Model
2. GPT-5 Integration in Microsoft Copilot, Azure
3. Apple Intelligence Announces GPT-5 Integration
4. GPT-5 Multimodal Input and Output Features
5. GPT-5 Rollout Issues and Model Router Bugs
6. Anthropic Launches Claude Opus 4.1 Update
7. Google Genie 3 World Model Demonstration
8. OpenAI Debuts GPT OSS Open Source Model
9. Google Gemini Guided Learning Launches
10. Eleven Labs Releases AI Music Generator
11. Meta Forms TBD Lab for Llama Models
12. ChatGPT Plus Plan Rate Limit Controversy
13. User Backlash Over Removal of Old Models
14. Competition Among AI Model Providers Escalates

Keywords:

GPT-5, OpenAI, AI news, large language model, ChatGPT, Microsoft Copilot, Apple Intelligence, iOS 26, multimodal model, model router, reasoning models, AI hallucinations, factual accuracy, AI safety, customization, API pricing, Anthropic, Claude Opus 4.1, agentic tasks, software engineering, coding assistant, Google Genie 3, world model, DeepMind, persistent environments, embodied AI, physical mechanics, AI video generation, Sora, AI benchmarking, LM Arena, Google Gemini 2.5 Pro, Guided Learning, LearnLM, Gemini Experiences, active learning AI, AI in education, AI partnerships, Apple integration, real-time routing, Visual Studio Code, Copilot Studio, Azure AI Foundry, generative AI, open source AI, GPT-OSS, Apache 2.0 license, model commercialization, Merlin Network, Cobalt Music, AI music generator, 11 Labs, Suno, Udio

Podcast Transcript

Jordan Wilson [00:00:17]:
OpenAI has released GPT-5 and it's not just going to impact their 700 million weekly active users1, but billions of other users across the globe as it starts to roll out to Microsoft, Copilot, and even Apple's users as well. That is the headlining piece of news in an extremely busy week in the AI world. As someone that does this every single day and recaps the AI news that matters every single Monday, I'd say this has probably been the most consequential week in AI news since December of 2024. So we have a ton to cover. Not just GPT-5 and those implications all across the board, but also Google's new Impressive Genie 3 and Anthropic picked a pretty bad week to release a new model. All right, we're going to be covering those stories and a whole lot more today on Everyday AI. What's going on, y'? All? My name is Jordan Wilson. Welcome to Everyday AI.

Jordan Wilson [00:01:26]:
This is your daily live stream, podcast and free daily newsletter helping everyday business leaders like you and me not just keep up, but how we can get ahead and use all this information, leverage it to grow our companies and our careers. So you could waste hours every single day trying to keep up. Or you can read our free daily newsletter takes about six or seven minutes every day. Or join us on Mondays as we bring you the AI news that matters. All right, there is a ton to get to this week. Let's dive right into it. Hey, live stream audience, thank you for joining. If you're on the podcast, FYI, we always keep a put a link to today's episode in our newsletter.

Jordan Wilson [00:02:07]:
We're sharing a couple things on screen, but nothing we can't hopefully accurately convey in the in the podcast. So thanks for joining us. Michelle on the YouTube machine and Bronson big Bogey face as well. Thanks for joining us. Jordi and Charles on the LinkedIn machine. Good to see everyone. Happy Monday. Bria joining us from Chicago, holding it down for my hometown.

Jordan Wilson [00:02:32]:
Gerald joining us from San Diego, Robert tuning in from Puerto Rico, Santiago. Chili in the house. Jose. Let's get to it. So first and foremost, the biggest AI news not just of the week, but probably of the year, just because of its huge implications across the workforce. So OpenAI has released GPT-5 as its most capable and fastest model yet. So OpenAI has released GPT-5, a major upgrade that delivers smarter, faster and more useful AI performance across many tech task and it's been not all good. There's been quite a few bumps on the road so far, even though it's only been out for about four or five days.

Jordan Wilson [00:03:22]:
So we're going to have a separate news piece later talking about the bumpy start. But so far and on paper GPT-5 is stellar and for whatever reasons it's a polarizing model and I think I have some thoughts on that for later, but let's get to the the good stuff. So OpenAI says GPT-5 offers significantly improved reasoning and built in thinking, making it better at complex multi step problems that previously required human expertise. So OpenAI says that GPT-5 is faster and more efficient which should reduce latency for developers and product teams integrating advanced AI apps into their workflows as well as for everyday users using this new model on the front end chatGPT.com and it has rolled out to both free and paid users. So yeah, now if you go to ChatGPT.com and log into your account, even if you have a free account, you will have access to the most powerful and newest model. That is it's technically a hybrid model because it uses this auto routing functionality that decides if if your query should just be kind of resolved or answered immediately, or if the model should think about it a little bit. So even for free users now you have a capable model that can switch. So there were quite a few problems with OpenAI's rollout, but one of them was reportedly this model router that is kind of the magic and the secret sauce behind this new GPT-5 architecture was kind of broken or not functioning correctly in the first day or so after release, which led to a lot of kind of negative press.

Jordan Wilson [00:05:08]:
But let's get to a little bit more what's new in GPT-5. So it supports broad multimodal inputs and outputs, enabling richer interactions with text, images and possibly other media in the future. So right now no video input, which we had thought that it was going to have at least when we start started hearing the GPT-5 rumors long ago. But no video input or video outputs, all unlike what we have in Google Gemini 2.5 Pro. So OpenAI highlighted the improvements in factual accuracy and honesty, aiming to reduce confident but incorrect answers, or hallucinations as we all call them, and to make responses more reliable for real world decision making. Also, OpenAI emphasized safety and guard rails and they built comprehensive mitigations to limit misuse, reduce sycophancy and refine conversational tone and behavior. So the new GPT-5 update introduces more customization as well, letting users you can kind of choose different pre built personalities. There's some small little UI UX things like being able to customize the color of your chats.

Jordan Wilson [00:06:23]:
So I think in some regards OpenAI has gone a little Apple with this update because, you know, kind of, I don't know, for me personally, I don't think we needed these kind of four personalities that you can chat with or color customization. You know, essentially changing the color of your conversation so it's not just a bunch of white text blocks. But regardless, for developers it's huge because GPT-5's API pricing, if you are building on top or if your company is wrapping around OpenAI's technology, it is ridiculously cheap, right? And I think this is really going to put this squeeze on Anthropic and others. So OpenAI notes that applications across code, creative writing, health and enterprise productivity have improved, which could reshape hiring needs as well by shifting routine expert work toward AI assisted workflows. So yeah, we're going to have a lot more on this story today, but also if you do want all of the details, make sure to check out Friday's episode. That's episode 585 When We Go over all the benchmarks, all the SPECs, and also seven big trends that I think people need to know. So make sure if you haven't already, go listen to that episode585 for more info. What do you all think so far on the GPT-5 live stream audience? I'm curious.

Jordan Wilson [00:07:58]:
It's been very polarizing. More on that here. I think our last story for the AI News that Matters roundup today is a little bit more about that, but I'd love to hear your thoughts. I was kind of surprised. So CEO Sam Altman put out a bunch of tweets over the weekend. So one of them was talking about just how few people previously before GPT-5 were using the reasoning models. Even plus subscribers. I believe it was only 7.

Jordan Wilson [00:08:30]:
I I, I'd have to double check on that. I'll try to do that live. Yeah, this podcast is unedited, unscripted, so sometimes we take short turns here. So yeah, so Sam Altman did put out a tweet over the weekend. He said the percentage of users using reasoning models each day is significantly increasing. Said for example, for free users we went from previously less than 1% using reasoning models, even though free users did get a few reasoning queries each day to 7% and for plus users. So those are users paying $20. It went from previously only 7% of users using reasoning models to now 24 with this kind of smart auto router.

Jordan Wilson [00:09:18]:
So to me it's absolutely wild that people that were paying $20 a month only 7% were using reasoning models. Right. I mentioned this last week on the show. I Personally don't use GPT-4O or didn't use GPT-4O. I would always use a reasoning model as soon as the day they came out because they're just much better. I think people are impatient, they don't want to wait, you know. Yeah, sometimes, you know, using a reasoning model including GPT-5, especially if you toggle the setting on to use more thinking essentially it might take a couple of minutes, but I was kind of honestly flabbergasted by that little stat that said, yeah, only 7% of users are using it. But right now it's Monday morning.

Jordan Wilson [00:10:06]:
Chad GPT is slammed. It's currently down. So there's some breaking news. It wasn't down 10 minutes ago. All right, our next piece of AI news. Yeah, a lot of GPT-5. So Microsoft has also rolled out GPT-5 into Copilot, GitHub and Azure. So Microsoft literally as soon as GPT-5 was announced, did also announce that they rolled out GPT-5 into co pilot and GitHub, Copilot, Visual Studio Code and Azure AI foundry.

Jordan Wilson [00:10:42]:
And I believe it's in their AI agent builder as well inside Copilot Studio. So the single most newsworthy change is that Microsoft is using that real time router to choose between the best GPT-5 model for each task automatically. So essentially, you know, if you are on a paid plan, you have these different tiers of thinking that you can use. So there's no longer, you know, Alphabet model soup inside of ChatGPT where you could choose, you know, previously you could choose GPT-4O, GPT-4.1 GPT-450304 mini 04 mini high 03 pro. Right. So you no longer have these multiple tiers of non reasoning and reasoning models. You just have GPT-5 with different levels of three think, which is essentially spending more time, more compute to deliver a better answer. So Microsoft 365 copilot users, as long as their IT department enables this, are going to see a huge, probably increase in their outputs as well.

Jordan Wilson [00:11:51]:
Which is why I think this GPT-5 is so much bigger than just those 700 million weekly active users, which that number is insanely large, right? ChatGPT has the most active users for any AI chatbot by far. But when it comes to the enterprise, especially here in the us but I'll say the world, the world runs on Windows, right? The world runs on Microsoft. So the fact that literally you have millions more than 100 million paid Copilot users in the world, I think was the last number I saw on August 1st. So if you are a paid copilot organization, which so many are, you should have access to GPT-5 automatically. So also on the front end. So even if you're not a Microsoft 365 organization, you can go on their copilot.Microsoft.com website, essentially accessing Microsoft Copilot online. And there's also a new free smart Mode powered by GPT-5. So in instances like literally right now as I'm recording because I just went to Chad GPT.com and it's down, you can go to copilot.Microsoft.com and there, even if you're not a $20 a month Microsoft copilot user, which is different than the Microsoft 365 Enterprise licenses, you can use that free GPT-5 smart mode.

Jordan Wilson [00:13:19]:
So also like I said, GitHub co pilot and Microsoft Visual Copilot Studio in paid plans will get GPT-5 for writing, testing and deploying code. And Microsoft says the new models from OpenAI excel on longer, more complex coding and end to end agentic tasks and they can be selected as a model picker in the Azure AI foundry. It makes all GPT-5 models available for developers. That's pretty big. And uses a model router to pick the optimal model per prompt based on complexity, performance needs and cost efficiency, enabling mixed model orchestration in production workloads. So yeah, what does this mean? Essentially whether you're using ChatGPT.com whether your organization is a paid Microsoft copilot organization or like thousands of companies, thousands of SaaS products use GPT-5 as well, right? I obviously use a ton of AI tools and and by the time I didn't even notice on Friday, many of them had already ported over to GPT-5. So what this is mean, what this means, aside from if you're a Microsoft heavy organization, is probably just hundreds or thousands of the tools that you use are now going to get smarter. Speaking of getting smarter, could Apple finally get smarter? Well, some reports are saying maybe so because some new Reporting says that OpenAI's new GPT25 will become available inside Apple Intelligence when iOS 26 is released.

Jordan Wilson [00:15:03]:
In early September. So yeah, maybe Apple will finally, for its billions of devices across the globe, maybe there will actually be something smart or something resembling AI inside of their phones. So Apple reportedly said that the GPT-5 integration will roll out with iOS 26, iPad OS 26 and Mac OS Tahoe in early September. You do have to have a newer device for this to run, because it does run on device. Well, some things are still going to be sent to ChatGPT. More on that here in a second. But the biggest immediate change for users is that Apple Intelligence will hand off difficult queries to GPT-5 when Apple's own models that run on device cannot answer them. So more Siri and system prompts may invoke GPT-5 behind the scenes.

Jordan Wilson [00:15:59]:
And on Apple devices, GPT-5 will be used in features beyond just Siri, including Apple's writing tools and their visual intelligence, which is their camera based assistance. So that's expected to tap GPT-5 for richer responses and image understanding. So this partnership reportedly will give Apple a quicker way to improve on device intelligence while the company reportedly develops its own AI chatbot. We talked about that last week, but I wouldn't have any faith in that coming anytime in the next couple of years. So pretty important, right? And that's why we say when we're talking about GPT-5, even though I think it's gotten a mixed reaction so far because it depends on if you're using the thinking or not. I think if the model auto routes or if you're not overriding and enabling the thinking by default, you might not be super impressed or super happy with GPT-5's outputs especially. Well, number one, when that model router was broken once it launched. But also if you've been using Gemini 2.5 Pro, which has until Gemini or until GPT-5 overtook it on standard third party benchmarks on LM Arena.

Jordan Wilson [00:17:15]:
So now GPT-5 is the highest rated model by users and by many third party benchmarks, including artificial analysis. You know, aside from just the scientific ones, I still think in some instances you, you're not going to know the difference. Right? And I said this, I said this last week, I said that actually OpenAI's Open model, which we're going to get to here in a minute, is, is going to be bigger news ultimately than GPT-5. And you know, as it turns out, I do think that will hold true. Even though GPT-5 is going to bring a higher level of intelligence to billions of users across the globe just because of, like I said, their partnerships and integration with Microsoft and with Apple Bad Timing for Anthropic so our next our Our next piece of AI news Anthropic released an update to Claude rolling out Claude Opus 4.1, what they're calling an incremental update focused on improving agentic tasks, real world coding and reasoning. So anthropic released Opus 4.1 just days before GPT 4.5. So talk about bad timing. Or maybe they wanted to slip this one in under the radar with not a lot of fanfare because it was just an incremental update.

Jordan Wilson [00:18:40]:
So on some important benchmarks I think Anthropics models have obviously found their home with software developers, coders etc people on the dev side. So Opus 4.1 achieves a 74.5 in software engineering accuracy, up from 72.5 in Claude Opus 4 and 62.3 in Quad Sonnet 3.7. So again, just incremental gains. And maybe that's why Anthropic kind of slipped this one in in a busy news week. But the company did highlight improvements in in depth research, data analysis, detail tracking and agentic search areas that help the new model manage multi step workflows and code focus tasks. What we didn't see is a price improvements. It is still just crazily expensive, especially compared to OpenAI's GPT-5 and Google's Google Gemini 2.5 Pro. So Claude Opus 4.1 is available if you log on to Claude AI, you can use it inside Claude code, inside Anthropics API and through other partners such as Amazon Bedrock and Google Cloud Vertex AI.

Jordan Wilson [00:20:02]:
So I don't know what do you guys think? I I tried it out obviously when it was released. There's some instances yeah if you need to code something, build a dashboard. But I'll say for the everyday, you know, the everyday business leader, I don't think you're going to be using Claude 4.1 opus a ton especially Anthropic is infamous for their terrible rate limits even if you are on a paid plan. So their base 20amonth paid plan you know you might get, I don't know especially if you're working with longer context windows, if you're putting in a ton of info. There's been times where I have prompted Claude about five times and I hit my rate limit. So on Opus 4.1 I haven't tested it but assume it's going to be pretty bad if you are really pushing it. So again I wouldn't get too excited about this unless you are in software development, unless you are coder development, et cetera, software engineering. And you have maybe their max plan that $100 or $200 month, but they also cut the limits back on that a couple of weeks ago as well.

Jordan Wilson [00:21:12]:
So I'm not sure if anyone's going to really be going wild over quad opus 4.1. Seems like bad timing or maybe that was intentional. Are you still running in circles trying to figure out how to actually grow your business with AI? Maybe your company has been tinkering with large language models for a year or more, but can't really get traction to find ROI on GenAI. Hey, this is Jordan Wilson, host of this very podcast. Companies like Adobe, Microsoft and NVIDIA have partnered with us because they trust our expertise in educating the masses around generative AI to get ahead. And some of the most innovative companies in the country hire us to help with their AI strategy and to train hundreds of their employees on how to use GenAI. So whether you're looking for ChatGPT training for thousands or just need help building your front end AI strategy, you can partner with us too. Just like some of the biggest companies in the world do.

Jordan Wilson [00:22:15]:
Go to your everydayai.com partner to get in contact with our team or you can just click on the partner section of our website. We'll help you stop running in those AI circles and help get your team ahead and build a straight path to ROI on Geni. All right, our next piece of AI news. Google launched their new Guided Learning inside Gemini. So this is a new Gemini Experiences new Gemini experience that uses the Learn LM model trained and multimodal content to help users build understanding step by step rather than just delivering quick answers. So if that sounds kind of familiar, if you're like, wait, I've heard of this. Yeah. So ChatGPT last week released their new Study mode and this is kind of Google's version of that.

Jordan Wilson [00:23:18]:
So the core promise here is to promote active engagements by asking probing open ended questions rather than just giving answers. So Guided Learning Inside Google Gemini delivers rich multimodal responses including images, diagrams, videos and interactive quizzes designed to teach the process, not just give the final solution. So yeah, obviously a lot of these updates coming before the fall rush of students here in the US going back to college. So obviously with ChatGPT study mode with GPT-5 being free and pretty good, pretty good limits on the plus plan which are improving. More on that here in a second, their Study mode and now Google Gemini on their learning, their learning offering here inside Guided Learning pretty impressive all right, so at least in my little bit of testing so far, I seem to like the interactivity and the multi modality of Google's version a little bit more. So hey, we did do the the ChatGPT version of this last week looking at their new study mode. So if, if you think we should do the guided learning, let me know. Just maybe leave a comment.

Jordan Wilson [00:24:35]:
Just say guided. I, I, I, I always just like to know what you all want to hear. Maybe we'll put a poll out in the newsletter if you're listening on Spotify, you know you can leave a comment on the Spotify episode. I can't reply to them but just say guided if you care. If not, that's fine. So a little bit more. So Google reports that the capability was developed from years of research and partnerships with external experts and students and that simple improvements to prompting were insufficient which prompted the design of LearnLM. So a little bit more for educators, Google created a shareable link for direct use in Google classroom positioning guided learning as a classroom partner that supports active construction constructive learning rather than replacing instruction.

Jordan Wilson [00:25:26]:
All right, so I love what Google's been doing and OpenAI just getting more AI into the classroom because I've talked about this way too much and I'm not going to go on a little rant here but students who are graduating in the US over the past two years are illy unprepared to go out and make a difference in the work world because the majority of universities since 2022 have been completely shutting down AI use, not teaching it, not promoting AI literacy and obviously every single employer for the fewer jobs they are hiring for now, especially on the entry level side, they want people who are AI literate and that is for the most part not students because all students have been doing inside of ChatGPT or Google Gemini is having it write their papers and they copy and paste it and they're not actually learning for the most part how to use this technology. So I like the move from both OpenAI with their study mode and guided learning in Gemini. So to hopefully help make learning a little stickier and to also at the same time show off some capabilities of large language models that copying and pasting Your history Final 10 minutes before it's due is not going to teach you. All right, our next piece of AI news. And like I said last week, this could ultimately have the biggest long term ramifications. So OpenAI has released GPT OS S, a new free and powerful open weights model. So there's two different versions a 20 billion parameter and 120 billion parameter models. These are open source models you can download so you can run them locally on your machine, cut off the Internet, you're not sending any data back to OpenAI.

Jordan Wilson [00:27:18]:
You can fine tune these or your company can fine tune these as well as they are Apache 2.0 license models. So, so that means you can commercialize them, you can create literally companies based on this extremely powerful models. And for the most mark, I'll say they kind of fell somewhere around a GPT-4O level or maybe an 04 mini level. Right? So they're obviously not as powerful as GPT-5 or as powerful as OB's previous best model, their o3 model, but they're fairly powerful, especially for a free open weights open source model that you can download, fork and build a company on top of. So according to OpenAI, the smaller 20 billion parameter model scores an 85.3 on the MMLU, which is kind of an old school ACT type test for large language models, putting it in the ballpark of recent GPT-4 level models and demonstrating some real reasoning capabilities. So the Apache 2.0 license allows for unlimited commercial use, fine tuning, redistribution and patent protection. Patent protections meaning that companies can embed, modify and sell products using the new GPT OSS models without fees or geographic limits. So if you want to run the bigger version, you're probably going to need a super computer or, or like an H100 chip from NVIDIA.

Jordan Wilson [00:28:53]:
But for the most part, if you have a newer laptop, you should be able to run the 20 billion parameter. If you have 16 gigabytes of RAM and a powerful enough GPD GPU, you should be able to literally go download this, run it offline, fine tune it. And this really changes, I think more than anything else. So not just individually, not just individually for companies that maybe don't want to keep paying API pricing. Right. So you're not going to get state of the art results from GPT oss. But let's just say that you've been using a model like Claude 3.5 Sonnet, which a lot of companies are still using, or maybe you were previously using GPT-4. Oh, right.

Jordan Wilson [00:29:43]:
There's probably some instances that, hey, you might not want to use GPT OSS for everything, but for maybe some of the more basic, less complex or highly sensitive cases that you might want to use an AI model for, this is a perfect use case. I do know that many companies are going to save millions of dollars a year that they were previously spending or by Getting off a more expensive API provider like Anthropic. Right. So yeah, maybe what I know a lot of companies are doing when they roll out API access or they're using an API within their organization, they're just choosing one. Right. So yes, it might be worth paying that extra premium price to use Claude's API for some of your people, you know, your software developers. Although I do think GPT-5 is going to be better. There's a reason that Cursor made it the default model inside of its, you know, vive coding platform.

Jordan Wilson [00:30:40]:
But so many companies are just picking one provider and then rolling that out for their entire organization. So you know, in this case GPT OSS is more than capable for some of those more basic things like customer service writing, using some, some basic vision tasks. So I do think in the long run GPT OSS is going to completely shake up the industry because I, I call them mid tier. This is going to push mid tier providers or those people that aren't like 1A, 1B, like OpenAI and Google, it's going to push everyone else to bring their prices down and to have more capable models. So this is an extremely seismic shift in the future of AI development. I said when I covered this and if you do want to go listen to this, I suggest you do go listen to episode 584 where we break this down in much more detail. Essentially OpenAI went scorched earth. So yes, they kind of, I wouldn't say they fumbled the GPT-5 rollout, but they had some mistakes in the rollout.

Jordan Wilson [00:31:47]:
Talk about like, you know, they had some basic charts that were all wrong. But I'm like, yo, humans hallucinate anyways between GPT-5 making GPT-5 free with some improved limits. More on that here in a minute. And then an open source GPT oss. This is monumental in terms of what it means for companies that either couldn't afford to have state of the art AI or for those companies that were probably overpaying and looking for a new partner. So now I do think this is going to squeeze a lot of those mid tier. Either it's going to make it better for all of us or a lot of these companies maybe are just going to go out of business or they're going to have to actually start charging more for some of their base use cases just to try to make ends meet. All right, our next piece of AI news, more acronyms from meta.

Jordan Wilson [00:32:46]:
Can't wait. So according to the Wall Street Journal, META has formed a new team called TBD Lab to lead development of the next version of its Llama large language model. So TBD Labs reportedly sits within msl, which is Meta's Super Intelligence Labs group. All right, so MSL is kind of the umbrella lab and the new TBD Lab will be working on the next Meta Llama models. And it was created to coordinate foundation models, fair research, product work and next generation model development. So the team reportedly includes at least 18 researchers hired from OpenAI, additional hires from Google, and nine Meta employees moved over from internal infrastructure. So former Scale CEO Alexander Wang will oversee TBD Lab after joining Meta via a 14 billion dollar stake in his former company. In a memo he said parallel collaborations are already speeding up progress.

Jordan Wilson [00:33:56]:
So Meta has been on an aggressive hiring SP since early June with reports that Mark Zuckerberg personally recruited candidates at his homes in Lake Tahoe and Palo Alto. So industry wide competition for AI talent has driven unprecedented competition with some packages reported already exceeding those of NBA stars. So yeah, we saw people are getting multiple hundred million dollar comp packages. At least one was reportedly worth more than a billion dollars over four years. So this is pretty big. So when you see tbd, it's not to be determined. Apparently this is the new lab that sits under Meta's kind of super intelligence umbrella. So yeah, apparently it just looks like they're not going to have their quote unquote super intelligence team building the Meta models.

Jordan Wilson [00:34:49]:
And it's going to be this TBD Lab specifically that will be working on what we would assume is going to be meta llama 4.5. So next piece of AI news, which visually is the most impressive thing I've seen in a very long time. Live stream audience. Did anyone check this out when we shared it in the newsletter last week? Google's Genie 3 is bonkers. All right, so Google DeepMind released their Genie 3 world model, a world model that generates live open ended virtual environments, signaling rapid progress toward AI systems that can predict and react like physical reality. So Google says Genie 3 can generate environments on the fly, completely on the fly from a single text prompt and update them in real time as users interact. A step beyond pre built game worlds. The model also introduces what they're calling world memory, preserving persistent changes over time.

Jordan Wilson [00:36:00]:
For example, the one that Google Gemini showcased a painted wall in one room. There's a couple brush strokes in the demo. They left the room, they came back and the brush strokes were still there. So world models, if you're like what the heck are these? Why do they matter? Well, they're Designed to reason about physical mechanics. So these are going to help embodied AI, right? When we talk about humanoids, AI, robotics, you know, large language models, essentially they have all their unstructured data and structured data from the Internet and from humans, right? It's much slower and a much more time consuming and costly process for embodied AI or AI that ultimately lives outside in the real world to understand how the real world works. So that's why something like a world model like Genie 3 that has understanding of things like gravity, light, shadows, how two objects, when they run into each other, how they interact, it's actually huge, right? Obviously there's great applications, right? Like hopefully getting safer autonomous vehicles on the road, video game development, movie development, being able to, you know, scout and understand new locations for, I don't know, big architecture projects, logistics, etc, So I think there's many far reaching use cases of a model like Genie 3. So OpenAI's Sora previously, so that's their AI video model from OpenAI showcased physics aware video generation. And Google's Vo3 can now generate an 8 second video from a single image highlighting intensifying competition in AI video and simulation.

Jordan Wilson [00:37:54]:
So that's why there is a strong connection between AI video and in obviously these world simulators. And actually the very cool kind of example that we shared in our newsletter last week was someone created a video inside Google vo, kind of like an overhead drone flight. And then someone that had access to this new Genie 3 which is only tested trusted tester users right now, so it's not publicly available, they actually took that AI video, put it into Genie 3.0 and took it over from there and then kind of moved the camera control so you can kind of pause it any point, point the camera somewhere else and then go explore and it generates it in real time, right? So obviously a lot of people when they think of these world models, they just think, oh, it's for video games, it's for movies, it's for, you know, AI video. And yes, but it also helps embodied AI get much more data on how the real world operates. Because as an example in Google's Genie 3, right, if a care if, if someone is walking along a path, you know, there's ripple effects in the water, right? That helps train future models to become better. So potential use cases include training for dangerous scenarios such as disaster response, where simulated environments could help first responders build skills in muscle memory without real world risk. Also, education sectors could benefit through immersive interactive visual learning experiences that adapt to student actions, potentially improving retention and engagements. So the debate though, continues whether these systems actually understand the world.

Jordan Wilson [00:39:38]:
But Google DeepMind defines world models as systems that use their understanding to simulate and predict environments. While experts disagree on whether this counts as true understanding, regardless, it's really freaking cool. We'll link it again in the newsletter, so make sure you go check it out. We had new updates across all sectors, so we had, you know, GPT-5 and Claude on the world model side we had Genie 3, which is pretty huge. And 11 Labs, traditionally known as a text to speech platform, just launched in AI music generator. So 11 Labs announced a new AI model that generates music which they say is cleared for commercial use. Pretty big step there. So the company did share examples including a synthetic rap track with references like Compton to Cosmos, underscoring cultural concerns about AI mimicking artists who live the experiences that the new AI model imitates.

Jordan Wilson [00:40:40]:
So 11 Labs is moving into a legally complex space as the two big players in the AI music generating scene, which are Suno and Udio, were sued by the recording industry last year over alleged training on copyrighted music and are now reported pursuing licensing deals. Reportedly Suno and Udo are report are pursuing licensing deal with major labels. So to address this, 11 labs announced licensing agreements with Merlin Network and Cobalt Music groups which together represent some major artists and catalogs. So Cobalt says artists must opt in for AI licensing. So the company's broader push follows its growth from a text to speech platform into a conversational bot and multilingual speech translation service, positioning 11 labs as more of a full stack audio AI player versus what they've traditionally been known for or known as, which is kind of just a text to speech leader. All right, our last piece of AI news. Yeah, there was some backlash after chad GPT announced GPT-5 and there's already been some swift actions and updates to the different plans since that backlash. So OpenAI is already saying that they are going to increase ChatGPT + rate limits for the new GPT-5 thinking model following user criticism.

Jordan Wilson [00:42:23]:
So Sam Altman said on Twitter that rate limits for reasoning are being significantly raised for plus users. Those are people paying $20 a month after essentially, you know, when you broke it down, plus users were actually getting way fewer, way fewer messages with reasoning Even though only 7% of users were using it. So essentially when you had six or seven models to choose from and each of those models had their own rate limit, you just had way more usage ability. So when they kind of consolidated these models and got rid of the old ones. More on that here In a second, essentially usage went down by a lot. So Sam Altman did say that they're trialing, so this is not confirmed, but they're trialing to see if they can make this work. A 3000 per week message cap on GPT-5 thinking for plus users, which I think would go a long way and I think very few plus users would go past that and if so, it's probably time to Upgrade to that $200 Pro plan which has unlimited GPT-5 usage. So the upcoming change follows widespread frustration after GPT-5 launched with only 200 messages per day limits for ChatGPT plus users, which many said felt like undercutted the value.

Jordan Wilson [00:43:55]:
Also, OpenAI is adding a new user interface indicator to show which model answers a prompt because you don't really know, right? There's kind of this model router working under the hood, so you don't know if you're using the quote unquote normal GPT-5 or if you're using the thinking variation. So that should be cleared up soon. The the company said. But I would say the biggest one, it wasn't just the limits and the messages that were the biggest uproar, as some of the loudest complaints online were due to OpenAI pulling access to older models without warning for most users, including the very popular GPT-4O model. So OpenAI initially removed and essentially retired these older models to make way for the new kind of model architecture with GPT-5 being the main model. But this triggered tons of user complaints online, essentially getting rid of models and not really having a choice. So users criticize GPT-5's more direct tone and writing compared with older models that they no longer had access to like GPT-4.1, GPT-4.5 and4.0. And they called GPT-5 shorter in colder.

Jordan Wilson [00:45:16]:
So essentially here's what was happening. So many people became reliant on GPT-4 for certain things, right? Whether it was actual writing, doing things in their day to day job or companionship, using it as a sounding board as therapy, right? A lot of people reported using ChatGPT as almost like a therapist when maybe their own therapist wasn't working well or they couldn't afford one. So a lot of people became kind of over reliant on GPT-4. And Sam Altman actually addressed this on Twitter and he did say that they're considering keeping GPT-4O and old and older models available for plus subscribers. So if you were a pro subscriber, you did have access to those old models, right? When GPT-5 rolled out, but if you were a $20 plus or, or a free user, you do not have access to these older models. So I get where OpenAI and Sam Altman's coming from, right? Everyone's complaining, there's too many models, too many models and everyone's been screaming, release GPT-5. So okay, you release GPT-5 and that is the main only model. But then everyone still wants all the older models anyways, right? Because they almost developed an attachment to them in an unhealthy way.

Jordan Wilson [00:46:36]:
So Sam Altman did on Twitter talk about, over the weekend about how some users are forming kind of unhealthy relationships with AI models in general and that OpenAI will work to protect both user freedom, but also push back in edge cases to avoid harm, dependency on AI or in instances where it's actually causing long term harm for users who may struggle to distinguish fiction from reality. Right. So essentially GPT-4 was number one, it was overly verbose and they had to, you know, roll it back a couple of times in one case or in many cases, right. It essentially just mirrored or became a yes man or yes, women for users. So no matter what kind of idea you threw at it or circumstances, a lot of times it would just side with the user and be like, oh yeah, you were absolutely right, you know, and how you justified that decision, that worker in your personal life, where even if that was maybe bad. So I think essentially we have a problem, right? We have a problem. And it actually took GPT-5 which is better, right? It's just better at, you know, strategy advice, writing in general. So I think a lot of people were becoming over reliant on the kind of, you know, this, this, yes, manning of these models that would essentially become a kind of dangerous echo chamber at times if you were using it for those purposes.

Jordan Wilson [00:48:10]:
Right. So we'll see what happens. But it does look like, number one, there's going to be more messages across the board. Number two, it looks like OpenAI has fixed the model router, but it actually caused a lot of damage because by them not having that working, a lot of people's first impressions was, well, this isn't that great. It's not working that well. Right. So because the model router functionality wasn't working 100 correctly when it was rolled out, a lot of the initial press and reaction from GPT-5 was, oh, it kind of stinks. And the fact that people became over reliant on GPT-4 just kind of always mirroring whatever their assumption or opinion was in cases, maybe using it as a therapist, thought partner or for companionship.

Jordan Wilson [00:48:59]:
Whereas GPT-5 isn't really like that. It's a little more straightforward to the point, which I personally enjoy a lot more. So yeah, big bogey here on YouTube saying if you want a therapist, Copilot has a huge emotional intelligence. All right, now quickly, what's new and what's next? So we couldn't fit everything into this update. It's already been 48 minutes, so let's wrap it here. So some bullet points of what's new and what's next. Google Big one and this is like an hour old just got rolled out. Google finally released its Ultra Plan for business Workspace users.

Jordan Wilson [00:49:41]:
It starts at $250 per month per user, but for the first three months there is a promo that it's $106 a month. So this was previously available to Gmail subscribers, right? I'm an Ultra subscriber in my personal Gmail, but didn't have access to it in my workspace or my work account. So this is pretty big. We'll probably be talking about this and maybe having a dedicated episode soon. Google's AI coding agent, Jules, has exited Beta xai's grock Imagine Image to Video Generator was rolled out and it's already in hot water for some unauthorized explicit images. I think it's terrible. Copilot 3D is rolling out in Microsoft Copilot Labs, Cursor released Cursor CLI, their command line editor, to bring cursor to terminals. OpenAI's Codex platform got GPT-5 access for paid accounts.

Jordan Wilson [00:50:35]:
Runway has released a faster version of its Gen 4 image model called the Turbo. It's also cheaper as well. Perplexity's Comet browser is demoing a Max Assistant option for more complex workflows inside of its agentic browsers. And reports are saying that Anthropic's popular Claude code may be coming to the browser. All right, that's a ton. Let's very quickly recap the big news stories of the week. So first and foremost, OpenAI has launched GPT-5 as its most capable fastest model yet. Microsoft is rolling out GPT-5 across its ecosystem as well as reports are saying that Apple will be rolling out GPT-5 in Apple Intelligence in iOS 26 in September.

Jordan Wilson [00:51:24]:
Next, Anthropic launched Claude Opus 4.1 with marginally better coding and reasoning. Bad timing. Google launched Guided Learning in Gemini to boost better learning. Just in time for back to school. OpenAI released GPT OSS, a free, powerful open weights model that you can download and use without the Internet without sending any data back to OpenAI. Metas according to the Wall Street Journal has launched their TBD lab which sits inside of their MSL and will be working on meta llama models in the future. Google DeepMind released Genie 3 world model, extremely impressive. Eleven Labs launched commercial use AI music model and OpenAI has boosted GPT-5 limits after some pretty intense backlash all right, that was a lot, y'.

Jordan Wilson [00:52:22]:
All. There's going to be a lot more. If you haven't already, please make sure to go to your everyday AI.com Sign up for the free daily newsletter. If this was helpful, please let someone know about it. Share this Post this if you're listening live on the live stream, please let someone know if you're listening on the podcast. Appreciate your support. Please make sure takes 10 seconds. Go click that subscribe or Follow button on Apple Podcasts and Spotify.

Jordan Wilson [00:52:45]:
If you could take 30 seconds, leave us a rating. That would mean so much to me. I'd appreciate that. Thank you for tuning in. Please join us tomorrow and every day for more Everyday AI. Thanks y'. All.