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Is the AI bubble about to pop? Sam Altman is prepared either way.

Last Thursday, OpenAI CEO Sam Altman told reporters at a private dinner that investors are overexcited about AI models. "Someone" will lose a "phenomenal amount of money," he said, according to The Verge. The statement came as his company negotiates a secondary share sale at a $500 billion valuation—up from $300 billion just months earlier.

"Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes," Altman told the journalists, comparing the current market to the dot-com crash of the 1990s. Wired reported that he also predicted his company will spend "trillions of dollars on data center construction in the not very distant future" and that ChatGPT will soon serve "billions of people a day."

For context, Facebook serves about 3 billion monthly active users. Altman's projection would require ChatGPT to reach nearly half the world's population as daily users (not monthly, like Facebook), which is an extraordinarily optimistic outlook.

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Sam Altman finally stood up to Elon Musk after years of X trolling

Much attention was paid to OpenAI's Sam Altman and xAI's Elon Musk trading barbs on X this week after Musk threatened to sue Apple over supposedly biased App Store rankings privileging ChatGPT over Grok.

But while the heated social media exchanges were among the most tense ever seen between the two former partners who cofounded OpenAI—more on that below—it seems likely that their jabs were motivated less by who's in the lead on Apple's "Must Have" app list than by an impending order in a lawsuit that landed in the middle of their public beefing.

Yesterday, a court ruled that OpenAI can proceed with claims that Musk was so incredibly stung by OpenAI's success after his exit didn't doom the nascent AI company that he perpetrated a "years-long harassment campaign" to take down OpenAI.

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OpenAI brings back GPT-4o after user revolt

On Tuesday, OpenAI CEO Sam Altman announced that GPT-4o has returned to ChatGPT following intense user backlash over its removal during last week's GPT-5 launch. The AI model now appears in the model picker for all paid ChatGPT users by default (including ChatGPT Plus accounts), marking a swift reversal after thousands of users complained about losing access to their preferred models.

The return of GPT-4o comes after what Altman described as OpenAI underestimating "how much some of the things that people like in GPT-4o matter to them." In an attempt to simplify its offerings, OpenAI had initially removed all previous AI models from ChatGPT when GPT-5 launched on August 7, forcing users to adopt the new model without warning. The move sparked one of the most vocal user revolts in ChatGPT's history, with a Reddit thread titled "GPT-5 is horrible" gathering over 2,000 comments within days.

Along with bringing back GPT-4o, OpenAI made several other changes to address user concerns. Rate limits for GPT-5 Thinking mode increased from 200 to 3,000 messages per week, with additional capacity available through "GPT-5 Thinking mini" after reaching that limit. The company also added new routing options—"Auto," "Fast," and "Thinking"—giving users more control over which GPT-5 variant handles their queries.

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OpenAI’s most capable AI model, GPT-5, may be coming in August

On Thursday, The Verge reported that OpenAI is preparing to launch GPT-5 as early as August, according to sources familiar with the company's plans. The report comes five months after CEO Sam Altman first laid out a roadmap for the next-generation AI model that would unify the company's various AI capabilities. OpenAI CEO Sam Altman revealed in a post on X last week that the company plans to release GPT-5 "soon."

According to The Verge's Tom Warren, Microsoft engineers began preparing server capacity for GPT-5 as early as late May, but testing and development challenges pushed the timeline back. During an appearance on Theo Von's podcast this week, Altman demonstrated the model's capabilities by having it answer a question he couldn't. "I put it in the model, this is GPT-5, and it answered it perfectly," Altman said, saying it gave him a "weird feeling" to see the AI model answer a question that he couldn't.

GPT-5 has been a highly anticipated release since the launch of GPT-4 in March 2023. In fact, we first wrote about rumors of GPT-5's launch in March 2024, but it appears that GPT-5 did not materialize last year because the company saved the "GPT-5" name for a future release.

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OpenAI and partners are building a massive AI data center in Texas

On Tuesday, OpenAI announced a partnership with Oracle to develop 4.5 gigawatts of additional data center capacity for its Stargate AI infrastructure platform in the US. The expansion, which TechCrunch reports is part of a $30 billion-per-year deal between OpenAI and Oracle, will reportedly bring OpenAI's total Stargate capacity under development to over 5 gigawatts.

The data center has taken root in Abilene, Texas, a city of 127,000 located 150 miles west of Fort Worth. The city, which serves as the commercial hub of a 19-county region known as the "Big Country," offers a location with existing tech employment ecosystem, including Dyess Air Force Base and three universities. Abilene's economy has evolved over time from its agricultural and livestock roots to embrace technology and manufacturing sectors.

"We have signed a deal for an additional 4.5 gigawatts of capacity with oracle as part of stargate. easy to throw around numbers, but this is a gigantic infrastructure project," wrote OpenAI CEO Sam Altman on X. "We are planning to significantly expand the ambitions of stargate past the $500 billion commitment we announced in January."

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ChatGPT’s new AI agent can browse the web and create PowerPoint slideshows

On Thursday, OpenAI launched ChatGPT Agent, a new feature that lets the company's AI assistant complete multi-step tasks by controlling its own web browser. The update merges capabilities from OpenAI's earlier Operator tool and the Deep Research feature, allowing ChatGPT to navigate websites, run code, and create documents while users maintain control over the process.

The feature marks OpenAI's latest entry into what the tech industry calls "agentic AI"—systems that can take autonomous multi-step actions on behalf of the user. OpenAI says users can ask Agent to handle requests like assembling and purchasing a clothing outfit for a particular occasion, creating PowerPoint slide decks, planning meals, or updating financial spreadsheets with new data.

The system uses a combination of web browsers, terminal access, and API connections to complete these tasks, including "ChatGPT Connectors" that integrate with apps like Gmail and GitHub.

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The OpenAI board drama is reportedly turning into a movie

A film that will portray the chaotic time at OpenAI, when co-founder and CEO Sam Altman was fired and rehired within a span of just five days, is reportedly in the works.  According to The Hollywood Reporter, the movie is titled “Artificial,” and it’s in development at Amazon MGM Studios. While details aren’t finalized, sources […]
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