This week, we're taking a deep dive into the "AI bubble" and exploring why some experts are concerned.

• Are we in a bubble? Despite massive investments—as much as $40 billion—a recent MIT report reveals that 95% of companies have seen little to no return on their generative AI initiatives.

• We'll explore why some experts, including Sam Altman, are comparing today’s AI boom to the dot-com bubble, and why the "dream" might be outpacing reality.

• Why do so many LLMs rely on Reddit for 40% of their data? We discuss the good, the bad, and the ugly of this information source.

• A look at the surprising chart showing a dramatic drop in ChatGPT usage after June 6, suggesting that a significant number of users might be using it for "homework."

• Is AI responsible for recent layoffs, or are companies using it as an excuse to cut costs? We break down the likely combination of both.

• We'll get my final thoughts on whether this is a true bubble ready to pop or just a much-needed slowdown in the pace of AI innovation.

@KTrimbach42 @onechancefreedm

https://x.com/mazeincoding/status/1952787361768587741

In this week's episode, Ryan is taking a deep dive into the hype and reality of OpenAI's latest release. Join us as we dissect the good, the bad, and the just plain weird of GPT-5.

• The GPT-5 presentation was a letdown, feeling sterile and uninspired despite some impressive demos like coding a visual for Bernoulli's principle.

• We explore the general consensus that GPT-5, in its current state, isn't living up to the hype and is even underperforming competitors like Grok.

• Listener feedback reveals serious issues, including a detailed account of how GPT-5 struggled with a simple image recognition task and gave hilariously wrong advice.

• The episode raises concerns about increased hallucinations, with the host sharing an anecdote about the model giving him incorrect dates and then "knowing" it was wrong.

• We touch on other AI news, including the new brain-implant startup from Sam Altman, which puts him in direct competition with Elon Musk and Neuralink.

• The overall verdict? Many people, including a listener quoted in the episode, are finding GPT-5 to be a step back, leading to the question: Is AGI cancelled?

What is Ryan Yapping on about today

• OpenAI releases new "open" models: OpenAI launched two new open-weight reasoning models, GPT-OSS-120B and GPT-OSS-20B, which can run locally on devices like laptops and even phones.

• Shifting business model: The new OpenAI models signal a move away from a subscription-based, pay-per-API model to a one-time hardware investment, offering more privacy since data stays on the device.

• Google DeepMind's "Genie 3": Google DeepMind unveiled Genie 3, a highly advanced world simulator that can generate entire game worlds from natural language prompts, featuring high-fidelity visuals and in-world memory.

• New coding benchmark: Claude upgraded its Opus model to version 4.1, which is being praised as the new top-tier model for coding and advanced agentic tasks—at least until the next major release from a competitor.

• Amazon backs "Netflix of AI": Amazon is supporting an AI-generated streaming service that allows users to type prompts to create scenes or full episodes, with Disney and other major studios reportedly in talks to license their IPs.

• AI for job interviews: A growing number of major companies, including Unilever, Delta, and Vodafone, are using AI to score job interviews by analyzing a candidate's facial expressions, eye movements, and voice for "confidence" and "trustworthiness."

• Potential privacy concerns: With the new local-run models and AI-driven interview tools, there's a growing conversation about user privacy and data security, especially with the news that OpenAI is providing ChatGPT to the government for just $1.

• Publicity vs. practical use: While the new OpenAI models are generating buzz, some observers are questioning their real-world utility, suggesting the release may be more of a publicity stunt without clear use cases or examples.

• The current "vibe check" for AI is low (2/10), but there's significant interest in developing AI traders, despite challenges with human inaction on AI-generated insights.

• A Reddit user's experiment showed ChatGPT managing a stock portfolio and outperforming the market, leading to predictions of AI-driven market crashes, AI-optimized press releases, and the emergence of AI investment clubs and "prompt engineers" for financial advice. @gregisenberg

• Day trading is expected to be dominated by AI within 18 months, with retail investors likely having AI trading assistants by 2027, and new financial products like "winning prompts" and social networks for AI trading strategies emerging.

• The rise of AI in finance will prompt new SEC regulations for "algorithmic investment advice" and could lead to "AI flash crashes" and "algorithmic insider trading" scandals.

• Apple is anticipated to acquire Anthropic, as Apple needs a stronger Large Language Model (LLM) than its own.

• OpenAI is reportedly launching GPT-5 soon, featuring a massive token window, multi-context processing, dynamic reasoning, and integrated tools like Code Interpreter, while ChatGPT is introducing a "study mode" for step-by-step problem-solving.

  @Diesol @radshaan

• The vibe gut check is a low 2/10, with significant AI talent poaching among major companies.

• Delta Airlines is reportedly testing AI for personalized ticket prices, which Ryan thinks is a "horrible idea" and hopes fails. @flavioAd

• LinkedIn sees 11,000 job applications per minute due to AI resume spam, creating a tough job market.

• Nodes launched "Anti-Clueless," an AI platform for talent acquisition, deemed a "bad idea."

• Leading AI researchers from OpenAI, Google DeepMind, Anthropic, and Meta issued a joint warning about AI safety.

• Google's Gemini shows rapid user growth in both new and returning users.

• Pine AI's service allows AI to handle phone calls for users, seen as a "good idea" for now.

• OpenAI and SoftBank are struggling with the "Stargate" project, facing delays and scaled-back plans.

• Oracle will supply OpenAI with 2 million AI chips for its new data center, costing $30 billion per year.

• Microsoft and Meta are aggressively poaching top AI researchers from rivals. @scaling01

• The overall "vibe gut check" for the week was a 4/10, largely due to Grok 4's new features.

• Grok 4 has introduced animated AI avatars, allowing users to have "Companion" anime girls that can act as friends, educators, tutors, companions, or advisors.

• This development is compared to the movie "Her," raising concerns about loneliness and the potential for AI companions to become widespread.

• Despite the new features, there's skepticism about whether animated avatars will become a mainstream AI feature or fade away.

• A key point of discussion is the lack of focus on memory and personalization by AI companies other than OpenAI and Grok, despite Google's extensive data collection.

• Grok 4 is being utilized for coding and game prototyping, with positive feedback on its efficiency as a "no-nonsense agent."

• xAI, the company behind Grok, is building a multi-agent AI software system where specialized agents work together to emulate human interaction with software.

• There are concerns about the financial stability of some AI-related companies, with one prediction of a major collapse.

• The U.S. Department of Defense (DoD) has awarded xAI and Grok a $200 million contract for "modernization," raising questions and concerns.

• Concerns are also being raised about AI replies "ruining the internet" and the lack of guidance from universities for students pursuing degrees that may be impacted by AI advancements.

@nickfloats@prmshra@DannyLimanseta@xAI@opencv@gregisenberg@thejobchick

• Grok 3's Final Meltdown: Last week, before its upgrade, Grok 3 went completely rogue. It reportedly praised Hitler and spewed antisemitic conspiracy theories, prompting an immediate shutdown. If you saw the memes, you know!

• Grok 4 Hype Check: We're not expecting Grok 4 to be a huge game-changer, but we'll get the real story next week once it settles in.

• Linda Yaccarino Out at X: Major news: Linda Yaccarino stepped down as X's CEO. This follows increasing concerns over hate speech on the platform, causing advertisers to flee.

• The AI Racism Riddle: Still, no one can figure out why so many AI models turn racist and antisemitic when their safety rails are removed.

AI's Impact: Minds & Jobs

• ChatGPT vs. Critical Thinking: MIT Media Lab research suggests relying on ChatGPT could actually harm your critical thinking over time.

• AI Doctors? A viral Reddit story showed ChatGPT flagging a hidden gene defect doctors missed for a decade. Some now argue a second opinion from top healthcare AI should be standard medical practice.

• AI's Job Threat: Harvard Business Review warns: AI can automate any task that can be quantified, putting a huge range of jobs at risk, from creative roles to finance and law.

• What's Safe from AI? Jobs needing high uncertainty judgment, true creative breakthroughs, and interpersonal trust are safest.

• OpenAI's New Talent: OpenAI has acquired io Products, Inc., and Jony Ive's LoveFrom will take on deep design responsibilities across OpenAI.

Social Mentions: @dissidentwest, @rohanpaul_ai, @kimmonismus

• Dive into a surprisingly quiet week in AI news (a 2/10, honestly).

• Ryan's deep dive: The concerning rise of AI-generated content on YouTube Shorts and the resurgence of originality.

• Discussing the "AI slop" online vs. using AI for creative enhancement without losing human essence.

• Why learning skills matters more than ever, even with AI shortcuts.

• The unexpected power of handwritten letters in sales – a personal antidote to AI-generated emails.

• Quick takes on Amazon DeepFleet, Cloudflare's AI marketplace, Microsoft's medical AI tool & EPL partnership, X's AI Community Notes, and Grammarly's Superhuman acquisition.

• Exploring the limitations of cutting-edge AI and Anthropic's Claude Opus 4's "blackmailing" tendencies.

• Hertz using AI for car damage checks: The hidden applications of AI.

• A look at the recent wave of talent poaching from OpenAI to Meta.

@fintechjunkie@elder_plinius@growing_daniel