OpenAI Just Dropped GPT-5 and It's Mind-Blowing

Today's sponsor

Okay, I'll be honest – when OpenAI teased with livestream on X, I was refreshing my browser like crazy. And let me tell you, GPT-5 absolutely delivered. This isn't just another incremental update; it's the kind of leap that makes you go "wait, AI can do that now?".

Data Just Made Palantir Worth $250B

Palantir just rocketed to $250 billion by helping companies extract value from user data.

The big data gold rush is here, but the company that stands to profit the most may not be Palantir…

A new disruption to smartphones gives users a share in the data profits, already facilitating +$325M in earnings and generating +$75M in revenue.

With 32,481% revenue growth, this company is gearing up for a potential Nasdaq listing (stock ticker: $MODE), and pre-IPO shares are available at only $0.30/share.

It’s a $1 trillion industry, and their disruptive EarnPhone is now being distributed by Walmart and Best Buy.

⚠️ The window to invest at $0.30/share is closing — act now.

Invest in the Mode Pre-IPO Today

What makes GPT-5 so special?

OpenAI actually made GPT-5 free for everyone! I mean, the base model anyway. Plus subscribers still get more usage, but seriously – free access to PhD-level AI? That's wild. And for developers, the pricing is honestly shocking in the best way: starting at just $0.15 per million tokens. That's cheaper than my coffee addiction.

Sam Altman said it best: "GPT-5 is the first time that it really feels like talking to an expert in any topic, like a PhD-level expert." And honestly? The benchmarks back this up in ways that are just wild.

The coding performance alone had me blown away. GPT-5 scored 74.9% on SWE-bench Verified – that's real-world GitHub issues that even experienced developers struggle with. For context, GPT-4 managed 52%. I've been tinkering with it myself, and watching it build entire applications from a simple prompt in under 3 minutes is genuinely surreal.

But here's what really caught my attention: GPT-5 has about 6 times fewer hallucinations than previous models. As someone who's spent way too much time fact-checking AI outputs, this is huge. The model actually recognizes when it doesn't know something instead of confidently making stuff up.

The smart router system changes everything

This is where things get really interesting. GPT-5 uses something called a "smart router" that automatically decides which computational approach to use based on your question. Need a quick answer? It goes fast. Complex reasoning problem? It thinks deeper. You don't have to switch models anymore – it just works.

The technical specs are impressive too:

• 400,000 total tokens of context (that's roughly 300 pages of text)

• 94.6% accuracy on AIME 2025 mathematical competitions

• 88% success rate on complex coding tasks

But here's where it gets interesting for coders. I've been watching the developer community, and honestly? The reactions are all over the place. Some people are claiming they solved problems that had them stuck for months. Others are like "It can’t even solve 8.8 - 8.11 = ?" basic math. The live demos where it built entire apps in minutes were impressive, but real-world coding is messy and unpredictable.

My honest take? 

If you ask, is this AGI? Ummh… absolutely not. This feels like that moment when your phone finally got fast enough that you stopped thinking about how slow it was. GPT-5 isn't perfect, but it's the first AI that consistently feels competent rather than impressive but flaky. And honestly? That might be more important than any benchmark score. But here's the thing: with Anthropic breathing down their necks, Google pushing hard with Gemini, and those Chinese AI labs moving at lightning speed, OpenAI's window to dominate might be smaller than we think. The AI race just got a whole lot more interesting.

Used by Execs at Google and OpenAI

Join 400,000+ professionals who rely on The AI Report to work smarter with AI.

Delivered daily, it breaks down tools, prompts, and real use cases—so you can implement AI without wasting time.

If they’re reading it, why aren’t you?

Join 400K+ pros

Recap of a week in AI

I've been glued to my screen this week because honestly? The AI world just exploded with news that's actually changing how we'll work and browse the internet. Let me break down the biggest moves that happened this week that you absolutely need to know about.

Microsoft brings GPT-5 to Copilot with "Smart Mode"

Microsoft didn't waste any time. GPT-5 is now available in Microsoft Copilot across all markets and platforms, featuring a new "Smart Mode" that automatically adapts to your task and routes you to the most capable model.

For the first time, Copilot can understand your prompt and use GPT-5's real-time router to choose between quick responses for routine questions or deeper reasoning for complex tasks. People can try GPT-5 with Microsoft Copilot for free by going to copilot.microsoft.com, or using the Copilot app on Windows, Mac, Android and iOS devices.

xAI is putting ads directly in Grok's responses

Elon Musk just made a move that's either genius or controversial (probably both). During an X Spaces livestream with advertisers, Musk announced that Grok will start displaying advertisements directly in its responses beginning August 7, 2025, stating "If a user's trying to solve a problem, then advertising the specific solution would be ideal at that point".

Musk also confirmed that xAI will open-source its Grok 2 chatbot model next week, continuing the pattern where they release older models when newer ones launch. This comes as xAI faces mounting costs for expensive GPUs needed to run Grok, making the ad integration a strategic revenue play.

The Browser Company goes full subscription mode

Speaking of big moves, The Browser Company just launched a $20 monthly subscription for Dia, its AI-powered browser, providing unlimited access to AI chat and skills features. This puts them in direct competition with Perplexity's Comet browser, which costs $200 per month for Max subscribers.

CEO Josh Miller told The New York Times that the browser will remain free for those who use AI features "a few times a week," but indicated plans for multiple subscription tiers ranging from $5 to hundreds of dollars monthly. The AI browser wars are officially heating up.

Apple Intelligence Gets a Major Upgrade: GPT-5 Coming to iOS 26

Hold up – Apple just quietly confirmed something that's going to make Siri way smarter. Apple has confirmed that ChatGPT integration within Apple Intelligence will use GPT-5 with iOS 26, iPadOS 26, and macOS Tahoe 26, with those software updates expected to arrive next month

Apple Intelligence will also gain new capabilities in iOS 26, including Live Translation for real-time conversation interpretation in FaceTime and Messages, plus Visual Intelligence upgrades for systemwide content searching - AppleMagazine.

Turn AI Into Your Income Stream

The AI economy is booming, and smart entrepreneurs are already profiting. Subscribe to Mindstream and get instant access to 200+ proven strategies to monetize AI tools like ChatGPT, Midjourney, and more. From content creation to automation services, discover actionable ways to build your AI-powered income. No coding required, just practical strategies that work.

Subscribe to Get Your Free Guide

You might also like our other awesome AI guides:

• Create a Viral AI Band with Suno & ChatGPT

• Comet: The AI Browser That Browses for You

• Testing ChatGPT’s Wild New Agent Mode

• Google’s Opal: Build AI Apps with Simple English

• GLM-4.5 AI Builds Slides and Games for Free

Should you care?

If you're doing anything involving writing, coding, research, or complex problem-solving – absolutely yes.

The model is rolling out now to all ChatGPT users and via API for developers.

GPT-5 feels like that moment when smartphones went from "neat gadget" to "can't live without it." This is the closest we've gotten to having a genuinely intelligent AI assistant

Your opinion matters!