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AI news you can't miss this week
OpenAI launches GPT-5, Anthropic upgrades Claude, Google unveils Genie 3 world model, Character.AI introduces social feed, and users push Sam Altman to bring GPT-4o back.

Best AI tools of this week:
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WEEKLY AI RECAP
4 - 9 August 2025
🚀 OpenAI launches GPT-5 for all ChatGPT 🚀
PHD Level capabilities, pricing strategy undercuts, new performance standards
OpenAI has launched GPT-5 with PhD-level capabilities available to all users including free tier, featuring aggressive pricing that undercuts competitors like Claude Opus 4.1 by 12x margins at $1.25/$10 per million tokens.
The model achieves new benchmark records including 74.9% on SWE-Bench coding and 46.2% on HealthBench, while demonstrating 26% lower error rates than GPT-4o after 5,000 hours of safety testing.
CEO Sam Altman describes the release as "the biggest leap since iPhone Retina display" as OpenAI approaches 700 million weekly users and discusses potential $500 billion valuation stock sales.
🌍 Google unveils Genie 3 real-time world simulation model 🌍
Interactive 720p environments generated from text prompts
Google DeepMind has launched Genie 3, a breakthrough world model that generates interactive environments in real-time at 24fps from simple text descriptions. The system creates consistent navigable worlds lasting several minutes at 720p resolution, representing a major leap in AI-powered world simulation.
Genie 3's revolutionary capabilities include modeling physical properties like water and lighting, simulating natural ecosystems, creating animated fictional scenarios, and exploring historical settings. The model features "promptable world events" allowing users to dynamically alter weather, introduce objects, or modify environments during interaction.
Videos of users exploring these painted worlds have exploded across Instagram, TikTok, and Youtube with creators showcasing surreal experiences of navigating through brushstrokes and artistic perspectives.
🤖 Anthropic releases Claude Opus 4.1 🤖
Enhanced coding capabilities with 74.5 points on SWE-Bench
Anthropic has launched Claude Opus 4.1, an upgraded version that delivers significant improvements in agentic tasks, real-world coding, and reasoning capabilities. The model achieves 74.5% on SWE-Bench Verified, representing state-of-the-art coding performance with particular strengths in multi-file code refactoring and precise debugging within large codebases.
Available immediately to paid Claude users and through API, Amazon Bedrock, and Google Cloud's Vertex AI at the same pricing as Opus 4. Anthropic recommends upgrading from Opus 4 for all use cases, with the company promising substantially larger model improvements in coming weeks as part of their ongoing development roadmap.
INTERESTING TO KNOW
🤖 OpenAI brings back GPT4o after widespread GPT5 backlash🤖
OpenAI CEO Sam Altman has confirmed GPT-4o will return as selectable option for Plus users following massive user backlash just 24 hours after GPT-5's launch. Users complained that GPT-5 "feels like a downgrade" and criticized the loss of GPT-4o's personality and conversational style.
Technical issues compounded user frustration as GPT-5's router system malfunctioned during rollout, making the model appear "way dumber" than intended. Altman admitted the company "underestimated how much some of the things that people like in GPT-4o matter to them" despite GPT-5's superior technical performance.
📱 Character.ai launches world's first AI-native social feed 📱
Character.ai has unveiled Feed, the world's first AI-native social platform that transforms traditional social media consumption into interactive creative experiences. Unlike conventional feeds focused on passive viewing, this platform enables users to remix, rewrite, and reimagine any content they encounter with single taps.
The revolutionary approach eliminates creator-consumer boundaries, allowing users to modify storylines, insert themselves as main characters, or repurpose AI characters across different scenarios. New multimodal content formats include Chat Snippets, Character Cards, AI-generated Streams, Avatar FX videos, and custom backgrounds.

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