ChatGPT-5 is here 🤖

PLUS: Google launches Gemini tutoring, Microsoft unveils CLIO self-adaptive reasoning, AI search startup Tavily raises $25M & Microsoft raids DeepMind talent.

In today’s agenda:

1️⃣ OpenAI's GPT-5 launch brings frontier-level performance.

2️⃣ Google Gemini tutoring competes directly with ChatGPT's Study Mode globally.

3️⃣ Microsoft's CLIO self-adaptive reasoning boosts AI accuracy.

  • Tavily raises $25M Series A to connect AI agents with real-time web data.

  • Microsoft raids DeepMind talent for proprietary foundation models development.

MAIN AI UPDATES / 7th August 2025

🤖 OpenAI launches flagship GPT-5 model 🤖
CEO Sam Altman calls it "the best model in the world"

OpenAI has launched GPT-5, its most advanced AI model that combines reasoning abilities with fast responses. The unified model enables ChatGPT to complete complex tasks like generating software applications and managing calendars.

GPT-5 offers frontier-level performance in coding, scoring 74.9% on real-world GitHub tasks, and significantly reduces hallucinations to just 4.8%. The model is now available to all free ChatGPT users as their default option for the first time.

📚 Google launches Gemini guided learning 📚
Direct competition to ChatGPT's Study Mode

Google unveiled "Guided Learning" in Gemini to compete with ChatGPT's Study Mode. The new feature helps students with personalized tutoring sessions and step-by-step problem solving. Google is offering students in the U.S., Japan, Indonesia, Korea, and Brazil a free one-year subscription to its AI Pro plan. The move represents Google's aggressive push into the educational AI market where ChatGPT has gained significant traction.

🔬 Microsoft unveils CLIO self-adaptive reasoning 🔬
New approach enables AI systems to adapt reasoning in real-time

Microsoft introduced CLIO (Cognitive Loop via In-Situ Optimization), a self-adaptive reasoning approach that allows non-reasoning models to develop thought patterns without post-training.

The system increased OpenAI GPT-4.1's accuracy by 161.64% on biology and medicine questions, surpassing o3 performance. CLIO enables user control and explainability in AI reasoning, addressing critical needs in scientific discovery where transparency and accountability matter most.

INTERESTING TO KNOW

🌐 Tavily raises $25M for AI agents 🌐

AI search startup Tavily secured $25 million in Series A funding led by Insight Partners to connect AI agents to real-time web data. The one-year-old company provides search infrastructure for AI applications, enabling agents to access current information and perform complex research tasks.

Tavily's API processes over 100 million searches monthly and serves major AI companies building autonomous agents.

🧠 Microsoft raids DeepMind for talent 🧠

Microsoft has poached several key researchers from Google's DeepMind, including specialists in multi-modal AI and reasoning systems. The hiring spree focuses on building Microsoft's internal AI capabilities to reduce dependence on OpenAI.

Industry sources suggest the moves are part of Microsoft's strategy to develop proprietary foundation models and advanced AI agents for enterprise customers.

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