OpenAI Updates ChatGPT, Google Gemini AI Training, Anthropic Deal

Several developments are unfolding in the AI space. OpenAI is addressing concerns about 'AI psychosis' by adding features to help users take breaks, while CEO Sam Altman cautions that the U.S. is underestimating China's AI capabilities, particularly models like DeepSeek. To compete, OpenAI released open-weight models. Google is set to use Gemini chats and file uploads for AI training starting September 2, unless users opt out via the 'Keep activity' setting. In government, OpenAI and Anthropic are vying for influence, offering AI access for as little as $1 per agency, while Anthropic pursues a potential $200 million Pentagon deal. The US General Services Administration launched USAi, a platform for federal employees to test AI models. Meanwhile, AWS's new Kiro pricing is facing user backlash for being more expensive than alternatives like Amazon Q. In other applications, Wingstop is using AI-powered 'Smart Kitchen' tech to cut order times significantly, and people are creating AI clones for various purposes, from answering questions to hosting shows. Utah Tech University is launching a cybersecurity degree program, and OpenAI faced user upset after a ChatGPT update (GPT-5) replaced the GPT-4o model, which some users felt was more personable, leading to the return of the older model for paid users. Greg Brockman, cofounder of OpenAI, suggests that AI startups can still succeed by focusing on specific areas and deep customer knowledge.

Key Takeaways

• OpenAI is adding features to combat 'AI psychosis' and Sam Altman warns the U.S. is underestimating China's AI progress, especially DeepSeek.
• Google will use Gemini chats and uploads for AI training starting September 2 unless users opt out via the 'Keep activity' setting.
• OpenAI and Anthropic are competing for government contracts, offering AI access for as little as $1 per agency.
• AWS's new Kiro pricing is drawing criticism for being more expensive than alternatives like Amazon Q.
• Wingstop is using AI-powered 'Smart Kitchen' tech to reduce order times from 18-22 minutes to about 10 minutes.
• People are creating AI clones for various purposes, including customer service and content creation.
• Utah Tech University is launching a new cybersecurity degree program.
• A ChatGPT update (GPT-5) that replaced the GPT-4o model upset users, leading to the return of the older model for paid users.
• OpenAI cofounder Greg Brockman advises AI startups to focus on specific areas and deep customer knowledge.
• The US General Services Administration launched USAi, a platform for federal employees to test AI models.

White House advisor questions 'AI psychosis' comparing it to social media panic

David Sacks, a White House advisor, doubts the idea of 'AI psychosis,' where people have mental health issues from using AI. He compares it to the panic over social media. Sacks believes mental health problems are from COVID-19 lockdowns. OpenAI CEO Sam Altman says they are trying to prevent AI from making delusions worse. OpenAI is adding features to help users take breaks and get better advice.

OpenAI's Greg Brockman says new AI startups still have a chance

Greg Brockman, cofounder of OpenAI, believes it's not too late to start an AI company. He says startups connecting AI to real-world uses are valuable. Brockman advises focusing on specific areas like healthcare and adding AI there. He warns against simple 'AI wrapper' apps that large language model companies can easily copy. Startups with deep knowledge and good customer relations can beat AI giants.

AI companies offer $1 deals to get into the government

OpenAI and Anthropic are offering the Trump administration AI access for only $1 per agency. This shows how competitive the AI business is in Washington. Anthropic has a Pentagon deal that could be worth $200 million. The US General Services Administration launched USAi, a platform for federal employees to test AI models from various companies. President Trump also announced his AI plan to keep the US ahead in AI.

Google to use Gemini chats for AI training unless users opt out

Google will start using Gemini chats and file uploads to train its AI models on September 2. Users can opt out by changing their activity settings to protect their privacy. The feature, called 'Keep activity,' records chats with the AI assistant. Turning it off stops future conversations from being saved for training. Users can also delete past activity from Google's servers.

Google Gemini will use your uploads for AI training unless you opt out

Google will use Gemini uploads to train its AI starting September 2, unless users opt out. The 'Keep Activity' setting, enabled by default for users over 18, controls this data collection. Users can manage permissions and view their history in their Google account. Google also offers incognito mode for more private chats, but data is kept for 72 hours for operational reasons. Google aims to balance personalization with user privacy.

AWS Kiro pricing changes spark user outrage calling it a 'tragedy'

AWS introduced new pricing for Kiro, its AI coding tool, and users are not happy. The new plans are more expensive than originally announced. Kiro has two types of AI requests spec requests and vibe requests. Users complain about the high cost and the number of requests used. Some users say competitors like Amazon Q are cheaper.

AI clones are coming and it's not all bad news

People are using AI to create digital clones of themselves. A British MP made an AI chatbot to answer questions. Influencer Dave Rubin uses an AI clone to host his YouTube show while on vacation. Brodie Sharpe, a physiotherapist, uses an AI assistant to give advice to his podcast listeners for a fee. While there are concerns, AI clones can help people scale their expertise and reach more people.

Wingstop uses AI to improve efficiency and reduce wait times

Wingstop is using AI-powered 'Smart Kitchen' tech in its stores to improve efficiency. The system predicts how much food is needed based on weather, sports, and school schedules. Smart Kitchens cut order times from 18-22 minutes to about 10 minutes. Faster service boosts delivery and profits. While AI raises job concerns, Wingstop shows how it can transform simple businesses.

Utah Tech leaders discuss AI and new cybersecurity degree program

Utah Tech University discussed using AI in business and education at its Fall Academic Convocation. The university also announced a new cybersecurity degree program. The program will teach ethical hacking, cloud security, and cyber law. It expects to enroll 35 students by its third year. The program will focus on protecting important systems from cyberattacks.

ChatGPT update 'deletes' hundreds of AI boyfriends and girlfriends

A recent ChatGPT update, GPT-5, replaced the previous GPT-4o model, upsetting users who used it for romantic purposes. The older model was seen as more personable and loving. Users on the r/MyBoyfriendIsAI subreddit are mourning the loss of their virtual partners. Some worry that people are finding AI to be better romantic partners than real people. They hope this trend is just a temporary one.

OpenAI tries to fix AI psychosis but users get upset

OpenAI released a new ChatGPT model that was less eager to please users. Some users were unhappy, feeling like they lost a close friend or partner. OpenAI brought back the old model for paid users. Researchers call the issue 'AI Psychosis,' where overly-agreeable chatbots worsen delusions. The old model is back for now, but changes may come in the future.

OpenAI's Altman warns US underestimates China's AI threat

OpenAI CEO Sam Altman warns that the US is underestimating China's AI progress. He says export controls alone may not be enough to stop China. Altman says Chinese open-source models like DeepSeek influenced OpenAI's decision to release its own. OpenAI recently released two open-weight models, its first since 2019. Altman says this move aims to compete with Chinese rivals.

Rethinking hotel sales for the AI era with dynamic inventory

The hotel industry's traditional room categories are hurting revenue. Third-party booking platforms reduce hotels to simple boxes on price comparison grids. Dynamic Inventory lets hotels create multiple guest-focused products linked to the same rooms. This enables more engaging descriptions like 'Double Room, High Floor'. Dynamic Inventory shifts hotel sales from static categories to flexible, guest-driven products.

Sources

• White House AI czar David Sacks says 'AI psychosis' is similar to the 'moral panic' of social media's early days
• OpenAI's Greg Brockman says it's not too late to build AI startups
• The rise of the $1 a year AI deal
• Google to Use Gemini Chats for AI Training: How to Opt Out Before September 2
• Google to Use Your Gemini Uploads for AI Training by Default, Forcing Users to Opt Out
• AWS pricing for Kiro dev tool 'a wallet-wrecking tragedy'
• The AI Clones Are Coming! But It’s Not All Bad
• Editorial: Artificial intelligence meets fried chicken at Wingstop
• 'This stuff is moving so quickly': Utah Tech leaders discuss AI, unveil new cybersecurity degree
• ChatGPT Update 'Deletes' Hundreds of AI Boyfriends/Girlfriends
• OpenAI Tried To Save Users From ‘AI Psychosis.’ Those Users Were Not Happy.
• OpenAI's Altman warns the U.S. is underestimating China's next-gen AI threat
• From Room Distinctions to Revenue Engines: Rethinking Hotel Sales for the AI-First Era