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ChatGPT's New Open Source Model gpt-oss: What it means, the risks, and more

OpenAI launches GPT-5 to all users, Apple loses AI talent, Grok’s AI video generator now free to U.S. users and more!

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Today in Everyday AI
6 minute read

šŸŽ™ Daily Podcast Episode: OpenAI just dropped its first open-source model since 2019—GPT OSS. Find out what GPT OSS means, why it’s a game-changer for open source AI, who wins, who loses, and the risks involved. Give it a listen.

šŸ•µļøā€ā™‚ļø Fresh Finds: GPT-5 ranks #1 on LMArena, Oracle announces Oracle AI World, Truth Social gets powered by Perplexity and more. Read on for Fresh Finds.

šŸ—ž Byte Sized Daily AI News: OpenAI launches GPT-5 to all users, Microsoft adds GPT-5 to Copilot with smart mode, Apple loses AI talent and Grok’s AI video generator now free to U.S. users. For that and more, read on for Byte Sized News.

🧠 Learn & Leveraging AI: We explain why OpenAI’s new open-weight models will challenge the AI landscape and why you should care. Keep reading for that!

ā†©ļø Don’t miss out: Did you miss our last newsletter? We talked about ChatGPT’s $1 deal with U.S. federal agencies, NVIDIA denying AI chip kill switch rumors, Google’s AI coding agent Jules going live and more. Check it here!

 ChatGPT's New Open Source Model gpt-oss: What it means, the risks, and more šŸ’”

This ChatGPT announcement is more important than GPT-5.

Seriously.

This week, OpenAI (kinda) quietly released its first open-source model since 2019.

Us AI dorks are talking about it… but the business landscape is crickets.

(As everyone gets hyped for GPT-5 today.)

But…. Hot take on a Thursday shorties: ChatGPT’s new Open Source Model will be a bigger step forward for AI tech than GPT-5 and it’s not even close.

Join us to find out why, how business development could change, and who will be the winners and losers.

Also on the pod today:

• GPT OSS vs GPT-4 Level Reasoning šŸ§ 
• AI Model Customization, Fine-Tuning, and Edge Use āš™ļø
• Business Benefits: Local, Secure, Free AI Deployment šŸ”ļø

It’ll be worth your 42 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Latitude is an open-source prompt engineering platform, Height.app is an autonomous project management tool and Handinger helps extract data from the internet.

OpenAI – OpenAI’s new GPT-5 ranks #1 on LMArena.

Oracle – Oracle has announced Oracle World AI, an AI enterprise specific live event.

Social Media – Truth Social’s new AI search engine is being powered by Perplexity.

AI Coding – GitHub’s CEO spoke on the Copilot, vibe coding and the future of AI coding.

AI Research - Researchers are teaching AI to be bad in order to prevent it from going rogue.

Money in AI – Despite backlash against Duolingo going AI-first, the company beat its quarterly revenue estimates.

1. OpenAI Launches GPT-5, Raising the Bar for AI Intelligence 🧠

OpenAI has launched GPT-5, which sets a new standard in AI performance with advanced reasoning, coding, writing, and health expertise, now available to all ChatGPT users. This upgrade not only delivers faster, more accurate responses but introduces a unique ā€œthinkingā€ mode that tackles complex problems with expert precision and a real-time router to decide when to engage it.

GPT-5 also reduces hallucinations and sycophancy significantly, making AI interactions more trustworthy and practical for real-world tasks like software development and medical advice. Plus subscribers get more usage, while Pro users gain access to GPT-5 Pro for extended reasoning on tougher problems.

2. Microsoft Rolls Out GPT-5 Across Its AI Ecosystem šŸ”€

Microsoft integrates OpenAI’s brand-new GPT-5 model into key products like Microsoft 365 Copilot, GitHub Copilot, and Azure AI Foundry. This update introduces a smart mode that dynamically switches between models for sharper reasoning and faster responses tailored to specific tasks, making AI assistance more intuitive and powerful.

For professionals and developers, this means smarter workflows, better code generation, and context-aware support right where they work.

3. Apple’s AI Talent Exit Signals Growing Industry Shake-Up šŸŽļø

Apple is facing a significant talent drain as about a dozen top AI researchers, including key figures like Ruoming Pang, have jumped ship to rivals such as Meta and OpenAI, according to Financial Times and Bloomberg. Pang’s departure last month, soon followed by two of his former colleagues joining Meta’s Superintelligence Labs, appears to have triggered a wave of poaching amid doubts about Apple’s AI future.

Industry recruiters now describe Apple’s situation as a ā€œcrisis of confidence,ā€ with competitors viewing it as open season to snap up the Cupertino company’s AI brains.

4. Grok’s AI Video Generator Now Free for US Users šŸŽ„

Elon Musk has opened the doors for all US users to access Grok’s image-to-video AI feature on Android, following its iOS debut, and it’s free ā€œfor the next few days,ā€ according to a recent announcement. This move comes amid growing concerns about the tool’s potential misuse for creating deepfake content without any subscription barrier.

While Musk has yet to address the ethical questions around celebrity deepfakes, this temporary free access could accelerate both creative uses and misuse risks.

5. Amazon Bedrock Launches Automated Reasoning Checks for AI Accuracy āœ…

Amazon has rolled out Automated Reasoning checks in Bedrock Guardrails, a new tool designed to validate AI-generated content with up to 99% accuracy using formal logic rather than probabilities. This advancement aims to curb AI hallucinations by ensuring outputs strictly follow domain-specific rules, making it especially valuable for regulated industries like finance and utilities.

The feature supports large documents, automated test scenario generation, and customizable validation settings, significantly easing policy management and boosting trust in AI decisions

6. Elon Musk to Monetize Grok AI with Ads on X šŸ’ø

In a recent live discussion with advertisers, Elon Musk revealed plans to integrate ads directly into Grok’s AI responses on X, aiming to boost the platform’s faltering ad revenue after former CEO Linda Yaccarino’s exit, according to the Financial Times. Musk emphasized that Grok’s development focused first on creating the smartest AI, but now the priority shifts to covering costly GPU expenses through targeted advertising.

Marketers will be able to pay for placements in AI suggestions, turning problem-solving interactions into ad opportunities, enhanced by tech from Musk’s AI startup xAI.

🦾How You Can Leverage:

You think GPT-5 is the big AI news?

Wrong.

The release that’ll reshape the AI industry just dropped quietly this week. OpenAI’s new open source model gpt-oss performs identically to their paid version from nine months ago.

Except it’s completely free. Forever.

Download it today. Fine-tune it however you want. Run it offline on your laptop. Never pay another API bill.

Companies currently spending hundreds of thousands monthly on AI just found their replacement. Entrepreneurs who couldn’t afford enterprise AI now have access to the same capabilities as Fortune 500 firms.

We walked through why this Apache licensed reasoning model triggers the biggest competitive shakeup in AI history. Why your current AI costs just became negotiable. And why your next breakthrough happens on your device, not in the cloud.

Here are three strategic moves that make this bigger than any model upgrade.

1 – Free AI Just Made Vendors Sweat 😰

Your AI budget just became optional.

That model costing your company six figures annually? There’s now a free alternative with identical performance.

We discussed how OpenAI weaponized licensing to outmaneuver competitors. While other companies restrict commercial use, require approvals, and limit geographic deployment, gpt-oss has zero restrictions.

Download it. Deploy it. Sell products built on it. No permission needed.

The business impact is immediate. Startups that couldn’t raise capital for AI infrastructure now compete directly with established players. Regulated industries can process sensitive data locally instead of paying compliance premiums for cloud APIs.

Your current AI vendors will either cut prices dramatically or lose customers fast.

Try This: 

Calculate your current monthly AI spending across all vendors and test gpt-oss against your three most expensive workflows at gpt-oss.com. Most companies will find 70% of their use cases work perfectly with the free version.

Create a cost comparison showing leadership exactly how much you’ll save by migrating compatible workflows to free models.

2 – The Innovation Arms Race Just Got Accelerated šŸƒ

Every AI company just got an ultimatum.

Innovate faster or lose customers.

We explored how this forces all providers to accelerate development or face serious competition from free alternatives. No more sitting on completed models for months. No more incremental improvements at premium prices.

The strategic play is brilliant.

OpenAI commoditized the entire mid-tier market before losing more enterprise customers to alternatives. Companies like Anthropic and Cohere now face pressure to justify their pricing against free options.

This triggers the fastest innovation cycle we’ll see in AI. When capable models cost nothing, competitive advantage shifts entirely to specialized capabilities and development speed.

Try This:

Identify which AI workflows in your company need cutting-edge performance versus reliable, consistent results. Move the reliable workflows to gpt-oss immediately and renegotiate contracts with premium vendors using the free alternative as leverage.

Most companies will cut AI costs by 60% within 90 days.

3 – Your Next AI Runs on Your Laptop šŸ’»

The cloud just became optional for AI.

Powerful reasoning models now run locally on standard business hardware. The 20B version needs just 16GB RAM. No internet required. No data leaving your premises. Zero ongoing costs.

We analyzed how this changes everything for data-sensitive industries. Healthcare firms spending fortunes on compliance can process patient data locally. Financial companies can analyze transactions without external API calls. Legal teams can review documents without cloud security concerns.

The opportunity?

Edge computing advantages that weren’t possible before. Instant responses without network latency. Perfect uptime without internet dependencies. Complete data control without vendor lock-in.

Try This: 

List your most sensitive data workflows that currently require cloud AI and calculate total compliance costs including audits and privacy controls. Price local deployment hardware capable of running gpt-oss for those workflows.

For most regulated industries, local deployment eliminates 80% of compliance overhead while improving response times.

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