AI Daily: OpenAI launches GPT-5, xAI’s Grok 5 expected before year-end

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

OPENAI’S GPT-5: In a post to its corporate site, OpenAI stated, “Today we’re introducing GPT-5, OpenAI’s smartest, fastest, most useful model yet, and a major step towards placing intelligence at the center of every business. GPT-5 unites and exceeds OpenAI’s prior breakthroughs in frontier intelligence, spanning 4o, OpenAI o-series reasoning, agents, and advanced math capabilities. It arrives as organizations like BNY Mellon, California State University, Figma, Intercom, Lowe’s, Morgan Stanley, SoftBank, T-Mobile, and more have already armed their workforces with AI – 5 million paid users now use ChatGPT business products-and begun to reimagine their operations on the API. GPT-5 delivers leaps in accuracy, speed, reasoning, context recognition, structured thinking, and problem-solving. The true magic will happen when businesses start applying GPT-5 to imagine new use cases.”

Microsoft (MSFT)-backed OpenAI’s new GPT-5 models are now showing up in Microsoft’s AI-powered assistant Copilot, and is even available for free users of the software, The Verge’s Tom Warren reports.

XAI’S GROK 5: Tesla (TSLA) CEO Elon Musk said in a post on X, formerly Twitter, that xAI’s Grok 5 will be out before the end of 2025 and will be “crushingly good.” The xAI founder made this comment in response to a post about Microsoft-backed (MSFT) OpenAI’s GPT-5 models, whose launch was announcced earlier Thursday. “OpenAI is going to eat Microsoft alive,” Musk also said in response to a post from Microsoft CEO Satya Nadella on GPT-5.

AI-POWERED GAMING COPILOT: Microsoft’s Xbox said in a blog post that Gaming Copilot, the company’s AI gaming assistant, is available on Game Bar for Windows PC for Xbox Insiders enrolled in the PC Gaming Preview beginning Wednesday. “Gaming is one of the only forms of entertainment where you can get stuck, and Gaming Copilot is designed to help get you past those obstacles so you can spend more time playing the games you love,” the company said. “This companion makes gaming with Xbox more seamless and personalized, helping you get to gameplay faster, sharpening your skills, and being there when you need it and out of the way when you don’t. While Gaming Copilot (Beta) is also available now for Xbox Insiders to try on Windows handhelds with limited functionality, further optimizations are underway for handhelds as we approach the launch of the ROG Xbox Ally and ROG Xbox Ally X.”

SUPPORT AI EDUCATION: In a blog post, Google (GOOGL) wrote, “Millions of college students around the world are getting ready to start classes. To help make the school year even better, we’re making our most advanced AI tools available to them for free, including our new Guided Learning mode. We’re also providing $1 billion to support AI education and job training programs and research in the U.S. This includes making our AI and career training free for every college student in America through our AI for Education Accelerator – over 100 colleges and universities have already signed up.”

LESS BUREAUCRACY: Microsoft (MSFT) hired Mustafa Suleyman, one of the founders of Google’s (GOOGL) DeepMind, as head of AI and he has been personally calling recruits from his former shop for top talent, the Wall Street Journal’s Sebastian Herrera and Katherine Blunt report, citing people familiar with the matter. Suleyman has been pitching them on the idea that Microsoft’s AI division is a nimbler, more startup-like workplace than DeepMind and has offered higher pay and the opportunity to help turn the Copilot chatbot into a more formidable rival to OpenAI’s ChatGPT.

INTEGRATION: Aurora Mobile (JG) announced that its AI agent platform, GPTBots.ai, will integrate Genie 3, the latest general-purpose world model released by Google DeepMind (GOOGL). Through this collaboration, developers will be able to access Genie 3 directly via the GPTBots.ai platform, allowing them to create highly dynamic and physically consistent 3D training environments for AI agents. This will accelerate AI agents’ learning and decision-making capabilities for complex tasks.