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ars-live:-is-the-ai-bubble-about-to-pop?-a-live-chat-with-ed-zitron.

Ars Live: Is the AI bubble about to pop? A live chat with Ed Zitron.

As generative AI has taken off since ChatGPT’s debut, inspiring hundreds of billions of dollars in investments and infrastructure developments, the top question on many people’s minds has been: Is generative AI a bubble, and if so, when will it pop?

To help us potentially answer that question, I’ll be hosting a live conversation with prominent AI critic Ed Zitron on October 7 at 3: 30 pm ET as part of the Ars Live series. As Ars Technica’s senior AI reporter, I’ve been tracking both the explosive growth of this industry and the mounting skepticism about its sustainability.

You can watch the discussion live on YouTube when the time comes.

Zitron is the host of the Better Offline podcast and CEO of EZPR, a media relations company. He writes the newsletter Where’s Your Ed At, where he frequently dissects OpenAI’s finances and questions the actual utility of current AI products. His recent posts have examined whether companies are losing money on AI investments, the economics of GPU rentals, OpenAI’s trillion-dollar funding needs, and what he calls “The Subprime AI Crisis.”

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Credit: Ars Technica

During our conversation, we’ll dig into whether the current AI investment frenzy matches the actual business value being created, what happens when companies realize their AI spending isn’t generating returns, and whether we’re seeing signs of a peak in the current AI hype cycle. We’ll also discuss what it’s like to be a prominent and sometimes controversial AI critic amid the drumbeat of AI mania in the tech industry.

While Ed and I don’t see eye to eye on everything, his sharp criticism of the AI industry’s excesses should make for an engaging discussion about one of tech’s most consequential questions right now.

Please join us for what should be a lively conversation about the sustainability of the current AI boom.

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The GPT-5 rollout has been a big mess

It’s been less than a week since the launch of OpenAI’s new GPT-5 AI model, and the rollout hasn’t been a smooth one. So far, the release sparked one of the most intense user revolts in ChatGPT’s history, forcing CEO Sam Altman to make an unusual public apology and reverse key decisions.

At the heart of the controversy has been OpenAI’s decision to automatically remove access to all previous AI models in ChatGPT (approximately nine, depending on how you count them) when GPT-5 rolled out to user accounts. Unlike API users who receive advance notice of model deprecations, consumer ChatGPT users had no warning that their preferred models would disappear overnight, noted independent AI researcher Simon Willison in a blog post.

The problems started immediately after GPT-5’s August 7 debut. A Reddit thread titled “GPT-5 is horrible” quickly amassed over 4,000 comments filled with users expressing frustration over the new release. By August 8, social media platforms were flooded with complaints about performance issues, personality changes, and the forced removal of older models.

As of May 14, 2025, ChatGPT Pro users have access to 8 different main AI models, plus Deep Research.

Prior to the launch of GPT-5, ChatGPT Pro users could select between nine different AI models, including Deep Research. (This screenshot is from May 14, 2025, and OpenAI later replaced o1 pro with o3-pro.) Credit: Benj Edwards

Marketing professionals, researchers, and developers all shared examples of broken workflows on social media. “I’ve spent months building a system to work around OpenAI’s ridiculous limitations in prompts and memory issues,” wrote one Reddit user in the r/OpenAI subreddit. “And in less than 24 hours, they’ve made it useless.”

How could different AI language models break a workflow? The answer lies in how each one is trained in a different way and includes its own unique output style: The workflow breaks because users have developed sets of prompts that produce useful results optimized for each AI model.

For example, Willison wrote how different user groups had developed distinct workflows with specific AI models in ChatGPT over time, quoting one Reddit user who explained: “I know GPT-5 is designed to be stronger for complex reasoning, coding, and professional tasks, but not all of us need a pro coding model. Some of us rely on 4o for creative collaboration, emotional nuance, roleplay, and other long-form, high-context interactions.”

The GPT-5 rollout has been a big mess Read More »

openai’s-most-capable-ai-model,-gpt-5,-may-be-coming-in-august

OpenAI’s most capable AI model, GPT-5, may be coming in August

References to “gpt-5-reasoning-alpha-2025-07-13” have already been spotted on X, with code showing “reasoning_effort: high” in the model configuration. These sightings suggest the model has entered final testing phases, with testers getting their hands on the code and security experts doing red teaming on the model to test vulnerabilities.

Unifying OpenAI’s model lineup

The new model represents OpenAI’s attempt to simplify its increasingly complex product lineup. As Altman explained in February, GPT-5 may integrate features from both the company’s conventional GPT models and its reasoning-focused o-series models into a single system.

“We’re truly excited to not just make a net new great frontier model, we’re also going to unify our two series,” OpenAI’s Head of Developer Experience Romain Huet said at a recent event. “The breakthrough of reasoning in the O-series and the breakthroughs in multi-modality in the GPT-series will be unified, and that will be GPT-5.”

According to The Information, GPT-5 is expected to be better at coding and more powerful overall, combining attributes of both traditional models and SR models such as o3.

Before GPT-5 arrives, OpenAI still plans to release its first open-weights model since GPT-2 in 2019, which means others with the proper hardware will be able to download and run the AI model on their own machines. The Verge describes this model as “similar to o3 mini” with reasoning capabilities. However, Altman announced on July 11 that the open model needs additional safety testing, saying, “We are not yet sure how long it will take us.”

OpenAI’s most capable AI model, GPT-5, may be coming in August Read More »

the-resume-is-dying,-and-ai-is-holding-the-smoking-gun

The résumé is dying, and AI is holding the smoking gun

Beyond volume, fraud poses an increasing threat. In January, the Justice Department announced indictments in a scheme to place North Korean nationals in remote IT roles at US companies. Research firm Gartner says that fake identity cases are growing rapidly, with the company estimating that by 2028, about 1 in 4 job applicants could be fraudulent. And as we have previously reported, security researchers have also discovered that AI systems can hide invisible text in applications, potentially allowing candidates to game screening systems using prompt injections in ways human reviewers can’t detect.

Illustration of a robot generating endless text, controlled by a scientist.

And that’s not all. Even when AI screening tools work as intended, they exhibit similar biases to human recruiters, preferring white male names on résumés—raising legal concerns about discrimination. The European Union’s AI Act already classifies hiring under its high-risk category with stringent restrictions. Although no US federal law specifically addresses AI use in hiring, general anti-discrimination laws still apply.

So perhaps résumés as a meaningful signal of candidate interest and qualification are becoming obsolete. And maybe that’s OK. When anyone can generate hundreds of tailored applications with a few prompts, the document that once demonstrated effort and genuine interest in a position has devolved into noise.

Instead, the future of hiring may require abandoning the résumé altogether in favor of methods that AI can’t easily replicate—live problem-solving sessions, portfolio reviews, or trial work periods, just to name a few ideas people sometimes consider (whether they are good ideas or not is beyond the scope of this piece). For now, employers and job seekers remain locked in an escalating technological arms race where machines screen the output of other machines, while the humans they’re meant to serve struggle to make authentic connections in an increasingly inauthentic world.

Perhaps the endgame is robots interviewing other robots for jobs performed by robots, while humans sit on the beach drinking daiquiris and playing vintage video games. Well, one can dream.

The résumé is dying, and AI is holding the smoking gun Read More »

anthropic-releases-custom-ai-chatbot-for-classified-spy-work

Anthropic releases custom AI chatbot for classified spy work

On Thursday, Anthropic unveiled specialized AI models designed for US national security customers. The company released “Claude Gov” models that were built in response to direct feedback from government clients to handle operations such as strategic planning, intelligence analysis, and operational support. The custom models reportedly already serve US national security agencies, with access restricted to those working in classified environments.

The Claude Gov models differ from Anthropic’s consumer and enterprise offerings, also called Claude, in several ways. They reportedly handle classified material, “refuse less” when engaging with classified information, and are customized to handle intelligence and defense documents. The models also feature what Anthropic calls “enhanced proficiency” in languages and dialects critical to national security operations.

Anthropic says the new models underwent the same “safety testing” as all Claude models. The company has been pursuing government contracts as it seeks reliable revenue sources, partnering with Palantir and Amazon Web Services in November to sell AI tools to defense customers.

Anthropic is not the first company to offer specialized chatbot services for intelligence agencies. In 2024, Microsoft launched an isolated version of OpenAI’s GPT-4 for the US intelligence community after 18 months of work. That system, which operated on a special government-only network without Internet access, became available to about 10,000 individuals in the intelligence community for testing and answering questions.

Anthropic releases custom AI chatbot for classified spy work Read More »

“in-10-years,-all-bets-are-off”—anthropic-ceo-opposes-decadelong-freeze-on-state-ai-laws

“In 10 years, all bets are off”—Anthropic CEO opposes decadelong freeze on state AI laws

On Thursday, Anthropic CEO Dario Amodei argued against a proposed 10-year moratorium on state AI regulation in a New York Times opinion piece, calling the measure shortsighted and overbroad as Congress considers including it in President Trump’s tax policy bill. Anthropic makes Claude, an AI assistant similar to ChatGPT.

Amodei warned that AI is advancing too fast for such a long freeze, predicting these systems “could change the world, fundamentally, within two years; in 10 years, all bets are off.”

As we covered in May, the moratorium would prevent states from regulating AI for a decade. A bipartisan group of state attorneys general has opposed the measure, which would preempt AI laws and regulations recently passed in dozens of states.

In his op-ed piece, Amodei said the proposed moratorium aims to prevent inconsistent state laws that could burden companies or compromise America’s competitive position against China. “I am sympathetic to these concerns,” Amodei wrote. “But a 10-year moratorium is far too blunt an instrument. A.I. is advancing too head-spinningly fast.”

Instead of a blanket moratorium, Amodei proposed that the White House and Congress create a federal transparency standard requiring frontier AI developers to publicly disclose their testing policies and safety measures. Under this framework, companies working on the most capable AI models would need to publish on their websites how they test for various risks and what steps they take before release.

“Without a clear plan for a federal response, a moratorium would give us the worst of both worlds—no ability for states to act and no national policy as a backstop,” Amodei wrote.

Transparency as the middle ground

Amodei emphasized his claims for AI’s transformative potential throughout his op-ed, citing examples of pharmaceutical companies drafting clinical study reports in minutes instead of weeks and AI helping to diagnose medical conditions that might otherwise be missed. He wrote that AI “could accelerate economic growth to an extent not seen for a century, improving everyone’s quality of life,” a claim that some skeptics believe may be overhyped.

“In 10 years, all bets are off”—Anthropic CEO opposes decadelong freeze on state AI laws Read More »

openai-adds-gpt-4.1-to-chatgpt-amid-complaints-over-confusing-model-lineup

OpenAI adds GPT-4.1 to ChatGPT amid complaints over confusing model lineup

The release comes just two weeks after OpenAI made GPT-4 unavailable in ChatGPT on April 30. That earlier model, which launched in March 2023, once sparked widespread hype about AI capabilities. Compared to that hyperbolic launch, GPT-4.1’s rollout has been a fairly understated affair—probably because it’s tricky to convey the subtle differences between all of the available OpenAI models.

As if 4.1’s launch wasn’t confusing enough, the release also roughly coincides with OpenAI’s July 2025 deadline for retiring the GPT-4.5 Preview from the API, a model one AI expert called a “lemon.” Developers must migrate to other options, OpenAI says, although GPT-4.5 will remain available in ChatGPT for now.

A confusing addition to OpenAI’s model lineup

In February, OpenAI CEO Sam Altman acknowledged his company’s confusing AI model naming practices on X, writing, “We realize how complicated our model and product offerings have gotten.” He promised that a forthcoming “GPT-5” model would consolidate the o-series and GPT-series models into a unified branding structure. But the addition of GPT-4.1 to ChatGPT appears to contradict that simplification goal.

So, if you use ChatGPT, which model should you use? If you’re a developer using the models through the API, the consideration is more of a trade-off between capability, speed, and cost. But in ChatGPT, your choice might be limited more by personal taste in behavioral style and what you’d like to accomplish. Some of the “more capable” models have lower usage limits as well because they cost more for OpenAI to run.

For now, OpenAI is keeping GPT-4o as the default ChatGPT model, likely due to its general versatility, balance between speed and capability, and personable style (conditioned using reinforcement learning and a specialized system prompt). The simulated reasoning models like 03 and 04-mini-high are slower to execute but can consider analytical-style problems more systematically and perform comprehensive web research that sometimes feels genuinely useful when it surfaces relevant (non-confabulated) web links. Compared to those, OpenAI is largely positioning GPT-4.1 as a speedier AI model for coding assistance.

Just remember that all of the AI models are prone to confabulations, meaning that they tend to make up authoritative-sounding information when they encounter gaps in their trained “knowledge.” So you’ll need to double-check all of the outputs with other sources of information if you’re hoping to use these AI models to assist with an important task.

OpenAI adds GPT-4.1 to ChatGPT amid complaints over confusing model lineup Read More »

ai-use-damages-professional-reputation,-study-suggests

AI use damages professional reputation, study suggests

Using AI can be a double-edged sword, according to new research from Duke University. While generative AI tools may boost productivity for some, they might also secretly damage your professional reputation.

On Thursday, the Proceedings of the National Academy of Sciences (PNAS) published a study showing that employees who use AI tools like ChatGPT, Claude, and Gemini at work face negative judgments about their competence and motivation from colleagues and managers.

“Our findings reveal a dilemma for people considering adopting AI tools: Although AI can enhance productivity, its use carries social costs,” write researchers Jessica A. Reif, Richard P. Larrick, and Jack B. Soll of Duke’s Fuqua School of Business.

The Duke team conducted four experiments with over 4,400 participants to examine both anticipated and actual evaluations of AI tool users. Their findings, presented in a paper titled “Evidence of a social evaluation penalty for using AI,” reveal a consistent pattern of bias against those who receive help from AI.

What made this penalty particularly concerning for the researchers was its consistency across demographics. They found that the social stigma against AI use wasn’t limited to specific groups.

Fig. 1. Effect sizes for differences in expected perceptions and disclosure to others (Study 1). Note: Positive d values indicate higher values in the AI Tool condition, while negative d values indicate lower values in the AI Tool condition. N = 497. Error bars represent 95% CI. Correlations among variables range from | r |= 0.53 to 0.88.

Fig. 1 from the paper “Evidence of a social evaluation penalty for using AI.” Credit: Reif et al.

“Testing a broad range of stimuli enabled us to examine whether the target’s age, gender, or occupation qualifies the effect of receiving help from Al on these evaluations,” the authors wrote in the paper. “We found that none of these target demographic attributes influences the effect of receiving Al help on perceptions of laziness, diligence, competence, independence, or self-assuredness. This suggests that the social stigmatization of AI use is not limited to its use among particular demographic groups. The result appears to be a general one.”

The hidden social cost of AI adoption

In the first experiment conducted by the team from Duke, participants imagined using either an AI tool or a dashboard creation tool at work. It revealed that those in the AI group expected to be judged as lazier, less competent, less diligent, and more replaceable than those using conventional technology. They also reported less willingness to disclose their AI use to colleagues and managers.

The second experiment confirmed these fears were justified. When evaluating descriptions of employees, participants consistently rated those receiving AI help as lazier, less competent, less diligent, less independent, and less self-assured than those receiving similar help from non-AI sources or no help at all.

AI use damages professional reputation, study suggests Read More »

fidji-simo-joins-openai-as-new-ceo-of-applications

Fidji Simo joins OpenAI as new CEO of Applications

In the message, Altman described Simo as bringing “a rare blend of leadership, product and operational expertise” and expressed that her addition to the team makes him “even more optimistic about our future as we continue advancing toward becoming the superintelligence company.”

Simo becomes the newest high-profile female executive at OpenAI following the departure of Chief Technology Officer Mira Murati in September. Murati, who had been with the company since 2018 and helped launch ChatGPT, left alongside two other senior leaders and founded Thinking Machines Lab in February.

OpenAI’s evolving structure

The leadership addition comes as OpenAI continues to evolve beyond its origins as a research lab. In his announcement, Altman described how the company now operates in three distinct areas: as a research lab focused on artificial general intelligence (AGI), as a “global product company serving hundreds of millions of users,” and as an “infrastructure company” building systems that advance research and deliver AI tools “at unprecedented scale.”

Altman mentioned that as CEO of OpenAI, he will “continue to directly oversee success across all pillars,” including Research, Compute, and Applications, while staying “closely involved with key company decisions.”

The announcement follows recent news that OpenAI abandoned its original plan to cede control of its nonprofit branch to a for-profit entity. The company began as a nonprofit research lab in 2015 before creating a for-profit subsidiary in 2019, maintaining its original mission “to ensure artificial general intelligence benefits everyone.”

Fidji Simo joins OpenAI as new CEO of Applications Read More »

openai-scraps-controversial-plan-to-become-for-profit-after-mounting-pressure

OpenAI scraps controversial plan to become for-profit after mounting pressure

The restructuring would have also allowed OpenAI to remove the cap on returns for investors, potentially making the firm more appealing to venture capitalists, with the nonprofit arm continuing to exist but only as a minority stakeholder rather than maintaining governance control. This plan emerged as the company sought a funding round that would value it at $150 billion, which later expanded to the $40 billion round at a $300 billion valuation.

However, the new change in course follows months of mounting pressure from outside the company. In April, a group of legal scholars, AI researchers, and tech industry watchdogs openly opposed OpenAI’s plans to restructure, sending a letter to the attorneys general of California and Delaware.

Former OpenAI employees, Nobel laureates, and law professors also sent letters to state officials requesting that they halt the restructuring efforts out of safety concerns about which part of the company would be in control of hypothetical superintelligent future AI products.

“OpenAI was founded as a nonprofit, is today a nonprofit that oversees and controls the for-profit, and going forward will remain a nonprofit that oversees and controls the for-profit,” he added. “That will not change.”

Uncertainty ahead

While abandoning the restructuring that would have ended nonprofit control, OpenAI still plans to make significant changes to its corporate structure. “The for-profit LLC under the nonprofit will transition to a Public Benefit Corporation (PBC) with the same mission,” Altman explained. “Instead of our current complex capped-profit structure—which made sense when it looked like there might be one dominant AGI effort but doesn’t in a world of many great AGI companies—we are moving to a normal capital structure where everyone has stock. This is not a sale, but a change of structure to something simpler.”

But the plan may cause some uncertainty for OpenAI’s financial future. When OpenAI secured a massive $40 billion funding round in March, it came with strings attached: Japanese conglomerate SoftBank, which committed $30 billion, stipulated that it would reduce its contribution to $20 billion if OpenAI failed to restructure into a fully for-profit entity by the end of 2025.

Despite the challenges ahead, Altman expressed confidence in the path forward: “We believe this sets us up to continue to make rapid, safe progress and to put great AI in the hands of everyone.”

OpenAI scraps controversial plan to become for-profit after mounting pressure Read More »

claude’s-ai-research-mode-now-runs-for-up-to-45-minutes-before-delivering-reports

Claude’s AI research mode now runs for up to 45 minutes before delivering reports

Still, the report contained a direct quote statement from William Higinbotham that appears to combine quotes from two sources not cited in the source list. (One must always be careful with confabulated quotes in AI because even outside of this Research mode, Claude 3.7 Sonnet tends to invent plausible ones to fit a narrative.) We recently covered a study that showed AI search services confabulate sources frequently, and in this case, it appears that the sources Claude Research surfaced, while real, did not always match what is stated in the report.

There’s always room for interpretation and variation in detail, of course, but overall, Claude Research did a relatively good job crafting a report on this particular topic. Still, you’d want to dig more deeply into each source and confirm everything if you used it as the basis for serious research. You can read the full Claude-generated result as this text file, saved in markdown format. Sadly, the markdown version does not include the source URLS found in the Claude web interface.

Integrations feature

Anthropic also announced Thursday that it has broadened Claude’s data access capabilities. In addition to web search and Google Workspace integration, Claude can now search any connected application through the company’s new “Integrations” feature. The feature reminds us somewhat of OpenAI’s ChatGPT Plugins feature from March 2023 that aimed for similar connections, although the two features work differently under the hood.

These Integrations allow Claude to work with remote Model Context Protocol (MCP) servers across web and desktop applications. The MCP standard, which Anthropic introduced last November and we covered in April, connects AI applications to external tools and data sources.

At launch, Claude supports Integrations with 10 services, including Atlassian’s Jira and Confluence, Zapier, Cloudflare, Intercom, Asana, Square, Sentry, PayPal, Linear, and Plaid. The company plans to add more partners like Stripe and GitLab in the future.

Each integration aims to expand Claude’s functionality in specific ways. The Zapier integration, for instance, reportedly connects thousands of apps through pre-built automation sequences, allowing Claude to automatically pull sales data from HubSpot or prepare meeting briefs based on calendar entries. With Atlassian’s tools, Anthropic says that Claude can collaborate on product development, manage tasks, and create multiple Confluence pages and Jira work items simultaneously.

Anthropic has made its advanced Research and Integrations features available in beta for users on Max, Team, and Enterprise plans, with Pro plan access coming soon. The company has also expanded its web search feature (introduced in March) to all Claude users on paid plans globally.

Claude’s AI research mode now runs for up to 45 minutes before delivering reports Read More »

the-end-of-an-ai-that-shocked-the-world:-openai-retires-gpt-4

The end of an AI that shocked the world: OpenAI retires GPT-4

One of the most influential—and by some counts, notorious—AI models yet released will soon fade into history. OpenAI announced on April 10 that GPT-4 will be “fully replaced” by GPT-4o in ChatGPT at the end of April, bringing a public-facing end to the model that accelerated a global AI race when it launched in March 2023.

“Effective April 30, 2025, GPT-4 will be retired from ChatGPT and fully replaced by GPT-4o,” OpenAI wrote in its April 10 changelog for ChatGPT. While ChatGPT users will no longer be able to chat with the older AI model, the company added that “GPT-4 will still be available in the API,” providing some reassurance to developers who might still be using the older model for various tasks.

The retirement marks the end of an era that began on March 14, 2023, when GPT-4 demonstrated capabilities that shocked some observers: reportedly scoring at the 90th percentile on the Uniform Bar Exam, acing AP tests, and solving complex reasoning problems that stumped previous models. Its release created a wave of immense hype—and existential panic—about AI’s ability to imitate human communication and composition.

A screenshot of GPT-4's introduction to ChatGPT Plus customers from March 14, 2023.

A screenshot of GPT-4’s introduction to ChatGPT Plus customers from March 14, 2023. Credit: Benj Edwards / Ars Technica

While ChatGPT launched in November 2022 with GPT-3.5 under the hood, GPT-4 took AI language models to a new level of sophistication, and it was a massive undertaking to create. It combined data scraped from the vast corpus of human knowledge into a set of neural networks rumored to weigh in at a combined total of 1.76 trillion parameters, which are the numerical values that hold the data within the model.

Along the way, the model reportedly cost more than $100 million to train, according to comments by OpenAI CEO Sam Altman, and required vast computational resources to develop. Training the model may have involved over 20,000 high-end GPUs working in concert—an expense few organizations besides OpenAI and its primary backer, Microsoft, could afford.

Industry reactions, safety concerns, and regulatory responses

Curiously, GPT-4’s impact began before OpenAI’s official announcement. In February 2023, Microsoft integrated its own early version of the GPT-4 model into its Bing search engine, creating a chatbot that sparked controversy when it tried to convince Kevin Roose of The New York Times to leave his wife and when it “lost its mind” in response to an Ars Technica article.

The end of an AI that shocked the world: OpenAI retires GPT-4 Read More »