GPT-5.2 just launched

PLUS: Disney bets $1 billion on OpenAI

Author

Barsee
12 Dec

Together with

Howdy, it’s Barsee.

Happy Friday, AI family, and welcome to another AI Valley edition.

Today’s climb through the Valley reveals:

  • GPT-5.2 is finally here, and it’s a direct response to Google

  • Disney bets $1 billion on OpenAI and licenses its characters for use

  • ChatGPT’s "adult mode" is expected in Q1 2026

  • Google’s new "Disco" browser turns tabs into interactive apps

  • Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

ADOBE

Courtesy: Adobe

Adobe is bringing Photoshop, Express and Acrobat directly into ChatGPT for FREE. Now, more than 800 million uses can edit photos, create designs and transform PDFs in the most intuitive way possible: using their words inside the chat.

For Photoshop: simply upload the photo into ChatGPT and start typing prompts for the desired result. Remove objects, replace backgrounds, and apply creative effects to photos simply by typing what you want. Customize effects with a simple slider for the perfect blend of easy use and image control.

For Acrobat: Upload and edit PDFs, extract text and summaries, convert formats, merge or split files, compress documents, and add watermarks or page modifications.

For Express: Search Adobe Express’ vast template library to find the best one for any moment, replace images and text and animate elements, to generate content on the fly.

*This is sponsored

THROUGH THE VALLEY

Courtesy: OpenAI

OpenAI has officially launched GPT-5.2, apparently following an internal "code red" panic over how fast Google was moving. The new model lands at #2 on LMArena’s leaderboards (just behind Claude Opus 4.5), but the pressure inside OpenAI won't fully ease up until a bigger release (garlic model) drops in January. This update is squarely aimed at professionals: it handles spreadsheets, slide decks, and coding tasks much better than before. There are two versions available (“instant” and “thinking” modes), and they both feature a significantly updated knowledge cutoff of August 2025. GPT 5.1 and 5 were both Sep 30, 2024 and GPT-5 mini was May 31, 2024. Both of the 5.2 models have a 400,000 token context window and 128,000 max output tokens (no different from 5.1 or 5). OpenAI also mentioned that the model is safer for mental health discussions and that they are building an age-prediction tool to protect younger users. OpenAI has also published a new GPT-5.2 Prompting Guide.

Courtesy: OpenAI

Disney just made OpenAI its official AI partner in a massive way. They are investing $1 billion and signing a three-year deal that lets Sora users actually create videos with over 200 iconic characters from Star Wars, Marvel, and Pixar. This is huge for fans, who can now legally generate content with Mickey or Darth Vader, though actor voices are strictly off-limits. To make their allegiance clear, Disney sent Google a cease-and-desist letter on the very same day, signaling that they are picking a side in the AI wars.

AI-generated image

We finally have a rough timeline for when ChatGPT will loosen the reins. During a recent briefing, OpenAI exec Fidji Simo said an "adult mode" should launch in the first quarter of 2026. The main hold-up is safety: before they flip the switch, they need to perfect an age-prediction system to ensure kids don't access it. They are currently testing this system in a few countries to make sure it doesn't accidentally flag adults as teens. It's a necessary step as strict age verification laws start popping up globally.

Courtesy: Google

Google Labs is testing a new browser called Disco that tries to completely change how we surf the web. Instead of just opening static pages, it uses a feature called "GenTabs" (powered by Gemini 3) to turn your search into a live, interactive tool. If you're planning a trip to Japan, for example, it doesn't just give you links—it builds a custom travel planner with maps and timelines right in the tab. You don't need to code; you just ask. It’s strictly experimental for now, but the best features will likely end up in Chrome later.

TRENDING TOOLS

  • Thesys > Turn n8n workflows into intelligent AI apps - chatbots, analytics, client proposals, and more. No coding or logic changes. Try now for free *

  • Android Use > An open-source library that gives AI agents hands to control native Android apps

  • Cursor > Design directly inside your codebase. Select UI elements visually, tweak them, and let Cursor write the code for you

  • Dex > Turns your Chrome browser into a single AI workspace that remembers tabs, tasks, and context, helping you move smoothly from research to execution with an in-browser copilot

  • Virlo AI > Spots three breakout TikTok trends before they go mainstream

  • Nano Banana Elements > Create reusable styles, objects, or characters from a few images and reference them directly in your prompts

  • LegalRobot > An AI contract analysis tool that explains complex legal language and flags potential risks in documents

  • Google Disco > A Gemini-powered Chrome experiment that converts open tabs into lightweight web apps called GenTabs and lets you build custom tools using plain-language prompts

  • Stitch Prototypes > A no-code prototyping tool from Google Labs built for designers

(*) signifies sponsored tool

THINK PIECES / BRAIN BOOST

THE VALLEY GEMS

What’s trending on social today:

THAT’S ALL FOR TODAY

Thank you for reading today’s edition. That’s all for today’s issue.

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