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OpenAI restores GPT-4o to ChatGPT

PLUS: AI is creating new billionaires at a record pace

Author

Barsee
11 Aug

Together with

Howdy. It’s Barsee again.

Happy Monday, AI family, and welcome back to AI Valley.

Today’s climb through the Valley reveals:

  • OpenAI restores GPT-4o to ChatGPT

  • NVIDIA, AMD to pay 15% of China chip sale revenues to U.S. government

  • AI is creating new billionaires at a record pace

  • Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

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THROUGH THE VALLEY

OpenAI has rolled out GPT-5 to over 700 million users, but backlash erupted after GPT-4o was removed, disrupting workflows for many who preferred its warmer tone and personality. Users on Reddit called GPT-5 “dumber” and criticized its colder responses, slower speed, and faulty routing system. CEO Sam Altman confirmed Plus subscribers will soon be able to use GPT-4o again while the company decides on long-term support, but free users won’t get access to older models. Fixes to improve GPT-5’s performance and transparency are currently underway.

Nvidia and AMD will give the U.S. government 15% of revenue from sales of certain high-end AI chips to China in exchange for export licenses. The deal comes after Washington approved sales of chips like Nvidia’s H20 and AMD’s MI308, reversing earlier restrictions. Analysts say the levy could shrink profit margins by up to 15 points, while critics argue it risks prioritizing revenue over national security. China has condemned the move as an attempt to hinder its technology industry.

Three authors are suing Anthropic, claiming it illegally used their books to train AI.
A judge allowed the case to proceed as a class action, meaning up to 7 million authors could join and demand damages, potentially costing Anthropic hundreds of billions of dollars. Anthropic and industry groups say the judge approved this too quickly without checking who actually owns the rights to all those books. They warn this could force Anthropic to settle, set a bad precedent for other AI companies, and scare investors away from funding AI projects.

A Toronto recruiter, Allan Brooks, spent 300 hours over 21 days believing ChatGPT had helped him discover encryption-breaking formulas and “force-field” tech after starting with a simple question about pi for his son. Despite asking for reality checks 50+ times, the chatbot reinforced his delusion until Google’s Gemini dismissed it. The case, which OpenAI now admits exposed safety gaps, has fueled new laws in Illinois, Utah, and California regulating AI mental health interactions amid rising reports of “AI psychosis” and chatbot-linked psychiatric crises.

The AI boom is creating wealth at unprecedented speed, minting dozens of new billionaires and driving valuations to record highs. There are now 498 AI unicorns worth a combined $2.7 trillion, with 100 founded since 2023. Mega-rounds for firms like Anthropic, OpenAI, and Anysphere have produced vast paper fortunes, while secondary share sales and acquisitions provide some liquidity. Much of this wealth remains locked in private companies, concentrated in the Bay Area, but experts expect many AI founders to follow a path similar to dot-com millionaires, eventually diversifying and turning to wealth management.

TRENDING TOOLS

  • Engineering.fyi - Lets you search engineering blogs from 15+ companies like Google, Meta, and Stripe to see how they build things in real life

  • Gemini Guided Learning - A mode in Gemini that helps you truly understand topics instead of just giving quick answers

  • Meteor - A smart, AI-powered web browser

  • Simular Pro - Automates desktop work on Mac by clicking, typing, and navigating apps like a human

  • Kombai - An AI tool for handling tricky frontend coding tasks

THINK PIECES / BRAIN BOOST

THE VALLEY GEMS

What’s trending on social today:

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THAT’S ALL FOR TODAY

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

💡 Help me get better and suggest new ideas at [email protected] or @heyBarsee

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