GPT-5 just dropped...

and Musk’s mad 😏

August 08, 2025

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What we’ll cover today:

🚀 GPT-5 arrives, but Musk says Grok is still smarter

🏠 Airbnb’s CEO explains why AI won’t replace Google (yet)

⚖️ xAI’s legal chief exits after a whirlwind year

📢 Musk plans to sneak ads into Grok’s answers

  • Musk’s claim on performance: After GPT‑5 launched, Elon Musk said xAI’s Grok 4 Heavy still outperforms GPT‑5 in ChatGPT and called it “the most intelligent model in the world.” These are Musk’s assertions, not independent evaluations. [Read Full Story]

  • Benchmark snapshot: Musk added that Grok 4 Thinking ranks above GPT‑5 High on the ARC‑AGI 2 leaderboard, a test focused on abstract reasoning and problem solving.

  • Roadmap: Grok 5 is slated “before the end of this year.” Musk described it as “crushingly good,” signaling a rapid cadence on xAI’s model upgrades.

  • OpenAI has released GPT-5, its first “unified” model that combines deep reasoning with fast responses, moving ChatGPT closer to being a true task-completing agent. [Read Full Story]

  • The model performs strongly in coding, science, and health benchmarks, but still trails Grok 4 Heavy in some reasoning tests.

  • Hallucination rates have dropped significantly, improving reliability for high-stakes use cases like healthcare.

  • GPT-5 is now the default for free users, a strategic move to drive mass adoption and user lock-in before competitors catch up.

Will you switch to using GPT-5 as your main AI tool now that it’s available for free?

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  • Brian Chesky says AI chatbots are not ready to replace search, as the models themselves are not proprietary and can be accessed by anyone via APIs. [Read Full Story]

  • He believes the competitive edge will come from tuning models and building purpose-specific interfaces.

  • Airbnb’s AI support agent in the U.S. has cut human contact rates by 15 percent, demonstrating operational efficiency gains.

  • Robert Keele is leaving xAI after just over a year, citing family priorities and differences in worldview with Elon Musk. [Read Full Story]

  • His tenure coincided with major milestones, including a $6 billion Series B raise and the acquisition of X.

  • Lily Lim, a former NASA engineer turned privacy and IP lawyer, will take over the role.

  • The departure fits a broader pattern of senior turnover across Musk’s companies.

  • Elon Musk plans to insert paid suggestions directly into Grok’s responses to monetise the chatbot. [Read Full Story]

  • Advertisers will be able to target users at the exact moment they seek specific solutions.

  • xAI technology will be used to improve ad targeting across X’s platform.

  • The move aims to counter falling ad revenue and offset GPU costs.

Would you still use an AI chatbot if its answers included paid ads?

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