OpenAI's GPT-5 Is Here
PLUS: ChatGPT's $1 government deal and Google's new AI coding agent, Jules
Welcome back, AI’ers!
Here’s What’s On The Menu For Today
OpenAI's GPT-5 model family leaked
ChatGPT's $1 deal for the US government
Google’s new AI coding agent, Jules
Microsoft’s self-reflecting AI framework
AI ON MY MIND
Happy Thursday,
An apparent leak on GitHub has revealed what looks to be OpenAI's next flagship model, GPT-5. The premature announcement details significant upgrades to its capabilities and an entire family of new model variants.
The leak points to four specialized versions, designed for everything from high-level logic to enterprise chat. With developers apparently able to test them already, does this accidental reveal signal a major escalation in the AI race?
By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].
-Jelani Fuel (Co-founder of Best of AI)
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TODAY’S TOP STORIES

GPT-5 Is Here
The Recap: A page on GitHub Models appears to have prematurely announced OpenAI's next flagship model, GPT-5. The leak details major capability upgrades and a full family of new model variants ahead of any official release.
Unpacked:
The new model is described as a major leap forward, with enhanced reasoning, higher-quality code generation, and powerful agentic capabilities.
The leak reveals four distinct variants designed for different use cases: a primary model for logic, a 'mini' for cost-effectiveness, a 'nano' for speed, and a 'chat' version for enterprise conversations.
Developers can apparently test the new models directly in the GitHub Models playground, comparing them against offerings from Meta, Cohere, and Microsoft.
Shortly after OpenAI made the announcement on X.
GPT-5 is here.
Rolling out to everyone starting today.
openai.com/gpt-5/
— OpenAI (@OpenAI)
5:11 PM • Aug 7, 2025
Bottom line: This accidental reveal signals a major escalation in the AI development race, immediately raising the bar for competitors. The specialized model variants show OpenAI is aiming to embed its technology across the entire professional landscape, from high-speed applications to complex enterprise workflows.

ChatGPT For $1
The Recap: In an aggressive strategic push, OpenAI is offering ChatGPT Enterprise to all U.S. federal agencies for just $1 per agency for the next year. This move aims to undercut rivals and accelerate long-term government adoption.
Unpacked:
The deal arrives just a day after the General Services Administration (GSA) added OpenAI, Google, and Anthropic to its list of approved AI vendors for federal contracts.
The offer includes unlimited use of advanced models for an additional 60-day period and access to a government user community with tailored training resources.
To address data privacy, the GSA confirmed it is taking a “cautious, security-first approach” to ensure sensitive government information remains protected.
Bottom line: OpenAI is making a huge play to become the default AI for the U.S. government, forcing competitors to either match the price or risk being left out. This move positions the company to deeply integrate into federal operations, potentially shaping public sector AI use for years to come.
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MORE STORIES

Google's New Coding Agent
The Recap: Google has moved its coding agent Jules out of beta, making the AI assistant generally available to help both developers and enthusiasts write, test, and improve code.
Unpacked:
Jules sets itself apart by running asynchronously in a virtual machine, which lets you assign complex tasks, close your laptop, and return later to the completed work.
The official release includes new features like multimodal support for visual outputs, the ability to reuse past setups, and direct GitHub Issues integration.
A free version allows for 15 individual tasks per day, while unlimited use requires a Google AI Pro or Ultra subscription.
Bottom line: Jules represents Google's significant push into agentic AI, moving beyond simple chat interfaces. This shift points to a future where AI assistants proactively manage and complete complex workflows, acting as autonomous teammates.

Microsoft's Self-Reflecting AI
The Recap: Microsoft has introduced CLIO, a new research framework that enables large language models to adapt and refine their own thought processes in real-time. This self-correction capability shows significant performance gains in complex scientific problem-solving.
Unpacked:
The new framework, named Cognitive Loop via In-situ Optimization (CLIO), allows models to adjust their internal reasoning as they work on a task.
It works by creating self-reflection and feedback loops, which lets an LLM evaluate and improve its approach without external training.
In early tests, CLIO boosted GPT-4.1's performance on challenging biomedical questions, demonstrating its potential for high-stakes applications.
Bottom line: This framework pushes AI from simply executing tasks to actively improving its own methods during execution. Such self-adapting models could soon tackle specialized scientific and technical challenges with greater accuracy and autonomy.
OTHER NEWS YOU MAY LIKE
Universal Pictures warned it will sue tech companies that use its films for AI training, adding explicit legal threats to the credits of its new movies.
Google committed $1 billion over three years to support AI training in higher education, providing free access to its AI Pro plan for college students in the U.S. and four other countries.
The Browser Company launched a $20/month Pro plan for its AI-native browser, Dia, introducing its first subscription model to monetize the browser's advanced AI features.
xAI stunned competitors in Google's AI chess tournament, with its Grok 4 model demonstrating impressive strategic play despite not being specifically trained on the game.
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