Welcome back, AI’ers!

Here’s What’s On The Menu For Today

• OpenAI's user revolt over GPT-5

• The new US ‘chip tax’ on AI sales to China

• An AI doctor for astronauts in deep space

• TikTok swaps human moderators for AI

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TODAY’S TOP STORIES

OpenAI's GPT-5 Revolt

The Recap: OpenAI's launch of GPT-5 was met with a widespread user revolt after the company removed the popular GPT-4o, forcing CEO Sam Altman into damage control and a swift reversal. The backlash highlighted a crucial new dynamic in the AI race: user loyalty can be fiercely personal.

Unpacked:

• The core of the backlash stemmed from users forming emotional bonds with GPT-4o's unique personality, which they found more supportive and encouraging than the initial, colder GPT-5.

• The launch was plagued by technical glitches, including a broken auto-switcher that made the new model seem less capable and initial low rate limits, prompting OpenAI to begin reinstating the model for paid subscribers.

• The varied performance reviews underscored that GPT-5 isn't a single entity but likely a system of multiple models, proving that user experience and perceived personality are now critical battlegrounds alongside raw intelligence.

Bottom line: This incident demonstrates that benchmark scores alone do not guarantee a successful product launch when users have built relationships with a specific AI personality. Future AI rollouts will likely prioritize not just capability, but also user trust and the subtleties of the human-AI connection.

The New "Chip Tax"

The Recap: In an unprecedented deal with the Trump administration, Nvidia and AMD will pay the U.S. government 15% of all revenue from AI chip sales to China. The agreement secures crucial export licenses for their specialized chips.

Unpacked:

• The deal could be highly lucrative for the U.S. government, potentially netting over $2.3 billion from Nvidia and AMD based on previous sales projections for the Chinese market.

• U.S. Commerce Secretary Howard Lutnick defended the move, describing the H20 as Nvidia's "[fourth best chip](https://www.cnbc.com/2025/07/15/howard-lutnick-says-china-is-only-getting-nvidias-4th-best-ai-chip.html)" and arguing it keeps China reliant on the American tech stack.

• The agreement faces sharp criticism, with some former officials and national security experts arguing the U.S. is trading away national security protections for corporate and government revenue.

Bottom line: This deal sets an unprecedented "pay-to-play" model for navigating geopolitical chip restrictions. While it reopens a multi-billion dollar market for AMD and Nvidia, it also establishes a controversial new blueprint for how business and national security interests will collide.

MY FAVORITE AI TOOLS

Relevance is my favorite AI tool right now (even more so than N8N).

Here’s why:

It’s an AI agent building tool that doesn’t require you to build out the logic using nodes. Instead, you use natural language to build out these agents. But the best thing imo is that you can build AI Agent teams.

Like agents talking to each other completing a goal until its done. It’s nuts. No other tool on the market is doing this. You have to check it out.

(Try it out →Link)

👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

➡️ Axiom AI - AI Browser automation to scrape anything on the web (link)

➡️ GummySearch - AI Reddit research (link)

Tools are sourced from our database and are not sponsored or affiliated.

MORE STORIES

An AI Doctor in Space

The Recap: Google and NASA are partnering to develop an AI medical assistant that can diagnose and treat astronauts on deep-space missions. The system is designed to operate autonomously when communication with Earth is delayed or unavailable.

Unpacked:

• The assistant, dubbed the Crew Medical Officer Digital Assistant, runs on Google’s Vertex AI and uses open-source models like Llama 3.

• In initial tests, the model achieved up to 88% accuracy in diagnosing injuries and is designed to address challenges like communication blackouts.

• NASA plans to expand the system’s capabilities with ultrasound imaging and biometric data, which could also advance remote healthcare on Earth.

Bottom line: This initiative marks a significant step toward making long-duration space travel safer and more autonomous for human crews. Its development could also produce major breakthroughs for telemedicine in isolated regions back home.

TikTok's AI Takeover

The Recap: TikTok is swapping hundreds of human content moderators for AI systems across its global offices. The move is sparking employee protests and questions about the future of platform safety.

Unpacked:

• This isn't just one office; it's a global strategy, with TikTok already cutting hundreds of jobs in the Netherlands and Malaysia to bring in automated systems.

• In Berlin, the company is cutting 150 jobs and has so far refused to negotiate with unions over severance and notice periods.

• The cuts conflict with CEO Shou Zi Chew's recent pledge to invest over $2 billion in trust and safety, the very teams that review up to 1,000 videos per day for harmful content.

Bottom line: This shift signals a major test for AI's ability to handle the complex and sensitive task of content moderation at a massive scale. The outcome will set a precedent for how tech companies balance automation, cost-cutting, and platform responsibility.

OTHER NEWS YOU MAY LIKE

Aschenbrenner raised over $1.5B for an AI-focused hedge fund, with the former OpenAI researcher reportedly posting a 47% return in the first half of 2025 by investing in AI infrastructure companies.

The White House released its "AI Action Plan," a new policy framework aimed at removing barriers to AI deployment and deterring individual states from introducing "burdensome" regulations on the technology.

David Sacks argued that the AI industry is seeing healthy competition and a clustering of model capabilities, pushing back on the narrative that the market is a winner-take-all race.

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