TL;DR

OpenAI to launch GPT-5 in August; AMD hikes AI chip prices; Z.ai debuts open-source GLM-4.5.

Highlights

• OpenAI plans to launch GPT-5 in early August, with internal tests showing strong gains in software engineering tasks; Sam Altman warns of biothreat risks and regulatory gaps 1.
• Microsoft is negotiating to extend its access to OpenAI models post-AGI milestone, seeking a larger equity stake and continued Azure/Copilot integration 2.
• AMD raised MI350 AI accelerator pricing by $10,000 to $25,000, narrowing the gap with Nvidia ; both AMD and Nvidia shares hit record highs amid strong AI chip demand 3.
• Nvidia reinstated a 300,000-unit H20 chip order at TSMC to meet renewed Chinese demand; analysts raised Nvidia price targets 4.
• Z.ai (formerly Zhipu) released open-source GLM-4.5 models with aggressive pricing and open weights, aiming to undercut Western LLM providers 5.
• Microsoft embedded Copilot AI directly into Edge browser as a free trial, intensifying competition in AI-powered web tools 6.
• xAI launched a beta “Imagine” feature for video generation in the Grok app, expanding into multimodal generative AI 7.
• The Pentagon is testing in-house AI to reduce reliance on Palantir; Microsoft is expanding its AI suite to target government and enterprise contracts 8.
• Anthropic will introduce weekly usage caps for Claude Pro and Max subscriptions on August 28, citing overuse and reselling 9.
• Fireworks AI is seeking a $4 billion valuation in new funding, up 7x YoY, driven by demand for GPU infrastructure for open-source LLMs 10.
• Shanghai WAIC showcased 60 humanoid robots and announced a global AI governance plan, with a focus on open standards and international cooperation 11.
• Waymo will launch a Dallas robotaxi service in 2026 via a partnership with Avis , expanding its commercial AV network 12.
• Google added AI-powered store summaries to Chrome in the US and expanded AI Mode in UK mobile search, removing outbound links in search results 13.
• OpenAI introduced a “Think Longer” tool in ChatGPT for more detailed responses, potentially tied to GPT-5 and future subscription tiers 14.
• Cadence Design Systems exceeded Q2 estimates and raised its 2025 outlook, citing AI-driven demand for chip-design software 15.

Commentary

The upcoming launch of OpenAI's GPT-5 is set to intensify competition in enterprise AI, particularly in software engineering and developer tooling 1. Altman's public comments on biothreat risks and the internal "High" biological capability rating for the new ChatGPT Agent highlight growing safety and regulatory concerns, which may prompt increased scrutiny from policymakers 1. Meanwhile, Microsoft ’s negotiations to secure long-term access to OpenAI models—even after an AGI declaration—underscore the strategic value of exclusive model partnerships as the industry approaches new capability milestones 2.

On the hardware side, AMD ’s price hike for the MI350 accelerator signals rising confidence in its competitiveness with Nvidia , as both firms see record demand and share prices 3. Nvidia ’s reinstated H20 order for the Chinese market, despite ongoing export controls, demonstrates persistent demand for high-performance AI chips globally 4. The surge in valuation for infrastructure providers like Fireworks AI further reflects the ongoing buildout of GPU-backed LLM hosting, especially for open-source models 10.

China’s Z.ai is ramping up pressure on Western LLM vendors by launching open-source models with aggressive pricing and compliance with US export restrictions, enabling self-hosting and fine-tuning for enterprises 5. The Shanghai WAIC’s emphasis on humanoid robotics and global governance frameworks signals China’s intent to shape both the technical and regulatory landscape, while also accelerating embodied AI commercialization 11.

On the application front, Microsoft , Google , and xAI are pushing new AI-native features into browsers, search, and chat interfaces, aiming to lock in user engagement 613. Anthropic’s new usage caps reflect ongoing compute constraints and the need to manage heavy users and resellers 9. The Pentagon’s evaluation of in-house AI and Microsoft ’s expanded enterprise AI suite highlight intensifying competition for government and corporate contracts, with buyers seeking to avoid vendor lock-in 8.