GPT-5 Backlash, Gemini Remembers Chats, Perplexity Chrome Bid


In this newsletter:

  • OpenAI brings back GPT-4o after GPT-5 backlash
  • Google Gemini can now remember your chats automatically
  • Perplexity makes surprise bid to take over Google Chrome

Plus, you’ll find new AI tools and this week’s top AI news headlines!

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🪄 OpenAI Brings Back GPT-4o After GPT-5 Backlash

OpenAI will no longer remove popular ChatGPT models without warning after massive user backlash when the company replaced beloved GPT-4o with GPT-5, forcing users to adapt to a completely different AI personality overnight.

What's new:

  • OpenAI brought back GPT-4o for ChatGPT Plus users after a 72-hour revolt
  • GPT-4o is now locked behind $20/month Plus subscription paywall
  • CEO Sam Altman increased usage limits to 3,000 per week for the reasoning features
  • Company admits removing 4o "was a miss" and underestimated user attachment
  • OpenAI promises advance notice before removing popular models in the future
  • Working to bring 4o's "warmth" to GPT-5 personality
  • Users complained GPT-5 felt less creative and more cautious than “4o”
  • Many users described losing 4o as "like someone died" or losing their "best friend"
  • Some users built entire workflows around different models for different tasks
  • Subscription cancellations and online petitions forced the reversal
  • Decision wasn't about costs but simplifying choices for 700M users
  • Most users only use default model and don't pick alternatives

Why it matters:

The backlash reveals how emotionally attached people become to AI personalities, treating them more like digital companions than tools. OpenAI learned that sudden changes to familiar AI behavior can feel like losing a friend.

With 700 million weekly users, OpenAI must now strike a balance between simplicity and user choice, showing how AI companies are navigating the unexpected human side of artificial intelligence adoption.

👀 Read more about the ChatGPT model controversy!

🗂️ Google Gemini Can Now Remember Your Chats Automatically

Google is updating Gemini to automatically remember your past conversations and preferences, making the AI chatbot more personalized by recalling details from previous chats without you having to prompt it each time.

What's new:

  • Automatically remembers key details and preferences from past chats
  • No longer requires prompting to recall previous conversations
  • Suggests personalized content based on chat history
  • Enabled by default on Gemini 2.5 Pro model starting today
  • Rolling out to select countries first, then expanding globally
  • Coming to Gemini 2.5 Flash model later
  • Easy toggle to turn memory feature on or off anytime
  • New "temporary chats" option for private conversations
  • Temporary chats disappear after 72 hours automatically
  • Won't use temporary chats to train AI or personalize responses
  • "Gemini Apps Activity" renamed to "Keep Activity" setting
  • Can disable memory by turning off Personal Context
  • Google uses sample uploads to improve services starting Sept 2nd

Why it matters:

This makes Gemini feel more like a personal assistant that actually knows you, remembering your interests and past discussions to give better suggestions. However, it raises privacy concerns as AI chatbots become more deeply integrated into our personal lives.

The update comes as competitors like ChatGPT face criticism for "delusional" conversations linked to memory features, forcing Google to balance personalization with safety safeguards.

👀 Read more about Google's AI memory breakthrough!

🔓 Perplexity Makes Surprise Bid to Take Over Google Chrome

AI search company Perplexity has made an unsolicited $34.5 billion bid to purchase Google Chrome, offering nearly double its own company valuation to acquire the world's most popular web browser.

What's new:

  • Perplexity submitted an unsolicited $34.5 billion offer on Tuesday
  • Bid is nearly double Perplexity's $18 billion company valuation
  • Multiple large investment funds agreed to finance the deal
  • Would invest additional $3 billion in Chrome development over two years
  • Google hasn't indicated a willingness to sell at any price
  • No court order currently requires Google to sell Chrome
  • Follows months of speculation about forced Chrome sale
  • Perplexity previously said it would buy Chrome if government forced sale
  • Startup also attempted to buy TikTok earlier this year
  • Part of broader antitrust pressure on Google's browser dominance
  • Chrome controls majority of global web browser market

Why it matters:

This bold move shows how AI companies are scrambling to control the gateway to the internet. Owning Chrome would give Perplexity direct access to billions of users' browsing habits and search behavior, potentially transforming how people discover information online.

The massive bid also highlights the intense competition between traditional search giants and AI-powered alternatives, as startups try to challenge Google's dominance in both search and web browsing.

👀 Read more about Perplexity's massive Chrome takeover bid!

My Latest LinkedIn & X/Twitter Posts:

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  • AI Animate Image: Animates photos into cinematic videos.
  • Eleven Music: Generates studio-grade songs from text prompts.
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This Week's Top AI News Headlines:

  • Consumer Safety Groups Call for FTC Probe into Grok’s “Spicy” AI Mode After AI-Generated Deepfake Videos of Taylor Swift (View Article)
  • Meta’s Flawed AI Guidelines Once Allowed Chatbots to Flirt With Kids. Company Says Those Rules Have Now Been Removed (View Article)
  • OpenAI’s ChatGPT Head Was Surprised by How Strongly People Missed GPT-4o’s Personality, Prompting its Quick Return (View Article)
  • Google Adds AI-Powered “Flight Deals” to Help Flexible Travelers Discover Cheap Trips Based on Descriptions Like “Beach Weekend With Great Food” (View Article)
  • Cohere Taps Ex-Meta AI Research Head Joëlle Pineau as First Chief AI Officer Amid $500 Million Fundraise (View Article)
  • OpenAI’s ChatGPT Leader Doesn’t Rule Out Ads. Cautiously Exploring “Commerce” Features While Subscription Revenue Surges ($12.7B Projected in 2025) (View Article)
  • Smartphone Maker HTC Enters AI Smart-Glasses Space With Vive Eagle, Featuring Voice AI, Translation, Camera, and Open-Ear Audio, Available Now in Taiwan (View Article)
  • Accessibility Tech Maker Envision and Eyewear Brand Solos Launch Ally Solos Smart Glasses to Help Blind and Low-Vision Users Read, Translate, Recognize Faces, Signs, and More, From $399 (View Article)
  • Google Photos Adds a Create Tab to Centralize AI Tools Like Photo-to-Video, Remix, Collage, Highlight Videos, and More (View Article)
  • Study Finds Doctors Became Less Accurate at Spotting Cancer Without AI After Relying on it in Colonoscopies, A Six-Point Drop in Detection Rates (View Article)
  • AI Storytelling Platform Hidden Door Lets You Co-Create Choose-Your-Own-Adventure Stories in Licensed Worlds While Keeping the Narrative Coherent (View Article)
  • Elon Musk’s xAI Threatens Lawsuit Against Apple, Accusing it of Antitrust Bias for Favoring OpenAI’s Apps in App Store Recommendations (View Article)
  • Swedish AI “Vibe Coding” Startup Lovable Aims to Reach $1B in Annual Recurring Revenue Within 12 Months After Quick Rise to $100M ARR and $1.8B Valuation (View Article)
  • India-Based Audio Platform Pocket FM Empowers Writers With CoPilot AI Tool to Speed Up Storytelling, Suggest Endings, Process Cliffhangers, Localize Content, and Boost Productivity (View Article)

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Have a wonderful week!

Andrew Bolis

AI Tips for Business Growth - Newsletter by Andrew Bolis

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