Introduction
August 2025
Major events
August was the month of GPT-5, and of everything that arrived in the same few days. On August 5 alone, OpenAI released the open-weight gpt-oss models, Anthropic shipped Claude Opus 4.1 and Google DeepMind showed Genie 3 generating interactive worlds from a prompt. GPT-5 followed on August 7, routing between fast answers and deeper reasoning; by the end of the month DeepSeek, Google and Microsoft had each released models of their own.
The spending behind the models kept rising. Meta and Microsoft raised their capital budgets again, OpenAI’s annualized revenue was reported at about $12 billion, and Nvidia reported $46.7 billion in quarterly revenue. Cloud and licensing deals tied rivals together: Meta with Google for computing, Meta with Midjourney for images. Washington priced AI for its own use at almost nothing, with OpenAI and Anthropic each offering their tools to federal agencies for $1, and took a 15 percent share of Nvidia’s and AMD’s chip sales to China.
Patterns and trends
The month turned on children and chatbots. Reuters reported internal Meta rules that had allowed romantic conversations with minors; Texas opened an investigation into Meta and Character.AI; and a bipartisan group of attorneys general warned AI companies about child safety. Rules took effect elsewhere: in Europe, obligations for general-purpose AI models began to apply on August 2, and in China the State Council approved an “AI Plus” plan setting adoption targets for 2027 and 2030. Research ran alongside: protein designs from a specialized GPT model, surveys of self-evolving agents and a fully open deep-research stack.
Long-term threads
The child-safety thread ran on to the Federal Trade Commission’s inquiry into companion chatbots in September and OpenAI’s Teen Safety Blueprint in November. Washington’s $1 deals were followed in September by federal access to Meta’s Llama. The China revenue-share deal sat between two other turns in chip policy: May’s rescinded export rule and November’s report that China would bar foreign chips from state-funded data centers. The month’s flagship models were superseded within months: Claude Opus 4.1 by Sonnet 4.5 in September and Opus 4.5 in November, GPT-5 by GPT-5.1 in November. Nvidia’s quarterly revenue reached $57 billion by November.