OpenAI launches GPT-5 with a rocky start
State of Play: OpenAI’s launch of GPT-5 was highly anticipated but experienced a somewhat “bumpy” rollout. While GPT-5 was introduced as a major upgrade—CEO Sam Altman claims it gives users PhD-level expertise on any topic —the initial user response was mixed. Some users found the update underwhelming, citing issues with reliability and performance that did not fully meet the high expectations set by OpenAI’s marketing and prior models.
Why it Matters: Despite its initial setbacks, GPT-5 is still OpenAI’s most advanced reasoning model yet. The launch was coordinated so that the same model powering ChatGPT also appeared immediately inside widely used platforms like Copilot and Apple Intelligence by default, reaching millions of users and setting a new baseline for integrated AI capabilities. Beyond integration, GPT-5's agent-like ability to reason through and orchestrate tools has made it more effective for multi-step tasks.
Figma completes successful IPO
State of Play: Figma, the collaborative design software company, completed one of the most highly anticipated IPOs of 2025, marking a significant event for both the tech sector and capital markets after a prolonged IPO drought. The company raised approximately $1.2 billion, initially pricing shares at $33, which represented a valuation of $19.3 billion out of the gate. Demand was extraordinary, with the IPO reportedly oversubscribed by nearly 40 times, causing the stock to soar over 250% on its debut.
Why it Matters: Figma’s public debut has been viewed as a bellwether for renewed tech IPO activity and a sign that investor appetite for high-growth SaaS and AI-driven companies remains strong. Figma’s IPO also carried broader implications for tech M&A and antitrust scrutiny. The company’s blockbuster debut was cited by FTC Chair Lina Khan. Khan argued that the successful IPO demonstrated that Figma could thrive independently, supporting the case for more aggressive antitrust enforcement in tech mergers.
"Nothing beats a Jet2 holiday" sound byte goes viral
State of Play: UK airline Jet2 is the subject of this summer’s most viral internet trend, which features a catchy audio clip from a Jet2 advertising campaign featuring British singer Jess Glynne’s 2015 hit “Hold My Hand” and a voiceover exclaiming “nothing beats a Jet2 holiday.” Users started pairing the upbeat sound with videos of vacation mishaps, travel fails, or unexpected moments, turning the ad’s original positive message into a comedic and relatable meme. The trend quickly spread, with millions of TikTok videos using the audio and celebrities joining in. Jet2 has successfully capitalized on this viral moment by sharing its own TikTok videos using the audio, engaging directly with users, and amplifying the meme’s reach.
Why it Matters: Jet2’s savvy approach not only kept Jet2 at the center of the conversation but also reinforced the brand’s image as fun, approachable, and in touch with digital culture. As a result, Jet2 saw a significant surge in online interest and search activity, turning a humorous internet meme into a powerful marketing advantage and boosting the visibility of its holiday offerings. While it would be nearly impossible for a brand to replicate such virality with a self-manufactured “trend,” Jet2 provides a case study on the value of being in on the joke.
Reddit's revenue soars amid AI and advertising push
State of Play: Reddit’s recent earnings revealed that the company is experiencing its fastest revenue growth in three years, which was largely driven by its aggressive investments in AI and advertising. The company reported $500 million in total revenue for the quarter, with a significant 84% increase in ad revenue. Reddit’s AI-powered marketing tools coupled with its data licensing deals with major players in AI, including OpenAI and Google, have played a pivotal role in this surge. Additionally, the company launched a key AI-powered feature, the Reddit Answers tool, which offers answers to user questions in a conversational interface, leveraging generative AI to find, synthesize, and deliver easy to understand answers from real posts and comments from other users.
Why it Matters: This spike in revenue for Reddit marks a turning point for the company where AI is at the core of its business strategy, fueling both user engagement and monetization. The company’s focus on AI-powered advertising and data licensing has not only delivered impressive financial results but also has positioned Reddit as a serious contender among digital platforms leveraging AI for growth and user retention. Reddit’s success has highlighted a broader industry shift for social platforms increasingly relying on AI to unlock new revenue streams, improve ad targeting, and create more personalized user experiences.
Dating safety app Tea breached, exposing 72,000 user images
State of Play: The Tea app, designed to help women share anonymous reviews about men they’ve dated as a way to flag potential safety concerns, suffered a major data breach. Hackers accessed and leaked about 72,000 images, including selfies and photo IDs that users upload for verification. The breach exposed other sensitive personal information who joined the rapidly growing platform, which had recently gained attention and fueled debates about striking a balance between women’s safety and privacy rights. The fallout has included fears of harassment and doxxing, as well as concerns surrounding how the leaked data could be misused.
Why it Matters: This breach shines a light on the growing risks associated with digital platforms that collect and store sensitive personal data. The incident has heightened scrutiny surrounding how tech companies protect user information and has raised urgent questions about privacy, data security and the responsibilities of platforms that promise safety but may inadvertently create new risks.
OpenAI announces partnership with the U.S. government
State of Play: OpenAI has announced its partnership with the U.S. General Services Administration to provide ChatGPT to federal employees at a nominal cost of $1 per agency for the next year. This move is part of a broader effort to modernize government operations and deliver better public services while also aligning with President Trump’s AI Action plan. The GSA has also added Anthropic’s Claude and Google’s Gemini models to its federal purchasing list, giving agencies more option for generative AI tools. There are privacy safeguards in place as ChatGPT will not use federal employee interactions as training data. This move comes after OpenAI executives spent months of lobbying and relationship-building with agencies like the GSA and FDA.
Why it Matters: The partnership between OpenAI and the U.S. federal government directly advances the AI Action Plan’s push to integrate AI into government. AI companies like Anthropic, xAI, and OpenAI are offering steeply discounted access to their frontier models as part of a broader effort to support modernization goals (outlined in the AI Action Plan), while demonstrating the value of their technology in public-sector workflows and building long-term relationships with federal agencies. However, this partnership also raises questions about data security, privacy and the ethical use of AI, despite OpenAI’s pledge not to use data for training.
Disney+ and Hulu plan to fully integrate
State of Play: On August 6th, Walt Disney Co. announced its plans to fully combine Hulu with Disney+ to create a unified app experience, phasing out Hulu as a standalone app. The new platform will not be available until 2026, and according to Disney CEO Bob Iger, the coupling of the two platforms will “create an impressive package of entertainment, kids programming, news and industry-leading live sports content, all in a single app.” The move intends to create a better experience for users while also reducing costs and generating more advertising revenue for Disney, allowing the company to package ad sales in a more efficient way.
Why it Matters: As more streaming platforms compete for viewers, reducing subscription fatigue by offering more content under one roof can increase Disney’s competitive advantage in the streaming world. The streaming sector has seen similar consolidations, such as Warner Bros. Discovery merging HBO Max and Discovery+. Disney’s integration of Hulu into Disney+ is a strategic response to the competitive pressures in streaming and mirrors a broader trend across industries where consolidation is used to drive growth and market strength. Additionally, this move allows Disney to consolidate their ad infrastructure, offering advertisers access to one larger, highly segmented audience, boosting Disney’s bargaining power with advertisers and allowing them to secure premium ad pricing.
Meta taps anti-DEI activist Robby Starbuck as AI advisor
State of Play: Robby Starbuck, a conservative activist known for his outspoken views against corporate diversity, equity, and inclusion (DEI) initiatives, reached a settlement with Meta after suing the company for defamation. He had alleged its AI chatbot generated false and damaging information about him. As part of the agreement, Starbuck will work with Meta’s Product Policy team as a consultant to help address and minimize political bias in Meta’s AI models and reduce the risk of “hallucinations”—instances where the AI produces made-up information. This collaboration aims to strengthen Meta’s efforts in developing responsible AI systems and tackling concerns about ideological and political bias in its technology.
Why it Matters: The settlement establishes an important precedent for how tech companies can address reputational harm caused by AI-generated content and marks a significant step forward in the ongoing debate about accountability and bias in AI. By involving external oversight in Meta’s AI development, the agreement is also a signal of the political shift we’ve seen within Big Tech over the past year.
