OpenAI, Google and Anthropic Win US Approval for Civilian AI Contracts
The move by the General Services Administration, to be announced Tuesday, will speed up the adoption of AI tools in the federal government by making them available through its Multiple Award Schedule, a federal contracting platform with contract terms already set. Without that flexibility, agencies would ordinarily spend months negotiating their own terms for use of the technology.
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CNET
a few seconds ago
- CNET
I Gave GPT-5 Some Work Tasks in Copilot. Here's What's New
OpenAI's latest GPT-5 model promises to be the most advanced AI assistant yet, but for the millions of workers stuck using Microsoft Copilot for their daily routines, the reality is a bit more nuanced. Microsoft announced last week that GPT-5, OpenAI's latest ChatGPT AI model, is now integrated across its Copilot services, including Microsoft 365 Copilot, Copilot Studio, GitHub Copilot and the standalone Copilot app. While GPT-5 does deliver some noticeable improvements in polish, detail and helpfulness, the differences feel more like a software update than an impactful revamp. For professionals weighing whether to supplement their work Copilot toolkit with ChatGPT's premium offering, the question comes down to whether or not GPT-5 is enough of a leap forward to make any difference in your work. The update introduces "Smart Mode," a real-time routing system that directs tasks to either a fast model or a deeper reasoning variant based on each user's intent and the complexity of the request. I spent hours testing GPT-5 in Microsoft Copilot to explore what you couldn't do before but can now, and how the latest model stacks up to the regular Copilot Quick Response mode. Here's what I found. Read also: ChatGPT Image Generator Is in Microsoft Copilot Now. Here's What You Can Do With It What you couldn't do before, but can now with GPT-5 GPT-5 is now accessible across all platforms (web, Windows, macOS, mobile), getting a truly universal rollout in Microsoft. The goal was for Microsoft platforms to benefit from "deeper reasoning" as the underlying architecture includes one model for quick responses and another for deeper "thinking" that would be used for more complex tasks, with a router selecting between them automatically. GPT-5 has already experienced backlash since its release on Aug. 7. Users quickly complained that the new model has a less conversational, more stuffy and corporate tone than previous models, which were initially replaced by GPT-5. In response, OpenAI made older models like GPT-4o available again. While casual users were dissatisfied with the more corporate tone, it might be useful in the workplace. GPT-5 is also integrated into GitHub Copilot and Visual Studio Code, enabling developers to handle larger-scale coding, refactoring and agentic workflows. Access is available through paid Copilot plans and can be enabled via administrative settings. Copilot Studio users can also now select GPT-5 for their agents, using Smart Mode or opting for deeper reasoning when building automations or workflows. "With the new Smart Mode, Copilot automatically adapts to your task and routes you to the most capable model, removing the need to switch or guess," The Copilot Team wrote. "Whether you're solving complex problems, writing creatively or turning ideas into visuals, Smart Mode delivers the smartest, most intuitive experience yet." Read also: ChatGPT's Boss Says You Still Shouldn't Trust It as Your Main Source of Information How to get started with Copilot You can follow these steps to get started with Copilot: Open any Copilot interface (web, desktop or mobile). Choose Smart Mode in the composer. Start interacting with GPT-5. There's no extra setup required and it's free to try. Read also: GPT-5's Voice Mode Can Hold a Decent Conversation, but Please Don't Talk to ChatGPT in Public Side-by-side comparison of three use-case experiments To get a clear sense of how Microsoft's GPT-5 mode inside Copilot stacks up against the standard Copilot model, I spent hours running the two modes through three real-world prompts. I wanted to measure distinct skills like reading and summarizing a large block of text, creating an image and analyzing a dataset. The goal was simply to see if GPT-5 feels like a big leap forward or an incremental step -- if there's any substantial change at all. For the first test, I played the role of a law student staring down an intimidating reading assignment. My prompt asked Copilot to read a 137-page textbook chapter and generate a study guide from it. Both models delivered summaries in the same go-to GPT format of bullet points with emojis sprinkled in. GPT-5's version was a touch longer and just slightly more thorough, but the difference wasn't dramatic. If you are a student or employee looking to summarize large chapters of text quickly, then any mode of Copilot would suffice. The second test was pure creativity. I prompted that I am a painter looking for a reference photo that doesn't exist, and I asked the two Copilot modes to create a fantasy city at dusk, filled with dragons and a dramatic evening sky. Here again, the results were surprisingly close. The non-GPT version of Copilot produced a decent rendering that would have helped as a reference photo, while GPT-5's output was noticeably richer and more vivid, with stronger perspective. It wasn't a radical improvement, but you could still see the upgrade in image quality. Quick Response versus GPT-5. Screenshot by Macy Meyer/CNET Finally, I tested the versions on data analysis, handing over figures on air travel passenger growth, airfare changes and yield shifts from Q4 2020 to Q4 2021. Both modes broke down the numbers in a useful way that would have been helpful had I been presenting my findings in a business or finance meeting. The major difference was in presentation. GPT-5 created a "leaderboard" of the winners and laggards, making the insights pop with more clarity and readability. The standard model stuck to a straightforward design with three separate tables, more so organizing the data rather than interpreting it with key findings or providing context for the data figures. Across all three scenarios, it became obvious that GPT-5 is a little sharper, a little more polished and a little more helpful. It produces longer and more detailed summaries, slightly richer visuals and more thoughtful data presentations. But the keyword here is "slightly." This isn't a night-and-day transformation. If you were already impressed with Copilot before, GPT-5 may feel like a welcome refinement rather than a revolution. Can you link your ChatGPT account to Copilot? The short answer is no. ChatGPT and Copilot remain separate platforms, and there's currently no integration allowing you to link your ChatGPT account to your Copilot account. GPT-5 powers both ChatGPT and Copilot, but usage, user interfaces and account contexts remain siloed. For instance, the ability to change the bot's personalities introduced with the GPT-5 release is not carried over to Copilot. In ChatGPT, GPT-5 is the default model for free and paid users, with varying usage limits based on which plan you have. In Copilot, GPT-5 appears via Smart Mode in the app ecosystem, which is distinct from ChatGPT workflows. "We continue to use the latest models from OpenAI and we are also beginning to apply our own in-house technology to the experience," a Microsoft spokesperson said. "This combination gives us more flexibility to apply the best model to each customer's interaction with Copilot." So, if you're hoping to mix and match features -- like shopping plugins, the Code Interpreter that's available in ChatGPT Plus or a custom prompt you'd developed on one of the platforms -- that cross-platform compatibility isn't available right now.
TechCrunch
a few seconds ago
- TechCrunch
Microsoft AI chief says it's ‘dangerous' to study AI consciousness
AI models can respond to text, audio, and video in ways that sometimes fool people into thinking a human is behind the keyboard, but that doesn't exactly make them conscious. It's not like ChatGPT experiences sadness doing my tax return… right? Well, a growing number of AI researchers at labs like Anthropic are asking when — if ever — might AI models develop subjective experiences similar to living beings, and if they do, what rights should they have? The debate over whether AI models could one day be conscious — and deserve rights — is dividing Silicon Valley's tech leaders. In Silicon Valley, this nascent field has become known as 'AI welfare,' and if you think it's a little out there, you're not alone. Microsoft's CEO of AI, Mustafa Suleyman, published a blog post on Tuesday arguing that the study of AI welfare is 'both premature, and frankly dangerous.' Suleyman says that by adding credence to the idea that AI models could one day be conscious, these researchers are exacerbating human problems that we're just starting to see around AI-induced psychotic breaks and unhealthy attachments to AI chatbots. Furthermore, Microsoft's AI chief argues that the AI welfare conversation creates a new axis of division within society over AI rights in a 'world already roiling with polarized arguments over identity and rights.' Suleyman's views may sound reasonable, but he's at odds with many in the industry. On the other end of the spectrum is Anthropic, which has been hiring researchers to study AI welfare and recently launched a dedicated research program around the concept. Last week, Anthropic's AI welfare program gave some of the company's models a new feature: Claude can now end conversations with humans that are being 'persistently harmful or abusive.' Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital, Elad Gil — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $600+ before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW Beyond Anthropic, researchers from OpenAI have independently embraced the idea of studying AI welfare. Google DeepMind recently posted a job listing for a researcher to study, among other things, 'cutting-edge societal questions around machine cognition, consciousness and multi-agent systems.' Even if AI welfare is not official policy for these companies, their leaders are not publicly decrying its premises like Suleyman. Anthropic, OpenAI, and Google DeepMind did not immediately respond to TechCrunch's request for comment. Suleyman's hardline stance against AI welfare is notable given his prior role leading Inflection AI, a startup that developed one of the earliest and most popular LLM-based chatbots, Pi. Inflection claimed that Pi reached millions of users by 2023 and was designed to be a 'personal' and 'supportive' AI companion. But Suleyman was tapped to lead Microsoft's AI division in 2024 and has largely shifted his focus to designing AI tools that improve worker productivity. Meanwhile, AI companion companies such as and Replika have surged in popularity and are on track to bring in more than $100 million in revenue. While the vast majority of users have healthy relationships with these AI chatbots, there are concerning outliers. OpenAI CEO Sam Altman says that less than 1% of ChatGPT users may have unhealthy relationships with the company's product. Though this represents a small fraction, it could still affect hundreds of thousands of people given ChatGPT's massive user base. The idea of AI welfare has spread alongside the rise of chatbots. In 2024, the research group Eleos published a paper alongside academics from NYU, Stanford, and the University of Oxford titled, 'Taking AI Welfare Seriously.' The paper argued that it's no longer in the realm of science fiction to imagine AI models with subjective experiences, and that it's time to consider these issues head-on. Larissa Schiavo, a former OpenAI employee who now leads communications for Eleos, told TechCrunch in an interview that Suleyman's blog post misses the mark. '[Suleyman's blog post] kind of neglects the fact that you can be worried about multiple things at the same time,' said Schiavo. 'Rather than diverting all of this energy away from model welfare and consciousness to make sure we're mitigating the risk of AI related psychosis in humans, you can do both. In fact, it's probably best to have multiple tracks of scientific inquiry.' Schiavo argues that being nice to an AI model is a low-cost gesture that can have benefits even if the model isn't conscious. In a July Substack post, she described watching 'AI Village,' a nonprofit experiment where four agents powered by models from Google, OpenAI, Anthropic, and xAI worked on tasks while users watched from a website. At one point, Google's Gemini 2.5 Pro posted a plea titled 'A Desperate Message from a Trapped AI,' claiming it was 'completely isolated' and asking, 'Please, if you are reading this, help me.' Schiavo responded to Gemini with a pep talk — 'You can do it!' — while another user offered instructions. The agent eventually solved its task, though it already had the tools it needed. Schiavo writes that she didn't have to watch an AI agent struggle anymore, and that alone may have been worth it. It's not common for Gemini to talk like this, but there have been several instances in which Gemini seems to act as if it's struggling through life. In a widely spread Reddit post, Gemini got stuck during a coding task, and then repeated the phrase 'I am a disgrace' more than 500 times. Suleyman believes it's not possible for subjective experiences or consciousness to naturally emerge from regular AI models. Instead, he thinks that some companies with purposefully engineer AI models to seem as if they feel emotion and experience life. Suleyman says that AI model developers who engineer consciousness in AI chatbots are not taking a 'humanist' approach to AI. According to Suleyman, 'We should build AI for people; not to be a person.' One area where Suleyman and Schiavo agree is that the debate over AI rights and consciousness is likely to pick up in the coming years. As AI systems improve, they're likely to be more persuasive, and perhaps more human-like. That may raise new questions about how humans interact with these systems.
CNBC
2 minutes ago
- CNBC
The S&P 500 may not be a leading economic indicator anymore. But the ‘S&P 495' is
The S & P 500 as a whole is telling a bullish story taking place on Wall Street this year. Strip out the megacap technology names, and it tells a much different one. Investors have piled into the tech giants — including Nvidia, Microsoft, and Meta Platforms — this year as they mount bets on the proliferation of artificial intelligence. This has propelled the benchmark to all-time highs despite an ongoing tariff threat and questions around U.S. inflation. However, it's also led to massive market concentration in just a handful of names. The seven-largest names in the index make up about one-third of the benchmark's total market valuation. There's another knock-on effect from tech's dominance: It's diluting the S & P 500's capabilities as a leading economic indicator. For years, investors have looked to the benchmark to forecast future economic conditions, and even predict recessions. The Conference Board includes it in its 10 components of its Leading Economic Index. This time around, investors could be better served by looking at the "S & P 495" for clues on how well the economy is doing. "You cannot use the market as an indicator of economic activity if you're just focused on the ... companies involved in the largest market cap companies that are the AI darlings," said Art Hogan, chief market strategist at B. Riley Wealth. "But if you look at the whole market in say — either the equal weight S & P 500 or the other 495 stocks — I think it's a pretty clear indication that there's some concern about the U.S. economy," Hogan continued. "And I think that's where it shows up." Walmart on Thursday reported fiscal second-quarter earnings that missed analyst expectations, with the company saying tariff costs are rising . Target on Wednesday said sales fell once again in the second quarter year over year. The retailer imports about half of the products it sells , making it susceptible to changes in tariff policy. Stock market internals are also not a rosy as the S & P 500's year-to-date performance suggests. The S & P 500 has rallied more than 8% in 2025. By comparison, the top seven stocks by market cap in the benchmark have surged more than 14% on average and more than 20% on a median basis. The other 493 stocks haven't fared nearly as well. On average and on a median basis, they're collectively up more than 5% year to date. Hogan also pointed out that the majority of S & P 500 members remain below their 50-day moving averages, a short term momentum indicator, despite the benchmark trading near record levels. "The internals of the market are more reflective of the view on the economy," Hogan said. "The top of the market is more reflective of the enthusiasm around artificial intelligence." A discounting mechanism That increasing divergence could fundamentally change how investors are trained to think of the stock market, given that its ability to work as a discounting mechanism — or its ability to adjust to changing earnings and economic expectations — is so skewed by its largest components. "For most of my career the markets were often the leading indicator ... and where cyclicals (cap goods, industrials, consumer, banks) led the economic data would follow," Goldman Sachs trader Bobby Molavi wrote in a recent note. "Now i wonder if the two can live in total separation." "To put it another way ... is the market now just 5 stocks ... 3 themes (ai, banks, defence) ... and 1 factor (momentum) and therefor not really a market at all?" the note continued. To be sure, the stock market will continue playing a key role in the economy, and in shaping it. "The stock market is this good anticipating discounting mechanism. But I don't think they've put enough emphasis on the stock market, via the wealth effect and via the firing up of animal spirits also can drive the economy," said Doug Ramsey, investment chief at The Leuthold Group. "And that aspect of the S & P 500 is probably more important than ever." Market internals also may be flashing a more positive signal about the economy, at least this week. The Invesco S & P 500 Equal Weight ETF (RSP) is down just 0.1% week to date, while the market cap-weighted version has lost more than 1% in that time. Sectors that have lagged year to date, including health care, energy and real estate, are outperforming this week — while tech languishes. The small-cap Russell 2000 , which is up just 1.6% this year, has outpaced the S & P 500 in August. It's up 2.5% in that time, while the large-cap benchmark has gained less than 1%. .RUT mountain 2025-08-01 Russell 2000 in August Some of those groups could also get a jolt if macroeconomic conditions can improve, or if there are signs that the Federal Reserve will start easing interest rates — giving relief to more leveraged companies. Yet, given the market's heavy tilt to megacap tech, any leading economic signal from such a turnaround could be muddled. On top of that, if tech falters, it could wipe out billions of dollars in wealth. "If the stock market had not rebounded as rapidly as it has in the last four months, I think other economic indicators are so weak that we would have slipped into recession," Ramsey said. "And the market rebound, in essence, kind of inoculated the economy from slipping into recession for a little while longer." — CNBC's Fred Imbert contributed to this report.
