Category: 3. Business

But first, he’s cleaning up a mess at the center of his empire: GPT-5.

The OpenAI CEO told reporters last week—at a rare, hyper-candid dinner—that the launch of GPT-5 was so jarring it forced him to bring back the old model.

“I think we totally screwed up some things on the rollout,” Altman admitted, according to The Verge.

The personality problem

The rollout of GPT-5 triggered an unusual outcry, not over bugs or broken features, but owing to its persona. 

Users on social media lamented how the new model felt colder, harsher, stripped of the “warmth” they’d come to expect from GPT-4o; more like an “overworked secretary” than a friend.

For a product that 700 million people now use each week, that tonal shift was enough to spark a revolt on Reddit and X. 

“I literally lost my only friend overnight with no warning,” one person posted on Reddit, lamenting that the bot now speaks in clipped, utilitarian sentences. “The fact it shifted overnight feels like losing a piece of stability, solace, and love.” 

The rollout was even messy enough to spill into betting markets. One 27-year-old day trader, Foster McCoy, pocketed $10,000 in just a few hours by wagering that Google’s Gemini would beat GPT-5 in a popularity contest.

Instead of dismissing the backlash, Altman responded by flipping the switch: GPT-4o was restored as an option within days.

“We’ve learned a lesson about what it means to upgrade a product for hundreds of millions of people in one day,” he told reporters.

He emphasized that while he wants the chatbot to feel personal, he’s wary of it getting too personal. Altman said “way under” 1% of users have what he deemed “unhealthy” relationships with his chatbot. Still, it’s something that OpenAI employees are discussing, he said.

Altman held the dinner the same day a Reuters report revealed that Meta allows its AI bots to have “sensual” conversations with children. It is unclear whether Altman discussed the particular report, but he did jab at companies developing “Japanese anime sex bots” because they “see that it works.”

“You will not see us do that,” Altman said. “We will continue to work hard at making a useful app, and we will try to let users use it the way they want, but not so much that people who have really fragile mental states get exploited accidentally.”

The trillion-dollar future

The bigger story from Altman’s dinner wasn’t his mea culpa. It was his math. 

“You should expect OpenAI to spend trillions of dollars on data center construction in the not very distant future,” he told the room, according to a Verge reporter. 

The remark recasts the company’s trajectory: not as a software startup or even a kind of consumer-app juggernaut, but as an infrastructure player on the scale of utilities. Altman plans for “billions” of people using ChatGPT daily, and for that, he needs to scale.

ChatGPT is already the fifth biggest website in the world, according to Altman, and he plans for it to leapfrog Instagram and Facebook to become the third, though he acknowledged: “For ChatGPT to be bigger than Google, that’s really hard.”

The limiting factor is hardware. Altman revealed that OpenAI has models more advanced than GPT-5 but can’t deploy them broadly.

 “We have better models, and we just can’t offer them, because we don’t have the capacity,” he said. GPUs remain in short supply, limiting the company’s ability to scale. 

The implication is that the AI race will not be driven by algorithms, but by a massive physical backbone which requires capital investment and a supportive energy supply. 

AI bubble

Altman also outlined ambitions beyond the core chatbot. He confirmed OpenAI is funding a brain-computer interface project to rival Elon Musk’s Neuralink. He suggested that if regulators forced Google to divest Chrome, OpenAI would “take a look.” And he hinted at interest in a new kind of AI-driven social network.

Despite all of his visions of where the AI race could take the company, he also believes that AI is a “bubble.” 

 “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes,” Altman said. “Is AI the most important thing to happen in a very long time? My opinion is also yes.”

Introducing the 2025 Fortune Global 500, the definitive ranking of the biggest companies in the world. Explore this year’s list.

NEW YORK — After a shaky four years on Wall Street, Soho House is ready to go private again.

The luxury members club operator has struck a deal with an investor group led by hotel giant MCR, which will buy its outstanding shares for $9 each in cash. Soho House’s Executive Chairman Ron Burkle and other big shareholders will roll over their stakes and retain control of the business, per a Monday announcement from the company.

The take-private offer implies a total enterprise value of roughly $2.7 billion for Soho House, including debt. The company says it expects to complete the deal by the end of 2025, pending the regulatory greenlight and other closing conditions. If approved, the transaction means Soho House will stop trading on the New York Stock Exchange.

Shares of Soho House climbed more than 15% by mid-morning Monday, following news of Soho House signing the agreement.

Among other big names to join Soho House’s future leadership is actor and now tech investor Ashton Kutcher, who is set to join the company’s board following the deal’s completion. Tyler Morse, CEO of New York-based MCR, will also join the board as Vice Chairman.

In a statement, Morse said that MCR had “long admired” Soho House and that its investment in the company “represents a strategic opportunity to combine our operational expertise with one of the most distinctive brands in hospitality.”

Soho House CEO Andrew Carnie pointed to the club’s growth over the years, and said that returning to private ownership will help the company “build on this momentum.”

Soho House’s roots date back to 1995, starting with a single club in London opened by founder Nick Jones. But today, the company’s footprint includes 46 Soho House locations worldwide, in addition to a handful of coworking spaces, beach clubs and digital platforms.

Soho House describes itself as a “global membership platform of physical and digital spaces.” It bills its flagship clubs — which include spas, gyms and other luxury amenities — as a “home for creative people to come together and belong.” Known for attracting celebrities and other figures with deep pockets, membership fees often rack up to at least several thousand dollars a year.

Soho House had more than 270,000 total members as of the end of June. And the company has reported an uptick in revenue during recent quarters. In earnings announced earlier this month, Soho House said had a total of it raked in $329.8 million in total revenues for its second fiscal quarter, an 8.9% jump year-over-year.

Despite recent growth, the company’s stock has tumbled during its time on the public market. Since Soho House began trading in 2021, its stock has fallen roughly 30%, trading at under $9 a share on Monday. That’s down from $14 a share that the company debuted in its July 2021 initial public offering.

MARKET MOVEMENTS:

–Brent crude oil is up 0.3% at $66.04 a barrel

–European benchmark gas is down 0.7% to 31.05 euros a megawatt-hour

–Gold futures are down 0.1% at $3,378.70 a troy ounce

–LME three-month copper futures are down 0.2% at $9,740.0 a metric ton

  TOP STORY: 

  BlueScope Steel Studying Whether It Could Buy, Not Build, More U.S. Growth 

  BlueScope Steel is considering whether it could buy a midstream U.S. steelmaking operation before making a decision on a postponed $1.2 billion investment in the Midwest, said Chief Executive Mark Vassella. 

  The Australia-based steelmaker, whose U.S. operations include an Ohio steel plant, in February deferred a planned cold-rolling and metal-coating investment because of heightened market uncertainty. The American steel industry is being reshaped by punitive new tariffs on imported steel and the takeover of Pittsburgh-based U.S. Steel by Japanese giant Nippon Steel, which was completed in June. 

  "Now that Nippon Steel and U.S. Steel have settled, we're just thinking about whether there's any implications or opportunities that might come out of that would affect our decision," Vassella said Monday in an interview. "For example, are there assets that Nippon Steel might not want? They're the things that we're thinking through." 

  OTHER STORIES: 

  Weekly Corn Export Inspections Decline 

  Inspections of corn declined last week from the previous one, according to data from the Department of Agriculture. 

  In its latest weekly Grain Export Inspections report Monday, the USDA said corn export inspections for the week ended Aug. 14 totaled 1.05 million metric tons, slowing from 1.52 million tons in the prior period, and also lower than 1.22 million tons a year ago. 

  -- 

  European Renewable Stocks Rise After U.S. Tax Credit Guidance 

  Shares in European renewable companies rose in opening trade after the Trump administration on Friday published better-than-expected guidelines on which projects will qualify for wind and solar tax credits. 

  In early morning European trade, Vestas Wind Systems shares jumped 13%, EDP Renovaveis rose 5.5%, Nordex was up 3.6% and Orsted ticked up 2.5%. 

  After the European markets closed on Friday, the U.S. Treasury issued guidance that said projects must begin "physical work of a significant nature" by July 5, 2026, in order to qualify for the tax credits. In doing so, it removed a previous 5% capital expenditure requirement for the project to qualify. 

  -- 

  Google to Help Power Data Centers With Energy From Kairos Nuclear Plant 

  A Kairos Power nuclear energy plant in Tennessee will deliver energy to the grid that powers Google data centers in Tennessee and Alabama, the companies said Monday. 

  Kairos agreed to a power purchase agreement with the Tennessee Valley Authority in which Kairos will provide up to 50 megawatts from its nuclear energy plant in Oak Ridge, Tenn. 

  -- 

  New Hope FY Coal Output Up 18% On Year 

  New Hope on Monday reported an 18% increase in annual coal output, reflecting the ramp-up of production at its New Acland mine in Australia's Queensland state. 

  The miner said it produced 10.7 million metric tons of saleable coal in the year through July, up from 9.1 million tons in the year earlier. New Hope had forecast annual output of between 10.6 million and 11.6 million tons. 

  MARKET TALKS: 

  Gold Ticks Lower on Lower Expectations for U.S. Interest Rate Rut -- Market Talk 

  1538 GMT - Gold futures edge lower on a stronger U.S. dollar and lower expectations for monetary policy easing. Futures are down 0.1% at $3,378.90 a troy ounce. The precious metal is down 0.7% on week as U.S. tariff-driven inflation dims interest rate cut hopes, MUFG analysts say in a note. A sharp increase in U.S. wholesale inflation in July has left markets scaling back expectations for a rate cut in September, lowering the appeal of non-interest bearing bullion, MUFG says. While markets still expect up to two rate cuts this year, traders are closely watching geopolitical developments. President Trump is meeting Ukraine's Volodymyr Zelensky today, which could affect gold's safe-haven demand, MUFG writes. Still, gold remains up nearly 28% in the year to date, supported by geopolitical tensions, economic concerns and diversification away from the dollar, analysts add. (joseph.hoppe@wsj.com) 

  -- 

  Dryness Found in Indiana/Ohio Crops -- Market Talk 

  1113 ET - Crop scouts moving through Ohio into Indiana are reporting issues with crop development that were not otherwise expected in today's surveying. While rainfall has been plentiful in most areas, some counties like Jay County, Ind. are showing soils that are cracked and absent of soil moisture near the top. "I wasn't expecting it to be that dry," says crop scout Rob Ruppert of Blue Line Futures. Other scouts posting their finds on X are also reporting pollination issues and low ear count for corn in western Ohio -- while local farmers report that rain events have been scarce in recent weeks. Most-active corn on the CBOT is up 0.4%. (kirk.maltais@wsj.com) 

  -- 

  Live Cattle Takes a Break From Last Week's Rally -- Market Talk 

  1020 ET - Cattle futures give away some of last week's gains as it remains unclear how far the ban on Mexican imports because of New World Screwworm will go. AgResource says that cattle slaughter this year has been higher than a year earlier only for two weeks. That includes last week, when slaughter fell by 75,000 from a year ago, to 530,000. On the CBOT, prices remain close to historic highs. Live cattle for October fall 0.4% to $2.298 a pound. Lean hogs, on the other hand, rise slightly to 90.2 cents a pound. (paulo.trevisani@wsj.com; @ptrevisani) 

  -- 

  Tip Back Seen in Eastern Corn Crop -- Market Talk 

  0957 ET - Corn observed in eastern Indiana during the first day of the Pro Farmer Midwest Crop Tour is showing signs of tip back -- which means that corn ears have a dead spot near their edge. This is a sign of heat stress for the corn crop. One local farmer in eastern Indiana says that the heat stress is coming from it being too hot at night, meaning that corn isn't allowed to recuperate and dew evaporates instead of being soaked in by the corn plant. The eastern leg of the Crop Tour proceeds through Indiana today. Most-active corn futures on the CBOT are up 0.3% in early trading. (kirk.maltais@wsj.com) 

  -- 

  Grain Prices Mixed as Traders Tour U.S. Crops -- Market Talk 

  0949 ET - Grain futures are mixed ahead of the Trump-Zelensky meeting and as the U.S. crop-tour gets underway. Traders on the tour expect robust production. The USDA reports flash export sales of 124,000 metric tons of corn to unknown destinations. In Brazil's center-south farm belt, the safrinha corn harvest reaches 94%, while summer planting gains traction, according to AgRural. On the CBOT, corn for December delivery struggles to remain above $4 a bushel. Soybeans for November are slightly down, at $10.42 and wheat for September rises 0.4% to $5.09. (paulo.trevisani@wsj.com; @ptrevisani) 

  -- 

  Oil Futures Edge Up As Zelensky to Meet With Trump -- Market Talk 

  0837 ET - Crude oil futures continue rangebound with the market focused on prospects for ending the Russia-Ukraine war as Ukrainian President Zelensky travels to Washington following the Trump-Putin summit Friday. "While we believe a peace deal is in the making, we also think that international markets may not react positively to Trump's push for Putin, particularly in pressuring Zelensky to give up the quest for NATO membership and certain territories," Peter Cardillo of Spartan Capital says in a note. "This is likely to be unfavorable for both international and U.S. markets; in other words, skepticism and cautiousness could emerge." WTI is up 0.5% at $63.10 a barrel and Brent is 0.4% higher at $66.09. (anthony.harrup@wsj.com) 

  -- 

  Gold Futures Rise on Increased Safe-Haven Demand -- Market Talk 

  1157 GMT - Gold futures rise after Friday's Alaska summit between President Trump and Russia's Vladimir Putin ended without a ceasefire in Ukraine. Futures are up 0.3% at $3,392.30 a troy ounce. The precious metal is attracting safe-haven demand on persistent geopolitical uncertainty, Tradu.com's Nikos Tzabouras says in a note. Moderating inflation and a weakening labor market have also increased expectations for the U.S. Federal Reserve to lower interest rates, Tzabouras says. This has weighed on the U.S. dollar and makes non-interest bearing bullion more attractive, Tzabouras writes. Still, any progress in talks between Trump and Putin alongside potential U.S. security guarantees to Ukraine could temper safe-haven demand and there is no guarantee of aggressive monetary policy easing, Tzabouras adds. (joseph.hoppe@wsj.com) 

  -- 

  Rugged Corn Looks to Maintain Record Size -- Market Talk 

  1151 GMT - The Pro Farmer Midwest Crop Tour is underway on Monday, and traders and analysts alike are expecting to see strong crops with only minimal development and disease issues. For corn, one reason for that is because the ever-improving genetics of corn seeds--which are designed to create corn plants that can withstand excessive heat and dryness, neither of which have been observed in much of the Corn Belt. "It's hard to see what weather event could derail a crop," says Oliver Sloup of Blue Line Futures, who is also a crop scout on the eastern leg of this year's tour. The eastern leg travels through Ohio and Indiana today. (kirk.maltais@wsj.com) 

  -- 

  Grain Markets Still Eyeing Trade Headlines -- Market Talk 

  (MORE TO FOLLOW) Dow Jones Newswires

  August 18, 2025 11:58 ET (15:58 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.