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2025-12-11 01:00:00

OpenAI is in a far less commanding position than it was following the public release of ChatGPT a few short years ago. 

Back in 2022, the sudden popularity of ChatGPT sent Google into a panic. The company was so worried about the possibility of the upstart chatbot disrupting its Search business, executives sounded a "code red" alert inside of the company and called Sergey Brin and Larry Page out of retirement to help it formulate a response to OpenAI. It then rushed out Bard, announcing its first commercial chatbot on February 6, 2023. Google's stock tanked days later when the AI incorrectly answered a question about NASA's James Webb Space Telescope during a public demo. 

But it wasn't just Google that wanted a piece of OpenAI, while the search giant sought to compete with it, others — including Microsoft and Apple — made deals with the company to bring its technology to their products and services, all the promise that AI would eventually revolutionize every facet of the economy. 

Since then, OpenAI has seen its lead against Google and much of the AI industry evaporate, culminating in a series of successive blows throughout 2025. On January 20, the same day Altman was busy rubbing shoulders with other tech oligarchs at Donald Trump’s inauguration, China’s DeepSeek quietly released its R1 chain-of-thought model. A week later, the startup's chatbot surpassed ChatGPT as the most-download free app on the US App Store. The overnight success of DeepSeek eliminated $1 trillion worth of stock market value, and almost certainly left OpenAI blindsided.

In response, the company showed a newfound urgency. In one week, for instance, OpenAI released both o3-mini and Deep Research. It even went so far as to announce the latter on a Sunday evening. But for all its new urgency, OpenAI's biggest, most important release of the year was a miss. 

It's safe to say GPT-5 hasn't lived up to anyone's expectations, including OpenAI's own. The company touted the system as smarter, faster and better than all of its previous models, but after users got their hands on it, they complained of a chatbot that made surprisingly dumb mistakes and didn't have much of a personality. For many, GPT-5 felt like a downgrade compared to the older, simpler GPT-4o. That's a position no AI company wants to be in, let alone one that has taken on as much investment as OpenAI.    

Anthropic was quick to take advantage of the weakness, signing a deal with Microsoft to bring its Claude models to Copilot 365. Previously, Microsoft depended exclusively on OpenAI for partner models in Copilot. Before the company announced the integration, reporting from The Information said Microsoft made the decision based on the strength of Anthropic's Sonnet 4.0 model, judging it "perform[ed] better in subtle but important ways" relative to OpenAI's offerings.   

However, what will likely go down as the defining moment occurred a few short weeks after OpenAI announced the conclusion of its restructuring. On November 18, Google released Gemini 3 Pro, and immediately the new model leap-frogged the competition, including GPT-5. As of the writing of this article, Google's new model is at the top of LMArena, the site where humans compare outputs from different AI systems and vote on the best one. GPT-5, by contrast, is currently ranked sixth overall, behind models from Anthropic and Elon Musk's xAI.  

According to a December 2 report from The Wall Street Journal, Sam Altman sent a companywide memo following the release of Gemini 3 Pro. Echoing the words Google used to describe the situation it found itself against OpenAI in 2023, he called for a "code red" effort to improve ChatGPT. Altman reportedly told employees there would be temporary reassignments and that the company would delay some products, all in an effort to catch up to Google and Anthropic.    

The few numbers these companies are willing to share don't paint a promising picture for OpenAI. Each month, about 800 million people use ChatGPT. On paper, that's impressive, but Google is catching up there too. In October, the company said the Gemini app had 650 million users, up from 450 million just a few months earlier in July, thanks to the popularity of its Nano Banana Pro image generator. 

More importantly, OpenAI has an inherent disadvantage against Google. For the search giant, AI may touch everything the company does now, but Gemini is just one product in an extensive portfolio that includes many other popular services. Google can fund its AI advancements with money it makes elsewhere. OpenAI cannot say the same. The company is constantly raising money to stay afloat, and according to a financial roadmap obtained by The Journal, it will need its revenue to grow to about $200 billion annually to become profitable by 2030. In November, Altman said on X the company was on track to hit above $20 billion in annualized revenue this year. 

In an effort to grow revenue, Altman and company have adopted an incredibly risky strategy. In recent months, OpenAI has signed more than $1.4 trillion worth of infrastructure deals in a bid to outscale the competition that is already beating it. Many of those agreements can only be described as circular, and I think the fears about a financial bubble are real. In the first half of 2025, investment in data centers accounted for nearly all of US GDP growth. Even if there's not a repeat of the 2008 housing market crisis or the dot-com crash, the AI boom is at the very least poised to make everyday electronics (and utilities) more expensive for regular people in the short term.

Since late October, demand for server-grade computer components, including memory and storage, has sent the price of consumer PC parts skyrocketing as manufacturers devote more of their production capacity and wafers to high-margin customers like OpenAI and Google. Since late October, the cost of most RAM kits has doubled and tripled. In November, the price of some SSDs went up by as much as 60 percent. Next year, the cost of LPDDR5X memory, which is used in both smartphones and NVIDIA servers, is expected to climb as well.  

"Be it carmakers, smartphones or consumer electronics, everyone that uses memory is facing pressure from price hikes and supply constraints in the coming year," Zhao Haijun, the co-CEO of memory manufacturer SMIC told analysts, per Bloomberg.

Gita Gopinath, former chief economist for the International Monetary Fund, recently estimated that if the AI bubble were to burst, it would wipe out $20 trillion in wealth held by American households. The Great Recession, considered the worst financial meltdown since the Great Depression, reduced US household net worth by $11.5 trillion, and it took years before for American families to rebuild their wealth to pre-recession levels.   

The modern AI bubble may have been started by ChatGPT, but given the crowded field of chatbots and LLMs, it won't necessarily pop should OpenAI go bust. With novelty and technical prowess no longer on its side though, it's now on Altman to prove in short order why his company still deserves such unprecedented levels of investment. 

2025-12-11 01:00:00

Like it or not, the checkmark has become an almost universal symbol on most social platforms, even though its exact meaning can vary significantly between services. Now, Reddit, which historically hasn't cared that much about its users' identity, is joining the club and starting to test verification for public figures on its platform.

The company is beginning "a limited alpha test" of the feature with a small "curated" group of accounts that includes journalists from major media outlets like NBC News and the Boston Globe. Businesses that are already using an "official" badge, which Reddit started testing in 2023, will also now have a grey "verified" checkmark instead of the "official" label. 

Verification has long been a thorny issue for many platforms. For users, it's at times been a source of confusion, especially on sites where verified badges only require a paid subscription. Reddit's approach, at least for now, is closer to how Twitter handled verification prior to Elon Musk's takeover of the company.

The company has handpicked the initial group who will get checkmarks indicating they have verified their identity and seems to be geared around high-visibility accounts. "This feature is designed to help redditors understand who they're engaging with in moments when verification matters, whether it’s an expert or celebrity hosting an AMA, a journalist reporting news, or a brand sharing information," Reddit explains in a blog post. "Our approach to verification is voluntary, opt-in, and explicitly not about status. It’s designed to add clarity for redditors and ease the burden on moderators who often verify users manually." 

For now, Reddit users — even notable ones — won't be able to apply for verification. But the company notes that its intention isn't to limit checkmarks to famous people only. A Reddit spokesperson tells Engadget that "our goal is that anyone who wishes to self-identify will be able to do so in the future." 

The company also notes that verification doesn't come with any exclusive perks, like increased visibility or immunity from the rules of individual subreddits. Reddit requires accounts to be in good standing and already active on the platform in order to be eligible for verification. Accounts that are marked NSFW or that "primarily engage in NSFW-tagged communities" won't be eligible. 

2025-12-11 00:38:25

Petco has accidentally exposed a whole lot of customer data and personal information, according to a report by TechCrunch. This is thanks to a security lapse involving its Vetco clinics website, forcing the company to take a portion of that site offline.

Petco has confirmed the leak and TechCrunch noted that the security lapse allowed anyone to download customer records without login information. The exposed data includes customer names, driver's license numbers, dates of birth, Social Security numbers and even financial information. It also includes customer records from visits to Vetco, like medical histories, pet names, vaccination records and other stuff like that.

This was due to an incorrect software setting that made a number of files accessible online, according to a notice filed by California’s attorney general and reported on by Mashable. The company has since corrected the setting, removed the exposed files and implemented security measures.

However, Petco hasn't said if any data was actually extracted during the security lapse or if it even has the means to suss out that kind of thing. Vetco customers should probably perform some due diligence to shore up personal security. The company is offering credit and identity monitoring services to impacted customers, but only in some states. We recommend giving Petco a call to discuss options. 

Data breaches of this sort are becoming an unfortunate part of modern life. Recent security breaches have impacted entities like AT&T, Discord, the social network Tea and the human resources company Workday, among others.

2025-12-11 00:00:36

It's become cliche to say that we live in a golden age of board games, but to paraphrase the great stoic philosopher Andy Bernard, it's great to know you're in the good old days before you've left them. Great titles are still coming out by the thousands every year, from crowd-pleasing party games to genre-bending, theme-heavy Euros. Whether the gamer in your life is looking for a mind-warping challenge, a fun evening with friends or something in-between, we've got new releases or old favorites they'll love.

The best board games to gift (and play)

Check out the rest of our gift ideas here.

2025-12-10 23:45:00

CloverPit is one of my favorite games of the year so far. Developer Panik Arcade took the formula that helped make Balatro so successful — using various tools to bend the rules of the game to help you rack up obscenely high scores — and based it around a slot machine rather than poker. It’s been a hit so far on PC, where it has sold more than a million copies since September, and on Xbox. CloverPit has been among the top 20 most-played titles on Game Pass since its surprise debut there last month. Now, the horror-tinged roguelite is venturing into new territory, as it’s coming to iOS and Android on December 17.

The mobile versions of the game are said to have a fully-optimized interface, as well as all of the post-launch updates, such as the Hard Mode that Panik Arcade recently added. CloverPit will cost $5 on mobile and it will have no microtransactions or “predatory mechanics.” That might seem surprising for a game centered around a slot machine, but CloverPit isn’t really about gambling (which the developers say they don’t like anyway). It’s about breaking the rules to tilt the odds in your favor.

The setup is pretty straightforward. You’re imprisoned in a rusty cell and you have a rapidly increasing debt to pay off. The only way to do that, and hopefully leave through the door, is to earn enough coins from the slot machine to pay what you owe. There are more than 150 items (which are called charms here) to experiment with that affect things like the number of spins, how much each symbol or pattern is worth and how many tickets you earn. Tickets are what you need to buy more charms.

Figuring out combinations of items that work well together is key to quickly scaling up the number of coins and tickets you can earn from each visit to the slot machine. Fail to pay off your debt by a deadline (i.e. after a certain number of spins) and it’s game over, as you plunge into the titular pit.

CloverPit is strange and beguiling and heaps of fun. I’ve plowed around 39 hours into it on Steam, and I’m sure it’ll take up much of my attention on my phone after it hits mobile next week. Doomspinning seems slightly healthier for my brain than doomscrolling.

2025-12-10 23:23:28

Apple’s Studio Display hasn’t been updated since it launched in 2022, but it remains one of the best monitors for the Mac-oriented, and right now you can pick one up for $230 off. This deal applies specifically to the tilt-adjustable model, which means you can’t adjust the height of the built-in stand. That might be a deal-breaker for some users, but if not, $1,368 is a near-record low.

The Studio Display was a product that Apple devotees had been asking the company to make for years. As well as being a solid 27-inch 5K LED monitor, it also packs in a variety of ports and some surprisingly good speakers. In our 80-scoring review at the time, we praised its bright and color-accurate screen, while bemoaning the fact that it isn't as smooth as Apple’s many ProMotion-equipped devices.

If you’re content with what's already on offer, this is a good deal on what has always been a very expensive luxury device, but bear in mind that there are swirling rumors of a next generation Studio Display that could arrive in 2026. Mark Gurman of Bloomberg reported earlier this year that Apple might currently have two new models in the works, though it isn’t clear if both will end up making it to retail.

Check out our coverage of the best Apple deals for more discounts, and follow @EngadgetDeals on X for the latest tech deals and buying advice.