ChatGPT’s model picker is back, and it’s complicated

In this Newsletter Today:

• ChatGPT’s model picker is back, and it’s complicated

• StubHub is once again working on its IPO that could raise $1B

• AI companion apps on track to pull in $120M in 2025

• AI Tutorial

• 5 Best AI Tools

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ChatGPT’s model picker is back, and it’s complicated

OpenAI's launch of GPT-5 aimed to simplify the user experience through auto-model routing. But, people have had mixed reactions. The traditional model picker is back. Users can now switch between “Auto,” “Fast,” and “Thinking” modes again. Paid subscribers can now access legacy models like GPT-4o, GPT-4.1, and o3 again. This gives them more choice and control.

Key Points (Expanded)

• Model Picker Returns (With Options): GPT-5 offers three selectable modes:

  Auto: the default, smart router picking models;

  Fast: optimized for speed;

  Thinking: prioritizes deeper reasoning. AI veterans can bypass Auto to choose their preferred experience. TechCrunch

• Legacy Models Reinstated: OpenAI has made GPT-4o the default option in the picker. You can also find GPT-4.1 and o3 in the settings. These were removed only days earlier.

• User Backlash Leads to Change: GPT-5 faced criticism for its early routing issues, while users preferred older models. Many voiced frustration when 4o disappeared unexpectedly.

• OpenAI's VP of ChatGPT, Nick Turley, said that speeding up model deprecation was a mistake. Going forward, retirement of models will come with advance warning.

Read more

StubHub is once again working on its IPO that could raise $1B

StubHub has revitalized its IPO plans, filing an updated S-1 that includes Q1 2025 results. The ticket resale giant plans to go public this September. With revenue rising and market interest increasing, they aim to raise about $1 billion.

Key Points (Expanded):

• IPO Resumes with Fresh Filing StubHub paused its IPO earlier this year due to market volatility and tariff concerns. Then, it refiled its S-1 in August. This filing includes the latest financial performance.

• Analysts at Renaissance Capital think "STUB" could debut on the NYSE in September. This might raise over $1 billion.

• Solid Revenue, Growing Losses In Q1 2025, StubHub’s revenue grew by 10% year-on-year to about $397.6 million. Gross merchandise sales reached $2.1 billion.

• Yet, losses widened to $35.9 million, up from $29.7 million a year prior.

• CEO Controls Voting Power Founder and CEO Eric Baker may own a small amount of Class A stock. But with his super-voting Class B shares, he keeps around 90% control over voting.

• Testing Tech IPO Waters StubHub’s IPO will test how eager investors are for tech listings in 2025. It will join others like Klarna and Databricks in the IPO line.

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AI companion apps on track to pull in $120M in 2025

AI companion apps are chatbots that act like friends, partners, or fantasy characters. They are expected to make over $120 million by the end of 2025. In just the first half of the year, they’ve made $82 million. Demand keeps rising.

Key Points (Expanded)

• Rapid Growth in Numbers Out of 337 active companion apps, 128 launched in 2025. This category made $82 million in H1. It is now expected to surpass $120 million in total revenue by year-end.

• Surging Downloads & Spending Global downloads reached 60 million in H1 2025. This is an 88% rise from last year, making total lifetime installs 220 million.

• Spending per download jumped from $0.52 in 2024 to $1.18 in 2025.

• Highly Concentrated Earnings Just the top 10% of apps generate 89% of the total revenue. About 33 apps (roughly 10%) have surpassed $1 million in lifetime consumer spending.

• What Are AI Companions? These apps let users chat with anthropomorphic characters. These characters can be romantic partners, fictional personas, or user-created avatars. They provide emotional interaction that goes beyond regular chatbots.

Read more

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