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. 

This article originally appeared on Engadget at https://www.engadget.com/ai/openais-house-of-cards-seems-primed-to-collapse-170000900.html?src=rss

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Back in October, OpenAI announced apps like Spotify and Canva would be accessible in ChatGPT. At the time, the company said more software was on the way, and now one of the most popular professional applications is available through the chatbot.    

Starting today, you can access Photoshop, Acrobat and Adobe Express inside of ChatGPT. All the apps are free to use through OpenAI’s website, though before you can begin generating PDFs and illustrations using Acrobat and Adobe Express, you'll need to sign into your Adobe account. To use any of the apps in ChatGPT, either name them in your prompt or select them from the plus menu.

Of the three apps, the way OpenAI's chatbot connects to Photoshop is probably the most interesting. Depending on the prompt, the interface will change to display the sliders most relevant to your request. For example, if you want to brighten an image, you'll see one slider allowing you to adjust the exposure, alongside other ones for the shadows and highlights. By comparison, if you want to add an effect to an image, ChatGPT might display options related to dithering and tri-tone, among others. 

What's interesting about all this is the way ChatGPT is interacting with Adobe's tools, through an MCP server, to offer a slice of the company's apps. I don't know about you, but I’ve always found Adobe software to be far too complicated, with often one too many ways to accomplish the same task. Granted, what I saw was a hands-off demo, but the routing Adobe created worked well. 

Adobe

"We build the Lego blocks, which are the MCP tools, and we create detailed instructions, and then ChatGPT figures out what it wants to do," Aubrey Cattell, vice-president of developer platform and partner ecosystem at Adobe, explains. "Sometimes it does what we want it, and sometimes it doesn't. That's the nature of it being non-deterministic, and we're continuing to hone as much as we can from users' intent and natural language to give them the result that they're looking for."

Of course, if you ever want more control, the web versions of Photoshop, Acrobat and Adobe Express are a click away.         

For OpenAI, this is easily the biggest coup to date of its push to reshape ChatGPT into an operating system for all the apps its more than 800 million users depend on daily. For Adobe, it feels like the company is partnering with an entity out to eat its lunch. After all, OpenAI offers its own image generation. However, Cattell said Adobe doesn't see it that way. 

"A couple weeks back, OpenAI dropped Apps SDK as a new paradigm for accessing ChatGPT, we saw there was a natural fit in the work we were doing with our applications," he said. "Essentially, they gave us an operating system we were able to leverage to bring our applications to their surface. There's a lot of natural affinity there between the workflows OpenAI is trying to enable and Adobe's best in class capabilities."  

Cattell promised Adobe would continue to explore what it could offer inside of ChatGPT, but added the company's apps will continue to be the place users can go if they want more power, precision and control.

This article originally appeared on Engadget at https://www.engadget.com/ai/adobe-brings-photoshop-acrobat-and-adobe-express-to-chatgpt-130000389.html?src=rss

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When someone asks me for gadget buying advice, I normally tell them to stick with their current device. In 2025, most new tech products aren't a worthwhile upgrade over even something that was released a few years ago — and with the price of everything going up, that new iPhone can wait. But things aren't normal right now. 

On December 3, The Wall Street Journal reported memory manufacturer Micron would wind down Crucial, its consumer business, to focus on components for the AI industry. The PC I'm writing this article on has an SSD and RAM from Crucial. Overnight, Micron decided to end a business it spent decades building, and from a certain perspective, I guess it makes sense. In recent months, OpenAI has signed more than $1.4 trillion worth of infrastructure deals, creating unprecedented demand for server-grade solid-state storage and RAM. 

To meet the moment, manufacturers have been allocating more of their production capacity and wafers to high-margin commercial customers. For consumers, the result has been skyrocketing RAM prices, with some DDR5 kits now costing as much as two or three times as much as they did a couple of months ago. Recent analysis from TrendForce shows the price of some consumer-grade SSDs increased between 20 and 60 percent in November for the same reason. Then there's LPDDR5X memory, which is used in both smartphones and NVIDIA's Grace Blackwell and Vera Rubin platforms. In 2026, it's expected to increase in price as well. The demand for AI infrastructure is such that all consumer electronics may cost more in the coming months.

That gets me to the purpose of this article. If you've been thinking about upgrading to a new graphics card, I would recommend you buy one sooner rather than later. The AI boom came for RAM first, and there are already signs it will come for GPU pricing next. A recent report suggests AMD is considering raising the MSRP of its 8GB models by $20 and 16GB models by $40 due to the price of GDDR6 memory. NVIDIA, meanwhile, is rumored to have recently told its board partners it would no longer supply them with VRAM for their cards.     

Neither NVIDIA nor AMD responded to comment requests from Engadget requesting they share how they plan to work with their board partners to ensure GPU prices remain stable. NVIDIA also did not comment on reports the company will stop providing VRAM to its board partners. 

Separate from the memory shortage, neither NVIDIA nor AMD are expected to release new GPUs soon. According to recent rumors, the earliest a Super refresh of the Blackwell line could arrive is sometime in the middle of 2026 — not at CES in January as the 40-series Super cards did in 2024. The memory crunch could complicate things there too, since the company has typically relied on more and faster VRAM to offer better performance on its Super cards. With 50-series Super GPUs, it might not be the case that NVIDIA announces them at the same MSRP as their non-Super predecessors, which was the case with the 40-series. 

As for AMD, the company debuted its RDNA 4 cards at the start of the year. We know it's already working on RDNA 5, and if a recent chat with Sony's Mark Cerny is any indication, the new architecture will be a major step change for AMD. However, right now rumors indicate the earliest RDNA 5 could arrive is sometime in 2027.

In other words, with nothing new on the horizon and pricing of existing stock likely to increase, there might be only a short window where you can get a new GPU at a reasonable price. It's impossible to predict the future, but if you're in need of an upgrade and have the means to purchase, there might not be a better opportunity before the end of 2026.  

Recommendations

The recommendations in Engadget's recent GPU guide are still as relevant today as they were a few months ago. Once again, the best advice I can give is to buy a card with at least 12GB of VRAM, and preferably 16GB if your budget allows for it. Unless you mostly plan to play older games on a 1080p monitor, it's not worth considering a model with 8GB of VRAM — it won't last you long enough to warrant the purchase price. 

Our recommendations are grouped from most affordable to most expensive. Where possible, I've tried to find options from both Newegg and Amazon. You won't find any high-end picks like the RTX 5080 since if you can afford that card, this guide isn't for you.  

Intel Arc B580

Devindra Hardawar for Engadget

For those on a tight budget, I would start and end my search with the Intel Arc B580. Newegg has models from ASRock and Onix at or under the card's $250 MSRP. I can't speak to the quality of ONIX cards, but ASRock is well-regarded. Over on Amazon, you can find the B580 for $300. With Intel cards you sometimes need to put up with odd driver issues, but as far as budget options go, the B580 offers value that's hard to beat. The one thing about budget cards like the B580 is they’re likely to face the most pricing pressure from the memory crunch due to the smaller margins manufacturers are making on them.   

NVIDIA RTX 5060 Ti 16GB

Devindra Hardawar for Engadget

If you have more than $250 to spend on a GPU, the RTX 5060 Ti is the GPU to buy. Avoid the 8GB model and go straight for the 16GB variant. NVIDIA announced the 5060 Ti at an MSRP of $429, and luckily as of the writing of this article, you can still find one close to that price.

Newegg, for instance, is selling the MSI Ventus Black Plus version of the card for $440. Amazon has the silver colorway of that same GPU listed for $460 currently. The retailer also has models from Gigabyte and Zotac in and around that same price. 

If I had to pick between the 5060 Ti and 5070, which NVIDIA only offers with 12GB of VRAM, I would pick the former. The 5060 Ti is a safer bet, and offers nearly as much performance, particularly in games that include ray tracing as an option.    

AMD Radeon RX 9070 and RX 9070 XT  

Devindra Hardawar for Engadget

For a mid-range option, the Radeon RX 9070 and 9070 XT offer excellent value. Of the two cards, the 9070 is the better purchase for most people due to its less demanding power requirements, but if you got a PSU that can handle the 9070 XT, go for it. 

Right now, Newegg has a few 9070 models from ASRock and Sapphire just under the card's $549 MSRP. My friend recently bought the Sapphire card linked above, and has had nothing but good things to say about it. You'll pay more going through Amazon, but the company has a couple of options around $600 from XFX and Gigabyte. 

When it comes to the 9070 XT, Newegg has an ASRock model priced right at the card's $599 MSRP. Many of the other options from Sapphire and XFX are unfortunately priced between $650 and $700. The same is true on Amazon, where the cheapest model I could find was $630.   

NVIDIA RTX 5070 Ti

Devindra Hardawar for Engadget

For our final recommendation, consider the RTX 5070 Ti. It's a great option if you want to play games at 4K for less than what the 5080 and 5090 cost. Newegg has MSI and Zotac models on sale for $750, the card's recommended price. There are also a handful of other options from ASUS and Gigabyte that are just over $800. Amazon, meanwhile, is selling one Gigabyte variant for $749. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/pc/the-ai-boom-could-soon-send-gpu-prices-soaring-so-nows-a-good-time-to-buy-one-153000063.html?src=rss

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