This Week in AI: GPT-5 Ships, 4o Pulled Back, Grok Imagine Goes Social

1. 0:00 – 0:24

   Introduction & This Week's Topics

   1. JMJustine Moore0:00

      Welcome back to This Week in Consumer. I'm Justine.

   2. OMOlivia Moore0:03

      I'm Olivia.

   3. JMJustine Moore0:04

      And we have a bunch of fun topics we wanna cover this week, starting in the creative tools ecosystem with Grok Imagine, and then we're also gonna talk about Genie 3 and the ElevenLabs music model.

   4. OMOlivia Moore0:16

      And then we'll cover GPT-5 and the deprecation of GPT-4.0, and we'll cover our new vibe coding thesis.

   5. JMJustine Moore0:23

      So this

2. 0:24 – 4:48

   Grok Imagine: Social AI Image & Video Generation

   1. JMJustine Moore0:24

      week we are going to start with Grok, which has had a bunch of big updates, um, over the last month or so I'd say. So obviously Grok 4 came out.

   2. OMOlivia Moore0:32

      Yeah.

   3. JMJustine Moore0:32

      The Grok companions caused a huge stir, uh, particularly Annie and Valentine. Um, but I think more recently what's been really interesting is all of the image and video generation features on Grok Imagine.

   4. OMOlivia Moore0:44

      Yeah. So Grok released an image and video generation model called Imagine, which is offered standalone through the Grok app, and they're also bringing it to the web, and it's now embedded into the core X app as well, which is really exciting.

   5. JMJustine Moore0:56

      Yeah, I think that's one of the things that's really unique about it. I would say it's not the most powerful kind of image or video generation model that exists. Elon has tweeted a bunch about how they're training a much bigger model. Um, but I think what's really cool about it is it's sort of one of the first really truly social kind of forays-

   6. OMOlivia Moore1:15

      Yeah

   7. JMJustine Moore1:15

      ... into AI image and video generation. Um, and, and what you mean by it being integrated in, into the X app is, like, now when you post a photo on X, you can, like, long click and press and immediately turn it into a video-

   8. OMOlivia Moore1:31

      Yeah

   9. JMJustine Moore1:31

      ... animated in the Grok app.

   10. OMOlivia Moore1:32

       Or even if you see someone else's photo posted on X-

   11. JMJustine Moore1:34

       Yes

   12. OMOlivia Moore1:34

       ... you can turn it into a video or also edit the image with Grok, which is really exciting.

   13. JMJustine Moore1:39

       Totally.

   14. OMOlivia Moore1:40

       I think one of the coolest things about Grok Imagine, to your point, it's not the f- most powerful model. It's not Veo 3.

   15. JMJustine Moore1:46

       Yep.

   16. OMOlivia Moore1:46

       Uh, on video I would say the audio generation is okay, but not great.

   17. JMJustine Moore1:50

       Yep.

   18. OMOlivia Moore1:50

       But it's fast.

   19. JMJustine Moore1:51

       So fast.

   20. OMOlivia Moore1:52

       Which I think for a lot of people has been kind of the real barrier to-

   21. JMJustine Moore1:56

       Yeah

   22. OMOlivia Moore1:56

       ... doing image and video generation more seriously-

   23. JMJustine Moore1:58

       Yeah

   24. OMOlivia Moore1:58

       ... is you put in a prompt, you press go, and then sometimes you're waiting 30, 60, 90 seconds for a generation.

   25. JMJustine Moore2:04

       Yeah, often minutes, honestly-

   26. OMOlivia Moore2:05

       Yeah

   27. JMJustine Moore2:05

       ... for a generation.

   28. OMOlivia Moore2:06

       And Grok images are basically instant.

   29. JMJustine Moore2:09

       Yes.

   30. OMOlivia Moore2:09

       And the videos are pretty fast as well.
3. 4:48 – 5:36

   GPT-5 Release & GPT-4 Deprecation

   1. OMOlivia Moore4:48

      other big model news of this week, which, uh, is not just big for consumer but for pretty much all of AI, was the GPT-5 release.

   2. JMJustine Moore4:55

      Yes.

   3. OMOlivia Moore4:56

      And, and the corresponding deprecation of GPT-4.0-

   4. JMJustine Moore4:59

      Yes

   5. OMOlivia Moore4:59

      ... which I think ended up being even bigger [laughs] news in, in consumer land specifically.

   6. JMJustine Moore5:04

      Yeah. This was, this one was sort of fascinating, 'cause obviously it's been a while since OpenAI had had a major LLM release-

   7. OMOlivia Moore5:10

      Yep

   8. JMJustine Moore5:10

      ... since GPT-4, and so people were, like, very eagerly awaiting GPT-5. But yeah, as soon as I got access to GPT-5, I wanted to compare the outputs to GPT-4, and I immediately noticed GPT-4 was gone.

   9. OMOlivia Moore5:24

      Yeah. And so how are people... 'Cause I've seen a lot of posts of people kind of up in arms about 4.0-

   10. JMJustine Moore5:29

       Yeah

   11. OMOlivia Moore5:29

       ... disappearing. How would you describe kind of the main differences between the models, at least how they're manifesting in user experiences?

4. 5:36 – 9:13

   Comparing GPT-5 and GPT-4: Coding vs. Personality

   1. JMJustine Moore5:36

      Yeah. So I've talked to a bunch of folks about this. I think kind of a, a, a widespread conclusion is GPT-5 is really good at, um, especially, like, front-end code.

   2. OMOlivia Moore5:46

      Yep.

   3. JMJustine Moore5:46

      Um, I think a lot of the model companies are really focusing on coding-

   4. OMOlivia Moore5:50

      Yeah

   5. JMJustine Moore5:50

      ... as a major use case, a major driver of economic value, something they can be really good at. And you can tell-

   6. OMOlivia Moore5:56

      Yeah

   7. JMJustine Moore5:56

      ... in, in the results from GPT-5. It's, it's much better.

   8. OMOlivia Moore5:57

      And they emphasize it in the live stream pretty significantly.

   9. JMJustine Moore6:00

      Totally.

   10. OMOlivia Moore6:00

       Yeah.

   11. JMJustine Moore6:00

       And you can see from the examples people use, it's much better at generating things, it's much better at debugging, et cetera. But for, like, a lot of consumers aren't using it for code.

   12. OMOlivia Moore6:08

       Yeah.

   13. JMJustine Moore6:08

       A lot of consumers just wanna chat with it, and there's a bunch of examples of how it's a lot less, um, expressive-

   14. OMOlivia Moore6:16

       Yeah

   15. JMJustine Moore6:16

       ... emotional, and fun. Like, it doesn't really use exclamation points.

   16. OMOlivia Moore6:20

       [laughs]

   17. JMJustine Moore6:20

       It doesn't really use emojis. It doesn't send things in all caps like it used to.

   18. OMOlivia Moore6:24

       It doesn't do the classic 4.0, "It's not just good, it's great."

   19. JMJustine Moore6:27

       Yes, exactly. And I, I think there are kinda two separate issues here. So one is the sort of, like, glazing, excessive validation.

   20. OMOlivia Moore6:35

       Yes.

   21. JMJustine Moore6:35

       Like, it said, like, "You're the best. You should totally do that. That's the best decision," for, like, everything you said, even if it was ridiculous, which is, like, a problem that I, I think I'm glad they're working on and-

   22. OMOlivia Moore6:45

       Yes

   23. JMJustine Moore6:45

       ... and getting rid of. 'Cause let alone, like, everyone's concerns about, like, GPT psychosis or whatever, um, you just can't trust something that always-

   24. OMOlivia Moore6:52

       Yeah

   25. JMJustine Moore6:52

       ... tells you you're right.The second thing is, um, does it just have, like, a fun and engaging, uh, and more casual human-feeling personality?

   26. OMOlivia Moore7:02

       Yeah

   27. JMJustine Moore7:03

       And I think that actually maybe took a step back-

   28. OMOlivia Moore7:05

       I agree

   29. JMJustine Moore7:05

       ... from GPT-4.0 to GPT-5.

   30. OMOlivia Moore7:08

       Yeah
5. 9:13 – 12:29

   AI for Mental Health: Illinois Law & Industry Impact

   1. OMOlivia Moore9:13

      Yeah. I agree. I do wanna spend 30 seconds on that mental health and, and health overall use case, though.

   2. JMJustine Moore9:19

      Yeah, yeah

   3. OMOlivia Moore9:19

      It's interesting timing because also last week the state of Illinois just passed a law banning AI for mental health or therapy-

   4. JMJustine Moore9:26

      Yeah

   5. OMOlivia Moore9:26

      ... without kind of the supervision of a licensed professional.

   6. JMJustine Moore9:29

      Yeah

   7. OMOlivia Moore9:29

      And it's pretty interesting because the law is, is wide-ranging to the extent that some AI mental health companies have already shut down new operations in Illinois-

   8. JMJustine Moore9:39

      Yeah

   9. OMOlivia Moore9:39

      ... or, or kind of prohibited new users from signing up.

   10. JMJustine Moore9:42

       Yeah

   11. OMOlivia Moore9:42

       It's basically anything that's kind of ongoing support or even personalized advice around specific emotional and mental issues-

   12. JMJustine Moore9:49

       Yes

   13. OMOlivia Moore9:49

       ... is now counted as therapy-

   14. JMJustine Moore9:51

       It's crazy

   15. OMOlivia Moore9:51

       ... and is technically illegal in Illinois.

   16. JMJustine Moore9:53

       Yeah

   17. OMOlivia Moore9:53

       I am confident ChatGPT is doing this, and honestly is doing it well-

   18. JMJustine Moore9:57

       Yes

   19. OMOlivia Moore9:58

       ... for a lot of people, and so I guess my question is, to what extent is this ever gonna be enforced?

   20. JMJustine Moore10:02

       Yeah

   21. OMOlivia Moore10:02

       'Cause they can see people's individual chats.

   22. JMJustine Moore10:04

       I feel like Illinois always does weird stuff.

   23. OMOlivia Moore10:06

       Yeah. [laughs]

   24. JMJustine Moore10:06

       Like, like, we've been consumer investors for too long, and I... Remember in, like, 2017, 2018-

   25. OMOlivia Moore10:11

       Yeah

   26. JMJustine Moore10:12

       ... we would literally talk to social apps, like consumer social apps, that were like, "We've launched everywhere except for Illinois 'cause they have all these, like, crazy regulations-

   27. OMOlivia Moore10:19

       Yes

   28. JMJustine Moore10:19

       ... around, like, people, like, data and, and sharing, and, like, all of these things," which obviously-

   29. OMOlivia Moore10:25

       Compliance. Yeah

   30. JMJustine Moore10:25

       ... it's good to have those, but, like, went way beyond other states-
6. 12:29 – 16:53

   Genie 3: Interactive World Models from Google

   1. OMOlivia Moore12:29

      There were two other big actually creative tool model releases this week.

   2. JMJustine Moore12:32

      Yes

   3. OMOlivia Moore12:33

      Genie-3-

   4. JMJustine Moore12:33

      Yes

   5. OMOlivia Moore12:33

      ... from Google.

   6. JMJustine Moore12:34

      Yeah

   7. OMOlivia Moore12:34

      And then a new music model from ElevenLabs.

   8. JMJustine Moore12:36

      Yes

   9. OMOlivia Moore12:36

      So maybe let's start with Genie-3. W- what, what is it? I've seen the videos, but what is it?

   10. JMJustine Moore12:41

       Yes. Genie-3 took Twitter by storm.

   11. OMOlivia Moore12:43

       Yeah

   12. JMJustine Moore12:43

       Um, so Google has a bunch of kind of different initiatives around image, video, 3D world. Um, I think various teams like Veo 3, um, and the Genie team working towards this idea of, like, an interactive world model-

   13. OMOlivia Moore12:57

       Yeah

   14. JMJustine Moore12:57

       ... which is basically-You are able to, um, have a scene that you can walk through in real time-

   15. OMOlivia Moore13:04

       Yeah

   16. JMJustine Moore13:04

       ... or interact with that kind of generates on the fly. Um, and, and you can imagine it sort of like, you know, a personal video game.

   17. OMOlivia Moore13:11

       Yeah.

   18. JMJustine Moore13:11

       Um-

   19. OMOlivia Moore13:12

       I saw some of the videos of kind of taking famous paintings, and for the first time you're able to step into them and kind of swivel around and move around in the room. Almost like you're, you have a VR headset on or something-

   20. JMJustine Moore13:22

       Yes

   21. OMOlivia Moore13:22

       ... and you're kind of turning around and seeing the full environment.

   22. JMJustine Moore13:25

       That, those were really cool. And it's not just famous paintings. They've shown a bunch of examples of, um, you can, from a text prompt you can create a world.

   23. OMOlivia Moore13:32

       Yeah.

   24. JMJustine Moore13:32

       From an image you can create a world.

   25. OMOlivia Moore13:33

       Yeah, amazing.

   26. JMJustine Moore13:34

       They've even shown taking VO3 videos and, and creating a world around it-

   27. OMOlivia Moore13:39

       Wow

   28. JMJustine Moore13:39

       ... with Genie 3. And the cool thing about Genie 3 is there's controls where you can move the character around.

   29. OMOlivia Moore13:45

       Mm.

   30. JMJustine Moore13:45

       So you can control, like, now go to the left, and then the scene sort of re- regenerates to-
7. 16:53 – 19:16

   ElevenLabs Music Model: Licensed AI Music Generation

   1. OMOlivia Moore16:53

      That's awesome

   2. JMJustine Moore16:53

      ... eagerly awaiting that one to come out.

   3. OMOlivia Moore16:54

      Yeah.

   4. JMJustine Moore16:55

      Um, and then, yes, our, our portfolio company ElevenLabs also released their music model.

   5. OMOlivia Moore16:59

      Yeah.

   6. JMJustine Moore16:59

      Which, um, is super exciting.

   7. OMOlivia Moore17:01

      I did not know they were working on music.

   8. JMJustine Moore17:03

      Yes. It's, um, it's been in the works for a bit. The, the really interesting thing about it is it's trained on fully licensed music.

   9. OMOlivia Moore17:11

      Got it.

   10. JMJustine Moore17:11

       Which means... So music is one of those spaces where, um, the rights holders are extremely litigious.

   11. OMOlivia Moore17:17

       Yeah.

   12. JMJustine Moore17:17

       And so compared to things like image or video, it's been harder for, um, music companies to sort of avoid, uh, stepping on the toes.

   13. OMOlivia Moore17:25

       Yeah, you can't just scrape data from the internet.

   14. JMJustine Moore17:28

       Yes.

   15. OMOlivia Moore17:28

       Like, the record labels will come and, and sue you. [laughs]

   16. JMJustine Moore17:30

       Yes, and the artists-

   17. OMOlivia Moore17:31

       Yeah

   18. JMJustine Moore17:31

       ... and, like, it's often a very complicated ecosystem-

   19. OMOlivia Moore17:34

       Yeah

   20. JMJustine Moore17:34

       ... of who owns the rights to a specific song or to an artist's voice-

   21. OMOlivia Moore17:37

       Yep

   22. JMJustine Moore17:37

       ... or something like that. Um, and so, yeah, I think a lot of folks have thought that you could not get a good quality, um, music model training on licensed data, because it's hard and it's expensive and it takes a long time.

   23. OMOlivia Moore17:50

       Yeah.

   24. JMJustine Moore17:50

       And it's hard to get them to agree to license you the data.

   25. OMOlivia Moore17:53

       Yeah.

   26. JMJustine Moore17:53

       But from what I've seen and from my own experiments, folks have been really impressed by Eleven's output.

   27. OMOlivia Moore17:59

       [upbeat music] And so what does the licensed data open up in terms of use cases for the music model, do you think?

   28. JMJustine Moore18:21

       Yeah. So I think a lot of consumers basically don't care if they're using-

   29. OMOlivia Moore18:24

       Yeah

   30. JMJustine Moore18:25

       ... a music model that's trained on licensed data or not, because, um, they're not really monetizing, or many of them are not monetizing stuff that they make-
8. 19:16 – 24:14

   Vibecoding: Consumer Experiments & Platform Evolution

   1. OMOlivia Moore19:16

      And then our last big topic of this week is around vibecoding, which continues to explode.

   2. JMJustine Moore19:20

      Yes.

   3. OMOlivia Moore19:20

      I think we have two things to talk about here. One would be our own experiments in the world of vibecoding-

   4. JMJustine Moore19:24

      Yes

   5. OMOlivia Moore19:24

      ... which relates to a piece that you and Anish Acharya put out-

   6. JMJustine Moore19:28

      Yeah

   7. OMOlivia Moore19:28

      ... this past week about how we're seeing the vibecoding market start to fragment.

   8. JMJustine Moore19:32

      Yes. Your experiment is the more interesting part.

   9. OMOlivia Moore19:35

      So my-

   10. JMJustine Moore19:35

       But, so let's start with that.

   11. OMOlivia Moore19:36

       Yeah. Maybe to give a real-world example, um, for the first time, I vibecoded an app that I fully published and made available to the internet. Essentially, what I did was I thought, "Hey, I'm seeing on my X feed all the time everyone has a selfie with Jensen at NVIDIA."

   12. JMJustine Moore19:50

       How did they get this?

   13. OMOlivia Moore19:50

       In his classic leather jacket.

   14. JMJustine Moore19:52

       Yes.

   15. OMOlivia Moore19:52

       He, he must be spending all of his time taking selfies now because-

   16. JMJustine Moore19:55

       Yes

   17. OMOlivia Moore19:55

       ... everyone has one, and I don't.

   18. JMJustine Moore19:56

       Yes.

   19. OMOlivia Moore19:57

       And so I was thinking there's all these new amazing models out there like Flux Contexts that-

   20. JMJustine Moore20:01

       Yes

   21. OMOlivia Moore20:01

       ... can kind of take an image, say, of Jensen taking a selfie with someone else, and put my... stick me in there instead.

   22. JMJustine Moore20:06

       Yes.

   23. OMOlivia Moore20:07

       Replace me in the selfie.

   24. JMJustine Moore20:07

       I should've been in the video.

   25. OMOlivia Moore20:08

       I should've been in the video.

   26. JMJustine Moore20:09

       For those.

   27. OMOlivia Moore20:09

       Exactly. [laughs]

   28. JMJustine Moore20:10

       Yeah.

   29. OMOlivia Moore20:10

       So, uh, I did that.

   30. JMJustine Moore20:12

       Yeah.
9. 24:14 – 27:05

   The Future of Vibecoding & AI Tools

   1. JMJustine Moore24:14

      the stack.

   2. OMOlivia Moore24:15

      Mm-hmm.

   3. JMJustine Moore24:15

      And that level of inflexibility-W- that product would just not work for them.

   4. OMOlivia Moore24:20

      Yeah.

   5. JMJustine Moore24:20

      Um, and so I think what we are hoping to see basically is, um, v- like, specialized players emerge that offer the best product for a particular demographic of user or for a particular use case.

   6. OMOlivia Moore24:34

      Yeah.

   7. JMJustine Moore24:35

      Um, and, and that will probably imply very different product experiences, product constraints, and also go-to-market strategies. Like, if you are, um, allowing any consumer to vibecode like a fun-

   8. OMOlivia Moore24:49

      Yeah

   9. JMJustine Moore24:49

      ... app to share with their friends or partner or whatever, um, you probably want to be going viral on TikTok and Reels.

   10. OMOlivia Moore24:57

       Yeah.

   11. JMJustine Moore24:57

       Um, versus if you are building a vibecoding platform for, um, designers to prototype new features-

   12. OMOlivia Moore25:04

       Mm-hmm

   13. JMJustine Moore25:04

       ... in an enterprise or for engineers to make internal tools, um, you might want to even have top-down sales.

   14. OMOlivia Moore25:11

       Yeah.

   15. JMJustine Moore25:12

       Or at least be kind of product-led growth within businesses.

   16. OMOlivia Moore25:14

       Yeah, and maybe invest in, like, deep integrations into, you know, core business systems-

   17. JMJustine Moore25:19

       Totally

   18. OMOlivia Moore25:19

       ... other things like that. Whereas the consumer version, you might actually just want people to vibecode on mobile and get something that works in five minutes.

   19. JMJustine Moore25:26

       Y- and that's a great point, too, which is, like, the consumer users often just want something to, like, look cool-

   20. OMOlivia Moore25:32

       Yes

   21. JMJustine Moore25:32

       ... and work, um, and not have security issues, whereas more business-

   22. OMOlivia Moore25:36

       Yes

   23. JMJustine Moore25:36

       ... oriented users, it often needs to integrate with what already exists for the business.

   24. OMOlivia Moore25:40

       Yeah.

   25. JMJustine Moore25:41

       Whether that's, like, a design system, an aesthetic, um, or whether that's, you know, their CRM-

   26. OMOlivia Moore25:46

       Yeah

   27. JMJustine Moore25:46

       ... or the emailing platform they use or sort of all of these different products that it needs to connect to that are external to the vibecoding tool.

   28. OMOlivia Moore25:54

       Yeah. And so I think the conclusion of the piece was, like, we're seeing early winners in vibecoding already.

   29. JMJustine Moore25:58

       Yeah.

   30. OMOlivia Moore25:58

       These are some of the fastest growing companies in the AI application space.
10. 27:05 – 27:38

    Conclusions

    1. OMOlivia Moore27:05

       Yeah. Super exciting.

    2. JMJustine Moore27:06

       Well, thanks for joining us this week. If you've tried out any of these creative models or had any vibecoding experiments yourself, we'd love to hear from you. Please comment below and let us know. And also please feel free to ping us here or on Twitter if you have ideas of what we should cover in a future episode. [upbeat music]

Episode duration: 27:48