Anthropic Just Dethroned OpenAI in a Shocking AI Power Shift

OpenAI's Mental Health Tools, Google Launches Kaggle, & xAI Debuts Grok Imagine

Author

Andres Franco
August 06, 2025

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Here’s the latest from this week in AI:

  • OpenAI Adds Mental Health Tools Ahead of GPT-5 Launch

  • Google Launches Kaggle Game Arena to Benchmark AI Strategy Skills

  • xAI Debuts Grok Imagine for AI Video and Image Generation

  • Anthropic Overtakes OpenAI as Enterprise AI Spending Soars

Ahead of GPT-5’s release, OpenAI is adding new features to promote healthy use of ChatGPT. These include tools that detect signs of emotional distress or dependency and respond with evidence-based resources. The company has acknowledged that GPT-4o occasionally missed these signals.

To improve safety, OpenAI is limiting long chats, encouraging thoughtful decision-making, and working with doctors and ethics experts. With these updates, OpenAI is signaling a stronger focus on user well-being as advanced AI becomes more integrated into daily life.

Source: OpenAI

Google has unveiled Kaggle Game Arena, a new platform where top AI models compete in strategic games to test reasoning, planning, and problem-solving. The first event is a chess tournament featuring eight models, including Gemini 2.5 Pro and Grok 4, with results tracked on public leaderboards.

Built on Kaggle’s infrastructure, the arena will expand to more complex games like Go and Poker to push models further. As traditional benchmarks fall short, Google aims to highlight real-time adaptability and strategic thinking, key traits for the next generation of AI.

Source: Kaggle

xAI has launched Grok Imagine, its new image and video generator, for SuperGrok and Premium+ subscribers on the X iOS app. Users can turn simple text prompts into 15-second videos with native audio or generate images that can be animated into stylized clips.

While the output still looks distinctly AI-generated, Elon Musk says Imagine creates content much faster than rivals. It may not beat top video models yet, but xAI is betting on speed, creativity, and a bold, unfiltered style to stand out in a crowded space.

Source: Grok

Big investors are buying this “unlisted” stock

When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.

Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.

And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.

Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Menlo Ventures’ mid-year report shows enterprise AI spending has doubled to $8.4 billion in just six months, with Anthropic now leading the LLM market at 32% usage, surpassing OpenAI’s 25%. Google follows at 20%, marking a sharp shift from OpenAI’s 2023 dominance.

Code generation is the top use case, and companies are sticking with their chosen platforms, 66% prefer upgrading within the same ecosystem over switching. With open-source LLM use stagnating, the market is consolidating around a few major players.

Source: Menlo Ventures

In Other News

The S&P 500 closed down 0.49% on Tuesday, dragged lower by disappointing economic data and fresh tariff talk from former President Donald Trump. The Nasdaq fell 0.65%, while the Dow slipped 0.14%, ending a volatile few days on Wall Street.

After last week’s weak jobs report and a dramatic 500-point Friday drop, the Dow had rebounded nearly 600 points Monday. But Tuesday’s renewed concerns over economic strength and trade policy sent stocks back into the red.

Source: Getty Images

Tools to Check Out this Week from insidersedge.io 

RevocalizeAI - Turn audio files into vocal tracks sounding like a particular singer

ToolBuilder - AI-generated tool builder that offers a variety of tools for productivity

Abbot - Programmable smart assistant for customer success teams

BricabracAI - Create an app in 10 minutes or less

This Week’s Jobs On insidersedge.io 

Senior Typescript Backend Developer - Striga

Software Engineer - Kronos Research 

Machine Learning Engineer - FalconX

Applied ML Engineer - Hologram Labs

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