Big Technology Podcast: Countdown to GPT-5, OpenAI’s Stargate Sputters, AI Math Wars

Release Date: July 25, 2025
Host: Alex Kantrowitz
Guest: Stephen Morris, San Francisco Bureau Chief at the Financial Times

Introduction

In this episode of the Big Technology Podcast, host Alex Kantrowitz sits down with Stephen Morris from the Financial Times to delve deep into the latest developments in the AI and tech industries. The conversation covers the anticipated release of OpenAI’s GPT-5, the struggles of the ambitious Stargate data center project, the competitive landscape of AI models, significant earnings reports from major tech giants, and the broader implications of AI advancements on energy consumption and employment.

GPT-5: The Next Frontier for OpenAI

The episode kicks off with a discussion about the highly anticipated GPT-5 model from OpenAI. According to reports from The Verge, OpenAI is preparing for a potential August release after initial delays.

Stephen Morris [01:51]:
"There is a lot going on with this company at the moment... the hype is because it has one of the best, if not the best models and we really have that necessary. That hasn't necessarily been true for a while."

Capabilities and Hype

Sam Altman, CEO of OpenAI, has hinted at groundbreaking capabilities for GPT-5, sparking significant excitement and skepticism. Early user feedback suggests improved performance across various domains, including hard sciences, software engineering, and creative writing.

Alex Kantrowitz [05:49]:
"GPT5 is almost here and we're hearing good things... improved performance in a number of domains, including the hard sciences, completing tasks for users on their browsers and creative writing."

Morris emphasizes that GPT-5 could mark a significant leap forward for OpenAI, especially in coding capabilities, which have been a competitive edge for rivals like Anthropic’s Claude.

Stephen Morris [07:50]:
"If GPT is the slam dunk that Sam Altman is telling everyone it's going to be, that will kind of put those kind of doubters and those questions to write."

OpenAI’s Stargate Project: Ambitious but Troubled

The conversation shifts to the Stargate project, a $500 billion initiative aimed at building massive data centers to support AI advancements. Initially announced with high hopes, the project has faced significant delays.

Alex Kantrowitz [24:07]:
"The 500 billion dollar effort unveiled at the White House to supercharge the US's artificial intelligence ambitions has struggled to get off the ground..."

Stephen Morris [26:15]:
"But part of the reason they're able to claim Stargate is off the ground is because they changed the definition of it... they're trying to keep a lot of balls in the air at the moment."

Stargate’s challenges are attributed to disagreements between OpenAI and partners like Oracle and SoftBank, along with the complexities of scaling such an enormous infrastructure project amidst fierce competition from tech giants like Google and Microsoft.

AI and Energy Consumption: The Rise of Data Centers

AI advancements necessitate substantial energy resources, leading to rising electricity costs and environmental concerns. The episode highlights how AI-driven data centers are driving up energy demand, particularly in the US.

Alex Kantrowitz [34:35]:
"The cost of providing electricity in America's largest power market will hit a record high due to soaring demand from artificial intelligence data centers..."

Stephen Morris [36:29]:
"There's just not enough power that exists in the United States or around the world to drive these data center ambitions... it's linked to top-level government policy."

Discussions also touch upon the potential reliance on nuclear power to meet energy demands, although concerns about safety and public acceptance remain.

AI Achievements in Mathematics: The Gold Medal Battle

A notable highlight is the competition between Google and OpenAI in the International Math Olympiad. Both companies claim their AI models achieved gold medals, showcasing the rapid progress of AI in complex problem-solving.

Alex Kantrowitz [40:31]:
"OpenAI and Google have a long-running battle trying to release products a few days ahead of each other to show the other up."

Stephen Morris [43:16]:
"This shows that AI systems are not just regurgitating information but genuinely solving complex mathematical problems, signaling significant advancements."

Earnings Reports: Google Thrives, Tesla Struggles

The episode reviews recent earnings reports from Alphabet (Google) and Tesla, highlighting contrasting fortunes.

Google’s Robust Growth

Despite fears that generative AI might erode its search dominance, Google reported a 12% growth in its core search and advertising business, surpassing expectations.

Stephen Morris [48:00]:
"Google's way of integrating AI into search, whether it's the overviews or AI modes, is actually boosting engagement and ad revenue."

However, Google faces ongoing antitrust challenges that could impact its business operations and market dominance.

Tesla’s Declining Fortunes

In stark contrast, Tesla reported a disappointing earnings outlook due to the discontinuation of EV tax credits, which significantly impacted their regulatory credits revenue.

Stephen Morris [51:43]:
"Tesla was worth $1.54 trillion, now it's around $900 billion... the relationship with Trump and the resulting policy changes have been detrimental."

Elon Musk’s wavering energy and the company's reliance on regulatory credits pose serious challenges for Tesla’s future profitability and operational stability.

Microsoft’s Strategic Layoffs and Corporate Morale

The discussion moves to Microsoft’s recent layoffs and the broader implications for the tech workforce.

Alex Kantrowitz [56:18]:
"Satya Nadella wrote a memo addressing layoffs and company morale, highlighting the paradox of strong performance amidst significant job cuts."

Stephen Morris [58:01]:
"Microsoft is reallocating budgets and offshoring jobs to reduce costs, reflecting a broader trend in the tech industry towards automation and cost optimization."

Morris notes that while headcount numbers might remain stable, the quality and localization of jobs are shifting, raising concerns about employee morale and job security.

Conclusion: The Future of AI and Big Tech

The episode wraps up with reflections on the transformative impact of AI on various industries, the competitive dynamics among tech giants, and the societal challenges posed by rapid technological advancements. The guests emphasize the need for strategic investments, sustainable energy solutions, and thoughtful leadership to navigate the evolving tech landscape.

Notable Quotes

• Stephen Morris [01:51]:
  "What Sam Altman has said about the models is that you shouldn't have to pick which one you use yourself for a variety of different tasks."

• Alex Kantrowitz [05:49]:
  "GPT5 showed improved performance in a number of domains, including the hard sciences..."

• Stephen Morris [07:50]:
  "If the coding aspect lands right with this, I think that could be quite transformational for its business model."

• Alex Kantrowitz [34:35]:
  "Consumers are being hit in the pocket due to the increase in demand for data center power."

• Stephen Morris [48:00]:
  "Google's integration of AI into search is boosting engagement, meaning more ad revenue."

• Stephen Morris [51:43]:
  "Tesla's reliance on regulatory credits has made them vulnerable to policy changes."

• Stephen Morris [58:01]:
  "Microsoft is reallocating budgets and offshoring jobs, reflecting a broader trend toward automation."

Final Thoughts

This episode provides a comprehensive overview of the current state and future prospects of AI and big tech. From the promising yet uncertain debut of GPT-5 to the monumental challenges faced by OpenAI’s infrastructure projects, the competitive strides of AI in academia, and the financial oscillations of tech giants like Google and Tesla, listeners gain valuable insights into the rapidly evolving tech ecosystem. Stephen Morris’s expertise from the Financial Times adds depth to the analysis, making this episode an essential listen for anyone keen on understanding the forces shaping the future of technology.