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In this Newsletter Today:

• Perplexity offers to buy Google Chrome for $34.5 billion

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

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

• Top New AI Tools

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Perplexity offers to buy Google Chrome for $34.5 billion

Perplexity has offered to buy Google Chrome for $34.5 billion, a bid significantly higher than the company's valuation of $18 billion, according to reports from The Wall Street Journal and Bloomberg. The unsolicited bid comes just months after Perplexity announced its intention to buy Chrome if the government forces Google to sell its browser. Google has not indicated its willingness to sell Chrome at any price and the court has not ordered a sale. Perplexity's CEO, Dimitry Shevelenko, stated that multiple large investment funds have agreed to finance the transaction.

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

AI companion apps, which allow users to interact with custom characters, are growing in popularity. Out of 337 active and revenue-generating apps, 128 were released in 2025, according to app intelligence firm Appfigures. These apps have generated $82 million in the first half of 2025 and are expected to reach over $120 million by year-end. As of July 2025, AI companion apps have been downloaded 220 million times globally, with downloads up 88% YoY. The top 10% of AI companion apps generate 89% of the revenue.

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

OpenAI's GPT-5 AI model, designed to simplify the ChatGPT experience, has introduced new "Auto", "Fast", and "Thinking" settings for users. The Auto setting works like the initial model router, but users can also access fast and slow-responsing AI models directly. OpenAI also introduced legacy models, including GPT-4o, GPT-4.1, and o3, which were deprecated last week. GPT-4o is now included in the model picker by default, while other AI models can be added from ChatGPT's settings. OpenAI is working on an update to GPT-5's personality, which should feel warmer but not as annoying to most users. The company will provide users with advance notice if GPT-4o is deprecated. Aligning AI models to individual user preferences is a challenging task.

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