Top stories today:

1. OpenAI to skip o3 launch, instead have GPT-5 with o3 integration
2. Grok-3 “outperforming anything that's been released”
3. CPI, core CPI exceed expectations; Powell says more work remains
4. House GOP plan proposes $4.5T tax cuts, only $1.5T in spending cuts
5. Robinhood Q4 revenue +115% YoY to $1B, net income 31x to $916M
6. Apple TV app launches on Android

0. Data and calendar

Listen to our AI-generated podcast summarizing today’s newsletter (beware of hallucinations):

1. OpenAI to skip o3 launch, instead have GPT-5 with o3 integration

• “Unify o-series models and GPT-series models” is OpenAI’s top goal, Sam Altman said on X.

• o3, originally planned for this year, will no longer come as a standalone model.

• Free ChatGPT users will get unlimited access to GPT-5 with “standard intelligence”.

• “Higher level of intelligence” on GPT-5 for ChatGPT Plus subscribers and “even higher level of intelligence” for Pro users.

• GPT-4.5 (Orion) will ship in weeks, GPT-5 in months.

o1 and o3-mini reasoning models have been updated with file and image upload support via ChatGPT

• OpenAI’s Model Spec guidelines have also been expanded to emphasize more on “customizability, transparency, and intellectual freedom.”

• Changes come as OpenAI faces rising competition, including from DeepSeek and Alibaba.

• Additionally, OpenAI has planned to offer 10 Deep Research queries/month on ChatGPT Plus and 2 for free users.

3. Grok-3 “outperforming anything that's been released,” set to launch in 1-2 weeks

• “Trained with the most amount of compute,” Elon Musk said, adding, “a lot of synthetic data.”

• OpenAI “was meant to be open-source, non-profit,” but now, it’s “closed for maximum profit,” he said.

4. CPI, core CPI exceed expectations; Powell says more work remains