104: Today in AI: ChatGPT Ads Hit Paid Users, DeepSeek Rivals GPT-4 for Pennies, Claude Limits Anger
Join 40,000 readers and get the full notes and summary: https://newsletter.aiwithkyle.com/subscribe
Subscribe and turn on notifications to catch the next live stream: https://www.youtube.com/@iamkylebalmer?sub_confirmation=1
Want to know which AI business to start? Check out Freedom OS: https://aiwithkyle.com/join-freedom-os
This video is from the ‘AI with Kyle News and Updates Live Stream’
First aired: 4 December 2025
Summary: OpenAI found themselves in a bit of a pickle this week when paid ChatGPT users started seeing what looked suspiciously like ads in their chats. Someone was asking about Windows BitLocker and suddenly got served a Target shopping ad at the bottom of his conversation—despite paying $20 a month for Plus. OpenAI's Chief Research Officer jumped in to clarify these aren't actually ads, they're "apps" from pilot partners like Target and Peloton, meant to augment the user experience. But here's the thing: if it looks like an ad, smells like an ad, and interrupts your conversation to suggest you go shopping... it's probably an ad, regardless of what corporate terminology you dress it up in.
Meanwhile, China's DeepSeek dropped their 3.2 model that's performing at GPT-4 levels whilst costing about 1/20th the price—which is genuinely impressive and a bit concerning for Western AI companies. And in Claude news, Opus 4.5 has finally rolled out to Pro users in Claude Code, though the rate limits are so restrictive that one prompt might be your lot for the week. It's brilliant when you can use it, but forcing paying customers to switch to competitors mid-task because you've run out of capacity is still a massive product design flaw, no matter how good the model is.
Watch full edited live stream: https://youtu.be/rYymJ-ALB3Q
—— More Useful Resources ——
My other daily live show - 30-day building a business in public challenge: https://www.youtube.com/live/Z0Z_1Eg3HUk (day one)
Ultimate AI Learning Resource List: https://www.aiwithkyle.com/resources/ai-learning-guide
Free AI Entrepreneurship Playbooks: https://aiwithkyle.com/catalog
Free Quiz: What AI business should you start? https://aiwithkyle.com/tools
Free AI Training Business Planner: https://aiwithkyle.com/tools/workshop-builder
Free AI Industry Translator Tool: https://aiwithkyle.com/tools/industry-ai-translator
Free 10-Week ‘Vibe Coding’ AI Summer Camp: https://aiwithkyle.com/courses/10-week-ai-summer-camp
—— Time Stamps ——
00:00 Cold Open: Google's Ad-Free Strategy
00:15 Welcome to AI with Kyle
01:14 Nano Banana Pro 2K Images Update
03:12 ChatGPT Ads Controversy Explained
08:04 Why Google Should Run Gemini at a Loss
16:53 What is Garlic? OpenAI Code Red Explained
19:17 Why AI Benchmarks Are Meaningless
20:07 Sam Altman's Death Star Meme Explained
22:16 ChatGPT Erotica & Age Gating Policy
25:06 Cursor Composer Review
26:34 Intelligence vs User Experience in AI
28:39 What Search Engines Power AI Chatbots?
32:17 Claude Uses Brave Search (Confirmed)
34:04 Do LLMs Hide Their True Thoughts?
35:08 Claude Opus 4.5 for Pro Users
36:07 Claude Rate Limits Problem
36:41 Newsletter & Community
—— Contact ——
Best is in YouTube comments.
For business enquiries only: https://www.passionfroot.me/iamkylebalmer
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by Audiochuck Media Company.
The Brothers Ortiz
The Brothers Ortiz is the story of two brothers–both successful, but in very different ways. Gabe Ortiz becomes a third-highest ranking officer in all of Texas while his younger brother Larry climbs the ranks in Puro Tango Blast, a notorious Texas Prison gang. Gabe doesn’t know all the details of his brother’s nefarious dealings, and he’s made a point not to ask, to protect their relationship. But when Larry is murdered during a home invasion in a rented beach house, Gabe has no choice but to look into what happened that night. To solve Larry’s murder, Gabe, and the whole Ortiz family, must ask each other tough questions.