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OpenAI released GPT-5 with significant advances in multi-step reasoning, tool use, and real-time planning. Independent benchmarks show 40% improvement over GPT-4.5 on complex tasks. The model introduces "chain-of-action" capabilities that allow it to autonomously complete multi-step workflows. Industry analysts note this narrows the gap between AI assistants and AI agents, though safety researchers urge caution around autonomous decision-making at scale.

Apple acquired Nexus Intelligence, a startup specializing in small language models optimized for on-device inference, for approximately $2 billion. The deal signals Apple's commitment to running AI locally on iPhones and Macs rather than relying on cloud APIs. Nexus's models achieve 90% of GPT-4-level performance on personal tasks while running entirely on Apple Silicon. The acquisition includes 200+ ML engineers and a patent portfolio covering efficient transformer architectures.

The European Commission proposed a binding international treaty on AI safety standards, covering areas like autonomous weapons, deepfake regulation, and AI-generated disinformation. In a surprising development, both the US State Department and China's Ministry of Science expressed willingness to enter preliminary negotiations. Experts note this marks the first time all three major AI powers have signaled openness to coordinated regulation, though significant disagreements on scope and enforcement remain.