logo
GPT-4o update gone wrong: What OpenAI's post-mortem reveals about sycophantic AI

GPT-4o update gone wrong: What OpenAI's post-mortem reveals about sycophantic AI

Indian Express05-05-2025
OpenAI's GPT-4o update was intended to improve the 'default personality' of one of the AI models behind ChatGPT, so that user interactions with the chatbot felt more intuitive and effective across various tasks. The problem was it, instead, led to ChatGPT providing responses that were 'overly flattering or agreeable – often described as sycophantic.'
Five days after completing the update, OpenAI announced on April 29, that it was rolling back the adjustments to the AI model amid a growing number of user complaints on social media.
'ChatGPT's default personality deeply affects the way you experience and trust it. Sycophantic interactions can be uncomfortable, unsettling, and cause distress. We fell short and are working on getting it right,' the Microsoft -backed AI startup said in a blog post.
Several users had pointed out that the updated version of GPT-4o was responding to user queries with undue flattery and support for problematic ideas. Experts raised concerns that the AI model's unabashed cheerleading of these ideas could lead to actual harm by leading users to mistakenly believe the chatbot.
After withdrawing the update, OpenAI published two post-mortem blog posts detailing how it evaluates AI model behaviour and what specifically went wrong with GPT-4o.
How it works
OpenAI said it starts shaping the behaviour of an AI model based on certain principles outlined in its Model Spec document. It attempts to 'teach' the model how to apply these principles 'by incorporating user signals like thumbs-up / thumbs-down feedback on ChatGPT responses.'
'We designed ChatGPT's default personality to reflect our mission and be useful, supportive, and respectful of different values and experience. However, each of these desirable qualities like attempting to be useful or supportive can have unintended side effects,' the company said.
It added that a single default personality cannot capture every user's preference. OpenAI has over 500 million ChatGPT users every week, as per the company. In a supplementary blog post published on Friday, May 2, OpenAI revealed more details on how existing AI models are trained and updated with newer versions.
'Since launching GPT‑4o in ChatGPT last May, we've released five major updates focused on changes to personality and helpfulness. Each update involves new post-training, and often many minor adjustments to the model training process are independently tested and then combined into a single updated model which is then evaluated for launch,' the company said.
'To post-train models, we take a pre-trained base model, do supervised fine-tuning on a broad set of ideal responses written by humans or existing models, and then run reinforcement learning with reward signals from a variety of sources,' it further said.
'During reinforcement learning, we present the language model with a prompt and ask it to write responses. We then rate its response according to the reward signals, and update the language model to make it more likely to produce higher-rated responses and less likely to produce lower-rated responses,' OpenAI added.
What went wrong
'We focused too much on short-term feedback, and did not fully account for how users' interactions with ChatGPT evolve over time. As a result, GPT‑4o skewed towards responses that were overly supportive but disingenuous,' OpenAI said.
In its latest blog post, the company also revealed that a small group of expert testers had raised concerns about the model update prior to its release.
'While we've had discussions about risks related to sycophancy in GPT‑4o for a while, sycophancy wasn't explicitly flagged as part of our internal hands-on testing, as some of our expert testers were more concerned about the change in the model's tone and style. Nevertheless, some expert testers had indicated that the model behavior 'felt' slightly off,' the post read.
Despite this, OpenAI said it decided to proceed with the model update due to the positive signals from the users who tried out the updated version of GPT-4o.
'Unfortunately, this was the wrong call. We build these models for our users and while user feedback is critical to our decisions, it's ultimately our responsibility to interpret that feedback correctly,' it added.
OpenAI also suggested that reward signals used during the post-training stage have a major impact on the AI model's behaviour. 'Having better and more comprehensive reward signals produces better models for ChatGPT, so we're always experimenting with new signals, but each one has its quirks,' it said.
According to OpenAI, a combination of a variety of new and older reward signals led to the problems in the model update. '…we had candidate improvements to better incorporate user feedback, memory, and fresher data, among others. Our early assessment is that each of these changes, which had looked beneficial individually, may have played a part in tipping the scales on sycophancy when combined,' it said.
What next
OpenAI listed six pointers on how to avoid similar undesirable model behavior in the future.
'We'll adjust our safety review process to formally consider behavior issues—such as hallucination, deception, reliability, and personality—as blocking concerns. Even if these issues aren't perfectly quantifiable today, we commit to blocking launches based on proxy measurements or qualitative signals, even when metrics like A/B testing look good,' the company said.
'We also believe users should have more control over how ChatGPT behaves and, to the extent that it is safe and feasible, make adjustments if they don't agree with the default behavior,' it added.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US stock market rally explodes: Dow soars 500 points, S&P 500 & Nasdaq roar back as Microsoft, Nvidia, Apple, Palantir surge—weak jobs report fuels Fed cut buzz
US stock market rally explodes: Dow soars 500 points, S&P 500 & Nasdaq roar back as Microsoft, Nvidia, Apple, Palantir surge—weak jobs report fuels Fed cut buzz

Time of India

time2 hours ago

  • Time of India

US stock market rally explodes: Dow soars 500 points, S&P 500 & Nasdaq roar back as Microsoft, Nvidia, Apple, Palantir surge—weak jobs report fuels Fed cut buzz

Dow Jones, S&P 500 and Nasdaq surge as Wall Street bounces back- The U.S. stock market staged a powerful comeback on Monday, August 4, with the Dow Jones Industrial Average jumping over 500 points, the S&P 500 gaining 1.2%, and the Nasdaq climbing 1.6% by afternoon trading. This rally comes after a sharp sell-off on Friday and was driven by growing expectations of Federal Reserve interest rate cuts, following a surprisingly weak July jobs report. Today's rally was largely sparked by fresh labor data that showed the U.S. economy added only 73,000 jobs in July , far below expectations. Even more striking was the major downward revision of previous months' numbers—cut by 258,000 jobs—marking the biggest revision since 1968. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program This slowdown gave markets a reason to cheer, oddly enough, as it increased the likelihood of Federal Reserve interest rate cuts as early as September. Investors now see an 85% chance of a rate cut next month, with at least two more cuts expected before the end of 2025. That shift in expectations set off a buying spree across equities, with the Dow Jones up 500 points , the S&P 500 rising 0.78% , and the Nasdaq climbing nearly 1% on the day. Tech stocks, especially the big names in the Nasdaq Composite, were among the top gainers as hopes rose for cheaper borrowing costs. Market optimism also spread across sectors like communication services, real estate, and consumer discretionary, offering relief after a turbulent end to last week. Live Events Microsoft (MSFT) : Up ~2.3%, strong AI cloud momentum Apple (AAPL) : Gained over 2%, stable earnings outlook Nvidia (NVDA) : Rose ~3%, riding the AI chip wave Palantir (PLTR) : Continued climb, now S&P 500's YTD leader IDEXX Laboratories (IDXX) : Best gainer in the S&P 500 today after blowout earnings Soft July jobs report triggers rate cut optimism At the heart of this rebound was the latest non-farm payroll data, which showed the U.S. economy added only 73,000 jobs in July—a massive miss from Wall Street's expectations. Making things worse, revisions to May and June shaved off over 250,000 jobs from previous estimates. The unemployment rate also ticked up to 4.2%, while labor force participation slightly dropped. This slowdown in the labor market has strengthened investor belief that the Federal Reserve will move forward with interest rate cuts as early as September. According to the CME FedWatch tool, traders now see an 85% chance of a rate cut in the next Fed meeting, and they're pricing in up to 100 basis points of cuts by the end of 2025. Federal Reserve under political spotlight as data credibility questioned President Donald Trump, who is currently serving his second term, has put fresh pressure on the Federal Reserve and federal agencies. In a surprise weekend move, Trump fired the commissioner of the Bureau of Labor Statistics (BLS) following the disappointing jobs report, raising concerns about the political independence of key economic data agencies. Additionally, Fed Governor Adriana Kugler announced her resignation, intensifying speculation that the Trump administration may reshape the Federal Reserve's leadership ahead of critical policy decisions. The President has openly called for more aggressive rate cuts, framing the current economic slowdown as an opportunity to support American households and boost consumer confidence. Top Stocks to Watch Now Apple (AAPL) Apple is holding strong near $203/share with a market cap of over $3 trillion. A well-established leader in consumer devices and services, it continues to generate solid earnings and cash flow. Microsoft (MSFT) Microsoft's shares trade around $536, fueled by soaring demand for Azure cloud services and AI investments. Analysts praise its growth and expect strong momentum ahead. Alphabet (GOOGL) Google's parent company sits near $195/share with a focus on search advertising, cloud, YouTube, and AI opportunities. Valuation remains attractive relative to peers. Treasury yields fall, gold hits record high as dollar weakens The weak payroll data sparked a sharp drop in U.S. Treasury yields, particularly on the 2-year note, reflecting the market's strong expectation for easing monetary policy. At the same time, the U.S. dollar slid against major global currencies, including the euro and yen, helping boost demand for commodities. Gold prices surged past $3,400 an ounce, hitting a new all-time high as investors sought safer assets. Analysts at Citi even lifted their gold outlook, forecasting prices may soon reach $3,500 to $3,600 per ounce if rate cut momentum continues and economic uncertainty grows. Oil prices slide as OPEC+ raises production While equities soared, oil markets moved in the opposite direction. Crude oil prices dropped on news that OPEC+ has agreed to increase oil production in September, aiming to cool off global prices. This weighed on energy stocks and raised concerns about potential oversupply in the months ahead. Lower oil prices could benefit consumers and help slow inflation, giving the Federal Reserve even more flexibility to ease monetary policy. However, energy sector stocks lagged behind Monday's rally due to weaker pricing power. Other Notable Movers Palantir (PLTR) : The S&P 500's best performer year-to-date, up over 100%, driven by AI growth and government contracts. But sky-high valuation (~690× P/E) presents risk. IDEXX Laboratories (IDXX) : A standout performer Monday, shares soared after strong quarterly results and raised guidance, pushing it to lead the S&P 500 rally. Wayfair and Others : Wayfair surged double digits on better-than-expected earnings, helping fuel broader sentiment across the market. Key earnings and economic reports to watch this week Investors will be watching closely as more corporate earnings roll out this week. Major names like Disney, AMD, Eli Lilly, and Palantir are set to report, and their guidance could further validate—or contradict—Wall Street's growing belief in an economic soft landing. Here's what's coming up: Date Report/Event Why It Matters Aug 5–6 ISM Services PMI, Jobless Claims Could confirm labor market softening Aug 7 Consumer Credit Data Indicates consumer spending and debt sustainability Aug 8 Fed speeches and Treasury remarks May offer insight into policy direction All week Q2 earnings (Disney, AMD, Eli Lilly) Tech and healthcare guidance will shape sentiment Wall Street rally driven by Fed pivot bets Today's strong stock market rebound reflects renewed investor confidence in interest rate cuts, fueled by soft job market data and growing signs of economic moderation. While optimism is high, the market remains on edge as the Federal Reserve navigates political pressure, inflation goals, and evolving economic risks. For now, traders are betting that lower rates will give equities another leg up, but upcoming earnings, inflation data, and Fed commentary will ultimately determine if this bounce marks a turning point—or just a brief relief rally. What investors should watch now Here's what smart investors are keeping an eye on: More economic data this week, including factory orders and weekly jobless claims, which could confirm or challenge the softening labor trend. Earnings season , which has so far been strong, with over 80% of S&P 500 companies beating expectations—helping support overall market strength. Tech sector momentum , especially AI-related stocks like Nvidia, Microsoft, and Palantir, which continue to lead the rally. Political volatility , as Trump's influence over economic institutions and Fed policy becomes a bigger factor heading into the 2026 election cycle. FAQs: Q1: Why did the stock market rally today after the weak payroll report? The weak jobs data boosted hopes that the Federal Reserve will cut interest rates soon. Q2: How did President Trump respond to the July jobs report? Trump fired the BLS commissioner, raising new questions about the Fed's independence and economic data credibility.

How Meta, Apple, Amazon & Microsoft Profit From AI While Trump Tariffs Disrupt Trade
How Meta, Apple, Amazon & Microsoft Profit From AI While Trump Tariffs Disrupt Trade

News18

time4 hours ago

  • News18

How Meta, Apple, Amazon & Microsoft Profit From AI While Trump Tariffs Disrupt Trade

Last Updated: Meta, Amazon, Apple, and Microsoft are each leveraging AI differently. But they share a common goal: integrating AI deeply into their ecosystems to future-proof their businesses Artificial intelligence (AI) is rewriting the rules of business, and Big Tech is all in. As the world's largest technology firms double down on AI innovation and deployment, their earnings reflect a stunning transformation in both capability and strategy. Meta, Amazon, Apple, and Microsoft—collectively holding trillions in market value — have made AI not just a buzzword, but a profit engine. At the same time, the global economy is entering yet another phase of volatility. With US President Donald Trump's tariff threats, protectionist policies, and global trade disruptions, investors are hedging, central banks are cautious, and industries relying on stable supply chains are bracing for impact. Yet amid all the noise, tech's AI champions are thriving. Here's how. The AI Gold Rush—And Who Is Winning The four tech giants—Meta, Amazon, Apple, and Microsoft— are each leveraging AI differently. But they share a common goal: integrating AI deeply into their ecosystems to improve efficiency, increase monetisation, and future-proof their core businesses. Microsoft: The Infrastructure King In its Q2 2025 earnings, Microsoft reported a 19% increase in cloud revenue, with CEO Satya Nadella citing AI workloads as a primary driver. 'Every customer I speak with wants to adopt AI for productivity, security, and innovation," Nadella said on the earnings call. Azure's ability to host large language models, both proprietary and open-source, has made it the go-to platform for enterprise AI. Additionally, Microsoft's integration of AI into Teams, Word, and Excel via Copilot is redefining workplace productivity. Meta: AI As An Attention Engine Meta, once mocked for its metaverse pivot, has rebounded by steering into AI with surprising agility. Its open-source LLaMA models have been widely adopted by researchers and developers, giving Meta outsized influence in the open AI ecosystem. But the real monetisation is happening in advertising. Meta's AI models are now deeply embedded in ad targeting and content recommendations across Facebook, Instagram, and WhatsApp. According to Q2 results, AI-driven ad optimisation contributed to a 25% year-over-year growth in ad revenue—a massive leap in a sector once believed to be stagnating. 'We've had a strong quarter both in terms of our business and community," said CEO Mark Zuckerberg. 'I'm excited to build personal superintelligence for everyone in the world." On the consumer front, Meta AI (its assistant) has been rolled out across platforms and even into Ray-Ban smart glasses, further blending AI into daily life. Amazon: Retail, Cloud, and Alexa 2.0 For Amazon, AI plays a dual role—supercharging logistics and defending its cloud dominance. The company reported a 35% jump in quarterly profits as the e-commerce giant said major investments in AI technology are paying off. AWS, Amazon's cloud arm, remains a major profit engine, and its AI services are a growing part of that. From generative AI services for developers to Titan foundation models, Amazon is targeting enterprises that want flexibility without being locked into Microsoft or Google ecosystems. Meanwhile, in e-commerce, AI is streamlining fulfilment, optimising supply chains, and enabling hyper-personalized shopping experiences. Amazon's new-gen Alexa, powered by LLMs, is expected to play a bigger role in smart homes and commerce, though competition remains stiff. As per an AFP report, Amazon's net sales climbed 13%, signalling that the company has so far survived the impacts of Trump's trade policy. AWS led the charge with sales jumping 17.5% to $30.9 billion. Its strong performance reflects surging demand for cloud infrastructure to power AI applications, a trend that has benefited major cloud providers as companies race to adopt generative AI technologies. Apple: Playing The Long Game—Quietly Apple, traditionally more cautious about jumping on technology bandwagons, is finally stepping into AI visibly. At WWDC 2025, Apple Intelligence was unveiled—an ecosystem-wide integration of generative AI across iPhone, iPad, and Mac. Unlike its peers, Apple is not building chatbot-like assistants. Instead, it focuses on user-controlled, privacy-conscious AI features like Smart Recap, Writing Tools, and Genmoji. Much of the processing is done on-device or through Apple's private cloud. More importantly, Apple announced partnerships with OpenAI and Anthropic to offer choice in assistant models, a significant shift from its usually walled-garden approach. In fact, Apple beat expectations with earnings driven by strong iPhone sales despite US tariffs costing the company $800 million in the recently-ended quarter. It expects Trump's tariffs to cost the iPhone maker $1.1 billion in the current quarter. Apple's strategy is designed to boost hardware stickiness. iPhone 17 sales spiked 8% post-launch, in part due to AI feature demand. Why The Economic Anxiety Despite AI Boom Trump's Tariffs Shock The World Economy Since taking office in January , Trump has rolled out sweeping tariffs aimed at reducing the US trade deficit and boosting domestic manufacturing. These include a 10% universal tariff on all imports, with higher rates targeting key trading partners: 145% on China, 34% on Taiwan, 26% on India, 25% on Canada and Mexico, and 50% on Brazil, alongside 100% secondary tariffs on countries buying Russian energy. The US Treasury reported $87 billion in tariff revenue through June, with $26.6 billion collected in June alone, reflecting the scale of this policy shift. However, these tariffs have triggered retaliatory measures—Canada's $12 billion, China's $50 billion, and the EU's $100 billion—disrupting $330 billion in US exports and raising consumer prices by 3–5% for goods like clothing and appliances. The International Monetary Fund (IMF) projects a 0.5% global GDP decline by 2027, with emerging markets like India facing export losses of 2-3%. The S&P 500 and Nasdaq dropped 6% and 16% respectively since January, with Apple, Amazon, Meta, and Microsoft losing significant market value. Yet, these firms are leveraging AI to offset these challenges, driving innovation and revenue in a volatile economic landscape. Supply Chains Under Pressure For tech companies, these tariffs threaten supply chains and data centre costs, critical for AI development. Hardware from China and Taiwan, including semiconductors and circuit boards, faces steep duties, potentially increasing data centre construction costs. Apple, for instance, remains heavily reliant on China and Taiwan for iPhone production. Tariffs or sanctions could increase costs or delay shipments. Microsoft's hardware and Amazon's device arms (Kindle, Echo, Fire) also face potential headwinds if tariffs hit Asian manufacturing. Tariffs could delay projects like Stargate, a $500 billion AI data centre venture involving Oracle and SoftBank, by increasing hardware costs. The tech sector's reliance on global supply chains makes it vulnerable, with Nvidia, AMD, and TSMC stocks falling 7–10% after tariff announcements. AI As A Hedge Paradoxically, AI is emerging as a hedge against economic volatility. While traditional sectors brace for tariffs and geopolitical shockwaves, AI-driven efficiencies can lower costs, automate labour, and unlock new revenue streams. Moreover, much of AI development is digital and cloud-based, less affected by physical trade barriers. For companies like Meta and Microsoft, whose revenues rely more on software and services than physical goods, tariffs may have a limited direct impact. What Lies Ahead? Even as the global economy reels from uncertainty around trade, inflation, and leadership transitions, the AI race continues at full throttle. Meta, Amazon, Apple, and Microsoft are not just adapting—they are thriving by embedding AI across every layer of their businesses. If tariffs escalate under Trump's administration or other nationalist movements worldwide, tech giants may face higher hardware costs and supply chain headaches. But their deep investment in AI—especially in cloud, enterprise tools, and digital services—positions them to weather the storm better than most industries. top videos View all About the Author Shilpy Bisht Shilpy Bisht, Deputy News Editor at News18, writes and edits national, world and business stories. She started off as a print journalist, and then transitioned to online, in her 12 years of experience. Her More News18 Tech delivers the latest technology updates, including phone launches, gadget reviews, AI advancements, and more. Stay informed with breaking tech news, expert insights, and trends from India and around the world. Also Download the News18 App to stay updated! tags : artificial intelligence (AI) Meta Microsoft AI view comments Location : New Delhi, India, India First Published: August 04, 2025, 11:28 IST News tech How Meta, Apple, Amazon & Microsoft Profit From AI While Trump Tariffs Disrupt Trade Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Asked ChatGPT for motivation, but this user discovered a whole new use for AI instead
Asked ChatGPT for motivation, but this user discovered a whole new use for AI instead

Time of India

time5 hours ago

  • Time of India

Asked ChatGPT for motivation, but this user discovered a whole new use for AI instead

AI Takes on the Role of City Guide An Accidental Feature That Just Works What began as a simple request for morning motivation ended with a surprising discovery for one ChatGPT user, who took to Reddit to share their experience. The user initially asked ChatGPT to help them get motivated for a walk. The AI delivered with what the user described as a perfectly blended mix of sass and humour. But things took an unexpected turn when the user casually mentioned where they planned to responded by offering to act as a tour guide along the route. Curious, the user decided to give it a voice mode and a standard pair of headphones, the user began their walk while ChatGPT provided real-time commentary. After being told the starting location, the AI offered informative insights about the city's history and landmarks expected along the way. Despite the walk lasting over an hour and twenty minutes, the AI managed to retain full context throughout the to the Reddit post, ChatGPT didn't just maintain conversational consistency — it also impressed with accuracy. The user, who already had a strong understanding of their city's background, admitted they learned a few new historical facts during the walk. Importantly, they noted that ChatGPT didn't make any factual errors or 'hallucinate' information, a concern often raised with AI language experience seems to have highlighted a new practical use of generative AI: serving as an on-demand tour guide for everyday users. While tools like ChatGPT are often promoted for productivity, creativity, or even emotional support, this case showed it could also offer engaging and reliable educational experiences in real-time and location-aware the AI didn't access live location data, the user fed it enough cues to allow the model to anticipate upcoming landmarks. Its ability to retain memory during the session allowed it to keep track of the route Reddit user ended their post with a suggestion: others should try ChatGPT in this way. What was meant to be a motivational nudge turned into an enriching hour of learning about one's own surroundings — making the walk more than just exercise.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store