OpenAI Launches GPT-5.4

Plus: How to create AI music with Google’s Lyria

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Welcome to AI Toast!

Here’s what’s on the menu today:

  • OpenAI launches GPT-5.4 with Pro and Thinking versions

  • Nvidia is pulling back from OpenAI and Anthropic

  • Superhero Tools for business

  • Create AI music with Google’s Lyria

  • Quick Toasts: Meta will allow rival AI chatbots inside WhatsApp in Europe

Total read time: About 5 minutes, perfect for a quick coffee break.

Image Source: OpenAI Blog

OpenAI has released GPT-5.4, its most advanced model yet for real-world tasks like coding, research, and document creation. The model combines recent advances in reasoning, coding, and tool usage into one system.

  • Combines advances from reasoning models and GPT-5.3-Codex to improve coding and real-world workflows.

  • Supports up to 1 million tokens of context, allowing agents to plan and execute longer tasks.

  • Introduces native computer-use capabilities, enabling AI agents to operate software and complete multi-step workflows.

  • Improves work across spreadsheets, presentations, and documents, making it more useful for professional knowledge tasks.

  • GPT-5.4 can now show an upfront plan of its reasoning, letting users adjust direction while the model is working.

  • Achieves 83% performance vs industry professionals on knowledge-work benchmarks across 44 occupations.

  • More efficient than GPT-5.2, using fewer tokens while delivering faster responses.

  • Available today for ChatGPT Plus, Team, and Pro users, with GPT-5.4 Pro for Pro and Enterprise plans.

This release positions GPT-5.4 as OpenAI’s most capable model yet for complex, real-world workflows.

Personal Take: This feels less like another model update and more like OpenAI pushing AI deeper into real professional work. Features like computer use, long context, and better document handling suggest the focus is shifting from chat to actually completing tasks. If these capabilities hold up in practice, GPT-5.4 could become a serious productivity engine for developers, analysts, and knowledge workers.

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Millions of users worldwide. Teams at OpenAI, Vercel, and Clay use Flow daily. Now available on Mac, Windows, iPhone, and Android - free and unlimited on Android during launch.

Image generated using Grok

Nvidia is shifting its strategy and according to CEO Jensen Huang, the company's era of high-stakes investments in OpenAI and Anthropic is officially cooling off.

  • The "Minting Money" Reality: Nvidia already dominates by selling the chips that power both companies; it doesn't need to "goose its returns" by pouring more cash into them.

  • The "Circular" Trap: Nvidia invests billions and the startups immediately hand that cash back to buy Nvidia chips.

  • Shrinking Bets: Concerns over an investment bubble may be why Nvidia’s latest OpenAI check was $30 billion, a massive drop from the initial $100 billion pledge.

  • The Federal Fallout: The Trump administration recently blacklisted Anthropic after the company refused to allow its models to be used for autonomous weapons or mass surveillance.

  • The Pentagon Pivot: Hours after Anthropic was barred, OpenAI struck its own deal with the Pentagon, a move Anthropic labeled "mendacious".

  • The Viral Rebound: Despite the blacklist, Anthropic’s Claude rocketed to the top of the U.S. App Store, actually overtaking ChatGPT as public interest surged.

Personal Take: Jensen Huang is playing the ultimate "arms dealer" move. By stopping the cash flow now, he avoids getting dragged into the ideological and federal crossfire between OpenAI and Anthropic.

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Superhero Tools (Business)

Microsoft Copilot: Microsoft’s AI assistant built into Word, Excel, PowerPoint, Outlook, and Teams that helps automate reports, summarize meetings, generate documents, and analyze business data.

ThoughtSpot: An AI-powered analytics platform that lets teams ask questions in natural language and instantly get insights, dashboards, and data visualizations from business data.

Zapier: A popular automation platform that connects thousands of apps so businesses can automate workflows like moving data, sending notifications, or triggering tasks without coding.

Lindy AI: An AI assistant platform that helps automate repetitive business tasks such as scheduling, email replies, research, and internal workflows using AI agents.

Workstatus: A workforce management and productivity tracking tool that helps businesses monitor team activity, manage projects, track time, and generate performance insights.

How to create music with AI using Lyria

Image Source: Google blog

  1. Go to Gemini App or open Google AI Studio / MusicFX where Lyria is available.

  2. Once logged in, open the MusicFX or Lyria music generation tool from the available AI experiments.

  3. Click Create Music or Generate to start a new track.

  4. In the prompt box, describe the type of music you want. Be specific about style, mood, and instruments.

    Example: “Upbeat electronic music with deep bass, synth melodies, and a futuristic vibe.”

  5. Choose optional settings if available such as genre, tempo, instruments, or mood.

  6. Click Generate. Lyria will create an original AI music track based on your prompt.

  7. Listen to the generated version. If it’s not exactly what you want, edit the prompt and generate again.

  8. You can experiment by adding details like vocals, cinematic style, lo-fi beats, ambient sounds, or orchestral instruments.

  9. Once satisfied, download or save the track for use in videos, content, or creative projects.

  10. Repeat the process with different prompts to generate multiple variations and styles.

That’s it! Most AI music tracks can be generated in under a minute. The key is writing clear prompts that describe the mood, genre, and instruments you want.

Quick AI News Bites

  • Claude Code begins rolling out voice mode, letting developers dictate prompts using push-to-talk while coding. The transcript appears directly in the editor and doesn’t count against token limits.

  • Chrome begins testing a Gemini sidebar assistant, allowing users to summarize pages, ask questions about tabs, and perform tasks directly from the browser interface.

  • OpenAI expands enterprise tools with a ChatGPT Excel add-in, allowing businesses to generate spreadsheets, analyze financial data, and automate reporting directly inside Excel.

  • Meta will allow rival AI chatbots inside WhatsApp in Europe, but companies may have to pay fees to access the messaging platform. Tech Mahindra and

  • Microsoft r to modernize telecom data systems and help companies deploy AI-driven automation across networks.

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— Poonam Soni