The AI industry just unveiled its newest class of models. But the industry's holy grail remains out of reach... I'm talking about artificial general intelligence ("AGI").

Editor's note: Artificial intelligence ("AI") is revolutionizing all sorts of industries... And of course, we've followed this major market shift for years in Chaikin PowerFeed. Today, we're sharing another must-read AI-related essay with you. It comes from analyst Sean Michael Cummings at our corporate affiliate Stansberry Research. Regular PowerFeed readers know that Sean frequently contributes to Stansberry's free DailyWealth e-letter. And this past Monday, he discussed the next big leap for AI... Your Next AI Agent Will Learn Like a Child By Sean Michael Cummings, analyst, Stansberry Research The AI industry just unveiled its newest class of models. But the industry's holy grail remains out of reach... I'm talking about artificial general intelligence ("AGI"). AGI describes a computer model that understands, learns, and applies knowledge across a broad range of tasks, just like a human. Last week, OpenAI debuted its newest AI chatbot, GPT-5. The new model represents a big leap forward in the field. But last Wednesday, OpenAI CEO Sam Altman hesitated to call it AGI...   This is clearly a model that is generally intelligent, although I think in the way that most of us define AGI, we're still missing something quite important, or many things quite important. In other words, as impressive as AI is today, it's still a far cry from AGI. But behind the scenes, a novel approach to AI innovation is taking shape. And it could bring the AGI dream closer than ever... Recommended Links: Here's What You Missed Yesterday President Donald Trump's family quietly moved $2.6 billion... and a blindsiding move by the U.S. Treasury could soon reveal why. One Hall of Fame analyst says this radical $2 trillion plan could soon reset the way America operates... and unleash enormous potential gains (10X or more) for those who act now. Click here to learn more (includes a free recommendation). Marc Chaikin Is Now Calling the EXACT Day the Next Market Crash Will Begin "You must know the day this bull market is likely to end... with more than 100 years of market data to back it up... and based on the most valuable market-cycle indicator I've ever seen," says Wall Street legend Marc Chaikin. In his latest briefing, he shares what to buy now, what to avoid, and exactly when the next big crash will likely begin. See Marc's critical market update here. Last week saw the release of not one but two new flagship AI models. Anthropic's Claude Opus 4.1 debuted on August 5, just two days before OpenAI's GPT-5. These models represent the bleeding edge of consumer AI. But when you look at the data, they deliver only small performance improvements... We can see that by comparing both models with their predecessors – Claude Opus 4 and OpenAI o3. We'll track improvement across four benchmarks...   1.  Coding 2.  Graduate-level reasoning 3.  Visual reasoning 4.  High school math Look at how the new models performed at these tasks... Both new models only slightly outperform their predecessors. GPT-5 made the larger leap. It improved both its coding and high school math scores from OpenAI o3 by 6 percentage points. So while language models are undeniably getting better, progress is hard-fought. But soon, a little-known innovation could pave the way for AGI-like breakthroughs. I'm talking about the new class of AI "world" models... Virtual Worlds Are Powering the Next AI Leap World models take a text prompt and generate a dynamic 3D world... It's a lot like a video game. These tools let AI agents train on things like physics in open-ended virtual environments. In other words, AI world models closely mimic the mental development of children. They're a potential way to test things out and learn from experience. This technique could help AI agents achieve the "subconscious" reasoning that will characterize true AGI. On August 5, the Google DeepMind team announced Genie 3. This world model creates consistent digital environments that can last up to several minutes. One of Genie 3's biggest improvements is its ability to trigger "events" – written changes to the virtual world that appear in real time. These events will train agents on how to deal with the unexpected. In short, Genie 3 combines consistent virtual worlds with spontaneous prompting. This combination allows AI agents to execute long chains of actions in safe virtual spaces. And again, this kind of training is a valuable step closer to AGI. The race to AGI is a marathon, not a sprint. It could take years – or even decades – to get there. But with innovations like world models, more sophisticated AI systems are a certainty. That's good news for AI investors. It means this bull market still isn't over. The newest AI language models are smarter than ever. But there's still time to profit as companies race to achieve AGI... Semiconductors, data centers, and AI software companies are all great ways to gain exposure to this rally. With world models coming to the market, Silicon Valley's next push toward AGI is on. Don't miss this once-in-a-lifetime innovation. Good investing, Sean Michael Cummings   Editor's note: You can get daily insights like this one from Sean and his Stansberry colleagues in DailyWealth. Like the Chaikin PowerFeed, it's free. And it comes directly to your inbox every weekday morning that the markets are open. Get started right here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +1.06% 11 15 4 S&P 500 +1.06% 145 261 93 Nasdaq +1.26% 28 59 13 Small Caps +2.97% 642 1026 374 Bonds -0.5% Communication Services +1.91% 6 11 3 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks remain somewhat Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Consumer Discretionary +3.58% Information Technology +3.11% Communication +2.73% Consumer Staples +2.68% Financial +1.47% Materials +0.92% Industrials +0.72% Utilities -0.13% Energy -0.99% Health Care -0.99% Real Estate -1.68% *  *  *  * Industry Focus Bank Services 55 39 4 Over the past 6 months, the Bank subsector (KBE) has underperformed the S&P 500 by -6.92%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #5 of 21 subsectors and has moved up 2 slots over the past week. Top Stocks ABCB Ameris Bancorp ZION Zions Bancorporation ASB Associated Banc-Corp *  *  *  * Top Movers Gainers UAL +10.23% DAL +9.23% APTV +7.37% NXPI +7.26% BLDR +6.75% Losers CAH -7.21% AXON -6.12% CSGP -4.37% MOS -4.03% TYL -3.47% *  *  *  * Earnings Report Earnings Surprises ONON On Holding AG Q2 $-0.11 Missed by $-0.37 CAH Cardinal Health, Inc. Q4 $2.08 Beat by $0.05 MSGS Madison Square Garden Sports Corp. Q4 $-0.07 Beat by $0.27 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at STEVENMAGALLANES520.NIMS@BLOGGER.COM. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2025 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.