<div id="readability-page-1">On January 9, 2007, Apple Inc. (AAPL) CEO Steve Jobs stood on stage at the Macworld Expo in San Francisco and unveiled the first iPhone. <figure><img width="877" height="563" src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2025/08/stevejobsiphone.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2025/08/stevejobsiphone.jpg"/><figcaption>Source: The Telegraph</figcaption></figure> In the press release, Apple called it a “breakthrough internet communications device” stating: <blockquote> iPhone introduces an entirely new user interface based on a large multi-touch display and pioneering new software, letting users control iPhone with just their fingers. iPhone also ushers in an era of software power and sophistication never before seen in a mobile device, which completely redefines what users can do on their mobile phones. </blockquote> However, the public quickly realized that the device was still far from perfect when the iPhone hit store shelves six months later. “There’s no denying the wow factor,” said one reviewer at Wired magazine, “but overall, the iPhone isn’t worth the money.” Slow networks meant streaming music and browsing the web were frustratingly sluggish, and early programming bugs caused frequent crashes and permanent data losses. The fact is that Apple’s real breakthrough came in three stages. And the iPhone 1 was only the first stage. The second stage came with the iPhone 4 in 2010, which became the tech giant’s longest-lasting flagship model. The device perfected 3G network usage with a penta-band modem and was the first to feature a front-facing camera. The device won over critics, with one reviewer calling the iPhone 4 “easily the best mobile device I’ve ever used” for its long battery life, ease of use and smooth functionality. Stage three for the iPhone happened in 2014 with the iPhone 6, as Apple engineers had largely perfected smartphone technologies. Devices could support larger screens and communicate on 20 separate LTE bands, allowing for high-definition video streaming. The iPhone 6 also featured a rear-facing camera that could capture full high-definition video at 60 frames per second, and a new “tap and go” chip to manage mobile payments. At the same time, mobile-first businesses like Uber Technologies, Inc. (UBER) and Instagram were beginning to thrive. These apps required dependable, high-performing devices – something the iPhone 6 provided. Together, this new ecosystem of hardware, software and cell phone infrastructure turned smartphones into a must-have device. U.S. smartphone penetration rose past 50%, and the iPhone 6 became Apple’s best-selling model of all time, with 222 million units sold. The story of the iPhone’s breakthrough reminds me of ChatGPT’s advancements. So, in today’s Market 360, we’ll discuss the three stages of ChatGPT. I’ll explain why I believe ChatGPT is having its “iPhone 6 moment” now… why I expect Physical AI to be even bigger than ChatGPT – and how you can invest in it. <h2>The Three Stages of ChatGPT</h2> Stage one for ChatGPT was its debut in November 2022. The large language model (LLM) was a game-changing product, bringing advanced AI into daily life. But it also hallucinated, failed at basic tasks and sometimes went offline from heavy demand. One AI researcher famously got the system to recommend a deep-fried churro as an effective surgical tool. Stage two happened in December 2024 with the o1 “Strawberry” model. It was the first recursive-thinking AI that could consistently reason through multistep problems, including counting the number of “R’s” in the word “strawberry.” (There are three.) Suddenly, even poorly written prompts could be refined by the AI itself, removing the need for expert prompt engineering. The recent launch of ChatGPT-5 this month puts us in the third stage of chatbots… one I’m calling the “iPhone 6 moment.” Today, roughly half of Americans actively use AI in their daily lives, and OpenAI has designed GPT-5 to serve this new mainstream user. The system unifies all OpenAI models into a single offering, and so there’s no longer a need to know the difference between models that excel at quick questions (GPT-4o) or coding (GPT-4.5). Now, there’s no denying that the rollout of GPT-5 has been messy. OpenAI CEO Sam Altman noted that the system’s autoswitcher broke and was out of commission for a chunk of launch day. “The result was GPT-5 seemed way dumber,” Altman admitted on social media after users complained. “We are making some interventions to how the decision boundary works that should help you get the right model more often.” I believe this will happen, given OpenAI’s history of improving models post-launch. In fact, the system has already surpassed all previous models by intelligence, achieving a 26.5% score on “Humanity’s Last Exam,” one of the most difficult tests designed by subject-matter PhDs. <figure><img width="546" height="250" src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2025/08/humanityslastexam.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2025/08/humanityslastexam.png"/><figcaption>Source: Artificial Analysis</figcaption></figure> AI is also more broadly turn into a “must-have.” Businesses and schools are starting to require AI knowledge; a survey by Australian marketing firm Canva found that 92% of business leaders believe AI literacy will be a necessary skill for marketers in the next two to four years. Those who avoid AI are beginning to look like the same people who held on to their flip phones for the sake of tradition. <h2>AI Crosses the Tipping Point</h2> I bring up this comparison between the iPhone and ChatGPT to illustrate how innovation has become faster than ever before… and why it’s so important to invest ahead of the curve. You see, if you look back to the smartphone revolution, it took three years to go from the iPhone 1 to iPhone 4… and another four to get to the iPhone 6. Those who passed on buying Apple in 2007 during the first iPhone launch would have only missed out on 2X gains if they bought four years later. Even famed investor Warren Buffett managed to earn billions from Apple after investing in 2016. In other words, the smartphone revolution gave investors many second chances to jump in. Meanwhile, OpenAI took just two years to advance from the original ChatGPT to “o1”… and then just nine months to reach ChatGPT-5. There’s already speculation about GPT-6 coming out sometime next year. This faster pace of innovation means AI valuations have risen far faster… even compared to Apple’s rapid ascent. A perfect example of this is NVIDIA Corporation (NVDA). Those who followed my advice and boughtNVIDIA back in May 2019 are sitting on an over 4,000% gain. Even if you bought the AI chipmaker in 2022, you’d be sitting on 10X gains. <h2>The Tech Rule of Three</h2> Now, human knowledge compounds over time, which means each new technological era happens exponentially faster than the one before it. With each wave, the value created also multiplies. History shows that every major tech revolution generates at least three times more value than its predecessor, a phenomenon called the Tech Rule of Three. <ul> <li>The personal computer era marked the first big leap…</li> <li>The internet followed, producing over 3.5X the value of PCs…</li> <li>Mobile than tripled the internet’s gains….</li> <li>Cloud computing tripled mobile’s….</li> </ul> That’s because each cycle is compressing decades of progress into fewer years. It’s like chewing on a piece of hard candy to get more flavor; 20 years of PC profits were crushed into 10 years of smartphones… and now just three years in AI. New innovations also have spillover effects on previous technologies, further compounding their value. AI today, for instance, can be used to enhance older technologies such as cars (self-driving vehicles), PCs (AI PCs), and smartphones (personal assistants). If Physical AI follows this same trajectory (and I believe it will), we could be looking at $20 trillion or more in value creation. This isn’t just another boom. It’s a multiplier. So, if you want to make real money, you have to jump in now. That’s why my InvestorPlace colleagues Eric Fry and Luke Lango and I teamed up to launch a brand-new Day Zero Portfolio. It features seven cutting-edge stocks leading the Physical AI Revolution. And already, three of our robotics recommendations are up in the double digits. Click here to watch our Day Zero briefing to learn how to access our Day Zero Portfolio. During this special broadcast, we’ll even give you one of our top picks – absolutely free. Sincerely, <figure><img width="300" height="96" src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2024/02/louis_navellier-300x96.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/uploads/2024/02/louis_navellier-300x96.png"/></figure> Louis Navellier Editor, Market 360 The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below: NVIDIA Corporation (NVDA) </div>

OpenAI

The article compares the evolution of ChatGPT to the iPhone's development, highlighting three stages of both technologies. The first stage for ChatGPT began in November 2022, followed by the 'Strawberry' model in December 2024, and the recent launch of ChatGPT-5, which is seen as its 'iPhone 6 moment.' The author suggests that ChatGPT's advancements could lead to significant investment opportunities, particularly in Physical AI, as AI usage becomes mainstream in daily life.

ChatGPT’s “iPhone 6 Moment” Is Happening Now – Here’s How Investors Can Profit