We review the recent developments and the current status in the field of quantum-gas cavity QED. Since the first experimental demonstration of atomic self-ordering in a system composed of a Bose-Einstein condensate coupled to a quantized electromagnetic mode of a high-$Q$ optical cavity, the field has rapidly evolved over the past decade. The composite quantum-gas--cavity systems offer the opportunity to implement, simulate, and experimentally test fundamental solid-state Hamiltonians, as well as to realize non-equilibrium many-body phenomena beyond conventional condensed-matter scenarios. This hinges on the unique possibility to design and control in open quantum environments photon-induced tunable-range interaction potentials for the atoms using tailored pump lasers and dynamic cavity fields. Notable examples range from Hubbard-like models with long-range interactions exhibiting a lattice-supersolid phase, over emergent magnetic orderings and quasicrystalline symmetries, to the appearance of dynamic gauge potentials and non-equilibrium topological phases. Experiments have managed to load spin-polarized as well as spinful quantum gases into various cavity geometries and engineer versatile tunable-range atomic interactions. This led to the experimental observation of spontaneous discrete and continuous symmetry breaking with the appearance of soft-modes as well as supersolidity, density and spin self-ordering, dynamic spin-orbit coupling, and non-equilibrium dynamical self-ordered phases among others. In addition, quantum-gas--cavity setups offer new platforms for quantum-enhanced measurements. In this review, starting from an introduction to basic models, we pedagogically summarize a broad range of theoretical developments and put them in perspective with the current and near future state-of-art experiments.