OpenAI has officially launched GPT-5, the latest and most advanced version of its generative AI model, marking a significant milestone in the evolution of artificial intelligence. This new model powers the widely used ChatGPT platform, which now serves over 700 million users globally, and promises to push the boundaries of what AI can achieve in both consumer and enterprise applications.
The release of GPT-5 comes at a pivotal time for the AI industry. Major tech giants, including Google, Meta, Amazon, and Microsoft (OpenAI’s key backer) are investing heavily in AI infrastructure, with combined capital expenditures expected to reach nearly $400 billion this fiscal year. These investments reflect growing optimism about AI’s potential to deliver transformative returns, especially in enterprise settings.
Despite this, concerns remain about whether consumer enthusiasm alone can justify such massive spending. As economics writer Noah Smith noted, while ChatGPT has seen strong consumer adoption, enterprise-level spending on AI has lagged behind. This gap raises questions about the sustainability of current investment levels.
OpenAI is positioning GPT-5 as a powerful tool for businesses. According to CEO Sam Altman, GPT-5 represents a leap forward in expertise and versatility. “This is the first time one of our models feels like you’re consulting a true expert, someone with PhD-level knowledge,” Altman said. He highlighted GPT-5’s ability to generate high-quality software instantly, a concept he described as “software on demand”, which could redefine how businesses build and deploy applications.
In live demonstrations, GPT-5 showcased its ability to generate fully functional software from simple text prompts, a technique dubbed “vibe coding”. The model also excels in domains like writing, healthcare, and finance, making it a compelling option for enterprise users seeking specialized AI support.
While GPT-5 delivers notable improvements in coding, science, and mathematics, early reviewers suggest the jump from GPT-4 to GPT-5 may not be as dramatic as previous upgrades. Nonetheless, the model introduces several key innovations, including test-time compute, a method that allows GPT-5 to allocate more computational resources to complex queries, enhancing its reasoning and problem-solving capabilities.
This feature enables GPT-5 to act as a router, dynamically adjusting its processing power based on the difficulty of the task. It’s the first time this technology is available to the public, and OpenAI sees it as a crucial step toward building AI that benefits all of humanity.
OpenAI’s journey to GPT-5 wasn’t without obstacles. The company faced a data bottleneck, as the internet, the primary source of training data, offers limited new content. Former chief scientist Ilya Sutskever previously warned that while computing power continues to grow, the availability of high-quality data does not.
Additionally, large-scale training runs are prone to hardware failures and unpredictable outcomes, making it difficult to assess a model’s performance until the end of a months-long process. These challenges have prompted OpenAI to explore alternative strategies like test-time compute to enhance model intelligence without relying solely on more data.
OpenAI is reportedly in early talks to allow employees to sell shares at a $500 billion valuation, up from its current $300 billion. This reflects growing confidence in the company’s long-term prospects, even as top AI researchers command signing bonuses as high as $100 million. Altman remains optimistic but realistic. “We need to build a lot more infrastructure globally to make AI locally available in every market,” he said, emphasizing the need for continued investment and innovation.
