OpenAI has unveiled GPT-5, its newest flagship artificial intelligence model, describing it as a “major upgrade” over previous versions of the technology powering ChatGPT. According to The New York Times, the company says GPT-5 is not only faster and more accurate but also less prone to “hallucinations,” or generating false information.
A Leap Toward Expert-Level Conversations
CEO Sam Altman emphasized that GPT-5 offers an unprecedented conversational experience, likening it to talking with “a Ph.D.-level expert” on virtually any topic. Unlike its predecessors, GPT-5 is the first reasoning model to be integrated into the free version of ChatGPT, allowing the AI to “think” through complex problems before producing an answer.
Real-World Applications in Minutes
OpenAI claims the model “feels more human” and can help even beginners create functional software quickly. In one demonstration, an engineer prompted GPT-5 to build a French learning app, which the AI produced in minutes.
Competitive Pressures and Industry Context
The launch comes amid fierce competition from AI rivals like Google, Meta, Anthropic, and China’s DeepSeek, all racing to push the limits of machine reasoning. While GPT-5 is a step toward the company’s goal of achieving artificial general intelligence (AGI)—a system with human-level capabilities—Altman acknowledged that AGI remains out of reach for now.
Opening the Doors to AI Access
Earlier this week, OpenAI also open-sourced two AI models for chatbot development, making them freely available to researchers and businesses worldwide. This marks a shift for the company, which has largely kept its technology proprietary since releasing ChatGPT in late 2022.
The Business Behind the Breakthrough
OpenAI offers a free version of ChatGPT alongside a $20/month premium tier and licenses its technology to companies and developers. Although not yet profitable, the company expects to generate $20 billion in revenue this year and is planning a $40 billion fundraising round.
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