AI developer OpenAI unveils GPT-5, a new model that could serve as a gauge for determining the validity of the ongoing AI hype
OpenAI, the world's third most valuable private company, has unveiled its latest AI model, GPT-5, marking a significant step towards artificial general intelligence (AGI). This advanced technology, released in August 2025, is designed to surpass humans at economically valuable work and is being hailed as OpenAI's smartest, fastest, and most useful AI model to date [1][2][4][5].
GPT-5 builds upon the capabilities of its predecessor, GPT-4, with key advancements in expert-level reasoning, multimodal integration, reduction in hallucinations, usability improvements, and extended capabilities [2].
Expert-level reasoning and intelligence have been significantly enhanced in GPT-5, with substantial improvements in logical, mathematical, and multi-step problem-solving. For instance, it scored 94.6% on the AIME 2025 Mathematics test and achieved 88.4% accuracy on a PhD-level scientific reasoning benchmark (GPQA), compared to about 50% for GPT-4 [2][5].
GPT-5 also excels in multimodal integration, seamlessly integrating text, images, and speech processing with 14% higher accuracy than GPT-4 on multimodal understanding benchmarks [2]. This enables a richer and more context-aware AI experience.
Safety improvements have been made to GPT-5 to make it less deceptive and prevent it from producing harmful responses to certain prompts. The model has a 45% lower factual error rate overall and up to 80% lower in reasoning mode compared to GPT-4 [1][4]. It is also better trained to acknowledge uncertainty and fail gracefully instead of producing false or unsafe answers, making it trustworthy for critical domains like healthcare and research.
Usability improvements include a real-time router that automatically selects the appropriate reasoning model or mode for the task without requiring user input, and users can choose among multiple personalities (cynic, robot, listener, nerd) to tailor interaction style [1][5].
GPT-5 also boasts extended capabilities and speed, boosting productivity in enterprise settings as demonstrated by early adopters like Amgen and Morgan Stanley [3].
While OpenAI emphasizes that GPT-5 is not yet AGI, it represents a major stride towards that goal, bringing expert-level intelligence more broadly accessible and reliable [2][4][5].
Rival AI companies such as Anthropic, Google, and others in the U.S. and China are competing to advance their AI technologies. Microsoft will incorporate GPT-5 into its AI assistant, Copilot. OpenAI started as a nonprofit research laboratory in 2015 and has since incorporated a for-profit company. The AP and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP's text archives. The company's valuation has grown to $300 billion, and GPT-5 is available, with usage limits, to anyone with a free ChatGPT account.
Despite its success, OpenAI has faced scrutiny from the attorneys general in California and Delaware, as well as a lawsuit by Elon Musk. The company is trying to raise large amounts of money to fund the costly computer chips and data centers needed for its technology. The inability of AI developers to maintain a competitive edge could lead to competition on lowering the prices of AI products, with JPMorgan Chase suggesting an "increasingly fragile moat" at the frontier of AI, meaning that a single AI developer may not have a sustained competitive edge.
[1] https://openai.com/blog/gpt-5 [2] https://www.wired.com/story/openais-gpt-5-ai-model-released/ [3] https://www.bloomberg.com/news/articles/2025-08-01/openai-s-gpt-5-ai-model-is-here-and-it-s-better-than-ever [4] https://www.techcrunch.com/2025/08/01/openai-gpt-5-ai-model-released/ [5] https://www.theverge.com/2025/08/01/22456601/openai-gpt-5-ai-model-released-chatgpt-improvements
- OpenAI, the world's third most valuable private company, plans to incorporate GPT-5, its latest AI model with expert-level reasoning and multimodal integration, into Microsoft's AI assistant, Copilot.
- GPT-5, released in August 2025, is being used by businesses like Amgen and Morgan Stanley to boost productivity, showcasing its potential in the real estate and finance sectors.
- Despite its advancements, GPT-5 is not yet Artificial General Intelligence (AGI), but it represents a significant step towards that goal in the field of technology.
- Rival AI companies, including Anthropic, Google, and Chinese competitors, are working to advance their technologies, aiming to surpass the capabilities of GPT-5.
- GPT-5 offers a real-time router that enables it to select the appropriate reasoning model for the task, along with multiple personality options for tailoring interaction styles, enhancing its usability in various business settings.
