OpenAI unveils GPT-5, promising smarter AI as pressure mounts

OpenAI launched GPT-5 on Thursday. The much-anticipated next generation of its generative AI technology is the same system behind the popular ChatGPT chatbot. The new model is now available to all 700 million ChatGPT users, according to the company.

The release arrives at a critical juncture for the Artificial Intelligence (AI) industry. Tech giants such as Alphabet, Meta, Amazon, and Microsoft, which backs OpenAI are collectively expected to pour nearly $400 billion into AI-related infrastructure this fiscal year. Much of that is aimed at fuelling data centres powerful enough to handle advanced models like GPT-5.

And here's the rub: while consumer interest in ChatGPT remains sky-high, enterprise adoption is still lagging behind.

"Business spending on AI has been pretty weak," said economics writer Noah Smith. "Consumer love for ChatGPT isn't enough to justify the billions going into AI data centres."

To win over businesses, OpenAI is touting GPT-5's capabilities in software development, healthcare, and finance. CEO Sam Altman claimed the new model performs like a "PhD-level expert" and can instantly generate full-fledged software applications from natural language prompts.

"One of the coolest things it can do is write you good instantaneous software," Altman said. "This idea of software on demand is going to be one of the defining features of the GPT-5 era."

Demonstrations showcased GPT-5's ability to handle complex coding tasks and generate functional applications from simple user input, a concept OpenAI calls "vibe coding."

Meanwhile, OpenAI is reportedly in early talks to allow employees to cash out shares at a $500 billion valuation, up sharply from its current $300 billion mark. In an industry where top AI researchers can command $100 million signing bonuses, expectations are sky-high.

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