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OpenAI CEO Sam Altman
(Screenshot: OpenAI)

OpenAI backtracks on plan to mothball old AI models after user outcry

OpenAI CEO Sam Altman spent the weekend on social media trying to quell an uproar from dedicated users.

After a splashy (but rocky) rollout last week of OpenAI’s latest flagship model, GPT-5, users pushed back loudly on the company’s plan to deprecate older models in place of the new release.

CEO Sam Altman’s weekend was a little hectic.

During the livestream announcing the release, the plan to mothball the old models was mentioned in passing, as an employee ran a demo showing how GPT-5 could write a “eulogy” to the models that were marked for death.

A spokesperson from OpenAI confirmed with Sherwood News that the plan was to replace the prior models with GPT-5 to make it easier for users by eliminating a confusing choice over which model is best suited for their task. The problem is that people have very strong feelings for the previous leading model, 4o.

Users pushed back online, and following Thursday’s launch in a series of posts on social media, Altman folded. In addition to keeping 4o around for ChatGPT Plus users, OpenAI will double the “rate limits” (the maximum requests you can make in a period of time) for GPT-5.

Damage control

To quell the uproar, on Friday 11 a.m. PT, Altman jumped on Reddit with eight other OpenAI employees to hold an “AMA” (ask me anything) on the ChatGPT subreddit. Altman addressed the embarrassing charts that made it into the livestream. In response to the question, “What was up with those graphs? It looked misleading,” Altman wrote:

“the numbers here were accurate but we screwed up the bar charts in the livestream overnight; on another slide we screwed up numbers. the blog post and system card were accurate though. people were working late and were very tired, and human error got in the way. a lot comes together for a livestream in the last hours.”

An hour after the AMA started, and just over 24 hours after the launch, Altman acknowledged the rollout’s “bumpiness” and announced the reversal and some significant changes to the ChatGPT service:

A few hours later on Friday night, Altman had more to say in a mea culpa, acknowledging that the company “for sure underestimated how much some of the things that people like in GPT-4o matter to them, even if GPT-5 performs better in most ways.”

On Sunday afternoon, Altman posted about the increased rate limits and some upcoming user interface changes.

Altman indicated the company would post an update Monday or Tuesday to “share our thinking on how we are going to make capacity tradeoffs over the coming months.”

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“As I shared in October, we've been working to strengthen our organization by reducing layers, increasing ownership, and removing bureaucracy,” Senior Vice President of People Experience and Technology Beth Galetti wrote in a press release. “While many teams finalized their organizational changes in October, other teams did not complete that work until now.”

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“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.”

CEO Andy Jassy previously said that the October layoffs were “about culture” rather than AI-related cost cutting. Galetti says layoffs, now totaling 30,000, won’t become a regular occurrence.

“Some of you might ask if this is the beginning of a new rhythm – where we announce broad reductions every few months. That’s not our plan.”

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Anthropic reportedly doubles current fundraising round to $20 billion

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The company reportedly received interest totaling 5x to 6x its original $10 billion fundraising goal, and it’s expected to haul in several billion more than that tally before the current round closes.

Anthropic’s success with enterprise customers and the popularity of its Claude Code product are boosting the company’s momentum as it chases the current valuation leader of the AI startup pack: OpenAI.

The company reportedly received interest totaling 5x to 6x its original $10 billion fundraising goal, and it’s expected to haul in several billion more than that tally before the current round closes.

Anthropic’s success with enterprise customers and the popularity of its Claude Code product are boosting the company’s momentum as it chases the current valuation leader of the AI startup pack: OpenAI.

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