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Sam Altman In Sun Valley
OpenAI CEO Sam Altman (Kevin Dietsch/Getty Images)
Eye on AI

OpenAI releases its long-awaited flagship model, GPT-5

Researchers said the new AI model is “significantly less deceptive” than prior models as the company tries to shift expectations from the giant leaps in performance seen earlier in the AI boom.

Jon Keegan
8/7/25 1:30PM
Updated 8/7/25 3:55PM

Looking back to November 2022, when ChatGPT was released to the world as a technical preview, it’s dizzying to think of the incredible progress — and the hundreds of billions of dollars — that AI startups and Big Tech companies have spent to rapidly train and improve their ever-larger language models in a furious race to the top of benchmark leaderboards.

Today, OpenAI released its latest flagship large language model, GPT-5, and it might mark the end of the first explosive wave of generative AI and the start of a new era where gains are measured in different ways.

Details leaked overnight, but today in a webcast, OpenAI cofounder and CEO Sam Altman debuted the new model, which comes in four flavors:

  • GPT-5: “Designed for logic and multi-step tasks.”

  • GPT-5-mini: “A lightweight version for cost-sensitive applications.”

  • GPT-5-nano: “Optimized for speed and ideal for applications requiring low latency.”

  • GPT-5-chat: “Designed for advanced, natural, multimodal, and context-aware conversations for enterprise applications.”

The new models will be available to free, Plus, Pro, and Team users today. ChatGPT Enterprise and Edu users will gain access on August 14, according to OpenAI’s website. Executives highlighted GPT-5’s strengths in code generation, math, physics, healthcare, and the ability to dive deeper into a problem when needed without the user having to choose that ahead of time. OpenAI said that “improving factuality” was a priority for GPT-5, and hallucinations have been reduced.

For safety, a new technique called “safe completions” has been introduced to make sure GPT-5 can decline to answer potentially harmful responses while still being helpful. Researchers also highlighted the work to reduce the ability of ChatGPT to deceive its user, saying that the new model is “significantly less deceptive” than prior models.

On the livestream, an OpenAI researcher announced that with the release of GPT-5, the company will be deprecating all of the previous GPT models. Taya Christianson, a spokesperson for OpenAI, told Sherwood News that to prevent users from having to pick the right model to use, GPT-5 will be the default. “Models will remain available for Pro, Team, Enterprise, and Edu tiers for the next 60 days, after which GPT-5 will be the default,” Christianson said.

Among the new features for ChatGPT include customizing the colors of the chat interface and an early “research preview” of chat personalities, to be tailored to a user’s needs.

OpenAI’s website described the major release:

“GPT-5 is OpenAI’s most advanced model, offering major improvements in reasoning, code quality, and user experience. It handles complex coding tasks with minimal prompting, provides clear explanations, and introduces enhanced agentic capabilities, making it a powerful coding collaborator and intelligent assistant for all users.”

End of the old playbook?

The original ChatGPT release (powered by GPT-3.5) in 2022 sparked other tech companies to follow a proven playbook for how to compete in a brand-new industry with few rules — to win, you needed a bigger, smarter, more capable model that could notch gains on AI leaderboards and achieve record scores on benchmark tests.

The formula seemed deceptively simple: more training data, plus more Nvidia GPUs, equals a smarter model. And it worked, at least for a while.

The horse race that resulted saw OpenAI go up against Anthropic’s Claude, xAI’s Grok, Google’s Gemini, Meta’s Llama, and dozens of other models. Novel generative-AI features like Midjourney’s text-to-image generation, conversational speech mode, and code-writing assistants like Microsoft’s GitHub Copilot were dropping daily, and the sky appeared to be the limit.

But last year, researchers started seeing smaller and smaller gains when training their giant models, and talk of an AI “plateau” started to emerge. Tech companies had already pledged hundreds of billions in capital expenditures to build jumbo and mega-super-jumbo data centers, in anticipation of training bigger and bigger models.

If generative AI was hitting a plateau, investors might have some questions about the rush to build out all of this extremely expensive infrastructure, and without a profitable business model.

DeepSeek disrupts

The end of 2024 saw Chinese AI startup DeepSeek release its R1 “reasoning” model, which matched or beat the top state-of-the-art AI models in some areas. What caught everyone’s attention was that DeepSeek researchers were using older, slower chips (due to US export controls) to train the model for about $5.6 million — a fraction of what Western tech companies were shoveling into their gargantuan data centers at breakneck speed.

News of the open-source model throttled tech stocks as investors reconsidered Nvidia’s place in the white-hot center of the AI universe.

DeepSeek’s entrance into the field did appear to mark a big shift in strategy for the industry. Meta dedicated a team to analyze DeepSeek’s R1 model, and later offered similar reasoning capabilities with its Llama 4 models.

While OpenAI’s o1 model was the first major model to tout “chain of thought reasoning,” released last September, DeepSeek ran with the technique. DeepSeek used a distributed “mixture of experts” scheme where queries are distributed to smaller, specialized models, which was more efficient than one huge, monolithic model, like the ones the industry was racing to build. OpenAI’s odd GPT-4.5 release in February came with lowered expectations, and the announcement that it would be the last “non-reasoning” model the company would make.

Earlier this week, OpenAI released its new open-weight “gpt-oss” model in a large and small size. Releasing the model weights lets anyone run these new models on a laptop for free, and can be further trained for specialized use cases. At the time, Altman posted about GPT-4.5: “This isn’t a reasoning model and won’t crush benchmarks.”

High school, college, Ph.D.... What’s next?

OpenAI stressed in its GPT-5 demonstrations that while benchmarks have been helpful to measure specific improvements, they might be reaching their limits. OpenAI President Greg Brockman said of GPT-5’s high benchmark scores:

“They’re exciting numbers, but we’re starting to saturate them. When you’re moving between 98% and 99% of some benchmark, it means you need something else to really capture how great the model is. And one thing we’ve done very differently with this model is really focus on not just these numbers, but really on real-world application, it being really useful to you in your daily workflow.”

On the livestream, Altman positioned GPT-5 as a significant evolution from the company’s previous GPT models, and said it was far along on its academic journey:

“GPT-3 was sort of like talking to a high school student. There were flashes of brilliance, lots of annoyance, but people started to use it and get some value out of it. With GPT-4, maybe it was like talking to a college student — real intelligence, real utility. But with GPT-5, now it’s like talking to an expert, a legitimate Ph.D.-level expert in anything, any area you need, on demand that can help you with whatever your goals are.”

Updated at 2:45 p.m. ET on August 7 to include comment from OpenAI.

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Report: Microsoft adds Anthropic alongside OpenAI in Office 365, citing better performance

In a move that could test its fraught $13 billion partnership, Microsoft is moving away from relying solely on OpenAI to power its AI features in Office 365 and will now also include Anthropic’s Claude Sonnet 4 model, according to a report from The Information.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

tech

Apple announces extra slim iPhone Air, iPhone Pro with longer battery life, updated AirPods Pro 3 with live language translation, and refreshed Apple Watch line

At todays Awe Dropping Apple event, the company announced its yearly refresh of the iPhone lineup. The new iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max were joined by a brand-new addition: the iPhone Air, a superthin model with tougher glass and faster processors.

Apple shares dipped on news of the product releases and are down about 1.4% on the day in afternoon trading.

The company also announced an updated Apple Watch line — Series 11, SE3, and Ultra 3 — with new features like 5G, high blood pressure detection, 24-hour battery life, and satellite communication. 

Apple iPhone 17
Apple’s iPhone 17 (Photo: Apple)

Here’s a breakdown of the new products Apple announced:

  • The ultrathin iPhone Air was described by Apple as “a paradox you have to hold to believe.” The sleek 5.6-millimeter-thin iPhone features a crack- and scratch-resistant front and back and “Macbook Pro levels of compute,” which you can pair with a weird $59 cross-body strap. It starts at $999.

  • The iPhone 17 has a faster A19 chip, an improved smart selfie camera, and a higher-resolution screen. It starts at $799.

  • The iPhone 17 Pro has a new design, ever-faster A19 Pro chip, a tougher ceramic shield on the front and back, better cameras, and a bigger battery that gets an extra 10 hours of video playback compared to its predecessor. It costs $100 more than the previous generation, but the minimum storage has doubled to 256 gigabytes. It starts at $1,099.

  • The iPhone 17 Pro Max starts at $1,199.

  • The AirPods Pro 3 have AI-powered live translation, a new heart rate sensor, eight hours of battery life, and improved active noise cancellation. The new AirPods can also track workouts, and Apple says they are built to fit more people’s ears with a new design and foam ear tips. They start at $249.

  • The Apple Watch Series 11 has 5G, a new high blood pressure detection feature, improved sleep tracking, a more scratch-resistant face, and 24 hours of battery life.

  • The entry-level Apple Watch SE 3 gets 5G, new health-tracking features, and an always-on display. It starts at $249.

  • The chunky Apple Watch Ultra 3 has an impressive 42-hour battery life, satellite communications for emergencies, and a brighter and bigger display. It starts at $799.

tech

Nebius soars after signing a 5-year deal with Microsoft to supply nearly $20 billion worth of AI computing power

Artificial intelligence infrastructure group Nebius jumped more than 50% in early trading on Tuesday after the company announced after the close on Monday a major deal to supply computing power for Microsoft’s AI operations.

Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.

The deal represents a sizable portion of Microsofts proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.

Under the agreement, Nebius — which rose from the ashes of Russian tech giant Yandex — will provide Microsoft “access to dedicated GPU infrastructure capacity in tranches at its new data center in Vineland, New Jersey over a five-year term.” The New Jersey data center has a capacity of 300 megawatts. The total contract value through 2031 is $17.4 billion, though, if further capacity is required, the contract value could rise to $19.4 billion.

The deal represents a sizable portion of Microsofts proposed annual capital expenditure on AI, which is expected to reach $120 billion by the end of fiscal 2026.

Nebius and competitor CoreWeave are both on the short list of startups that Nvidia has invested in. Nvidia’s small stake in the former is now worth about $120 million.

President Trump hosts tech executives and their guests to a dinner at the White House in the Oval Office.

Here are the Trump ties among the tech leaders who had dinner at the White House

Many of the attendees have donated to, vocally supported, or even worked for the president.

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