OpenAI is facing tough competition from the Chinese AI market. The recent release of DeepSeek R1 has shaken AI giants like Nvidia and Microsoft. This Chinese AI startup has already wiped $1 trillion off the US stock market, becoming the most downloaded app on the Apple App Store.

So, how is OpenAI preparing to stay ahead? Which AI model did it launch recently? When is GPT-5 coming? And why did Sam Altman say GPT-5 would be smarter than humans? This post has all the answers. You’ll also learn what GPT-5 would be like and how it could impact the world.

How is OpenAI handling the competition?

Everyone in the tech world is surprised that DeepSeek built intelligent AI models with limited computing resources. DeepSeek R1 not only matches the performance of OpenAI’s o1 but is also available at a much lower cost.

Even OpenAI CEO Sam Altman described DeepSeek R1 as an "impressive model," and emphasized that OpenAI will also "deliver better models" soon. He said that computing resources will be important in the coming days as the world will use a lot of AI. He also said that OpenAI’s next-gen models will amaze the world. Maybe he was talking about GPT-5.

Sam Altman also shared a picture with Microsoft CEO Satya Nadella on X, saying that the OpenAI and Microsoft partnership is going to be “much better than anyone is ready for."

Just a week after these happenings, OpenAI launched its new model, o3-mini. Although it's a mini version, it's already seen to outperform OpenAI o1. Before we discuss GPT-5, let’s first understand the features and capabilities of this new OpenAI model.

What’s OpenAI o3-mini?

The o3-mini is the latest large language model by OpenAI that can think harder and give smart responses instantly. This is OpenAI's first reasoning model that has excellent STEM capabilities. It can solve logical problems, like tasks involving science, coding, maths, etc.

Here are a few things you should know about this new OpenAI model:

1. o3-mini vs. o1: OpenAI o1 was a broad reasoning model whereas o3-mini is a specialized model for technical applications. So, o3-mini performs better than o1 in Math, coding, and logical tasks while being faster and cheaper.

2. Three levels of reasoning: OpenAI o3-mini has three reasoning levels- low, medium, and high. o3-mini-high is the most intelligent model that takes time and thinks hardest to generate the smartest responses.

3. How safe it is: OpenAI has taught the model to think about safety before responding to a user prompt. So, just like OpenAI o1, o3-mini is much safer than GPT-4o.

4. How much does it cost: The o3-mini seems to be OpenAI's response to DeepSeek. It’s trying to provide cost-effective models to make AI more efficient and accessible. With a cost of $1.10 per million input tokens and $4.40 per million output tokens, OpenAI o3-mini is 13 times cheaper than o1.

5. How to access it: You can access o3-mini on ChatGPT by selecting the "Reason" option. If you’re a ChatGPT plus user, you can access o3-mini-high. You can also access o3-mini through API to integrate the model with your software.

Besides, you can build next-generation AI agents powered by o3-mini and the latest OpenAI models using Chatsimple. These AI agents can be easily deployed on your website to automate inbound sales and support.

Everything you should know about GPT-5

After the launch of the o3-mini, Sam Altman mentioned they are working on "the big brother," hinting at the upcoming OpenAI o3. It’s clear that OpenAI is constantly trying to bring more intelligent and efficient models. But what about GPT-5? When will it be released? How will it be different? Well, we have some answers.

1. Is GPT-5 coming?

On January 18, 2025, Sam Altman responded to a tweet asking when GPT-5 would be launched and how much better it would perform. He said they’re still figuring it out but assured that "you’ll be happy," suggesting something big is going on. Altman also said he would love to merge the GPT and o-series in 2025. So yes, GPT-5 is coming.

2. Will GPT-5 be an AGI breakthrough?

AGI or Artificial General Intelligence is a type of AI that matches the cognitive abilities of humans. With this technology, machines can learn any skill, understand emotions, and solve complex problems. Altman confirmed they’ll bring AGI, promising that the next-generation models will “amaze the world.”

Besides, in a conversation on Lex Fridman's podcast, Altman revealed that the leap between GPT-5 and GPT-4 will be as significant as the leap between GPT-4 and GPT-3. He said GPT-5 could be a "pivotal moment" and it would be far more useful for businesses.

3. When is GPT-5 coming?

The Wall Street Journal recently described GPT-5 as "the next great leap in AI," saying that it's behind schedule. The project, code-named Orion, requires an incredibly huge amount of data to be smart, making it expensive. OpenAI has been working on it for 18 months, and it was supposed to be released in 2024, but now it's uncertain whether it’ll even work.

So, we still don’t know when GPT-5 will be released. Rumors suggest it would be in early 2025. But then, OpenAI has not made any official announcement yet.

4. How smart will GPT-5 be?

“I don’t think I’m going to be smarter than GPT-5,” said Sam Altman during a recent panel discussion on “The Age of AI” at TU Berlin. He also said that we shouldn’t be afraid of GPT-5 as it would be an incredibly high intelligence tool that would make work faster and easier. He emphasized that GPT-5 will help researchers and scientists do unimaginable things.

Altman's comments make one thing clear—GPT-5 will be a big thing. Now, let’s explore some expected features of this upcoming OpenAI model.

5 new-age features to expect from GPT-5

On December 31, 2024, Sam Altman asked his X followers what changes they’d like OpenAI to build or fix. He accepted suggestions like personalization, longer context, and deep research. Based on these hints and other technology trends, we can expect the following features would make GPT-5 different:

Multi-modal: GPT-5 will likely work with different types of data like text, images, voice as well as videos. During Sam Altman’s Japan tour, he mentioned at a convention that GPT-5 would combine all these modes to handle real-world tasks. It could describe a picture, summarize a podcast, produce entertainment videos, and so on.

Personalization: GPT-5 would adapt to each user to provide tailored responses. It could understand and remember the unique needs, preferences, likes, dislikes, and habits of each user to deliver hyper-personalized experiences. This means the AI model could adjust to your personal requirements and be a great personal tutor, assistant, or creative partner.

Deep reasoning: You can expect GPT-5 to take the reasoning capabilities of OpenAI o-series to the next level. It would think logically, deliver smart responses, and solve complex problems. For instance, GPT-5 could handle math, science, and technical questions with greater accuracy and provide valuable insights into medicine or engineering.

Longer context: GPT-3 had a 2,048-token context window. GPT-4 increased this to 32,000 tokens. Then GPT-4 Turbo extended it to 128,000 tokens. You can already see the trend. Besides, to stay competitive, OpenAI has to do better than the 1-million-token context window of Gemini 1.5.

A larger context window would enable GPT-5 to process larger inputs, making it useful for in-depth tasks. For instance, it could stay consistent over long interactions, analyze huge datasets, and summarize entire books.

Efficient: With DeepSeek building AI models using less computing, OpenAI will have to find a way to make GPT-5 energy-efficient and cost-effective. We can expect it to deliver fast responses while using less computational power, making it more scalable and accessible to the world.

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