OpenAI Unveils GPT-5 Amid Fierce AI Competition and Record Revenue Growth

OpenAI officially launched GPT-5 on August 13, 2025, during a live-streamed event, putting an end to months of speculation. The new model represents a significant advancement over its predecessor, GPT-4, and is described as a key step toward achieving artificial general intelligence (AGI). CEO Sam Altman emphasized that GPT-5 introduces the concept of “software on demand,” enabling the model to generate software programs from scratch [1].

The launch comes amid fierce competition from tech rivals like Meta, Anthropic, and Google. Notably, Meta’s AI, with 700 million weekly users due to integration with Instagram and WhatsApp, poses a direct challenge to OpenAI’s GPT-5. Meanwhile, OpenAI’s free GPT tier will see limited usage for GPT-5 before transitioning to a smaller model, which is expected to help manage demand while maintaining accessibility [1].

In a Twitter post on August 7, 2025, Altman hinted at a longer-than-usual livestream event, stating the company had “a lot to show,” and encouraged users to watch [1]. Altman had earlier confirmed work on GPT-5 in 2023, with training beginning in 2024. During a roadmap announcement in February 2025, he indicated the model would launch “within months” [1].

OpenAI has also taken steps to support developers by releasing two open-weight models—gpt-oss-120b and gpt-oss-20b—under an open license. These models are intended for local development and experimentation [1].

As of 2025, OpenAI has raised $57 billion across 11 funding rounds and is valued at $300 billion, with potential for growth to $500 billion if a proposed stock sale is approved. The company has also doubled its revenue in the first seven months of the year, with projections to reach $20 billion by the end of 2025 [1].

Altman’s recent focus on AGI has intensified speculation around potential breakthroughs during the launch. However, he has also cautioned users to expect possible delays in the rollout of GPT-5, urging patience [1].

Source: [1] OpenAI Finally Launches GPT-5 (https://decrypt.co/334047/openai-finally-launches-gpt-5)