OpenAI released GPT-5, marking it as their most advanced model yet, with significant improvements in reasoning, coding, and multimodal capabilities. It’s available to all ChatGPT users, including free tier, with varying usage limits based on subscription—Pro users get unlimited access, while free users have restricted message limits.
GPT-5 integrates a unified system with a smart router that switches between standard and reasoning modes (“GPT-5 Thinking”) for complex tasks, reducing the need for manual model selection. It outperforms previous models like GPT-4o and o3, scoring 74.9% on SWE-bench Verified for coding and 94.6% on AIME 2025 for math, with a 256,000-token context window for better memory retention.
OpenAI claims reduced hallucinations and improved safety through 5,000 hours of testing and “safe completions” for sensitive queries. The model is also accessible via the API in three variants: gpt-5, gpt-5-mini, and gpt-5-nano, tailored for different performance and cost needs.
However, some early testers noted the leap from GPT-4 to GPT-5 is less dramatic than from GPT-3 to GPT-4, and competitors like Google’s Gemini and Anthropic’s Claude remain close in performance. Available to all ChatGPT users, including free-tier with limits, democratizes access but raises concerns about misuse and empower developers, accelerating integration into industries like healthcare, finance, and education.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
OpenAI’s 5,000 hours of testing and “safe completions” aim to reduce hallucinations and harmful outputs, but skepticism persists about whether these measures fully address biases or potential for malicious use (e.g., automated propaganda).
GPT-5’s coding and reasoning prowess could automate complex tasks, potentially displacing jobs in software engineering, data analysis, and creative industries, while creating demand for AI oversight roles. Businesses leveraging GPT-5 via API could outpace competitors, reshaping sectors like customer service (advanced chatbots), content creation, and personalized education.
The U.S., with OpenAI’s lead, strengthens its position in AI dominance, but China’s investments (e.g., Baidu’s Ernie models) and Europe’s regulatory push (e.g., EU AI Act) intensify competition. Nations may prioritize AI sovereignty, leading to fragmented ecosystems.
Advanced AI in the hands of a few corporations (OpenAI, Microsoft-backed) raises concerns about monopolistic control, data privacy, and dependency on U.S.-based tech. GPT-5’s capabilities could transform education (e.g., personalized tutoring) but widen skill gaps, as workers need to adapt to AI-driven workflows.
The Race for AI Supremacy
GPT-5’s release solidifies OpenAI’s lead, leveraging Microsoft’s infrastructure and funding. Its universal access model (free tier to API) broadens its ecosystem but invites scrutiny over safety and pricing (undisclosed for subscriptions). Gemini models compete closely, with strengths in search integration and hardware (TPUs).
Google’s focus on efficiency and multimodal AI challenges GPT-5, though it lags in public perception of innovation. Claude, backed by ex-OpenAI researchers, emphasizes safety and interpretability. While competitive, it lacks GPT-5’s scale and multimodal edge but appeals to ethics-conscious users.
Baidu’s Ernie and Alibaba’s Qwen aim to dominate Asia, backed by state support. They trail in global reach but excel in localized applications and censorship-compliant AI. GPT-5’s incremental improvements over GPT-4o (vs. the GPT-3 to GPT-4 leap) suggest diminishing returns, giving competitors room to catch up.
Benchmarks like AIME 2025 (94.6%) show GPT-5’s edge, but rivals are closing gaps in reasoning and coding. Training GPT-5 required massive compute (rumored thousands of GPUs), raising barriers to entry. Only well-funded players (OpenAI, Google, Meta) can compete at this scale, sidelining smaller startups.
The EU’s AI Act and U.S. export controls on AI tech could limit OpenAI’s global reach, while China’s regulatory environment favors local players. Safety concerns may force OpenAI to balance innovation with compliance. Meta’s Llama and other open-source models lag behind GPT-5 but empower decentralized innovation, challenging proprietary ecosystems.
By offering GPT-5 to free users and via API, OpenAI aims to lock in developers and users, creating a de facto standard. Its “thinking” mode and multimodal focus target enterprise and creative use cases. Google may double down on Gemini’s integration with Android and Search, while Anthropic could lean on safety-first branding.
xAI’s focus on truth and real-time X data could carve a niche for skeptical users. Nations may subsidize local AI firms or restrict foreign models, fragmenting the market. China’s push for self-reliance could accelerate its domestic models.
OpenAI leads, but competitors like Google, Anthropic, and xAI, alongside China’s players, keep the race tight. The supremacy battle hinges on balancing performance, safety, and accessibility while navigating regulatory and societal pressures. As AI becomes ubiquitous, the winner may not just be the most advanced but the one that earns trust and integrates seamlessly into global systems.