OpenAI's GPT-5 Arrives Amidst AI Model Competition

GPT-5 Launches with Expert AI, Customization, and Instant App Creation

On Thursday, August 7, 2025, OpenAI introduced GPT-5 during an online presentation. This release intensifies the competition with xAI's Grok, led by Elon Musk.

According to a Bloomberg report, GPT-5 is immediately available to free users and most ChatGPT subscribers, with enterprise and education clients gaining access the following week.

CEO Sam Altman describes GPT-5 as a substantial upgrade, offering faster responses, improved reasoning, and more accurate outputs. He noted its ability to address complex questions beyond his own expertise.

ChatGPT now features four built-in personalities—Cynic, Robot, Listener, and Nerd—allowing users to tailor their interactions. GPT-5 also automates prompt processing depth, eliminating manual adjustments.

GPT-5's capabilities extend to improved software development, signaling a move towards "software on demand," where AI can instantly create applications. Internal tests showed the model building a functional French language-learning app with games and quizzes in just minutes. Anysphere and Lovable, early testers, praised the model’s speed and reliability.

Grok Claims Superiority

Elon Musk asserted that Grok 4 Heavy surpassed GPT-5's intelligence two weeks prior to its release. In a post, Musk stated Grok 4 Heavy is significantly advanced based on internal benchmarks. This claim comes amid OpenAI's substantial funding, reportedly reaching a $300 billion valuation and potential secondary stock sales valuing the company at $500 billion.

Bottom line though:

Grok 4 Heavy was smarter 2 weeks ago than GPT5 is now and G4H is already a lot better.

Let that sink in. https://t.co/BrggsEwnuz

— Elon Musk (@elonmusk) August 7, 2025

Lovable's CEO highlighted GPT-5’s superior handling of complex applications, clean code output, and effective bug fixes. ChatGPT currently supports 700 million weekly users and 5 million business clients. OpenAI is also offering U.S. federal agencies access for $1 per year.