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GPT-5’s future in doubt as OpenAI struggles with delays and budget issues

News • 23rd Dec 2024 • 2 Min Read

GPT-5’s future in doubt as OpenAI struggles with delays and budget issues

Talent Management#HRTech#Layoffs#HRCommunity

Author: Samriddhi Srivastava Samriddhi Srivastava
2.7K Reads
Although GPT-5 is expected to surpass OpenAI’s current models, its development costs have raised concerns. Training sessions for the model can cost around half a billion dollars over six months, based on its size and resource requirements.

OpenAI’s highly anticipated GPT-5 model, code-named Orion, is reportedly facing significant delays and challenges, leaving its future uncertain. The project, which has been in development for over 18 months, was initially expected to be a major upgrade to the current capabilities of OpenAI’s ChatGPT, but sources suggest that it may not be ready for release anytime soon.

According to a recent report by The Wall Street Journal, GPT-5 is months behind schedule, over budget, and struggling to meet the expectations set for its performance. Microsoft, OpenAI's largest investor, had anticipated seeing GPT-5 by mid-2024, but it now appears that this timeline may be unrealistic. The development has involved at least two extensive training sessions, each requiring months of processing vast amounts of data. Despite these efforts, the project has encountered several roadblocks, with the AI model failing to meet the performance benchmarks researchers had hoped for.

While the best-case scenario is that GPT-5 will surpass OpenAI’s existing models in terms of capability, the costs associated with its development have raised concerns. Training sessions for GPT-5 can cost around half a billion dollars over six months, based on estimates of the model’s size and the resources required for its training. With the lack of clear results from these efforts, the financial viability of continuing the project remains in question.

The delay and uncertainty surrounding GPT-5 come at a time when AI development is under intense scrutiny. Since the launch of ChatGPT in 2022, OpenAI and other AI companies have promised to unveil technology that could significantly impact various industries, including healthcare, finance, and customer service. The stakes are high, with analysts predicting that big tech companies could collectively invest over $1 trillion in AI advancements in the coming years. OpenAI's valuation, which reached $157 billion in October, was largely based on CEO Sam Altman’s bold prediction that GPT-5 would represent a “significant leap forward” in AI capabilities.

However, despite the hype, industry experts are divided on whether GPT-5 will deliver on these promises. Many are cautiously awaiting the next-generation model, uncertain if it will represent a groundbreaking leap in AI development or merely a modest upgrade from the existing models. Cache Merrill, founder and CTO of AI software company Zibtek, noted that GPT-5's potential to enhance industries like customer service, digital marketing, and legal services could be significant. He suggested that the model could dramatically improve customer interactions, generate more sophisticated content, and streamline operations such as contract analysis and risk assessment.

Nevertheless, as OpenAI continues to grapple with technical hurdles and rising costs, it remains unclear when GPT-5 will be ready for deployment, or if it will meet the high expectations set for it. As the company navigates these challenges, industry observers will be watching closely to see whether it can deliver on its ambitious goals for the next phase of AI technology.

At this time, OpenAI has not commented publicly on the status of GPT-5 or provided additional details regarding its development timeline. As the AI landscape evolves, all eyes will remain on whether OpenAI can overcome these setbacks and successfully launch GPT-5 in the near future.

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