OpenAI's GPT-5: Summer Launch, Microsoft Tensions, and Strategic Shifts

Sam Altman Says GPT-5 Coming "This Summer," As OpenAI Starts Eating Palantir's Lunch And Grows Increasingly Territorial With Microsoft

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. As the poster child of the ongoing AI gold rush, OpenAI is not only growing increasingly assertive in its dealings with Microsoft, while expanding into the traditional turf of the other major AI player, Palantir, but is also now preparing to unlock another major frenzy cycle by releasing its next big model, the GPT-5, this summer. For the benefit of those who might not be aware, OpenAI has a unique organizational structure, where its non-profit arm retains operational control over its for-profit arm. The AI-focused startup also has a creative investment structure with Microsoft, where the latter has provided $13 billion in funding in return for a 49 percent share in the former's future profit, albeit capped on a cumulative basis. Microsoft also gets 20 percent of OpenAI's revenue and retains the right to use its intellectual property through 2030. However, in what is a testament to its renewed confidence, OpenAI is now pressurizing Microsoft to re-negotiate the terms of their mutual agreement, as per a report by The Information. Specifically, OpenAI wants Microsoft to accept a 33 percent stake in its for-profit arm and give up its claims to the AI startup's revenue, future profits, and IP. This restructuring, if it goes ahead, will pave the way for OpenAI to go public. In another related development, OpenAI is now reportedly undercutting Microsoft by discounting enterprise subscriptions to its suite of bundled AI products. Specifically, OpenAI is now discounting ChatGPT Enterprise by 10 to 20 percent for customers who buy additional products. This development comes as xAI, a major competitor to OpenAI, is reportedly burning $1 billion in cash per month and, therefore, is trying to raise $9.3 billion in new funding, according to Bloomberg. xAI expects just $500 million in revenue this year. Meanwhile, the US Chief Digital and Artificial Intelligence Office (CDAO) has now awarded OpenAI a $200 million, 1-year contract for prototype AI solutions. As noted by William Blair analyst Louie DiPalma, this marks OpenAI's first significant contract from the Department of Defense, where Palantir has usually reigned supreme. Also, on a per-year basis, this marks one of the largest DoD contracts ever. For context, Palantir's largest overall contract - the Maven Smart System program - has an annual recurring revenue (ARR) run-rate of $210 million. Finally, do note that OpenAI's CEO, Sam Altman has just hosted the company's first podcast. In a notable tidbit, Altman has announced that GPT-5 is coming this summer. When asked about the release timeline of the GPT-5 model, Altman said, "probably sometime this summer" but "I don't know exactly when."

OpenAI's Sam Altman signals summer launch for GPT-5 By Investing.com

Investing.com -- OpenAI CEO Sam Altman says GPT-5 is coming this summer, and it could be the most pivotal AI release yet. The upcoming model is expected to consolidate OpenAI's flagship capabilities, namely GPT-4o's natural language versatility and o3's edge in code and scientific reasoning, into a single, more powerful system. Speaking on the company's newly launched official podcast, Altman hinted GPT-5 may represent more than just a performance upgrade. It could mark OpenAI's first real step toward unified, agent-like models, a move that would bring it closer to the nonprofit's artificial general intelligence (AGI) goal. "I think we are near the end of this current mountain," he said. "I am excited to just get to GPT-5, GPT-6, and I think that'll be easier for people to use." He also teased a potential shift in how OpenAI rolls out future models. Rather than keeping to conventional naming conventions such as GPT-4, 4-turbo, 4o, o3, he floated the idea of ditching major versioning altogether. "Should we just keep calling those GPT-5, right? GPT-4o? Or should we call those 51253?" Altman asked, signaling internal debate over what the next phase of evolution looks like, or what to even call it. That naming confusion isn't just internal. The current model lineup already has users asking which version they should be using, and for what. With capabilities split between multiple variants, even seasoned developers can feel lost. "That's the challenge... even if you're technically inclined," Altman admitted. GPT-5, as described, could simplify that landscape. By incorporating now-standard features like memory, multimodality, and reasoning into a single, integrated system, users wouldn't need to toggle between specialized models. "More sophisticated memory is probably my favorite recent feature," Altman said, highlighting its ability to personalize interactions and boost responsiveness over time. The vision behind GPT-5 isn't just about capability... It's also about positioning. OpenAI is clearly eyeing a future where its models don't just respond to prompts but operate more like digital agents, able to reason, plan, and interact across contexts. That trajectory could bring it into more direct competition with search giants like Google (NASDAQ:GOOGL), which Altman bluntly described as "an ad tech company." Trust, he suggested, could be OpenAI's differentiator. "People have a very high degree of trust in ChatGPT," Altman said. "I think if we started modifying the output... in exchange for who is paying us more, that would feel really bad." While Altman shut down the idea of sponsored responses within the model's output, he acknowledged the business model still needs to evolve. One option? Optional monetization layers that don't compromise model neutrality. "Maybe there could be, like, ads outside the transaction stream... that are still really great," he said. With the launch window now aimed for summer, GPT-5 is shaping up to be more than just another iteration. With a push toward unified intelligence, cleaner user experiences, and deeper integration across tasks, onlookers expect that GPT-5 could become the backbone of a new digital ecosystem.