OpenAI has officially launched ChatGPT-5. In addition, it calls it its “smarter, fastest, and most useful model yet. Surprisingly, free users can access a reasoning model for the first time. However, this was only available for the paid users previously. So, we can consider it a big milestone in the AI journey of the company.
A Leap in AI Intelligence and Usability
The CEO of OpenAI, Sam Altman, compared the leap from GPT-4 to GPT-5 with the jump from the early iPhone displays to Retina, which is smarter, richer, and more refined. Moreover, it has 700 million weekly users and more than 5 million paid business subscribers. So, the GPT-5 aims to deliver near-human-level reasoning, less hallucination, and better performance in complicated sectors, like coding, healthcare, and law.
GPT-5 introduces test-time compute, which allows it to think more deeply in real-time on harder problems. Moreover, the model also features a 256,000-token context window, which is an increase from 200,000 in the o3 model. Therefore, it can now retain longer and more coherent conversations.
ChatGPT-5 is Smarter, Safer, and More Customisable
OpenAI reports a 65 percent drop in hallucination rate for this new model as compared to O3. In addition, it shows a 26 percent drop in hallucination compared to GPT-4o. Moreover, the model now gives “safe completion for potential risk.” Furthermore, it avoids harmful or misleading content while explaining limitations clearly.
Now, personalization allows you to choose from the four options, like Cynic, Robot, Listener, or Nerd—and customise chat colours. Moreover, pro users will soon be able to connect their Gmail, Google Calendar, and Google Contacts for seamless AI-powered scheduling and communications.
New Variants and Pricing
- GPT-5-mini (lightweight)
- GPT-5-nano (API-only, cheaper & faster)
- GPT-5-pro and GPT-5-thinking (Pro-tier exclusives)
API pricing starts at $1.25 per million input tokens for GPT-5 and $0.05 for GPT-5-nano. It is directly undercutting rivals like Google’s Gemini 2.5 Flash.
Real-World Performance
During a live demo, GPT-6 developed a fully functional language-learning web app in under a minute with flashcards, quizzes, and progress tracking. Surprisingly, it shows major gains, like 74.9% on SWE-Bench Verified and 88% on Aider Polyglot for coding tasks.
Broader Integration and Future Outlook
Microsoft has confirmed that GPT-5 will power Microsoft 365 Copilot, customer copilot, and Azure AI Foundry from today, i.e., 8 August 2025. In addition, Box has reported that GPT-5 is a complete breakthrough in managing hard logic within long documents.
OpenAI is also looking for a $500 billion valuation via a potential stock sale. Therefore, GPT-5 is more than only a model upgrade. In reality, it is a strategic leap in the AI Race to bring powerful and human-like reasoning in the real world.
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