OpenAI’s much-anticipated GPT5 model, which was expected to push the boundaries of artificial intelligence, is reportedly behind schedule and incurring significant development costs. According to a report in The Wall Street Journal, the AI ​​powerhouse is grappling with the twin challenges of advancing its technology and managing its financial demands. Given OpenAI’s track record of timely launches for its language models, the delay in the release of GPT 5 has fueled speculation in the tech industry. The report notes that the complexity of training and scaling large language models (LLMs) like GPT5 is one of the primary reasons for failure. These models require vast computational resources, specialized hardware, and huge datasets, which contribute to rising expenses. In short, the GPT 4 model was released in March 2023 and since then, OpenAI has been working on its next major level model, GPT 5.

The Wall Street Journal highlights that OpenAI’s goals for GPT 5 include improving reasoning capabilities, increasing factual accuracy, and addressing biases. However, meeting these objectives has proven more challenging than initially anticipated. And it also includes details about the 18-month development of GPT-5, code-named Orion.

GPT 4: Reasons for running late

A major challenge for Orion is the lack of data. OpenAI researchers have determined that the public Internet no longer provides the high-quality, diverse datasets needed for model advancement. To tackle this problem, the company has begun preparing synthetic data, involving software engineers, mathematicians and theoretical physicists to generate original content.

The second reason is the financial side as the expense of OpenAI has been a growing concern. The report notes that GPT 4 training reportedly cost millions of dollars, and industry analysts estimate that development of GPT 5 could significantly exceed these figures. The company is exploring ways to recoup these costs, including partnerships, subscription models for its products, and new investment rounds.

Microsoft, a major investor, has played a key role in supporting OpenAI’s infrastructure through Azure cloud services, but even with such support, financial strain remains considerable.

Despite these challenges, OpenAI is still pursuing its plans to redefine AI capabilities. Experts believe the delay could ultimately benefit the company by allowing for more rigorous testing and refinement of the model, ensuring it meets user expectations and industry standards.

The delay in the release of GPT 5 also reflects broader trends in the AI ​​industry, where companies are facing increasing pressure to deliver progress while addressing ethical, technical and financial challenges. As the tech world eagerly awaits GPT 5, OpenAI’s ability to overcome these hurdles will determine its future leadership in the rapidly evolving AI landscape.

While some previous reports have suggested that the GPT 5 will be available by December 2024, the launch date of the flagship model is still under wraps.