OpenAI has announced a major shift in its artificial intelligence product strategy, aiming to simplify its offerings by integrating various models into a more comprehensive system. The company, backed by Microsoft, will roll out GPT-5 as an all-encompassing AI system, incorporating elements of its previously unveiled o3 model.
Sam Altman’s post on X announcing an update for GPT-4.5 and GPT-5.
In a post on X, OpenAI CEO Sam Altman confirmed that o3 will not be released as a standalone model. Instead, the company plans to merge its o-series and GPT-series models to create AI systems capable of handling a broader range of tasks efficiently.
OpenAI had previously introduced the o3 and o3 mini models in December 2024. The decision to consolidate comes as companies face increasing pressure from investors to justify high AI development costs, especially in the wake of Chinese start-up DeepSeek’s launch of a more affordable AI model.
What’s Next for OpenAI?
As part of its transition, OpenAI will also introduce GPT-4.5, internally known as “Orion.” This model will be the last iteration without chain-of-thought reasoning, a technique that enables AI to provide direct answers without outlining intermediate steps. Despite its capabilities, models without chain-of-thought reasoning often struggle with complex problem-solving tasks, particularly in fields like physics and mathematics.
OpenAI has not yet responded to inquiries regarding the release dates for these updated models. However, the company’s strategic realignment signals a commitment to making AI more accessible and efficient for users worldwide.
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[…] OpenAI is on track to secure a staggering $40 billion in funding, marking the largest-ever private investment round, according to Bloomberg. The deal, led by SoftBank, is set to push OpenAI’s valuation to an eye-watering $300 billion—nearly double its previous worth of $157 billion from October’s $6.6 billion funding round. […]