OpenAI has officially launched GPT-5, the latest iteration of its groundbreaking artificial intelligence model that powers the widely used ChatGPT chatbot.

The release, announced Thursday, comes at a pivotal moment for the AI industry as global tech giants race to expand their AI capabilities.

GPT-5 is now available to all 700 million ChatGPT users and promises significant improvements in reasoning, coding, health-related queries, finance, and on-demand software generation. “It’s the first model that really feels like you can ask a PhD-level expert anything,” OpenAI CEO Sam Altman said at a press briefing.

One standout feature of GPT-5 is its use of test-time compute, a method that allows the model to spend more time “thinking” through complex problems — such as advanced mathematics or scientific reasoning — before delivering answers. GPT-5 also acts as a router, directing tough questions to more computationally intensive processes, a first for public-facing AI.

The launch comes as OpenAI and its backer Microsoft face mounting pressure to justify soaring investments. The world’s top AI firms — including Alphabet, Meta, and Amazon — are set to spend nearly $400 billion this fiscal year on data centers and infrastructure to support AI development.

OpenAI is reportedly in early talks to allow employees to cash out shares at a $500 billion valuation, up from $300 billion earlier this year.

Despite robust consumer engagement, experts note that enterprise adoption will be key to sustaining the sector’s momentum. “Consumer spending on AI has been strong, but it’s business investment that will need to catch up,” said economics analyst Noah Smith.

Altman stressed that the global infrastructure for AI is still inadequate. “We need to build much more to ensure AI is available everywhere,” he said.