OpenAI is reportedly facing significant delays in the development of GPT-5, the highly anticipated successor to GPT-4. According to recent reports, the company has encountered several challenges, including a shortage of training data and the massive financial requirements needed to advance the model. Despite being under development for more than 18 months, GPT-5 has yet to reach the desired level of capability, and there is no confirmed release date for the model.
The Wall Street Journal recently reported that GPT-5, also codenamed Orion, is running significantly behind schedule. Sources familiar with the matter revealed that OpenAI is struggling to overcome two major hurdles: escalating development costs and the insufficient data required to train the model to a level where it can perform optimally.
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According to the report, OpenAI has conducted two extensive training sessions for GPT-5, each lasting months and requiring massive amounts of data. However, the company has reportedly faced unexpected setbacks during both sessions, preventing it from achieving the desired results. The costs associated with these training sessions are staggering, with a single six-month training period costing around $500 million.
GPT-5: Marginal Improvements, But Not Yet Lucrative
At present, GPT-5 is said to be only slightly better than existing models like GPT-4. However, it still lacks the level of intelligence and capability required to be financially viable for both users and enterprises. The model is not yet profitable, primarily due to the high operational costs involved in running it.
Sources close to the project indicated that while GPT-5 shows marginal improvements over its predecessors, it still has not reached a point where it can meet the demands of commercial applications or generate sufficient revenue to justify its cost.
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As things currently stand, OpenAI will likely need to conduct several more training sessions to bring GPT-5 to the level of intelligence and functionality it originally envisioned. However, data shortages continue to be a major issue, which could further delay the model’s development.
This delay has reportedly not sat well with Microsoft, OpenAI’s biggest backer, who had expected GPT-5 to be released by mid-2024. With that timeline now in question, the development of GPT-5 remains uncertain.