OpenAI Launches GPT-5 Amid Competition From Elon Musk’s Grok

On Thursday, August 7, 2025, OpenAI will reveal its latest and most powerful language model, GPT-5 at an online presentation. The release comes as pressure mounts from Elon Musk’s xAI and its chatbot Grok.

GPT-5 Launch Brings Expert-Level AI, Custom Personalities, and Instant App Creation

According to a Bloomberg report, GPT-5 will become available to free users and most paid ChatGPT subscribers on launch day. Enterprise and education customers will gain access the following week.

The new model delivers faster responses, stronger reasoning, and more accurate outputs than earlier versions. CEO Sam Altman described GPT-5 as a major upgrade, saying it now feels like speaking to an expert on any topic.

He shared that the model recently solved a complex question that he couldn’t answer himself. ChatGPT will offer four built-in personalities with the update (Cynic, Robot, Listener, and Nerd) designed to customize user interactions.

GPT-5 also decides automatically how deeply to process each prompt, eliminating the need for manual settings. OpenAI’s launch comes amid rising competition. Musk’s xAI is positioning Grok as a serious contender.

The model was recently tasked with exploring whether quantum computing poses a real threat to Bitcoin. This shows xAI’s aim to enter technical and financial domains once led by OpenAI.

GPT-5 is also designed to improve software development. Altman said this signals the rise of “software on demand,” where applications can be created instantly using AI.

During internal tests, OpenAI’s latest model built a fully functional French language-learning app with games and quizzes in minutes. Early testers, including Anysphere and Lovable, found the model faster and more reliable.

Musk Claims Grok Surpasses OpenAI’s Latest Model as AI Race Intensifies

Meanwhile, Elon Musk has claimed that Grok 4 Heavy was already smarter than GPT-5 two weeks ago. In a recent post, Musk said Grok 4 Heavy is “a lot better.” His comment followed a benchmark showing GPT-5 with tools ranks between Grok 4 and Grok 4 Heavy.

However, Lovable’s CEO said GPT-5 handled complex apps better than competitors and produced clean, maintainable code while fixing bugs effectively. To support GPT-5 and future growth, OpenAI has raised tens of billions and holds a $300 billion valuation.

It is reportedly in talks for a secondary stock sale that could value the company at $500 billion. ChatGPT now serves 700 million users weekly and five million business clients. OpenAI is offering U.S. federal agencies access for just $1 per year.