OpenAI, a company backed by billions of dollars in investment, has suffered a significant blow after its latest version of the popular chatbot, ChatGPT 5, failed to meet expectations. The bot was touted as “PhD-level” smart and capable of answering complex questions, but it has been met with widespread criticism for its inability to reliably answer basic queries.
The misstep on the model, called GPT-5, highlights existing shortcomings of generative AI that critics have long pointed out. It also raises serious doubts about OpenAI’s ability to build consumer products that human beings are willing to pay for. The company has struggled to turn a profit, despite its estimated $500 billion valuation.
OpenAI released GPT-5 last week, but it was greeted with mockery and criticism from users who were disappointed by the bot’s performance. Users have been sharing their experiences on social media, with many expressing frustration over the bot’s inability to accurately answer simple questions or provide coherent responses.
The company’s CEO, Sam Altman, attempted to address the backlash by announcing updates to the bot, including the return of a popular older model, GPT-4o, for paid subscribers. However, some critics argue that OpenAI underestimated the public’s reaction to the update and failed to anticipate the outrage.
The flop of ChatGPT 5 is a significant blow to the AI industry, which has struggled to prove itself as a producer of consumer goods rather than just a “lab.” The bot’s poor performance highlights the gap between the promise of AI and its current reality. As one critic noted, OpenAI’s valuation would likely take a hit if the company continues to struggle to deliver on its promises.
The incident serves as a reminder that AI companies must do more than just hype their products in behind-the-scenes benchmark tests; they need to demonstrate real-world value and reliability. Until then, the skepticism from critics will only continue to grow.
Source: https://edition.cnn.com/2025/08/14/business/chatgpt-rollout-problems