OpenAI Scraps o3 Model Release in Shift to GPT-5, Consolidating its Fragmented Model Offering

OpenAI has shared plans to simplify its AI tools with GPT-5, responding to rising market competition.

OpenAI has unveiled a major shift in its artificial intelligence strategy, announcing that its leading unreleased o3 model will no longer launch as a standalone product.

Instead, its reasoning capabilities will be incorporated into the forthcoming GPT-5, which aims to unify OpenAI’s AI tools into a cohesive system.

The decision marks a key moment in the company’s roadmap, which also includes the interim release of GPT-4.5, internally known as “Orion.” CEO Sam Altman shared these updates on X, emphasizing the company’s efforts to streamline its offerings for better usability.

OpenAI is Streamlining its AI Models

OpenAI’s move to retire o3 reflects a broader effort to simplify its product lineup which has become fragmented with multiple model choices in the ChatGPT model picker. Altman stated, “We hate the model picker as much as you do and want to return to magic unified intelligence.”

By integrating o3’s reasoning capabilities into GPT-5, OpenAI aims to eliminate the confusion of navigating multiple models. The unified system will combine the generative abilities of GPT models with the advanced reasoning features of the o-series, making it more intuitive for users.

Benchmark performance of the unreleased o3 model for math and PhD-level science questions (Source: OpenAI)

This consolidation is also a response to mounting competition. Rivals such as DeepSeek have introduced highly affordable AI models, disrupting the market with accessible API pricing and even free chatbots.

OpenAI’s new strategy is a calculated move to counter these developments while retaining its leadership in the industry.

The Role of GPT-4.5 in the Transition

Before GPT-5 becomes available, OpenAI will release GPT-4.5, codenamed “Orion,” as a transitional model. Expected to launch within weeks, it will act as the final stepping stone before OpenAI shifts entirely to the GPT-5 framework.

Altman described GPT-4.5 as the company’s “last non-chain-of-thought model,” paving the way for the advanced logical reasoning and multitasking capabilities anticipated in GPT-5.

The introduction of chain-of-thought reasoning, which simulates step-by-step logical decision-making processes, will be a core feature of GPT-5. These advancements will enhance the AI’s ability to handle complex queries, a critical improvement given the increasing expectations of both individual and professional users.

OpenAI’s advancements in reasoning are currently reflected in its o3-mini model, launched in January.

Math benchmark performance of OpenAI’s o3-mini model (Source: OpenAI)

GPT-5 will expand upon these advancements, combining generative and reasoning capabilities into a single, cohesive system. By integrating the reasoning strengths of the o-series with the generative abilities of GPT, OpenAI wants to create a tool designed to handle a broad spectrum of tasks.

Competition Drives OpenAI’s Strategic Shift

The decision to integrate o3 into GPT-5 and simplify OpenAI’s offerings is obviously influenced by rising competition from other AI providers. DeepSeek, in particular, has gained attention for offering low-cost AI solutions, including a free chatbot and affordable API access.

This has disrupted the market, pressuring OpenAI to reassess its approach. By consolidating its models into a single, unified system, OpenAI aims to stay competitive while maintaining its reputation for delivering high-performance AI tools.

Altman’s roadmap suggests that GPT-5 will embody the full spectrum of OpenAI’s technological advancements, offering a tool capable of tackling both casual and professional tasks.

According to his update, “a top goal for us is to unify o-series models and GPT-series models by creating systems that can use all our tools, know when to think for a long time or not, and generally be useful for a very wide range of tasks.” This approach aims to make OpenAI’s tools more accessible while addressing the specific needs of enterprise users.

Access Tiers for GPT-5

OpenAI’s upcoming release of GPT-5 will include different access tiers to accommodate a diverse user base. Free-tier ChatGPT users will gain unlimited access to GPT-5’s standard intelligence settings, a move designed to enhance accessibility.

For those seeking advanced functionality, subscription tiers such as Plus and Pro will offer higher levels of performance, tailored to professional and enterprise use cases.

This tiered model reflects OpenAI’s response to feedback about its pricing strategy, which had previously drawn criticism for its perceived inaccessibility. By balancing free and premium offerings, OpenAI aims to broaden its user base and maintain its leadership in the AI space.

Table: AI Model Benchmarks – LLM Leaderboard 

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Last Updated on March 3, 2025 11:31 am CET

Markus Kasanmascheff
Markus Kasanmascheff
Markus has been covering the tech industry for more than 15 years. He is holding a Master´s degree in International Economics and is the founder and managing editor of Winbuzzer.com.

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