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OpenAI Restores Older Model After GPT-5 Stumbles, Denting AGI Hype

Muted market reaction underscores research finding limited bottom-line gains from generative AI.

Overview

  • After a heavily hyped launch, users reported basic mistakes and hallucinations from GPT-5, undercutting promises of near‑AGI performance.
  • Sam Altman reinstated access to a previous model for customers dissatisfied with GPT-5’s output.
  • Examples shared online included miscounting letters in “blueberry” and mislabeling bike components in images.
  • Commentators said the episode weakened momentum behind AGI rhetoric and dented OpenAI’s credibility.
  • McKinsey reported that most companies say they are deploying generative AI, yet many see no significant bottom-line impact.