OpenAI Readies GPT-5 for Summer Release Amid Growing Influence Over Microsoft and Palantir

As the face of the ongoing AI revolution, OpenAI is gaining increasing influence not only over Microsoft but also over Palantir’s traditional territory.

The company is poised to introduce its latest model, GPT-5, this summer, kicking off another frenzy in the AI space.

For those unfamiliar, OpenAI operates with a unique structure where its non-profit division controls its for-profit arm. In partnership with Microsoft, which has invested $13 billion for a 49% share in future profits (with a cap), OpenAI has also agreed to give Microsoft 20% of its revenue and intellectual property rights through 2030. However, OpenAI is now pushing Microsoft to renegotiate their deal, seeking a 33% stake in the for-profit division and asking the tech giant to forgo its claims to revenue, future profits, and intellectual property. If this restructuring occurs, it could open the doors for OpenAI to go public.

Meanwhile, OpenAI is competing directly with Microsoft by offering substantial discounts on its AI services, particularly the ChatGPT Enterprise suite, which can be discounted by up to 20% for clients who purchase additional products. This aggressive pricing strategy comes as xAI, another OpenAI competitor, is burning through $1 billion per month and looking to raise $9.3 billion, according to Bloomberg. Despite this, xAI is expected to generate only $500 million in revenue this year.

In another surprising twist, OpenAI has secured a $200 million, 1-year contract with the US Department of Defense for prototype AI solutions. This marks OpenAI’s first major contract with the DoD, traditionally dominated by Palantir. In fact, the contract is one of the largest in recent years for the department. For context, Palantir’s largest recurring contract, the Maven Smart System, brings in an annual revenue of $210 million.

And in case you missed it, OpenAI CEO Sam Altman recently hosted the company’s first podcast, where he confirmed that GPT-5 will be released “probably sometime this summer,” although he couldn’t provide an exact timeline.