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OpenAI GPT-5 adoption rises as startups report gains
OpenAI GPT-5 adoption rises as Box and startups like Vercel and Factory report gains in performance, coding, and handling complex tasks.
The rollout faced criticism from some users, prompting OpenAI to restore GPT-4o access for paying chatgpt subscribers.
Startups including Cursor, Vercel, and Factory have made GPT-5 their default model in some tools, citing faster setup and cheaper costs.
Box, the US-based cloud content management company, has been testing GPT-5 for document analysis and noted improvements in managing complex tasks.
Qodo, JetBrains, and other startups also highlighted GPT-5’s strong coding and planning capabilities.
OpenAI has expanded its enterprise sales team and continues to offer access via Microsoft Azure or directly through its own API.
Both OpenAI and Anthropic are investing heavily to attract business clients, with OpenAI reportedly on track to burn US$8 billion this year, while Anthropic’s enterprise revenue has also grown.
🔗 Source: CNBC
🧠 Food for thought
1️⃣ Enterprise focus represents a strategic reversal from consumer-first AI business models
OpenAI’s pivot to enterprise with GPT-5 marks a significant shift from its original consumer-focused revenue model.
The company currently generates 80% of its revenue from ChatGPT Plus subscriptions, while its main competitor Anthropic derives 80% of revenue from API usage and enterprise customers1.
This shift reflects broader lessons from AI market evolution. Early AI companies that focused solely on consumer applications often struggled with monetization, while enterprise-focused approaches have historically provided more stable revenue streams.
The generative AI market is projected to grow from $10.9 billion in 2023 to $42.6 billion by 2028, with enterprise adoption driving much of this expansion2.
OpenAI’s pricing strategy for GPT-5, priced significantly lower than Anthropic’s competing Claude models, suggests the company is willing to sacrifice short-term margins to capture enterprise market share before competitors can solidify their positions.
2️⃣ Customer concentration creates vulnerability despite strong market positions
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