Deutsche Bank outlined six key reasons for the release of GPT-5, highlighting its technological improvements, market impact, and competitive implications.

The bank's report said GPT-5 is more useful, smarter and faster than its predecessor, although it is not a leap towards superintelligence.

CEO Sam Altman describes it as "putting an entire team of PhD-level experts in your pocket," compared to GPT-4's "undergraduate" level.

Early testers like Wharton professor Ethan Mollick praised its ability to perform tasks independently, while developer Simon Willison called it "my favorite new model" for its reliability.

While not a complete overhaul, Deutsche Bank said the advance could ease concerns about whether further expansion of the model would be beneficial.

One major shift is ChatGPT's move from a manual mode to an automatic mode. Previously, users had to choose between multiple model versions.

GPT-5 now automatically switches between faster, simpler responses and slower, more complex reasoning as needed.

The interface also adds preset personalities, customizable layouts and detail-level controls, and can connect to services like Google (NASDAQ: GOOGL ) Calendar and Gmail.

Microsoft (NASDAQ: MSFT ) , a major backer of OpenAI, is embedding GPT-5 into its 365 Copilot product line for consumers, businesses, and developers.

For developers, GPT-5 deepens what Deutsche Bank calls "atmospheric programming," allowing websites, games, and apps to be created using text prompts, and capable of managing long-running tasks and fixing bugs.

Programming remains the primary commercial driver for generative AI, with OpenAI generating nearly $3 billion of its $12 billion in annual recurring revenue from API access. Rival Anthropic also generates a similar percentage of its revenue from this channel.

The launch comes at a critical time for OpenAI, which is reportedly seeking a secondary sale of employee shares that could value it at around $500 billion, up from $300 billion in April.

The company has announced plans to offer ChatGPT Enterprise to the entire U.S. federal government workforce for $1 per agency for one year and released its first open weight model in more than five years.

ChatGPT is projected to reach 700 million weekly active users, up from 500 million in March.

However, OpenAI faces a projected $8 billion cash burn by 2025 and competition for talent from rivals like Meta (NASDAQ: META ), which reportedly offered compensation packages exceeding $100 million.

Competitors are expected to respond aggressively. ChatGPT attracts about 5.7 billion visits per month, far exceeding Google's Gemini's 700 million visits and about half the number of China's DeepSeek.

During the GPT-5 launch, xAI's owner, Elon Musk, claimed that its Grok 4 model was "much better already," and that Google and Anthropic had closed the quality gap. Google's AI Overviews reaches 2 billion users monthly, while Anthropic's Claude is valued at $170 billion. xAI is seeking a valuation of up to $200 billion.

The brokerage also said the launch highlights continued demand for high-performance chips. Major cloud service providers are expected to spend nearly $400 billion this fiscal year, primarily on data centers using Nvidia (NASDAQ: NVDA ) GPUs.