Tech
OpenAI CEO Sam Altman
(Screenshot: OpenAI)

OpenAI backtracks on plan to mothball old AI models after user outcry

OpenAI CEO Sam Altman spent the weekend on social media trying to quell an uproar from dedicated users.

After a splashy (but rocky) rollout last week of OpenAI’s latest flagship model, GPT-5, users pushed back loudly on the company’s plan to deprecate older models in place of the new release.

CEO Sam Altman’s weekend was a little hectic.

During the livestream announcing the release, the plan to mothball the old models was mentioned in passing, as an employee ran a demo showing how GPT-5 could write a “eulogy” to the models that were marked for death.

A spokesperson from OpenAI confirmed with Sherwood News that the plan was to replace the prior models with GPT-5 to make it easier for users by eliminating a confusing choice over which model is best suited for their task. The problem is that people have very strong feelings for the previous leading model, 4o.

Users pushed back online, and following Thursday’s launch in a series of posts on social media, Altman folded. In addition to keeping 4o around for ChatGPT Plus users, OpenAI will double the “rate limits” (the maximum requests you can make in a period of time) for GPT-5.

Damage control

To quell the uproar, on Friday 11 a.m. PT, Altman jumped on Reddit with eight other OpenAI employees to hold an “AMA” (ask me anything) on the ChatGPT subreddit. Altman addressed the embarrassing charts that made it into the livestream. In response to the question, “What was up with those graphs? It looked misleading,” Altman wrote:

“the numbers here were accurate but we screwed up the bar charts in the livestream overnight; on another slide we screwed up numbers. the blog post and system card were accurate though. people were working late and were very tired, and human error got in the way. a lot comes together for a livestream in the last hours.”

An hour after the AMA started, and just over 24 hours after the launch, Altman acknowledged the rollout’s “bumpiness” and announced the reversal and some significant changes to the ChatGPT service:

A few hours later on Friday night, Altman had more to say in a mea culpa, acknowledging that the company “for sure underestimated how much some of the things that people like in GPT-4o matter to them, even if GPT-5 performs better in most ways.”

On Sunday afternoon, Altman posted about the increased rate limits and some upcoming user interface changes.

Altman indicated the company would post an update Monday or Tuesday to “share our thinking on how we are going to make capacity tradeoffs over the coming months.”

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Judge blocks Pentagon’s move to blacklist Anthropic

A federal judge in Northern California has granted a preliminary injunction blocking the Pentagon from labeling Anthropic as a national security supply chain risk.

The ruling temporarily prevents the Defense Department from restricting the AI company’s access to federal contracts amid a dispute over its refusal to allow certain military and surveillance uses of its technology. The designation could also have shifted lucrative government work toward competitors, including OpenAI.

Earlier this month, Anthropic, the company behind Claude, sued 17 federal agencies and their heads, alleging the government exceeded its statutory authority.

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Report: SpaceX’s record IPO may grant preferential access to retail investors and Tesla shareholders

SpaceX’s impending IPO could raise $40 billion to $80 billion and rank as the largest ever — as well as one of the most unconventional.

The Wall Street Journal reports several ways CEO Elon Musk is considering breaking with IPO norms:

  • Investors in his other companies, including Tesla, could receive preferential access to shares.

  • Individual investors may get a third or more of the allocation, far above the typical ~10% mark.

  • Instead of a traditional road show, Musk wants investors to visit SpaceX facilities in person.

  • Investors in his other companies, including Tesla, could receive preferential access to shares.

  • Individual investors may get a third or more of the allocation, far above the typical ~10% mark.

  • Instead of a traditional road show, Musk wants investors to visit SpaceX facilities in person.

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Tesla released estimates for Q1 deliveries and they’re lower than analysts expected

Ahead of first-quarter earnings next month, Tesla released its own company-compiled Wall Street consensus estimate for deliveries: 365,645 vehicles. While that’s lower than the 382,000 FactSet consensus estimate, it represents a nearly 9% jump from Q1 2025, when Tesla sold 336,681 vehicles.

Tesla started releasing its own consensus estimates to the public — not just institutional investors — for the first time in Q4 2025. The move was seen as a way to temper investor expectations, as other estimates were too high. Last quarter, Tesla’s compilation was closer to actual numbers, which fell 16% year over year.

The market-implied odds from event contracts suggest 64% of traders think Tesla’s Q1 deliveries will be more than 350,000, 44% think it will be higher than 360,000, and just 21% have it at higher than 370,000.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

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