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Jon Keegan

WSJ: OpenAI is hitting a wall with GPT-5 training

After 18 months’ work and hundreds of millions of dollars’ worth of computing time training its next major foundational model, GPT-5, OpenAI seems to have hit a wall.

New reporting from The Wall Street Journal said that the company is not seeing the exponential leap in its next-gen model (known internally as “Orion”) that OpenAI researchers — and OpenAI investors — had expected.

The AI “scaling law” that has until now consistently delivered more powerful, more capable AI models by just feeding more into more expensive GPUs is showing signs of reaching a plateau. Researchers are scrambling to find reserves of fresh data to train the models, as most of the internet has already been harvested.

Much of the AI industry has followed this pattern of model development, so if the current approach is reaching its theoretical limits, it could shake up the power structure of the industry.

Companies like Meta, Amazon, xAI, Google, and others are spending billions of dollars on data centers powered by hundreds of thousands of specialized training GPUs, like Nvidia’s popular Hopper series. Investors have been promised continued leaps in AI technology in exchange for huge capital expenditures investing in computing infrastructure.

OpenAI just announced its new o3 “reasoning” models, which the company is hoping will help break through the current barriers.

The AI “scaling law” that has until now consistently delivered more powerful, more capable AI models by just feeding more into more expensive GPUs is showing signs of reaching a plateau. Researchers are scrambling to find reserves of fresh data to train the models, as most of the internet has already been harvested.

Much of the AI industry has followed this pattern of model development, so if the current approach is reaching its theoretical limits, it could shake up the power structure of the industry.

Companies like Meta, Amazon, xAI, Google, and others are spending billions of dollars on data centers powered by hundreds of thousands of specialized training GPUs, like Nvidia’s popular Hopper series. Investors have been promised continued leaps in AI technology in exchange for huge capital expenditures investing in computing infrastructure.

OpenAI just announced its new o3 “reasoning” models, which the company is hoping will help break through the current barriers.

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Big Tech capital expenditure soared in 2025. It’s going up another 50% in 2026.

Last quarter was one for the record books when it came to Big Tech’s purchases of property and equipment. Combined, Amazon, Alphabet, Microsoft, and Meta spent nearly $400 billion on capex, sans leases, in total last year, mostly in service of building out the AI infrastructure that they hope will furnish their futures.

And 2026 is only getting more expensive.

The four are expected to spend 50% more in 2026 than in 2025: roughly $600 billion. Amazon said it’s on the hook for $200 billion in capex this year, while Google expects to spend between $175 billion and $185 billion. Not too far behind, Meta estimated its 2026 capex would be $115 billion to $135 billion. Microsoft didn’t give an estimate, but analysts have its 2026 calendar year capex at around $114 billion. However, it should be noted that analysts’ expectations for 2026 were way lower than the reality for the rest.

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Anthropic’s Claude Opus 4.6 gains financial research, improved coding features

It’s a model-for-model battle between OpenAI and Anthropic, as the startups vie for dominance in AI coding tools.

Not to be outdone by OpenAI’s release today of GPT-5.2-Codex, Anthropic has released a new model that also improves its coding skills: Claude Opus 4.6.

According to the release, the new model now has the ability to perform financial research, adding new utility to its Claude Cowork tool, which recently gained new legal work capabilities that made investors bet against established software companies. This time, the news is sinking financial research firms like FactSet and S&P Global.

Claude Opus 4.6 can help with longer, more complex coding projects and perform more detailed debugging and code review tasks. It also features improvements in its ability to work with documents, spreadsheets, and presentations.

Anthropic says the new model made strides in safety as well, showing extremely low rates of “misaligned behavior.”

According to the release, the new model now has the ability to perform financial research, adding new utility to its Claude Cowork tool, which recently gained new legal work capabilities that made investors bet against established software companies. This time, the news is sinking financial research firms like FactSet and S&P Global.

Claude Opus 4.6 can help with longer, more complex coding projects and perform more detailed debugging and code review tasks. It also features improvements in its ability to work with documents, spreadsheets, and presentations.

Anthropic says the new model made strides in safety as well, showing extremely low rates of “misaligned behavior.”

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OpenAI releases its answer to Claude Code, first AI model with “high capability” risk for cybersecurity

AI agents that can write code have quickly become one of the most profitable, and competitive, applications coming from the current crop of AI startups.

Anthropic’s Claude Code is enjoying a moment of popularity among software engineers, and it’s shoring up the startup’s revenue projections as it aims for an IPO this year. Claude Code’s launch, along with Anthropic’s release of Claude Cowork, which is aimed at nontechnical users, has been a key force behind software stocks’ massive recent underperformance.

Today OpenAI released its latest salvo in the AI code war: GPT-5.3-Codex, an “agentic coding” model that takes its name from OpenAI’s Codex coding app.

OpenAI says that GPT-5.3-Codex is the first model that was “instrumental in creating itself.”

According to the announcement, the new model can be used to build complex websites, interactive games, and achieved a new industry-wide high score on the widely used SWE-Bench Pro software development benchmark test.

But the model is also the first that OpenAI has released that comes with a “high capability” risk for cybersecurity, meaning the company’s evaluations showed that the tool had the potential to be used for sophisticated cyberattacks, though OpenAI says it has added mitigations to prevent such misuse.

Today OpenAI released its latest salvo in the AI code war: GPT-5.3-Codex, an “agentic coding” model that takes its name from OpenAI’s Codex coding app.

OpenAI says that GPT-5.3-Codex is the first model that was “instrumental in creating itself.”

According to the announcement, the new model can be used to build complex websites, interactive games, and achieved a new industry-wide high score on the widely used SWE-Bench Pro software development benchmark test.

But the model is also the first that OpenAI has released that comes with a “high capability” risk for cybersecurity, meaning the company’s evaluations showed that the tool had the potential to be used for sophisticated cyberattacks, though OpenAI says it has added mitigations to prevent such misuse.

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Google’s Gemini is gaining but OpenAI’s ChatGPT is still the AI chatbot leader

Following Alphabet’s stellar earnings report Wednesday, analysts were quick to declare that the Google parent had blossomed from an AI laggard into a leader. The company posted strong revenue and profit growth, driven in part by heavy investment in artificial intelligence, and noted that its Gemini app had grown to more than 750 million monthly active users.

Still, usage data suggests Gemini remains far behind the market leader — at least as far as usage.

While Gemini is growing faster than OpenAI’s ChatGPT — up 19% month over month versus 4% — it still trails by a wide margin in overall usage. In January, Gemini logged more than 2 billion global visits, according to new data from Similarweb, less than half of ChatGPT’s 5.7 billion.

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