Here Is Why OpenAI Is Much More Likely to Release GPT-4.5 This Year Instead of GPT-5

Rohail Saleem

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.

Although GPT-4 is currently at the apex of the increasingly convoluted world of generative artificial intelligence, its competitors, including Anthropic's Claude and Meta's open-source Llama, keep getting better, necessitating another iteration of OpenAI's flagship Large Language Model (LLM). While many expect Sam Altman's non-profit to release GPT-5 in 2024, some analysts are now asserting that those expectations remain far-fetched, especially given the scale of resources required.

GPT-5 Would Need Around ~100x the Computational Resources of GPT-4, or 3 Months of ~1 Million H100s

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According to Dan Hendrycks, the director of the Center for AI Safety, each incremental iteration of OpenAI's GPT LLM has required a 10x increase in computational resources. Consequently, if OpenAI were to skip GPT-4.5 and directly jump to GPT-5, it would translate into around a 100x increase in computational requirements relative to GPT-4, equivalent to around 1 million H100 chips running for three straight months.

This thesis is supported by the comments from Anthropic's CEO, Dario Amodei, who recently noted that it currently costs around $1 billion to train a state-of-the-art LLM, with this cost expected to balloon to between $5 billion and $10 billion by 2025/26. Crucially, $1 billion in training costs aligns with the 10x jump in computational resources that can be reasonably inferred for GPT-4.5.

We noted recently that NVIDIA's H100 units deployed this year are expected to consume around 13,000 GWh of electricity annually, equivalent to the annual electricity consumption of countries such as Lithuania and Guatemala. By 2027, the global power consumption of data centers is expected to rocket to between 85 and 134 TWh (terawatt-hours)!

Of course, GPT-4's competition is rapidly catching up. Look no further than Meta's Llama 3 LLM (70 billion parameters), which now ranks fifth on the Arena leadership board. Critically, Llama 3 is now outperforming all other open-source LLMs, and that's in the absence of the upcoming 405-billion parameter model.

What's more, some experts now believe that for GPT-5, OpenAI will have to change the "original curriculum," which currently involves leveraging "poorly curated human conversations" and an overall "naive" training process. This appends with our original thesis that OpenAI is likely to release an iterative GPT-4.5 model this year instead of upending the stakes altogether with GPT-5.

Rohail Saleem Photo

About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.

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