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ChatGPT 5 Arrives With A Bang - Is Education Awake Yet?

ChatGPT 5 Arrives With A Bang - Is Education Awake Yet?

Forbes07-08-2025
OpenAI has released GPT-5, the most advanced version of its AI language model to date. It may not deliver artificial general intelligence, despite the buzz that preceded it, but that's not really the point.
GPT-5 brings major changes that are more subtle and more immediate. With sharper reasoning, a more streamlined architecture, and full-scale distribution from day one, it's likely to change how people work, build, learn, and make decisions long before anything resembling AGI arrives. Education, in particular, will need to pay attention to the unmistakable impact ChatGPT-5 will have.
What GPT-5 Actually Is
Instead of continuing with the fragmented approach of earlier models, GPT-5 operates as a unified system. It can handle everything from basic chat to complex, multi-step reasoning without the user having to think about which model to use. A new routing mechanism inside the system evaluates each query and sends it to the most appropriate version behind the scenes.
That routing system is constantly improving based on how people use the tool. If users give feedback or rephrase their requests, the router learns. That allows GPT-5 to balance performance with efficiency, making the best use of computing power while delivering faster and more accurate answers.
The goal here isn't just to make a smarter AI, but one that responds more naturally and economically at scale. This design also positions OpenAI to offer the model more widely, at lower cost, and across many types of use cases.
It Knows When to Think
Probably the most significant improvementswith GPT-5 is that it manages its own level of effort. If a prompt is complex, it slows down and reasons more carefully. If the task is simple, it responds quickly. The model adapts based on the context, not just input.
This doesn't mean GPT-5 is conscious or 'thinking' in the way a human does, but it does mean the responses often feel more coherent and appropriate to the situation. It now asks clarifying questions, admits when it's unsure, and follows more sophisticated reasoning paths without losing track.
Of course, technical improvements only matter if they result in real-world performance. And that's where GPT-5 seems to stand out.
Results That Speak for Themselves
According to benchmarks released by OpenAI, GPT-5 sets new highs in several categories. It's better at coding, scoring significantly higher than previous models on real-world software engineering tasks. It performs near the top in graduate-level math reasoning, even without external tools. It also handles multimodal prompts, those combining text and images, more naturally and accurately.
In some tests, GPT-5 cut error rates by a third or more. More importantly, it behaves differently in ways that are harder to quantify but easy to notice. It's more likely to ask follow-up questions when something's unclear. It structures its output more cleanly. It provides reasoning that humans can follow and audit.
OpenAI's Strategic Push
The release of GPT-5 comes with a clear distribution strategy. Every user of ChatGPT, including those on the free plan, now has access to it. The only difference is how much they can use it before the system switches to a lighter version. Paid tiers allow more access, but the core experience is consistent across the board.
Microsoft has already integrated GPT-5 into GitHub Copilot, Microsoft 365, and Azure, meaning this model is now embedded in tools used by millions every day. It's not arriving quietly. It's being dropped directly into the workflows of students, engineers, analysts, and writers around the world.
OpenAI has released this update among a flurry of other AI announcements from Google. The AI arms race is well underway and showing no signs of letting up any time soon.
The Education System Needs to Catch Up
While much of the attention around GPT-5 is focused on enterprise and developer use, the implications for education are harder to ignore. This model isn't just better at answering questions. It can help structure arguments, critique writing, solve math problems, and explain concepts in ways tailored to the learner's level and style. It can correct mistakes, flag poor logic, and offer instant feedback.
For students, this is a further game-changer. For educators, it's another wake-up call.
GPT-5 effectively offers a personalized tutor, editor, and research assistant rolled into one. And unlike previous models, it's not gated behind a paywall or locked away in enterprise software. It's available now, for free, to anyone with an internet connection. At least for limited use.
Most schools and universities are still treating AI as a novelty or a threat to academic integrity. They're responding with bans, detection tools, or limited pilots rather than engaging with the deeper challenge. Learning itself is changing. The gap between what students can do with AI and what schools are structured to assess is widening fast.
GPT-5 doesn't make education obsolete. But it makes the current structure feel increasingly out of step with reality. Institutions will either evolve or risk becoming irrelevant.
A Steady March Forward
GPT-5 is not the singular leap into AGI that some may have hoped or feared. But that doesn't make it any less consequential. It performs tasks that used to require subject-matter experts. It reasons through ambiguity. It helps users think, not just write.
The bigger story here is not how powerful GPT-5 is in isolation. It's how accessible that power is becoming. This is no longer a lab experiment or a product for early adopters. It's built into the software and platforms people already use, waiting to be summoned for help, insight, or creativity.
So What?
The history of AI over the last few years has been one of compounding returns. Each improvement builds on the last, not just in performance but in how it alters expectations and workflows. GPT-5 continues that trend.
Nowhere is that more obvious or more urgent than in education. The system most responsible for preparing people for the future is the one most at risk of falling behind. If nothing else, GPT-5 serves as a powerful signal that the time for adaptation is now.
This model may not change everything overnight. But it changes enough, right now, to force serious reflection. Some schools are innovating at speed, but whether the majority are ready to do that remains to be seen.
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IPO market surges in August with companies 'striking while the iron is hot' The IPO market is on fire this summer, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. The IPO market is on fire this summer, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Opendoor shares pops in wake of CEO exit amid meme-fueled stock surge Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Opendoor Technologies (OPEN) shares spiked as much as 10% in morning trading after the company announced the departure of its CEO Carrie Wheeler effective immediately. Opendoor said it is searching for a new CEO to lead the ibuyer in its next growth phase, just weeks after the stock skyrocketed in a meme-fueled rally. The board appointed Shrisha Radhakrishna, Opendoor's chief technology and product officer, as president and interim leader of the company. Shares of Opendoor have been on a wild ride over the past month, powered in part by Carvana (CVNA) turnaround spotter EMJ Capital and speculative investors on Reddit's wallstreetbets. EMJ Capital founder and president Eric Jackson wrote in mid-July that his firm was taking a long position in Opendoor, which was then trading under $1 per share. Jackson has been critical of Opendoor's top leadership, most recently following the company's latest quarterly results in early August, when the stock sank 20% following a disappointing earnings forecast. "The communication on the earnings call from the CEO and the CFO was really awful," Jackson told Yahoo Finance last week. "The management team didn't do anything to get this thing up from 51 cents to almost five bucks," he said. "It was basically all of us retailers who saw the value in this platform, supported it. We got not a word from management over these last few weeks. So I think she's got to go." Chip stocks fall as Trump says semiconductor tariffs coming as soon as next week Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Chip stocks dropped Friday after President Trump said he will set tariffs on semiconductors as soon as next week. "I'll be setting tariffs next week and the week after on steel and on, I would say, chips," Trump told reporters Friday while aboard Air Force One while traveling to Alaska to meet Russian President Vladimir Putin, Reuters reported. Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) fell more than 1%, while Micron (MU) dropped more than 3%. Trump said earlier this month that semiconductor companies building out their domestic manufacturing footprint — this includes the world's leading contract chip manufacturer, Taiwanese firm TSMC (TSM) — would be exempt from his planned 100% tariffs on chips. That commentary sent chip stocks up. But on Friday, he implied that the exemption may only be temporary. "I'm going to have a rate that is going to be lower at the beginning — that gives them a chance to come in and build — and very high after a certain period of time," he said. Consumer sentiment falls in August, marking first decline in 4 months US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' Read more here. US consumer sentiment deteriorated in August, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from a reading of 61.7 in July. It was also less than the 62 reading expected by economists surveyed by Bloomberg. 'This deterioration largely stems from rising worries about inflation,' wrote Joanne Hsu, the director of the university's Surveys of Consumers. Consumer sentiment had improved in June and July after plummeting in the spring as Americans worried about the impacts of Trump's tariffs. In May, the index showed sentiment at its second-lowest level on record as consumers expressed concerns over long-term inflation, fueled by uncertainty surrounding Trump's trade policies. Sentiment improved in June as Trump dialed back some of his aggressive stances on tariffs. 'Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,' Hsu said. 'However, consumers continue to expect both inflation and unemployment to deteriorate in the future.' Read more here. US stocks mixed at the open US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. US stocks were mixed on Friday at the open as Wall Street tempered its hopes for the Fed to cut interest rates in September, as economic data this week showed higher than expected wholesale inflation and a rise in July retail sales. The Dow Jones Industrial Average (^DJI) rose around 0.5%, putting the index on track for its first record since December. The benchmark S&P 500 (^GSPC) rose less than 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell below the flatline. Intel stock continues rise as Trump administration reportedly mulls taking stake in chipmaker Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Intel (INTC) stock spiked more than 7% Thursday and continued to climb 3% before the market open on Friday, following a report that the US government is considering taking a stake in the troubled chipmaker. Bloomberg reported that the Trump administration is in talks with Intel about the deal, which would help the company complete its Ohio factory expansion that had been put on hold. The report follows a meeting between President Trump and Intel CEO Lip-Bu Tan earlier this week, which came after the president called for the CEO's resignation due to his ties with China. "As Intel's prospects have dimmed, the idea of support (governmental or otherwise) has gained traction, understandable given the company, for better or worse, remains the only US-headquartered prospect for leading edge semiconductor chips and processes; it seems like Trump may have been persuaded to see the light," Bernstein analyst Stacy Rasgon wrote in a note to investors Friday. It's not the first time the Trump administration has allegedly floated ideas to prop up Intel. In February, a news report said the US was pitching proposals to its rival TSMC to help support its turnaround by establishing a joint venture with Intel. Read more here. Retail sales climb less than expected in July Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Retail sales rose 0.5% in July from the prior month, according to data from the US Census Bureau released Friday — marking the second monthly gain in a row, as consumer spending steadies following a dramatic drop in earlier in the year. Still, the jump was less than the 0.6% gain expected by economists surveyed by Bloomberg. Excluding auto and gas sales, retail sales were up 0.2%, also less than the 0.3% projected. An even narrower slice of retail sales called the 'control group' — a more precise measure of consumer spending that excludes certain sales such as those from office supply and tobacco stores — climbed 0.5%, ahead of the 0.4% expected. Retail sales rebounded in June, a sign that consumer spending habits were remaining resilient despite President Trump's tariffs. Read more here. Investors want rate cut 'validation,' but the Fed's dilemma won't go away Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Yahoo Finance's Hamza Shaban writes in today's Morning Brief: Read more here. Good morning. Here's what's happening today. Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Economic data: Retail sales (July); Export prices (July); Industrial production (July); University of Michigan consumer sentiment (August preliminary) Earnings: No notable earnings. Here are some of the biggest stories you may have missed overnight and early this morning: 'Striking while the iron is hot' Investors want rate cut 'validation,' but the Fed's dilemma remains Applied Materials' shares sink on weak China demand, tariff risks UnitedHealth jumps as Buffett's Berkshire buys 5M shares BofA's Hartnett sees profit-taking in stocks after Jackson Hole AI exacerbates tech divide with smaller stocks languishing A trader's guide to the Alaska talks between Trump and Putin China's economy slows in July on tariffs, weak property market Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. UnitedHealth stock soars as Buffett's Berkshire buys 5M shares UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. UnitedHealth Group stock rose 12% before the bell on Friday after Warren Buffett's Berkshire Hathaway (BRK-B, BRK-A) acquired 5 million shares in the company. A regulatory filing showed the purchase on Thursday. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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