GPT‑5 vs GPT‑4: What’s Really Changing in the AI Race

GPT‑5 vs GPT‑4: What’s Really Changing in the AI Race

GPT-5 is live in ChatGPT and the API. It’s stronger on coding, math, and multimodal tasks, and it gives you new controls for reasoning and verbosity. GPT-4.1 still has the largest context window. Use GPT-5 for agents, code edits, and tool chains; use 4.1 when you truly need million‑token single shots. 

What changed at a glance 

  • Release and access: GPT-5 is live in ChatGPT and in the API. Team users have it now; Enterprise and Edu roll out next. 
  • Model family: gpt-5, gpt-5-mini, and gpt-5-nano. There is also gpt-5-chat-latest for simple chat apps. 
  • Controls: set reasoning_effort (with a minimal option), set verbosity (low/medium/high), and use custom tools that accept plaintext instead of only JSON. 
  • Context: GPT-5 lists a 400K context window with 128K max output. GPT-4.1 keeps the ~1,047,576-token context window. 
  • Benchmarks: GPT-5 leads OpenAI’s lineup on tough coding and math tests and improves multimodal understanding. 
  • Pricing: $1.25 per 1M input tokens and $10 per 1M output for GPT-5; mini and nano are cheaper. 
  • Adoption signal: OpenAI cites about 5M paid ChatGPT business users and ~700M weekly users overall. 

Pricing and basic specs 

API pricing (per 1M tokens) 

Model Input Cached input Output 
GPT-5 $1.25 $0.125 $10.00 
GPT-5 mini $0.25 $0.025 $2.00 
GPT-5 nano $0.05 $0.005 $0.40 

Context and output limits 

Model Context window Max output tokens Notes 
GPT-5 400,000 128,000 Listed on GPT-5 product/API pages 
GPT-5 mini 400,000 128,000 Same as above 
GPT-5 nano 400,000 128,000 Same as above 
GPT-4.1 ~1,047,576 See docs Largest published window in OpenAI’s lineup 

What people actually get in ChatGPT 

ChatGPT now adjusts how much it “thinks” based on the task. It can give shorter answers when that’s better and expand when the task is complex. You can select the heavier thinking mode if you need it. Rollout is staged: Team now, Enterprise/Edu next. 

Developer-facing changes that matter 

New controls 

Reasoning effort 

Set reasoning_effort to minimal, medium, or high. Minimal keeps responses quick for straightforward tasks. Use high for complex logic, refactors, or long tool chains. 

Verbosity 

Control how terse the answer is with verbosity. Low for short actions and logs. High for detailed write-ups. 

Custom tools 

Instead of forcing JSON for every tool call, custom tools can accept plaintext (optionally constrained by a grammar). This reduces escaping issues with long strings and code blocks and improves multi-step agent reliability. 

The numbers: where GPT-5 is better than GPT-4 

Coding and agent tasks 

Benchmark GPT-5 (high) o3 (high) GPT-4.1 
SWE-bench Verified 74.9% 69.1% 54.6% 
Aider polyglot (diff editing) 88.0% 79.6% 52.9% 

OpenAI also reports about 22% fewer output tokens and 45% fewer tool calls versus o3 at high effort on the same SWE-bench setup. That usually means fewer retries, quicker runs, and lower cost at similar or better quality. 

Reasoning and multimodal 

Benchmark GPT-5 (high) o3 (high) GPT-4.1 
AIME ’25 (no tools) 94.6% 88.9% — 
GPQA Diamond (no tools) 85.7% 83.3% 66.3% 
HMMT 2025 (no tools) 93.3% 81.7% 28.9% 
MMMU (vision+text) 84.2% 82.9% 74.8% 

These tests track structured reasoning, science knowledge, and visual understanding. If you work with charts, dashboards, or diagrams, you will likely notice the improvement. 

Where GPT-4 still makes sense 

You really need million-token single shots 

If your pipeline depends on processing a huge codebase or many long PDFs in a single prompt, GPT-4.1’s ~1,047,576-token window remains the top option. Retrieval can help with GPT-5, but if your app is built around one massive input, test before switching. 

Ultra-cheap bulk work 

For very large, simple jobs like tagging or brief summaries, gpt-5-mini or gpt-5-nano may beat both 4.x and full GPT-5 on price. Benchmark them on your own data. 

Cost math you can copy 

Example: support automation. Average ticket uses about 800 input tokens and 250 output tokens. You handle 100,000 tickets per month. 

Plan: route 85% of tickets to gpt-5-nano and 15% to full gpt-5. Prices per 1M tokens: nano $0.05 in / $0.40 out; gpt-5 $1.25 in / $10 out. 

Load Token math Approx. cost 
Nano (85,000 tickets) 85k × (0.8k + 0.25k) = 89.25M Input: 68M × $0.05/M = $3.40 
Output: 21.25M × $0.40/M = $8.50 
Total ≈ $11.90 
GPT-5 (15,000 tickets) 15k × (0.8k + 0.25k) = 15.75M Input: 12M × $1.25/M = $15.00 
Output: 3.75M × $10/M = $37.50 
Total ≈ $52.50 
Total — ≈ $64.40 (before caching) 

Routing easy tickets to nano and hard ones to full GPT-5 can cut spend while improving quality, because GPT-5 tends to use fewer tokens and fewer tool calls on complex tasks. 

Simple upgrade plan (works in real teams) 

  1. Lock an eval set: collect a week of real prompts, split by task type (coding, chat, extraction, tool-heavy). 
  1. A/B GPT-4.1 vs GPT-5 with the same prompts. Try minimal and high reasoning. Track accuracy, tool failures, tokens, and latency. 
  1. Set verbosity by task to control length without post-processing. 
  1. Adopt custom tools where strict JSON isn’t required; add a grammar when you need stronger validation. 
  1. Add a router: send easy prompts to nano/mini; send complex ones to full GPT-5. Add a fallback path for failures. 
  1. Use caching for long system prompts and knowledge packs to save costs. 
  1. Shadow-run agent workflows before cutting over to production. 

Feature-by-feature: GPT-5 vs GPT-4.1 

Area GPT-5 GPT-4.1 
Built-in “thinking” Automatic in ChatGPT; reasoning_effort in API (incl. minimal) Older approach; no minimal setting 
Output length control verbosity (low/medium/high) Not available 
Tool calling Custom tools with plaintext + grammar; parallel calls JSON functions; more fragile with long strings 
Context window 400K ~1,047,576 
Typical use Agents, coding, mixed tool chains Giant single-shot inputs 
Pricing (in/out) $1.25 / $10 Often $2 / $8 in docs 

When the switch pays off right away 

Engineering teams 

If you do many code edits across files and repos, or run long chains that call multiple tools, you’ll likely see fewer failures and cleaner diffs with GPT-5. 

Analysts and ops 

If you read charts, dashboards, or diagrams, GPT-5’s multimodal gains help with parsing and summarizing visuals with fewer mistakes. 

Health and compliance drafts 

Scores are better, but you still need human review. Treat GPT-5 as a stronger first draft, not a final decision-maker. 

how big is the shift in the market? 

OpenAI’s own “new era of work” post claims 5M paid business users and ~700M weekly users across ChatGPT. That’s not a lab score, but it does mean partner tools and third-party platforms will move fast to GPT-5 defaults. You’ll see it in Copilot and other Microsoft products too.  

What we didn’t stress enough (but you should care about) 

Routing and caps matter more than you think 

GPT-5 can “think deeper” when needed, but that costs time and tokens. In ChatGPT the app decides; in the API you choose with reasoning_effort. Set a default (minimal) and only raise it for tricky logic or long tool chains. Also plan for rate limits. Always keep a fallback path to mini/nano so your app doesn’t stall during spikes. 

Prompt caching saves real money 

If your system prompt or knowledge pack is long, turn on caching. The model bills cached input at a lower rate, which adds up fast for high-traffic apps. Cache anything reused across requests: role instructions, policy text, schema examples. 

Tool calls: use plaintext + a grammar 

Custom tools let you send plaintext instead of strict JSON. Add a simple grammar so outputs stay valid. This avoids the usual escaping mess with code blocks, reduces retries, and shortens runs. 

Context isn’t a silver bullet 

Even with a large window, dumping whole PDFs or repos is wasteful. Use retrieval: store chunks, fetch only what’s relevant, and keep the prompt tight. You’ll get steadier answers and lower bills. 

Output control is your friend 

Most complaints about “too long” or “too short” drafts are solved by setting verbosity. Decide per task: low for actions and logs, high for reviews and reports. Lock it in your router so writers don’t need to fix tone after the fact. 

Data handling and reviews 

Keep human review in the loop for legal, finance, or health. Store prompts and outputs safely. Turn off training on your data where required, and log tool actions so you can audit what the agent did and why. 

How Spaculus Software helps teams get real value from GPT-5 

What we do, in plain terms 

  • Fast audit (5–7 days): We look at your prompts, tools, and failure logs. You get a short list of fixes that cut cost and error rate, not a 50-page deck. 
  • Pilot with real tasks: We run your own tickets/emails/code through GPT-5 vs GPT-4.1, with minimal vs high reasoning. Clear win/loss table, no guesswork. 
  • Smart routing: We set simple rules so easy cases go to nano/mini, hard ones to full GPT-5. This is where most savings come from. 
  • Tool design that holds up: We swap brittle JSON calls for plaintext + grammar, add parallel calls where safe, and wire guards for inputs and outputs. 
  • Guardrails and QA: Policy checks, PII scrubs, citation prompts, and sampling plans so risky stuff is reviewed before it ships. 
  • Dashboards that matter: Latency, token use, tool error rate, success rate by task, and spend per outcome. Not vanity charts. 
  • Team training: Short playbooks for developers, analysts, and managers. How to write prompts, when to raise reasoning, how to read the logs. 

Sample delivery plan 

Goal What we set up  Result 
Cut spend without losing quality Router rules + caching for long system text  Fewer tokens on easy work; lower bill 
Fewer broken runs  Plaintext tool calls with grammar + retries only on real failures  Less flakiness; cleaner traces  
Faster code fixes  Diff-based edit prompts + repo guard checks  More PRs that pass on first try  
Safer outputs  Policy prompts + sampling + human review for flagged items  Issues caught before going live  
Clear reporting  Metrics on tokens, time, errors, success by task  Decisions based on data, not opinions 

When to hold 

You built around 1M-token prompts 

If your app relies on single huge inputs, keep GPT-4.1 or test GPT-5 with retrieval before moving. 

You only need cheap tagging at scale 

If accuracy is already good enough, mini or nano may be your best spend. Benchmark on your own data.

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All the Big Tech companies along with others like Intel, IBM, Netflix, Facebook, and Spotify use Python as their primary language.   Google has reportedly handed pink slips to its entire Python team in the US. But should it cause fear among Python developers across the industry? Studies suggest otherwise. As per a 2023 Developer […]

Apr 30, 2024 3 Mins read
How AI features may ‘revive’ a declining PC market in 2024

How AI features may ‘revive’ a declining PC market in 2024

The PC market has had quite a few tough quarters in a row. According to a report by IDC, there has been an “unprecedented trend” in the PC market — two consecutive years of double-digit year-over-year drops. However, the research firm is optimistic about the market’s recovery. “Despite the short-term challenges, IDC continues to expect […]

Dec 28, 2023 3 Mins read
Satya Says It: 30% of Microsoft’s Code Is AI‑Written — What Happens When It Hits 80%?

Satya Says It: 30% of Microsoft’s Code Is AI‑Written — What Happens When It Hits 80%?

A Quiet Revolution in Plain Sight  In April 2025, Satya Nadella made a statement that stopped the software world in its tracks.  Speaking with Mark Zuckerberg at Meta’s LlamaCon, he revealed that around 30% of Microsoft’s code is now generated by AI tools. Not theoretical code. Not experimental. Production code—inside real repositories at one of […]

Aug 1, 2025 3 Mins read
Meta’s Instagram back online for most users after outage, Downdetector shows

Meta’s Instagram back online for most users after outage, Downdetector shows

Meta Platforms’s Instagram appeared to be back online for most users after an outage disrupted services for the photo-sharing platform for more than three hours on Thursday, according to Downdetector.com. The number of outages has come down to around 400 after more than 5,000 users reported issues with accessing Instagram in the United States around 2230 GMT, […]

Mar 23, 2024 3 Mins read
From GPT-4 to o3-pro- What’s New and Why It Matters 

From GPT-4 to o3-pro- What’s New and Why It Matters 

Last week, OpenAI quietly introduced its latest model, o3‑pro — and while the headlines were minimal, the implications are significant.  No massive press event.  No flashy interface demos.  Just a quietly released update aimed at something more strategic: practicality.  And that’s exactly what makes it worth your attention.  Not a Breakthrough — A Strategic Correction  […]

Jun 17, 2025 3 Mins read
LinkedIn Tests Premium Company Pages with AI Content Creation

LinkedIn Tests Premium Company Pages with AI Content Creation

LinkedIn — the social platform that targets the working world — has quietly started testing another way to boost its revenues, this time with a new service for small and medium businesses. Spaculus Software has learned and confirmed that it is working on a new LinkedIn Premium Company Page subscription, which — for fees that appear […]

Apr 16, 2024 3 Mins read
Meet World’s First AI Software Engineer ‘Devin’, Here’s What All It Can Do

Meet World’s First AI Software Engineer ‘Devin’, Here’s What All It Can Do

Bay area startup Cognition today revealed Devin, a revolutionary AI software engineer that could transform the way we build software. Devin has achieved groundbreaking success on the SWE-bench coding benchmark, demonstrating its ability to execute complex tasks and even surpass top human engineers. Devin’s unique abilities set it apart from your typical coding assistant. With […]

Mar 13, 2024 3 Mins read
Social media X is back online after hour-long global outage.

Social media X is back online after hour-long global outage.

Social media platform X suffered an outage for over one hour on Thursday, with users complaining that they could not access posts on the platform. The services were back and posts became visible after sometime, but some users were unable to see several of their recent posts on the platform. According to Downdetector, complaints started […]

Dec 28, 2023 3 Mins read
The $1.5 Billion Mirage: How Builder.ai Exposed the Dark Side of Prebuilt App Platforms-And Why Businesses Still Need Custom Development 

The $1.5 Billion Mirage: How Builder.ai Exposed the Dark Side of Prebuilt App Platforms-And Why Businesses Still Need Custom Development 

The Prebuilt Hype That Swept the Tech World  For years, business owners have been bombarded with a seductive message:  “Why hire developers? Just pick a prebuilt tool, click a few buttons, and launch your app.”  Platforms with sleek UIs and bold claims have flooded the market. Builder.ai, Bubble, OutSystems, Appgyver — all promised to make […]

Jul 15, 2025 3 Mins read
Pulitzer-Winning Authors Sue OpenAI and Microsoft for Copyright Infringement

Pulitzer-Winning Authors Sue OpenAI and Microsoft for Copyright Infringement

A group of 11 nonfiction authors have joined a lawsuit in Manhattan federal court that accuses OpenAI and Microsoft (MSFT.O) of misusing books the authors have written to train the models behind OpenAI’s popular chatbot ChatGPT and other artificial-intelligence based software. The writers, including Pulitzer Prize winners Taylor Branch, Stacy Schiff and Kai Bird – […]

Dec 28, 2023 3 Mins read
NVIDIA Forecasts Trillion‑Dollar Data Center Boom — Here’s What It Means for the Future of AI 

NVIDIA Forecasts Trillion‑Dollar Data Center Boom — Here’s What It Means for the Future of AI 

Over the past week, NVIDIA made a bold statement: data center spending is heading for the trillion-dollar mark. Not over decades. But soon.  Most headlines called it a milestone forecast. Investors saw a stock bump. Tech media ran the usual cycle.  But here’s the truth: This isn’t a sudden explosion. It’s the culmination of years of slow, structural change […]

Jun 20, 2025 3 Mins read
Why code-testing startup Nova AI uses open source LLMs more than OpenAI

Why code-testing startup Nova AI uses open source LLMs more than OpenAI

It is a universal truth of human nature that the developers who build the code should not be the ones to test it. First of all, most of them pretty much detest that task. Second, like any good auditing protocol, those who do the work should not be the ones who verify it. Not surprisingly, […]

Apr 19, 2024 3 Mins read
Baidu Ernie 4.5 & X1: The Future of AI in Search, Autonomous Driving, and Open-Source Tech

Baidu Ernie 4.5 & X1: The Future of AI in Search, Autonomous Driving, and Open-Source Tech

Artificial Intelligence is advancing at an incredible pace, and Baidu, one of China’s biggest tech companies, is leading the charge. On March 16, 2025, Baidu introduced two cutting-edge AI models: Ernie 4.5 and Ernie X1. These models are designed to handle multiple types of data (like text, images, and videos) and have advanced reasoning capabilities. […]

Mar 20, 2025 3 Mins read
Sam Altman: Our Next Open Source Model Will Blow Your Mind 

Sam Altman: Our Next Open Source Model Will Blow Your Mind 

When Sam Altman makes a bold promise, the tech world listens. And his recent comment about OpenAI’s upcoming open-source release wasn’t just bold — it was a warning.  “Our next open source model will blow your mind.”  Not a benchmark. Not a press release. A straight-up statement of intent.  This wasn’t marketing noise. It was a directional […]

Jun 24, 2025 3 Mins read
Claude 3.5 Sonnet: Redefining AI Excellence

Claude 3.5 Sonnet: Redefining AI Excellence

In a significant advancement in AI technology, Anthropic has unveiled Claude 3.5 Sonnet, the latest version of their sophisticated AI model. This release brings several enhancements that position Claude 3.5 Sonnet as a strong competitor to OpenAI’s ChatGPT 4. Here’s an in-depth look at Claude 3.5 Sonnet, its new features, and a comparison with ChatGPT […]

Jun 27, 2024 3 Mins read
Beyond Chat: How Launch of Elon Musk’s Grok 4 Could Transform Market Research and Competitive Intelligence

Beyond Chat: How Launch of Elon Musk’s Grok 4 Could Transform Market Research and Competitive Intelligence

Grok 4: More Than Just a Chatbot  Elon Musk’s Grok 4 has arrived.  Some people see it as another chatbot. Others think it’s a political tool. But there’s a growing question in business circles:  “Can Grok 4 actually help companies understand markets and competitors better than anything else?”  That’s where the real story begins.  Why […]

Jul 9, 2025 3 Mins read
Crafting your low-code-powered roadmap for digital transformation

Crafting your low-code-powered roadmap for digital transformation

India’s digital landscape is undergoing a profound transformation, mirroring the global shift towards digitization and technological advancement. Businesses across sectors, from established enterprises to government departments and startups, are recognizing the imperative of digital transformation to not just survive but thrive in today’s competitive market. A report by IDC sheds light on this trend, revealing […]

Apr 22, 2024 3 Mins read
Why adoption of AI may be critical for businesses to tackle cyber threats and more

Why adoption of AI may be critical for businesses to tackle cyber threats and more

Data security concerns are proving to be a substantial impediment to the widespread deployment of AI. Consequently, companies are unsurprisingly leveraging AI itself to tackle these apprehensions. As businesses in various sectors increasingly adopt AI to enhance processes and ensure more precise decision-making, the utilisation of AI-powered security technologies becomes crucial. These technologies can rapidly […]

Dec 28, 2023 3 Mins read
PM Modi says India to lead the world in AI, asks startups to work on Indian solutions for global challenges

PM Modi says India to lead the world in AI, asks startups to work on Indian solutions for global challenges

Prime Minister Narendra Modi recently said India will lead the world in AI capabilities and exhorted young entrepreneurs and startups to work on “Indian solutions for global applications” to solve challenges faced by nations worldwide. Addressing the Startup Mahakumbh, Modi said the three missions on AI, semiconductors, and quantum, launched by the government earlier, will […]

Mar 26, 2024 3 Mins read

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