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Why ChatGPT-5’s Stunning Launch Is Bad News For Many AI Stocks

Last week’s launch of ChatGPT-5 was a jaw-dropper — even in an industry where “mind-blowing” has become routine.

The new flagship model from OpenAI isn’t just incrementally better than its predecessors. It’s best-in-class on multiple AI intelligence benchmarks while running on surprisingly low compute. Translation: it’s not only smarter than essentially everything else in the market, it’s also faster and cheaper to run.

A leap forward like this should be rocket fuel for the AI economy: more capable models → more compelling AI applications → more adoption, usage, and revenue for AI companies.

And that’s true… mostly. Let me explain.

This post originally appeared at InvestorPlace.