We’re already in an era that might be coined as the “Chatbot arms race,” with all companies employing an AI chatbot working on improving its technology at reduced costs. Now, its OpenAI’s turn. The pioneer chatbot and image generator has upgraded its GPT-4o model with significantly improved image generation features. The new system can now produce more realistic images, render readable text within visuals, and support multi-step refinement through conversation. This update replaces DALL·E 3 as the default image model within ChatGPT and is now available to all users, including those on the free tier.
This development aligns with OpenAI’s broader goal of building a single, multimodal model to understand and generate text, images, audio, and video. In the short term, it enhances ChatGPT’s utility for both consumers and businesses. In the long term, it supports OpenAI’s ambition to create more general-purpose AI systems capable of handling a wide range of tasks.
New Capabilities Open up New Revenue Streams
One of the standout features of the updated GPT-4o is its ability to follow user instructions more closely when generating images. OpenAI said over 100 human trainers contributed to the model’s fine-tuning using “reinforcement learning from human feedback.” This helped the system improve in areas where previous models struggled, such as creating consistent hands, faces, and legible text in images.
Businesses are already beginning to adopt the new capabilities. OpenAI cited companies like GoDaddy (GDDY), which uses GPT-4o to generate logos and stock images. Other use cases include marketing design, educational illustrations, and technical diagrams. By offering these tools within ChatGPT, OpenAI aims to drive adoption among professionals and teams, which could lead to increased subscriptions and API usage.
Furthermore, GPT-4o’s image tools do more than impress users; they unlock new income. OpenAI can sell API access, offer brand-tuned models, and license content while boosting the value of its paid plans. Creative output becomes a clear growth path as it makes its tools more attractive to developers and enterprise clients.
Microsoft Easing Financial Burden
The update also reflects the influence of OpenAI’s largest backers, notably Microsoft (MSFT). With a multibillion-dollar investment and deep integration with Azure cloud infrastructure, Microsoft plays a key role in supporting OpenAI’s technical and commercial growth. This partnership heavily depends on the ability to train and deploy complex models like GPT-4o at scale.
As AI systems continue to evolve, OpenAI’s approach suggests it is not only competing on technical benchmarks but also aiming to embed itself deeply in the future of work, creativity, and productivity.
Is MSFT a Buy?
On Wall Street, Microsoft is considered a Strong Buy, with an average price target of $511.76, implying a 29.51% upside potential.
