OpenAI's GPT-5.2: A Costly Bid to Lead as AI Race Intensifies

• OpenAI launched GPT-5.2, its new flagship model, claiming improved performance for professional applications, in response to Google's recent AI advancements.
• The competitive gap in foundational AI models has significantly narrowed, with rivals now offering comparable or stronger systems.
• OpenAI faces financial challenges due to high cash burn and massive spending on computing power, despite ambitious revenue projections.
• ChatGPT remains central to OpenAI's strategy, with 800 million weekly users, leading to a focus on enhancing user experience to retain its market position.
• OpenAI is exploring controversial monetization methods like advertising and direct commerce within ChatGPT, alongside increasing model pricing and expanding into enterprise software.

Why It Matters: OpenAI's new model signals its struggle to maintain AI leadership and financial viability.