OpenAI is preparing to launch GPT-5, a significantly improved version of its AI tool, by mid-year. The new model, expected to be a major upgrade from GPT-4, is currently in training and will undergo safety testing and scrutiny through a 'red teamed' process. Microsoft, as OpenAI's biggest investor and a key integrator of GPT technology in its products, is reportedly in talks for further investment to develop GPT-5. The release date may be delayed due to the extensive safety testing phase.