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OpenAI’s Open-Source Model Coming, Says Sam Altman at YC AI Startup School

OpenAI, the creator of ChatGPT, will release a powerful open-weight AI model soon, CEO Sam Altman announced at Y Combinator’s AI Startup School on June 16, 2025. This move counters competition from open-source models like DeepSeek’s R1 and Meta’s Llama. Here’s what Altman said, why it’s happening, and what it means.

What Did Altman Announce?

At YC’s AI Startup School in San Francisco, Altman revealed OpenAI’s plan to launch a “powerful open-weight language model” with advanced reasoning, saying, “I think people are going to be surprised by how much better it is than people expect.” Unlike fully open-source models, this open-weight model shares trained parameters for developers to use and customize, but keeps training details private. Initially set for June, the release is delayed to late summer 2025 due to an “unexpected and quite amazing” breakthrough, Altman noted on X. OpenAI will host developer events in San Francisco, Europe, and Asia-Pacific to gather feedback.

Why Is OpenAI Doing This?

OpenAI faced criticism for shifting from its open-source roots after becoming for-profit in 2019. Altman admitted in a February 2025 Reddit AMA that OpenAI was “on the wrong side of history” regarding open-source, especially as DeepSeek’s R1 matched top AI models at lower cost. Releasing an open-weight model aims to stay competitive, foster innovation, and rebuild trust with developers.

What Will the Model Do?

Altman described the model as “very, very good,” with strong reasoning for tasks like problem-solving. Developers can run it locally and tailor it for specific uses. OpenAI emphasizes safety, with rigorous testing to prevent misuse under its “Preparedness Framework.”

Why It Matters

This aligns OpenAI with its mission to share AI advancements. It could spark innovation by giving developers a powerful, accessible tool. At YC’s event, Altman noted AI’s untapped potential, saying models will get “100x smarter and 1000x cheaper.” However, some on X and Reddit doubt it will outshine rivals or worry about limited features.

Challenges Ahead

OpenAI must balance openness with safety to avoid misuse. Internal disagreements and financial pressures, with $5 billion in projected 2025 losses, add complexity. The model must meet high expectations post-delay.

What’s Next?

The model is expected by late summer 2025, with developer events shaping its features. Its success depends on outperforming competitors and ensuring safety, potentially reshaping AI development.

Conclusion

Altman’s announcement at YC’s AI Startup School signals OpenAI’s return to sharing AI advancements. The open-weight model could drive innovation, but safety and performance are critical. As summer approaches, the AI community awaits OpenAI’s next move.

Sources: WIRED, Reuters, TechCrunch, Business Insider, Reddit, X posts