OpenAI is a company that builds artificial intelligence systems, most famously ChatGPT

OpenAI is an organization that develops AI models — the software systems that can understand and generate text, images, and other content. You may know it best from ChatGPT, the text-based AI tool that became widely used in 2023. OpenAI also makes DALL-E (an image generator), GPT-4 (a more advanced text model), and other tools. The company was founded in 2015 and is now backed by Microsoft, which has integrated OpenAI's technology into products like Bing and Microsoft 365.

When people say "OpenAI," they usually mean one of two things: the company itself, or the specific AI models it has released to the public. This article focuses on what those models do and how they work at a basic level, so you can understand what you're actually using when you interact with ChatGPT or similar tools.

Key Takeaways

  • OpenAI builds AI models that can read text and generate responses, create images from descriptions, or perform other tasks depending on which tool you use.
  • ChatGPT is OpenAI's most well-known product, but it is one of several tools the company offers, each designed for different purposes.
  • OpenAI's models are trained on large amounts of text from the internet and books, which allows them to recognize patterns and produce human-like responses.
  • You can use many OpenAI tools for free with limitations, or pay for faster access and higher usage limits through a subscription or API.

How OpenAI's text models work

OpenAI's text-based AI models, including ChatGPT, work by predicting the next word in a sequence based on patterns they learned during training. When you type a question or prompt, the model reads your entire input, then generates a response one word at a time. Each new word is chosen based on what words typically follow in similar contexts — learned from billions of examples in the training data.

This process is called a language model. It does not search the internet or look up facts in a database. Instead, it uses patterns it learned during training to make educated guesses about what a reasonable response would be. This is why these models can sometimes produce confident-sounding answers that are actually incorrect — they are generating plausible text, not retrieving verified information.

The models improve with scale. A larger model trained on more data generally produces better responses than a smaller one. OpenAI's GPT-4 is more capable than GPT-3.5 partly because it was trained on more diverse information and with more computational power. However, even the most advanced models have limits: they cannot access real-time information, they do not learn from your individual conversations, and they can make mistakes.

What ChatGPT is and what it can do

ChatGPT is OpenAI's conversational AI tool — the one designed for back-and-forth dialogue. You type a message, it responds, you can follow up, and it remembers the context of your conversation within that single session. ChatGPT can write essays, answer questions, explain concepts, debug code, brainstorm ideas, summarize text, and translate between languages. It can also refuse requests it considers harmful or unethical.

ChatGPT comes in different versions. The free version uses an older model (GPT-3.5) and has usage limits. ChatGPT Plus is a paid subscription that gives you access to GPT-4, faster response times, and the ability to use plugins or custom instructions. There is also ChatGPT for businesses, which offers additional privacy and administrative controls.

One important limitation: ChatGPT's knowledge was frozen at a specific date (April 2024 for GPT-4, for example). It cannot browse the internet, access current news, or know about events after its training ended. If you ask it about something recent, it will tell you it does not have that information rather than guessing.

OpenAI's image generation tool: DALL-E

DALL-E is OpenAI's separate tool for creating images from text descriptions. You describe what you want to see — "a red barn in a snowy field at sunset" — and DALL-E generates images that match that description. It works differently from the text models: instead of predicting the next word, it predicts pixels based on patterns it learned from images paired with text descriptions.

DALL-E can create original images, edit existing images, or generate variations on an image you provide. The quality and accuracy improve with more detailed descriptions. Like ChatGPT, DALL-E has limitations: it sometimes struggles with hands, text, or complex spatial relationships. It also cannot generate images of real people's faces or copyrighted characters, by design.

DALL-E is available through OpenAI's website and API, and it requires credits to use (you get a small number free each month, then pay for more). It is also integrated into Microsoft Designer and some other applications.

How to access OpenAI's tools

The easiest way to try ChatGPT is to visit openai.com, click "Sign Up," create an account, and start chatting. The free version is available to anyone and requires no payment. You will see a usage limit displayed on the screen, and once you hit it, you can use the tool again the next day.

If you want faster responses, more conversations per day, or access to GPT-4, you can subscribe to ChatGPT Plus for a monthly fee. This subscription is separate from any other OpenAI services. Businesses and developers can also access OpenAI's models through an API (a technical interface), which charges based on how much you use.

DALL-E is accessed the same way: through openai.com. You create an account, log in, navigate to DALL-E, and start generating images. Free accounts receive a small monthly credit; additional credits cost money. Some of OpenAI's tools are also built into other applications — for example, Microsoft Copilot uses OpenAI's models — so you may encounter them without visiting OpenAI's website directly.

What OpenAI is not

OpenAI is not a search engine. Its models do not browse the internet or pull information from live sources. They generate responses based on patterns learned during training, which ended at a specific date. If you need current information, you should verify ChatGPT's answers using a search engine or other reliable source.

OpenAI is also not a replacement for professional advice. ChatGPT can provide general information about legal, medical, or financial topics, but it should not be your only source when making important decisions. The tool itself includes disclaimers about this, and it will often suggest you consult a professional.

Finally, OpenAI's free tools are not private in the way personal conversations are. OpenAI may review conversations to improve its models and to check for misuse, though they have policies about data retention and deletion. If you are concerned about privacy, you can review OpenAI's privacy policy or use a paid business plan with different terms.

The difference between OpenAI and other AI companies

OpenAI is one of several companies building large language models and AI tools. Google has Bard (now called Gemini), Meta has Llama, Anthropic has Claude, and others exist as well. Each model has different strengths: some are better at coding, others at creative writing, others at following instructions precisely. Some companies focus on open-source models (released freely for anyone to use), while OpenAI primarily releases its models through controlled access.

The main difference between OpenAI and competitors is market presence and funding. OpenAI's partnership with Microsoft gave it significant resources and distribution (through Bing, Microsoft 365, and Copilot). This does not necessarily mean OpenAI's models are better — different tools suit different tasks — but it does mean ChatGPT became the most widely known AI tool first.

Frequently Asked Questions

Is ChatGPT free to use?

ChatGPT has a free version with daily usage limits. You can create an account and start using it immediately without payment. If you want higher limits, faster responses, or access to GPT-4, you need to pay for ChatGPT Plus.

Can ChatGPT access the internet or real-time information?

No. ChatGPT's knowledge comes from its training data, which has a cutoff date. It cannot browse the internet, check current news, or know about recent events. If you ask about something recent, it will tell you it does not have that information.

Does OpenAI save my conversations?

OpenAI may review conversations to improve its models and check for misuse. Free users can delete individual conversations from their history. Paid business accounts have different data policies. Check OpenAI's privacy policy for full details about how your data is handled.

What is the difference between GPT-3.5 and GPT-4?

GPT-4 is a newer, more advanced model that generally produces better responses, understands more complex instructions, and makes fewer mistakes. It is available only to ChatGPT Plus subscribers and through OpenAI's API. The free version of ChatGPT uses GPT-3.5.

Can I use ChatGPT's responses in my own work?

OpenAI's terms allow you to use ChatGPT's output for most purposes, including commercial work, but you own the output and are responsible for its accuracy. You should verify important information and not rely solely on AI-generated content for critical decisions.