UK Weighs $2.7B ChatGPT Deal as GPT-5 Faces Backlash and Reliability Questions

Key Takeaways

• The UK weighed a $2.7B ChatGPT deal:Talks between Sam Altman and minister Peter Kyle floated giving every Brit free ChatGPT Plus, though the cost made it unrealistic.
• GPT-5 rollout hit turbulence: Users reported slower speeds, weaker accuracy, and a personality lobotomy,' raising questions about relying on it for government work.
• Some see weakness as a strategy: Analysts argue GPT-5's underwhelming debut reflects OpenAI's pivot to cost control and stability, not raw power.
• Government partnerships are accelerating: The UK signed an MoU with OpenAI for public services, joining global deals like the UAE's nationwide ChatGPT rollout.

When the Guardian reported that OpenAI CEO Sam Altman and UK Technology Secretary Peter Kyle discussed giving every Brit free ChatGPT Plus, the internet lit up with disbelief and curiosity.

Though it sounds bold on paper, the deal involves one of the world's most hyped AI products being distributed like free Netflix subscriptions, but funded by taxpayers.

The rumored price tag? 2B, or about $2.7B.

That figure alone makes the plan look like an instant non-starter.

The issue goes beyond just cost. A more significant concern is whether the UK should closely align itself with OpenAI, especially considering that the rollout of its flagship model, GPT-5, has faced one of the most tumultuous launches in recent tech history.

A Dinner in San Francisco and a Big Idea

The idea of ChatGPT for all' wasn't born in Westminster but in San Francisco.

Sources told the Guardian that when Peter Kyle sat down with Sam Altman earlier this year, the two floated a plan to make ChatGPT Plus available nationwide.

Kyle has been an outspoken AI fan for months. Transparency data shows he dined with Altman in March and April.

In July, he signed a memorandum of understanding with OpenAI to explore its applications in education, defense, security, and justice.

It's not a stretch to imagine that someone asked the obvious question over a glass of wine: What if everyone in Britain just got ChatGPT Plus?'

The Math Doesn't Work

The plan quickly runs into a spreadsheet problem.

ChatGPT Plus costs $20 a month. Multiply that by the UK population of roughly 69.6M; the raw number lands at about $1.4B a year. Even allowing for bulk discounts, the Guardian reported estimates as high as 2B.

Source: OpenAI

That is a substantial amount of money to spend on AI that sometimes struggles with basic math.

For comparison, that's close to what the UK spends annually on maintaining its entire nuclear weapons system.

It's also about 20 times more than the government allocates for school meal programs.

You don't have to be a hardened skeptic to think this bill was dead on arrival.

GPT-5, the Model Behind the Curtain

Although the cost might make sense, the timing is awkward. The government's agreement with OpenAI indicates that GPT-5 is likely the model powering these new public-sector deployments.

It's safe to say that GPT-5 has been going through a challenging few months.

People flooded Reddit with complaints immediately after the launch. A widely shared thread titled GPT-5 is a massive letdown' listed several issues: slow response times, worse accuracy than Google's Gemini 2.5 Pro, and persistent hallucinations.

Source: Post on Reddit GPT-5 is a massive letdown - here's my experience after 2 days"

Benchmarks indicated that GPT-5 took an average of 113.7 seconds to generate SQL queries, while Gemini achieved an average of 55.6 seconds. Its average success rate was 77.78 percent, which was noticeably lower than both Gemini's and OpenAI's older models.

OpenAI didn't help its case when it suddenly pulled the plug on models like o3, GPT-4.5, and o4-mini overnight.

People who had built workflows around them woke up to find themselves pushed into GPT-5 whether they liked it or not.

It's like showing up to your favorite cafe only to find they've stopped serving coffee and now only sell kale smoothies.

The Personality Drain

Another theme in user backlash has been what people call the lobotomy.'

GPT-5's answers are shorter, drier, and more corporate than earlier versions. The AI that once cracked jokes now sounds like it went through a public-relations training course.

That might seem like a minor complaint, but personality matters in trust.

If the government wants citizens to use AI tutors, legal advisors, or healthcare assistants, those systems must feel approachable. Nobody wants to be lectured by a machine that sounds like it's reading HR policy manuals.

Why a Worse GPT Might Be a Good Thing

Not everyone sees GPT-5's stumbles as bad news.

Dr Lewis Z Liu,chief AI officer atSirion,argued that the lack of wow factor is actually a sign that the industry is maturing.

Instead of chasing PhD-level intelligence' and endless model scaling, companies like OpenAI are shifting toward stability, reliability, and better economics.

OpenAI's reported losses are staggering - projected to triple to $14B in 2026.

Active users even declined for the first time this past June. The company must slow down the raw horsepower race and make its models cheaper to survive.

That might explain why GPT-5 feels lighter regarding memory and context. Some experts say OpenAI is deliberately processing fewer tokens per session to cut costs.

The result: an AI that feels less super-intelligent, but more predictable.

In theory, this could help governments and enterprises develop stable applications without the worry of sudden disruptions every few months. In other words, while GPT-5 may seem underwhelming at first, it could be the first model designed with a focus on sustainability rather than showmanship.

Should Governments Bet on It?

This brings us back to the UK government.

Peter Kyle's enthusiasm is clear. He has stated that ChatGPT is a very good tutor' and has even used it to help with his own work questions, such as understanding why British businesses aren't adopting AI quickly enough.

But a $2.7B deal to hand ChatGPT Plus to every Brit feels like using a sledgehammer to crack a nut.

Most citizens who want AI already use the free version, and the UK is already one of OpenAI's top five markets for paid subscriptions.

Do taxpayers need to cover the tab for millions of people who might never even log in?

There are risks in allowing OpenAI to integrate deeply into the state's machinery. TheJuly memorandumpaves the way for collaborations in justice, defense, and security, which may involve OpenAI handling sensitive government data.

Source: GOV.UK

If GPT-5 is still hallucinating captions and botching safety prompts about fireworks, should it be advising judges or soldiers?

The Bigger Picture

The idea is more complicated because OpenAI isn't negotiating with the UK in a vacuum.

The company already struck a nationwide deal with the UAE to deploy ChatGPT across healthcare, education, and transport. And the UK itself has signed agreements with Anthropic and Google this year.

The race to bring big AI into government is moving fast, with ministers eager to look forward-thinking and visionary. Kyle even said on a podcast that AI power could decide who gets a seat at the UN Security Council in the future.

That rhetoric makes billion-dollar proposals sound tempting, even if the math is fuzzy.

Where This Probably Ends

The UK isn't about to hand out ChatGPT Plus subscriptions to everyone, and the 2B price tag makes that clear.

Still, the talks between Sam Altman and Peter Kyle highlight how quickly AI has leapt from consumer novelty to the level of state negotiations.

Giving a private company access to sensitive government data once sounded absurd, but it's already on the table. GPT-5, meanwhile, is still glitchy, slow, and underwhelming.

The promise of AI is real, but betting billions now risks turning Britain into an expensive test subject for technology that isn't quite ready.

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