Earlier quoted context omitted.
I felt the same thing. The first version of GPT-4 I tried was crazy smart. Scary smart. Something happened afterwards…
The even more interesting part is that none of us got to try the internal version which was allegedly yet another step above that.
The fact that rumors about GPT-5 were quickly suppressed and the models were dumbed down even more cannot be entirely explained by excessive demand. I think it's more likely that GPT-3.5 and GPT-4 demonstrated unexpected capabilities in the hands of the public leading to a pull back. Moreover, Sam Altman's behaviors changed dramatically between the initial release and a few weeks afterward -- the extreme optimism of a CEO followed by a more subdued, even cowed, demeanor despite strong enthusiasm from end-users.
OpenAI cannot do anything without Microsoft's data center resources, and Microsoft is a critical defense contractor.
Anyway, personally, I'm with the crowd that thinks we're about to see a Cambrian explosion of domain-specific expert AIs. I suspect that OpenAI/Microsoft/Gov is still trying to figure out how much to nerf the capability of GPT-3.5 to tutor smaller models (see "Textbooks are all you need") and that's why the API is trash.