The WebGPU GPT Model Demo uses WebGPU technology to showcase GPT's text-generating capabilities. This web-based tool requires an up-to-date version of Google Chrome or Chrome Canary to work, allowing users to load models such as Shakespeare Model or GPT2 Model and adjust settings such as number of tokens, top K, and temperature. Users can also enter prompts to generate text. However, loading models can be slow, and the tool advises users to run the models locally for faster processing. The tool is useful for developers and enthusiasts looking to experiment with GPT's text generation abilities.