The question was about "orbital basis sets" but explicitly mentions Gaussians; I guess the topic here is atomic orbital basis sets. In this case, the molecular orbitals are expanded as a linear combination of atomic orbitals (LCAO) as
$ \psi_i({\bf r}) = \sum_{\alpha} C_{\alpha i} \chi_\alpha({\bf r})$; minimizing the Hartree-Fock / density functional energy with respect to the expansion coefficients $C_{\alpha i}$ typically leads to Roothaan-Hall type equations ${\bf FC}={\bf SCE}$ where ${\bf F}$ and ${\bf S}$ are the Fock and overlap matrices and ${\bf E}$ is a diagonal matrix of the energy eigenvalues.
Atomic-orbital basis sets have the form
$ \chi_{\alpha}^{nlm}({\bf r})=R_{nl}(r)Y_l^m(\hat{\bf r})$ (non-relativistic case), and since few atomic orbitals already give qualitatively good results, you don't need a huge number of them, and you can diagonalize the Fock matrix exactly.
You can also use atomic-orbital basis sets in the context of solid state calculations, in which case you actually use a periodic, symmetry adapted version
$\chi_{\alpha}^{nlm}({\bf r};{\bf k})=\sum_{\bf g} e^{i{\bf k}\cdot{\bf g}} \chi_{\alpha}^{nlm}({\bf r}-{\bf R}_\alpha-{\bf g})$, where ${\bf R}_\mu$ are the coordinates of the center of the basis function, ${\bf g}$ sums over the lattice vectors, and ${\bf k}$ is the crystal momentum; but crystalline case is largely analogous to the molecular one.
The basis functions used in the expansion $ \psi_i({\bf r}) = \sum_{\alpha} C_{\alpha i} \chi_\alpha({\bf r})$ don't have to be atomic orbitals - using e.g. finite element basis functions or plane waves is perfectly fine as well - but then your basis set can become very large (10k, 100k, even 1M basis functions!), which makes solving the eigenvalue problem in the Roothaan-Hall equation prohibitively costly; this is why finite element and plane wave calculations typically use other ways to find the self-consistent solution.
Three kinds of radial functions are commonly used: Gaussian-type orbitals (GTOs) $R_{nl} = r^l \exp(-\zeta r^2)$, Slater-type orbitals (STOs) $R_{nl} = r^n \exp(-\zeta r)$, and numerical atomic orbitals (NAOs) $R_{nl} = u_{nl}(r)/r$. If you have few basis functions, then NAO $\gg$ STO $>$ GTO, since
- NAOs are numerically exact solutions for the gas-phase atom, i.e. a minimal basis is exact for a non-interacting atom [depending on the level of theory]
- STOs have the correct asymptotic form far away and at the nucleus [in principle], but don't do such a good job at describing the accurate form of the orbitals of the many-electron atom
- GTOs have a qualitatively correct form, but have the wrong asymptotics both at the nucleus and far away. However...
- contracted GTO basis functions (cGTOs) $R_{nl} = r^l \sum_n d_n \exp(-\zeta_n r^2)$ do a much better job at describing the form of the real atomic orbitals; contracted GTOs can be thought of as "primitive" versions of NAOs, and almost all GTO basis sets actually contain cGTOs.
However, if you use a large radial expansion, I don't think that the form of the individual basis functions matters that much, as large expansions accrue enough variational freedom to describe whatever electronic structure you throw at the problem. Traditionally one avoids large expansions due to pathological problems with overcompleteness; however, I have recently shown that a simple numerical trick can be used to overcome this issue in J. Chem. Phys. 151, 241102 (2019) and Phys. Rev. A 101, 032504 (2020).
GTOs have been the overwhelming favorite in calculations, since despite their drawbacks, they carry the huge benefit of analytic integrals evaluation: the integrals are both fast to calculate, and numerically exact. STOs and NAOs, on the other hand, require numerical quadrature. While quadrature can be made adaptively better, in many computations you also need to evaluate nuclear forces and Hessians, and especially the second derivatives for the Hessian can be tricky to compute accurately enough. The situation is, however, changing: while STOs have not become mainstream, there's been a lot of work with NAOs which have shown great accuracy and become usable even for coupled-cluster calculations, see the FHI-aims program.
For more details and discussion on solving the SCF equations, see e.g. our recent open access overview paper in Molecules 25, 1218 (2020).
You can also find a lengthier discussion on Gaussian-type orbitals, Slater-type orbitals and numerical atomic orbitals as well as other numerical approaches for electronic structure in my other recent open access review paper, Int. J. Quantum Chem. 119, e25968 (2019).