OpenAI Launches New AI Model o3 With Query Costs Exceeding $1,000

Here's a news post about OpenAI's new AI model, o3:

OpenAI Launches New AI Model o3 With Query Costs Exceeding $1,000

Key Takeaways:

• OpenAI's o3 model demonstrates advanced reasoning but costs over $1,000 per task in high-compute mode.
• The o3 model uses "test-time compute" to explore multiple possibilities, enhancing accuracy.
• Despite high costs, o3 scored 87.5% on the ARC-AGI benchmark, nearly tripling its predecessor's score.
• A "mini" version of o3 is slated for public release in January 2025.

OpenAI has launched its latest AI model, o3, which is reportedly its most powerful yet. However, this advanced technology comes with a hefty price tag, exceeding $1,000 per query in its high-compute mode.

The o3 model utilizes a technique called "test-time compute." This allows it to explore multiple possibilities before generating an answer, leading to improved accuracy. OpenAI's o3 model uses a groundbreaking reasoning approach known as test-time computing. Unlike traditional models, o3 takes more time to “think.”

This method has significantly enhanced o3's capabilities. It scored an impressive 87.5% on the ARC-AGI benchmark in its high-compute mode. This is nearly three times higher than the previous o1 model's score of 32%. More details can be found in the article OpenAI Unveils O3 Model: Revolutionizing Large Language Model Reasoning.

The high cost is due to the extensive computational resources required for o3 to function. OpenAI's recently unveiled o3 model is purportedly its most powerful AI yet, but with one big drawback: it costs ungodly sums of money to run, as reported by TechCrunch.

In a blog post, François Chollet, the creator of the ARC-AGI benchmark, stated that o3 is approaching human levels of performance. However, he noted it "comes at a steep cost, and wouldn't quite be economical yet."

The low-compute version of o3, which scored 76% on the benchmark, still costs around $20 per task. This is significantly more expensive than its predecessors. With ChatGPT Plus costing just $25 per month, it's unclear how much smarter that user-facing product will be able to get without putting OpenAI deeply in the red.

OpenAI plans to release a "mini" version of o3 in January 2025. This is mentioned in the article Get Ready for OpenAI's '12 Days of Surprises': New Products and Models Daily!.

The high cost of o3 raises questions about the sustainability of scaling AI models. While o3's performance is impressive, the financial implications are significant.

Chollet remains optimistic, stating that "cost-performance will likely improve quite dramatically over the next few months and years." Only time will tell if these improvements will make such advanced AI models more accessible.