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Eye on AI

OpenAI Announces New Model o3: $1,000/Chat

Mar 16, 2025
OpenAI has unveiled its latest model, o3, promising enhanced capabilities in software development. The discussion delves into the model's superior performance compared to its predecessor, O1. It also reveals the costs associated with using o3 and its potential implications for tech industry developers. The hosts explore how this innovation could reshape workflows and boost efficiency for developers of all sizes.
24:33

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Quick takeaways

  • OpenAI's new O3 model marks a significant leap in AI capabilities, achieving 87.5% on performance tests and boosting software engineering efficiency.
  • Despite the high cost of $1,000 per request for the O3 model, its potential benefits for software development may justify the expense.

Deep dives

Introduction of OpenAI's O3 Model

OpenAI has launched its O3 model, which marks a significant advancement in AI capabilities and is anticipated to shift the landscape of software engineering. The model consists of two versions: O3 and O3 Mini, with the latter being more cost-effective and efficient. The upgrades in this model were influenced by insights gained from the previous O1 model, showcasing substantial improvements in reasoning benchmarks. The O3 model achieved a score of 87.5% on crucial performance tests, vastly outperforming the O1's best results and hinting at a promising trajectory towards achieving artificial general intelligence (AGI).

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