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OpenAI announces 80% price drop for o3, it’s most powerful reasoning model

  • OpenAI has announced an 80% price cut for its o3 reasoning large language model, making it more affordable for developers.
  • The new pricing of o3 is $2 per million input tokens and $8 per million output tokens, with additional discounts available for cached information.
  • This move puts OpenAI in direct pricing competition with models like Gemini 2.5 Pro, Claude Opus 4, and DeepSeek's reasoning suite.
  • The price reduction aims to encourage broader experimentation and innovation, making advanced reasoning capabilities more accessible to a wider audience of developers.

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