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.