OpenAI's new o3 model has surpassed human performance on the ARC Benchmark, a test for core reasoning skills.o3 scored 76% on low-compute settings, and 88% on high-compute settings, outperforming humans on reasoning-based tasks.The cost of using the o3 model in high-tuning mode reaches up to $1,000 per task, but advancements suggest AI democratization in the future.While some see it as a milestone towards AGI, critics argue that true AGI requires models to effortlessly solve novel challenges.