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OpenAI Cuts o3 Model Prices by 80%, Sparks Competition

6/11/2025

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Summary

Story summary

OpenAI has slashed the price of its flagship reasoning model, o3, by a staggering 80%, now costing just $2 per million input tokens and $8 for output. This bold move not only boosts accessibility for developers but also intensifies competition with models like Gemini 2.5 Pro and Claude Opus 4, paving the way for exciting innovations in AI.

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Story summary

OpenAI has slashed the price of its flagship reasoning model, o3, by a staggering 80%, now costing just $2 per million input tokens and $8 for output. This bold move not only boosts accessibility for developers but also intensifies competition with models like Gemini 2.5 Pro and Claude Opus 4, paving the way for exciting innovations in AI.