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OpenAI announces an 80% price drop for its o3 model and a “flex” mode for synchronous processing that charges $5 for input and $20 for output per million tokens

just cheaper. https://platform.openai.com/ ... [image] Kevin Weil / @kevinweil : Because you all asked: we're going to double the rate limits for o3 for Plus users. Rolling out as we speak. Now go do awesome stuff with it! Edwin / @edwinarbus : o3 is 20% cheaper than GPT-4o. Rethink everything. [image] Ashwin Sinha / @ashwinning : o3 is now priced in line with Gemini 2.5 Pro [image] @dkundel : The experience of using the OpenAI Agents SDK for all you Cloudflare Workers developers should be much better in the latest release. Right on time to make use of that 80% price cut of o3! Thank you @threepointone for the help! [image] Nathan Lambert / @natolambert : we love model competition! @therealadamg : @pli_cachete It's not distilled. Same model. Simon Willison / @simonw : o3 80% price drop is a big shake-up in terms of LLM pricing It's now the same as GPT 4.1 ($2/$8), less than Claude Sonnet 4 ($3/$15) and Opus 4 ($15/$75) and sits between Gemini 2.5 Pro for >200,00 tokens ($2.50/$15) and 2.5 Pro for <200,000 ($1.25/$10) https://simonwillison.net/... Aaron Levie / @levie : OpenAI dropped o3 prices by 80%. The amazing thing about AI is that use cases that are cost prohibitive today become affordable within a year. That means it's better to build apps that are super powerful and not worry about costs, than apps that are affordable but simple. Forums: Hacker News : OpenAI dropped the price of o3 by 80%

VentureBeat Carl Franzen

Discussion

  • @quinnypig.com Corey Quinn on bluesky
    A big day in AI news, as OpenAI drops prices, availability.  [embedded post]
  • @sama Sam Altman on x
    we dropped the price of o3 by 80%!! excited to see what people will do with it now. think you'll also be happy with o3-pro pricing for the performance :)
  • @jeremyphoward Jeremy Howard on x
    Note that @OpenAI claims that this model is identical to the more expensive one, but we should wait for updated aider evals to be sure
  • @levie Aaron Levie on x
    With OpenAI dropping the price of o3 by 80%, today is a great reminder about how important it is to build for where AI is going instead of just what's possible now. You can now get 5X the amount of output today for the same price you were paying yesterday. If you're building AI
  • @jeremyphoward Jeremy Howard on x
    Wow O3 is a *very* strong option for coding now. I've updated @paulgauthier's latest Aider eval with this O3 80% price cut - check out O3 in 3rd place, but cheaper and faster than Gemini Pro now: [image]
  • @openaidevs @openaidevs on x
    We're cutting the price of o3 by 80% and introducing o3-pro in the API, which uses even more compute. o3: Input: $2 / 1M tokens Output: $8 / 1M tokens Now in effect. We optimized our inference stack that serves o3. Same exact model—just cheaper. https://platform.openai.com/ ... […
  • @kevinweil Kevin Weil on x
    Because you all asked: we're going to double the rate limits for o3 for Plus users. Rolling out as we speak. Now go do awesome stuff with it!
  • @edwinarbus Edwin on x
    o3 is 20% cheaper than GPT-4o. Rethink everything. [image]
  • @ashwinning Ashwin Sinha on x
    o3 is now priced in line with Gemini 2.5 Pro [image]
  • @dkundel @dkundel on x
    The experience of using the OpenAI Agents SDK for all you Cloudflare Workers developers should be much better in the latest release. Right on time to make use of that 80% price cut of o3! Thank you @threepointone for the help! [image]
  • @natolambert Nathan Lambert on x
    we love model competition!
  • @therealadamg @therealadamg on x
    @pli_cachete It's not distilled. Same model.
  • @simonw Simon Willison on x
    o3 80% price drop is a big shake-up in terms of LLM pricing It's now the same as GPT 4.1 ($2/$8), less than Claude Sonnet 4 ($3/$15) and Opus 4 ($15/$75) and sits between Gemini 2.5 Pro for >200,00 tokens ($2.50/$15) and 2.5 Pro for <200,000 ($1.25/$10) https://simonwillison.net/…
  • @levie Aaron Levie on x
    OpenAI dropped o3 prices by 80%. The amazing thing about AI is that use cases that are cost prohibitive today become affordable within a year. That means it's better to build apps that are super powerful and not worry about costs, than apps that are affordable but simple.