OpenAI’s Latest AI Can Cost More Than $1,000 Per Query

Have you heard about OpenAI’s latest creation, the o3 model? It’s being hailed as their most powerful AI yet, but there’s a catch – it comes with a hefty price tag. According to a report from TechCrunch, running the o3 model costs a fortune due to its advanced processing capabilities.

The o3 model uses a technique called test-time compute to “reason” through problems, taking more time to explore multiple possibilities before providing an answer. This approach aims to improve the AI’s responses to complex prompts and prevent it from making erroneous conclusions.

In a recent test, the o3 model achieved an impressive score of 87.5 percent on the ARC-AGI benchmark, significantly outperforming its predecessor, the o1 model. However, this level of performance comes at a cost – over $1,000 of computing power per task in the high-compute mode, making it significantly more expensive to run than previous models.

These high costs raise concerns about the scalability of AI models like o3. While the performance improvements are evident, the diminishing returns and increasing expenses associated with scaling are hard to ignore. Even the low-compute version of o3, which achieved a commendable 76 percent on the benchmark, came with a price tag of around $20 per task.

Despite the challenges, there is optimism that cost-performance will improve in the future. François Chollet, the creator of the benchmark, believes that advancements in AI technology will lead to more economical solutions in the coming months and years.

As of now, the o3 model is not yet available to the public, with a “mini” version set to launch in January. It will be interesting to see how this powerful AI evolves and whether it can strike a balance between performance and affordability in the future.

Stay tuned for more updates on the latest developments in AI, including Facebook’s plans to integrate AI-powered features into its platform. Exciting times lie ahead in the world of artificial intelligence!