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OpenAI announces 80% price drop for o3, it’s most powerful reasoning model
- OpenAI announced an 80% price cut on its flagship reasoning model o3, reducing costs as of June 2025.
- OpenAI lowered prices to respond to developer demand for scalable projects and address previous high costs of $10 input and $40 output per million tokens.
- The price reduction follows the April launch of o3 and the release of the more advanced o3 Pro model for ChatGPT Pro and Team users, while the open-source model release is delayed.
- OpenAI announced on X that the price for using the unchanged o3 model has been reduced to $2 for every million input tokens and $8 for every million tokens generated as output, with ARC Prize benchmarks confirming consistent performance.
- The cut improves o3’s accessibility, putting price pressure on competitors and expanding affordable options for developers amid a trend toward lower-cost, high-performance AI models.
17 Articles
17 Articles
OpenAI o3-pro available in the API, BrowserStack adds Playwright support for real iOS devices, and more - Daily News Digest
OpenAI has announced that o3-pro can now be accessed through the OpenAI API. Additionally, Pro and Team users can now use o3-pro in ChatGPT. The pricing for using o3-pro in the API will be 87% cheaper than o1-pro, and the price of o3 is also being cut by 80%. “We optimized our inference stack that serves o3. Same exact model—just cheaper,” the company wrote in a post on X. BrowserStack adds support for Playwright tests on real iOS devices with …
How Much Does OpenAI’s o3 API Cost Now? (As of June 2025)
The o3 API—OpenAI’s premier reasoning model—has recently undergone a significant price revision, marking one of the most substantial adjustments in LLM pricing. This article delves into the latest pricing structure of the o3 API, explores the motivations behind the change, and provides actionable insights for developers aiming to optimize their usage costs. What is the o3 API and why does its cost matter? Defining the o3 API The o3 API represen…
OpenAI Slashes ChatGPT o3 API Prices by 80% Without Hurting Performance - THE iBULLETIN
OpenAI is making waves again, but this time it’s not a new model or feature. It’s a major price drop—one that could shift how developers build and scale AI apps overnight. On Wednesday, OpenAI announced it’s reducing prices for its most capable reasoning model, o3, by a staggering 80%. And here’s the kicker: the model’s performance hasn’t changed one bit. That’s not just a marketing line. Independent testers backed it up. What’s Actually Changed…
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