Get the latest tech news
OpenAI announces 80% price drop for o3, it’s most powerful reasoning model
It could benefit startups, research teams, and individual developers who previously found higher-tier model access cost-prohibitive.
ModelInputCached InputOutputDiscount NotesOpenAI o3$2.00 (down from $10.00)$0.50$8.00 (down from $40.00)Flex Processing: $5 / $20 Gemini 2.5 Pro$1.25 – $2.50$0.31 – $0.625$10.00 – $15.00Higher rate applies to prompts >200k tokens Claude Opus 4$15.00$1.50 (read) / $18.75 (write)$75.0050% off with batch processing DeepSeek-Chat$0.07 (hit)$0.27 (miss)—$1.1050% off during off-peak hours DeepSeek-Reasoner$0.14 (hit)$0.55 (miss)—$2.1975% off during off-peak hoursIn addition, independent third-party AI model comparison and research group Artificial Analysis ran the new o3 through its suite of benchmarking tests on various tasks, and found it cost $390 to complete them all, versus $971 for Gemini 2.5 Pro and $342 for Claude 4 Sonnet. Unlike Claude or Gemini, OpenAI’s o3 also now offers a flex mode for synchronous processing that charges $5 for input and $20 for output per million tokens, giving developers more control over compute cost and latency depending on workload type. By substantially lowering the cost of its most advanced reasoning model, OpenAI is signaling a broader trend in the generative AI space: premium performance is quickly becoming more affordable, and developers now have a growing number of viable, economically scalable options.
Or read this on Venture Beat
