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OpenAI’s o3 suggests AI models are scaling in new ways — but so are the costs


Last month, AI founders and investors told TechCrunch that we're now in the "second era of scaling laws," noting how established methods of improving AI

While o3 may give some a renewed belief in the progress of AI scaling laws, OpenAI’s newest model also uses a previously unseen level of compute, which means a higher price per answer. It’s worth noting that passing this test, according to its creators, does not mean an AI model has achieved AGI, but rather it’s one way to measure progress towards the nebulous goal. Andreessen Horowitz general partner Anjney Midha previously told TechCrunch he expects these startups to play a bigger role in test-time scaling moving forward.

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