OpenAI dropped the price of o3 by 80%

...how? I'd understand a 20-30% price drop from infra improvements for a model as-is, but 80%?

I wonder if "we quantized it lol" would classify as false advertising for modern LLMs.

Note that they have not actually dropped the price yet: https://x.com/OpenAIDevs/status/1932463601119637532

> We’ll post to @openaidevs once the new pricing is in full effect. In $10… 9… 8…

There is also speculation that they are only dropping the input price, not the output price (which includes the reasoning tokens).

how do we know it's not a quantized version of o3? what's stopping these firms from announcing the full model to perform well on the benchmarks and then gradually quantizing it (first at Q8 so no one notices, then Q6, then Q4, ...).

I have a suspicion that's how they were able to get gpt-4-turbo so fast. In practice, I found it inferior to the original GPT-4 but the company probably benchmaxxed the hell out of the turbo and 4o versions so even though they were worse models, users found them more pleasing.