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OpenAI dropped the price of o3 by 80%

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Re: OpenAI dropped the price of o3 by 80%

#71

Post by runako »

sunaookami wrote: post #19
MallocVoidstar wrote: post #8

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).

I think that was a joke. New pricing is already in place: Input: $2.00 / 1M tokens Cached input: $0.50 / 1M tokens Output: $8.00 / 1M tokens https://openai.com/api/pricing/ Now cheaper than gpt-4o and same price as gpt-4.1 (!).

> Now cheaper than gpt-4o and same price as gpt-4.1 (!).

This is where the naming choices get confusing. "Should" o3 cost more or less than GPT-4.1? Which is more capable? A generation 3 of tech intuitively feels less advanced than a 4.1 of a (similar) tech.

Re: OpenAI dropped the price of o3 by 80%

#72

Post by jedisct1 »

rvnx wrote: post #23
teaearlgraycold wrote: post #9

Personally I've found these bigger models (o3/Claude 4 Opus) to be disappointing for coding.

Opus is really great but through Claude Code. If you used Cursor or RooCode it could be normal that you get disappointed

I got the opposite experience. Not with Opus (too expensive), but with Sonnet. I got things done way more efficiently when using Sonnet with Roo than with Claude Code.

Re: OpenAI dropped the price of o3 by 80%

#74

Post by hadlock »

xmprt wrote: post #29
visiondude wrote: post #11

always seemed to me that efficient caching strategies could greatly reduce costs… wonder if they cooked up something new

How are LLMs cached? Every prompt would be different so it's not clear how that would work. Unless you're talking about caching the model weights...

I've asked it a question not in it's dataset three different ways and I see the same three sentences in the response, word for word, which could imply it's caching the core answer. I hadn't previously seen this behavior before this last week.

Re: OpenAI dropped the price of o3 by 80%

#76

Post by koakuma-chan »

biophysboy wrote: post #54
amanda99 wrote: post #38

Earlier quoted context omitted.

You would use a KV cache to cache a significant chunk of the inference work.

Do you mean that they provide the same answer to verbatim-equivalent questions, and pull the answer out of storage instead of recalculating each time? I've always wondered if they did this.

The prompt may be the same but the seed is different every time.

Re: OpenAI dropped the price of o3 by 80%

#77

Post by ToucanLoucan »

coffeecoders wrote: post #51

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

I mean sure, it's very promising if OpenAI's future is your only metric. It gets notably darker if you look at the broader picture of ChatGPT (and company)'s impact on our society.

* We have people uploading tons of zero-effort slop pieces to all manner of online storefronts, and making people less likely to buy overall because they assume everything is AI now

* We have an uncomfortable community of, to be blunt, actual cultists emerging around ChatGPT, doing all kinds of shit from annoying their friends and family all the way up to divorcing their spouses

* Education is struggling in all kinds of ways due to students using (and abusing) the tech, with already strained administrations struggling to figure out how to navigate it

Like yeah if your only metric is OpenAI's particular line going up, it's looking alright. And much like Uber, it's success seems to be corrosive to the society in which it operates. Is this supposed to be good news?

Re: OpenAI dropped the price of o3 by 80%

#78

Post by seydor »

coffeecoders wrote: post #51

Despite the popular take that LLMs have no moat and are burning cash, I find OpenAI's situation really promising. Just yesterday, they reported an annualized revenue run rate of 10B. Their last funding round in March valued them at 300B. Despite losing 5B last year, they are growing really fast - 30x revenue with over 500M active users. It reminds me a lot of Uber in its earlier years—fast growth, heavy investment, b…

their moat is leaky because llm prices will be dropping forever and the only viable model will be a free model. Eventually everyone will catch up.

Plus there is the thing that "thinking models" can't really solve complex tasks / aren't really as good as they are believed to be .

Re: OpenAI dropped the price of o3 by 80%

#79

Post by snarf21 »

bitpush wrote: post #63
lvl155 wrote: post #42

Google has been catching up. Funny how fast this space is evolving. Just a few months ago, it was all about DeepSeek.

Many would say Google's Gemini models are SOTA, although Claude seems to be doing well with coding tasks.

Gemini has been better than Claude for me on a coding project. Claude kept telling me it update some code but the update wasn't in the output. Like, I had to re-prompt just for updated output 5 times in a row.

Re: OpenAI dropped the price of o3 by 80%

#80

Post by jstummbillig »

ratedgene wrote: post #64
aerhardt wrote: post #43

Earlier quoted context omitted.

OpenAI are second in the race to Anthropic in some benchmarks (maybe?), but OpenAI still dwarves Anthropic in distribution and popularity.

That's slowly changing. I know some relatively non-tech savvy young people using things like Claude for various reasons, so people are exploring options.

Very, very slowly.

OpenAI vs Anthropic on Google Trends

https://trends.google.com/trends/explore?date=today%203-m&q=...

ChatGPT vs Claude on Google Trends

https://trends.google.com/trends/explore?date=today%203-m&q=...

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