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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%

#121

Post by jacob019 »

runako wrote: post #71
sunaookami wrote: post #19

Earlier quoted context omitted.

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.

Do we know parameter counts? The reasoning models have typically been cheaper per token, but use more tokens. Latency is annoying. I'll keep using gpt-4.1 for day-to-day.

Re: OpenAI dropped the price of o3 by 80%

#122

Post by paxys »

seydor wrote: post #85

when the race to the bottom reaches the bottom, the foundation model companies will be bought by ... energy companies. You 'll be paying for AI with your electricity bill

It'll be the opposite. Large tech companies are already running their own power plants.

Re: OpenAI dropped the price of o3 by 80%

#123

Post by HugoDias »

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...

This document explains the process very well. It’s a good read: https://platform.openai.com/docs/guides/prompt-caching

Re: OpenAI dropped the price of o3 by 80%

#124

Post by herval »

Deathmax wrote: post #120
herval wrote: post #69

Earlier quoted context omitted.

there's definitely measurements (eg https://hdsr.mitpress.mit.edu/pub/y95zitmz/release/2 ) but I imagine they're rare because those benchmarks are expensive, so nobody keeps running them all the time? Anecdotally, it's quite clear that some models are throttled during the day (eg Claude sometimes falls back to "concise mode" - with and without a warning on the app). You can tell if you're using Windsurf/Cursor too -…

Your linked article is specifically comparing two different versioned snapshots of a model and not comparing the same model across time. You've also made the mistake of conflating what's served via API platforms which are meant to be stable, and frontends which have no stability guarantees, and are very much iterated on in terms of the underlying model and system prompts. The GPT-4o sycophancy debacle was only on the…

Please read it again. The article is clearly comparing gpt4 to gpt4, and gpt3.5 to gpt3.5, in march vs june 2023

Re: OpenAI dropped the price of o3 by 80%

#125

Post by echelon »

Kranar wrote: post #103
Tiberium wrote: post #57

Earlier quoted context omitted.

I've heard lots of people say that, but no objective reproducible benchmarks confirm such a thing happening often. Could this simply be a case of novelty/excitement for a new model fading away as you learn more about its shortcomings?

I used to think the models got worse over time as well but then I checked my chat history and what I noticed isn't that ChatGPT gets worse, it's that my standards and expectations increase over time. When a new model comes out I test the waters a bit with some more ambitious queries and get impressed when it can handle them reasonably well. Over time I take it for granted and then just expect it to be able to handle…

Re-run your historical queries, or queries that are similarly shaped.

Re: OpenAI dropped the price of o3 by 80%

#126

Post by piuantiderp »

mattnewton wrote: post #37
rvnx wrote: post #27

Earlier quoted context omitted.

Especially now that they are second in the race (behind Anthropic) and lot of free-to-download and free-to-use models are now starting to be viable competitors. Once new MacBooks and iPhones have enough memory onboard this is going to be a disaster for OpenAI and other providers.

I'm not sure they're scared of Anthropic - they're doing great work but afaict running into some scaling issues and really focused on winning over developers at the moment. If I was OpenAI (or Anthropic for that matter) I would remain scared of Google, who is now awake and able to dump Gemini 2.5 pro on the market at costs that I'm not sure people without their own hardware can compete with, and with the infrastructu…

Google is going to lap them. The hardware muscle they have has not even started flexing

Re: OpenAI dropped the price of o3 by 80%

#127

Post by amazingamazing »

Legend2440 wrote: post #65
bitpush wrote: post #62

Earlier quoted context omitted.

The problem is your costs also scale with revenue. Ideally you want to have control costs as you scale (the first you build is expensive, but as you make more your costs come down). For OpenAI, the more people use the product, the same you spend on compute unless they can supplement it with another ways of generating revenue. I dont unfortunately think OpenAI will be able to hit sustained profitability (see Netflix f…

>(see Netflix for another example) Netflix has been profitable for over a decade though? They reported $8.7 billion in profit in 2024.

They increased prices and are not selling a pure commodity tho

Re: OpenAI dropped the price of o3 by 80%

#128

Post by hyperknot »

behnamoh wrote: post #10

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 tu…

I got 700+ tokens/sec on o3 after the announcement, I suspect it's very much a quantized version.

https://x.com/hyperknot/status/1932476190608036243

Re: OpenAI dropped the price of o3 by 80%

#129

Post by Deathmax »

herval wrote: post #124
Deathmax wrote: post #120

Earlier quoted context omitted.

Your linked article is specifically comparing two different versioned snapshots of a model and not comparing the same model across time. You've also made the mistake of conflating what's served via API platforms which are meant to be stable, and frontends which have no stability guarantees, and are very much iterated on in terms of the underlying model and system prompts. The GPT-4o sycophancy debacle was only on the…

Please read it again. The article is clearly comparing gpt4 to gpt4, and gpt3.5 to gpt3.5, in march vs june 2023

I did read it, and I even went to their eval repo.

> At the time of writing, there are two major versions available for GPT-4 and GPT-3.5 through OpenAI’s API, one snapshotted in March 2023 and another in June 2023.

openaichat/gpt-3.5-turbo-0301 vs openaichat/gpt-3.5-turbo-0613, openaichat/gpt-4-0314 vs openaichat/gpt-4-0613. Two _distinct_ versions of the model, and not the _same_ model over time like how people like to complain that a model gets "nerfed" over time.

Re: OpenAI dropped the price of o3 by 80%

#130

Post by thorum »

energy123 wrote: post #115
baq wrote: post #66

Earlier quoted context omitted.

Gemini is simply that good. I’m trying out Claude 4 every now and then and go back to Gemini to fix its mess…

Gemini is the best model in the world. Gemini is the worst web app in the world. Somehow those two things are coexisting. The web devs in their UI team have really betrayed the hard work of their ML and hardware colleagues. I don't say this lightly - I say this after having paid attention to critical bugs, more than I can count on one hand, that persisted for over a year. They either don't care or are grossly incompe…

Try AI Studio if you haven’t already: https://aistudio.google.com/
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