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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%

#131

Post by Traubenfuchs »

biophysboy wrote: post #40

I don't know if this is OpenAI's intention, but the little message "you've reached your usage limit!" is actively disincentivizing me from subscribing. For my purposes, the free model is more than good enough; the difference before and after is negligible. I honestly wouldn't pay a dollar. That said, I'm absolutely willing to hear people out on "value-adds" I am missing out on; I'm not a knee-jerk hater (For context,…

> "you've reached your usage limit!"

Just switch to a competitors free offering. There are enough to cycle through not to be hindered by limits. I wonder how much money I have cost those companies by now?

How anyone believes there is any moat for anyone here is beyond me.

Re: OpenAI dropped the price of o3 by 80%

#132

Post by sschueller »

Has anyone noticed that OpenAI has become "lazy"? When I ask questions now it will not give me a complete file or fix. Instead it tells me what I should do and I need to ask a second or third time to just do the thing I asked.

I don't see this happening with for example deepseek.

Is it possible they are saving on resources by having it answer that way?

Re: OpenAI dropped the price of o3 by 80%

#133

Post by esafak »

SparkyMcUnicorn wrote: post #110
esafak wrote: post #12

Earlier quoted context omitted.

Are there any benchmarks that track historical performance?

Aider has one, but it hasn't been updated in months. People kept claiming models were getting worse, but the results proved that they weren't.

https://aider.chat/docs/leaderboards/by-release-date.html

Re: OpenAI dropped the price of o3 by 80%

#134

Post by tasuki »

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...

> Every prompt would be different

No? Eg "how to cook pasta" is probably asked a lot.

Re: OpenAI dropped the price of o3 by 80%

#135

Post by bobxmax »

Tiberium wrote: post #57
lispisok wrote: post #18

Earlier quoted context omitted.

I swear every time a new model is released it's great at first but then performance gets worse over time. I figured they were fine-tuning it to get rid of bad output which also nerfed the really good output. Now I'm wondering if they were quantizing it.

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?

My suspicion is it's the personalization. Most people have things like 'memory' on, and as the models increasingly personalize towards you, that personalization is hurting quality rather than helping it.

Which is why the base model wouldn't necessarily show differences when you benchmarked them.

Re: OpenAI dropped the price of o3 by 80%

#136

Post by Magmalgebra »

bitpush wrote: post #62
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…

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…

Anyone concerned about cost should remember that those costs are dropping exponenentially.

Similarly, nearly all AI products but especially OpenAI are heavily _under_ monetized. OpenAI is an excellent personal shopper - the ad revenue that could be generated from that rivals Facebook or Google.

Re: OpenAI dropped the price of o3 by 80%

#137

Post by Traubenfuchs »

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.

I bet there is a set of repetitive single, or two, question user requests that makes out a sizeable amount of all requests. The models are so expensive to run, 1% would be enough. Much less than 1%. To make it less obvious they probably have a big set of response variants. I don't see how they would not do this.

They probably also have cheap code or cheap models that normalize requests to increase cache hit rate.

Re: OpenAI dropped the price of o3 by 80%

#138

Post by rgbrenner »

jedisct1 wrote: post #72
rvnx wrote: post #23

Earlier quoted context omitted.

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.

same. i ran a few tests ($100 worth of api calls) with opus 4 and didn’t see any difference compared to sonnet 4 other than the price.

also no idea why he thinks roo is handicapped when claude code nerfs the thinking output and requires typing “think”/think hard/think harder/ultrathink just to expand the max thinking tokens.. which on ultrathink only sets it at 32k… when the max in roo is 51200 and it’s just a setting.

Re: OpenAI dropped the price of o3 by 80%

#139

Post by simonw »

madebywelch wrote: post #118

They could drop the price 100% and I still wouldn't use it, so long as they're retaining my data.

Sounds like you want their Zero Data Retention plan: https://platform.openai.com/docs/guides/your-data#zero-data-...

(It's "contact us" pricing, so I have no idea how much that would set you back. I'm guessing it's not cheap.)

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