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Reassessing OpenAI o3 Model Costs and Its Impact on the AI Market

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by Giorgi Kostiuk

7 days ago


A new estimate of the OpenAI o3 model costs has stirred the AI community, altering perceptions of the economic aspect of cutting-edge technologies.

Revised Estimates and Shocking Revelations

The Arc Prize Foundation, responsible for AI tests on the ARC-AGI basis, has revealed new calculations of AI costs, surpassing initial estimates tenfold, reaching $30,000 per task.

Reasons Behind AI Model Cost Surge

According to Mike Knoop from Arc Prize, the high cost of the model is due to the amount of computational resources required for its operation, particularly in the 'o3 high' configuration.

Resource Intensity and Its Implications for AI

The 'o3 high' configuration consumes significantly more resources than anticipated, resulting in higher operational costs. This may affect AI accessibility and innovation.

While the official o3 pricing from OpenAI is still unknown, it is already clear that operating such systems will involve significant costs.

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