Shocking OpenAI o3 Model Cost: Is $30,000 Price Tag Too Expensive?

OpenAI’s ‘o3’ model has generated significant buzz for its advanced reasoning capabilities. However, the initial excitement may need a reality check as estimates indicate the cost of running this AI could be significantly higher than anticipated. The Arc Prize Foundation, which evaluates AI through the ARC-AGI benchmark, has revised their calculations for o3’s computational cost, raising questions about the true expense of cutting-edge AI. The new estimate suggests that ‘o3 high’ configuration can potentially cost $30,000 per task, a tenfold jump from earlier estimates.