OpenAI announces 80% price drop for o3, it’s most powerful reasoning model
1 min read
Summary
OpenAI, the creator of the popular chatbot ChatGPT, has slashed the cost of its o3 token by as much as 80% in a bid to make the service more accessible to developers.
While other AI providers have charged upwards of 10foreachmillioninputtokens,OpenAIwillnowchargejust2, with an additional discount of $0.50 for cached information.
The move comes as OpenAI looks to compete with the likes of Google DeepMind’s Gemini 2.5 Pro, Anthropic’s Claude Opus 4 and DeepSeek’s suite of reasoning models.
“We dropped the price of o3 by 80%!! excited to see what people will do with it now,” wrote OpenAI CEO Sam Altman on his company’s blog.
The dramatic price cut signals a move towards making AI more affordable as the technology looks to go mainstream.