Just got an email from OpenAI, and it's a big one for developers, especially those building AI apps at scale.

💸 o3 Is Now 80% Cheaper!
OpenAI has dropped the price of the o3 model to:

$2 / 1M input tokens

$8 / 1M output tokens

This isn’t a stripped-down version — it’s the same o3 model, just cheaper thanks to inference stack optimizations.

👨‍💻 Why You Should Try o3 Now
OpenAI recommends using o3 for:

Coding tasks (same price per token as GPT-4.1, cheaper than GPT-4o)

Agentic tool calling

Function calling

Instruction following

If you're building apps with tool use, structured tasks, or agents — o3 is now way more cost-effective.

🔍 Introducing: o3-pro
For devs dealing with more complex reasoning or production use cases, OpenAI just launched o3-pro — a version of o3 that uses more compute to give deeper, more reliable responses.

o3-pro Pricing:
$20 / 1M input tokens

$80 / 1M output tokens
💰 That’s 87% cheaper than the old o1-pro model.

Supported Features:
Image inputs

Function calling

Structured Outputs

Background mode for long-running requests

🧠 o3-pro is better suited for difficult problems that need extra computation time and accuracy.

📌 TL;DR for Devs
Use o3 for general-purpose and coding tasks → super cheap now.

Use o3-pro when you need reliability, depth, and complex logic.

Test o3-pro-2025-06-10 in the Responses API or Playground.

Long requests? Try the new background mode to avoid timeouts.

🧪 These pricing changes make it way more feasible to build powerful AI experiences without blowing your budget.

Let the tinkering begin. 🚀

Have you tried the new o3 or o3-pro yet? Share your results or thoughts below!

OpenAI #LLM #API #DevTools #AI #GPT #MachineLearning #Coding #FunctionCalling #DeveloperExperience