OpenAI, the startup behind ChatGPT, has announced the release of a new artificial intelligence model, o3-mini, offering it for free to users with usage limitations. This move follows the surprising success of a competing product, R1, by China’s DeepSeek, which has stirred concerns within the tech industry.
OpenAI o3-mini is now available in ChatGPT and the API.
Pro users will have unlimited access to o3-mini and Plus & Team users will have triple the rate limits (vs o1-mini).
Advertisement · Scroll to continueFree users can try o3-mini in ChatGPT by selecting the Reason button under the message composer.
— OpenAI (@OpenAI) January 31, 2025
DeepSeek’s R1 Shakes the Tech World
DeepSeek’s entry into the AI market with R1, a reasoning model that powers the company’s chatbot, has created significant disruption. The launch of R1 not only rivalled OpenAI’s own technology in terms of performance but also attracted attention for being developed at a fraction of the cost. The product’s success was evident as it topped Apple’s free app store, prompting tech investors in the US to reevaluate the dominance of American firms in the AI space. The news caused a $1 trillion drop in the Nasdaq index on Monday.
Sam Altman’s Response to the Challenge: Releases o3-mini
In response to DeepSeek’s challenge, OpenAI’s CEO, Sam Altman, has pledged to accelerate product releases and “deliver much better models.” On January 23, just days after DeepSeek revealed R1, Altman had already announced plans to release o3-mini—a more affordable, less powerful version of the full o3 model, which has not yet been made publicly available. “Today’s launch marks the first time we’re bringing reasoning capabilities to our free users, an important step towards broadening accessibility to advanced AI in service of our mission,” said OpenAI in its announcement.
The Capabilities of o3-mini
According to OpenAI, the o3-mini model matches its predecessor, o1, in areas such as mathematics, coding, and science, but it offers these capabilities at a significantly lower cost and with quicker response times. ChatGPT users on the Pro package, which costs $200 per month, will have unlimited access to o3-mini, while those on the more affordable Plus plan will have higher usage limits compared to free users.
Concerns Over the Rise of DeepSeek
DeepSeek’s R1 has raised alarms in the US tech industry not only due to its performance but also because it was developed with fewer resources compared to OpenAI’s offerings. This has led investors to question whether US tech companies can maintain their leadership in the AI sector and continue to generate returns on the multibillion-dollar investments made in AI infrastructure and products.
O3’s Potential Impact on AI Safety
The full o3 model, which has not yet been publicly released, has attracted attention from experts in the field of AI safety. The International AI Safety Report, published earlier this week, highlighted the potential risks associated with o3’s capabilities. Lead author Yoshua Bengio noted that o3’s performance in a crucial abstract reasoning test represented a major breakthrough, even surprising experts. In certain tests, o3 outperformed many human experts, raising concerns about the future implications for AI safety.
Also Read: Did Singapore Provide Nvidia Chips to Deepseek? Trump Administration To Probe