ChatGPT o3 API: 80% Price Cut, No Performance Loss
- OpenAI has considerably reduced the cost of its top-tier reasoning model, the o3, by 80%, making the ChatGPT API cheaper for developers.
- According to openai, the price reduction is due to optimizations in their inference stack.
- While typical users may not directly engage with ChatGPT models via API, this price drop makes tools that rely on the API, such as Cursor and Windsurf, more...
OpenAI has dramatically slashed the prices for its ChatGPT o3 API by 80%, providing meaningful savings for developers leveraging this powerful AI tool. The latest update puts the input cost at $2 per million tokens,while output now costs $8 per million tokens.This aggressive move makes advanced AI more accessible and affordable, promising new innovations in AI-powered tools. Performance of the o3 model is being maintained despite the price cut. News Directory 3 is following this advancement closely, as it’s expected to drive wider adoption of AI capabilities, benefiting tools like Cursor and Windsurf. What transformative applications will emerge from this significant price reduction? Discover what’s next in the world of AI.
OpenAI Slashes ChatGPT O3 API Prices by 80% for Developers
Updated June 12, 2025
OpenAI has considerably reduced the cost of its top-tier reasoning model, the o3, by 80%, making the ChatGPT API cheaper for developers. The company announced Wednesday that the input price for o3 is now $2 per million tokens, while the output price is $8 per million tokens.
According to openai, the price reduction is due to optimizations in their inference stack. “we optimized our inference stack that serves o3. Same exact model—just cheaper,” the company stated in a post on X.
While typical users may not directly engage with ChatGPT models via API, this price drop makes tools that rely on the API, such as Cursor and Windsurf, more affordable. The ChatGPT price reduction is expected to broaden access to advanced AI capabilities.
The autonomous benchmark community ARC Prize confirmed that the o3-2025-04-16 model’s performance remained consistent after the price adjustment. “We compared the retest results with the original results and observed no difference in performance,” the company saeid in a post on X.
This confirmation indicates that OpenAI did not compromise the model’s quality to lower the price. Rather, the company genuinely optimized the infrastructure powering the model. OpenAI also introduced the o3-pro model in the API, which utilizes more computing power to achieve enhanced results.
What’s next
The reduced pricing for the ChatGPT o3 API is expected to encourage more developers to integrate advanced AI capabilities into their applications, possibly leading to a new wave of innovation in AI-powered tools and services.