Dear Readers,
Something has changed. Not quietly, not gradually - but with a bang. OpenAI has not only released o3-pro, the most advanced publicly available reasoning model, but has also reduced the price of o3 by a whopping 80%. This combination is like a one-two punch: technical excellence meets radical democratization.
The message is clear: intelligence is becoming cheap - and therefore limitless. Projects that were computing budget killers yesterday are becoming feasible today. Ideas that lay dormant in notion docs can suddenly be translated into prototypes - from AI-supported therapists to autonomous coding agents.
In the midst of the hype, however, it is worth taking a quiet moment: what happens when “reasoning” becomes not only scalable, but also affordable? What cultural, economic and creative spaces will then open up? o3-pro is more than an upgrade - it is a symbolic step towards mass-available superintelligence.
In Today’s Issue:
OpenAI's new model and 80% price cut is a massive game-changer for AI
Meet Magistral, the new AI model that thinks like a specialized expert and shows its work
Sam Altman reveals why you should stop worrying about copycat startups
Intelligence "too cheap to meter" is accelerating innovation for everyone
And more AI goodness…
All the best,
The TLDR
OpenAI has launched o3-pro, its most powerful reasoning model yet, while also making the standard o3 model 80% cheaper. This combination of increased power and drastically lower costs is set to accelerate innovation by making advanced AI more accessible to developers and startups.
With the release of o3-pro, OpenAI is setting a new standard for reasoning models. It is currently the most powerful publicly available model that not only understands text, but can also think through complex tasks logically, program and analyze images. Particularly noteworthy: at the same time, Sam Altman announced an 80% price reduction for the basic o3 model - a move that made the AI world sit up and take notice.
While o3-pro will be activated for Pro users and API customers, the price drop marks a paradigm shift: what was premium yesterday is becoming mainstream today. Developers, start-ups and creative tinkerers can now experiment with computing power that was previously reserved for large corporations.
Massive cost reductions combined with increased performance means: more innovation, faster prototypes, more open playgrounds for bold ideas.
Increasingly, the statement: intelligence too cheap to meter is becoming a reality. Even the best models are becoming significantly cheaper.
Why it matters: OpenAI not only makes advanced AI more powerful, it also makes it accessible to everyone. This democratizes innovation and accelerates technological progress for the entire community.
Sources:
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we dropped the price of o3 by 80%!!
excited to see what people will do with it now.
think you'll also be happy with o3-pro pricing for the performance :)
— Sam Altman (@sama)
1:48 PM • Jun 10, 2025
Introducing MagistralWe are officially announcing Magistral, our first reasoning model designed to master complex, specialized subjects. It excels by providing transparent, step-by-step logic and operating seamlessly across multiple languages. | Ignore the CopycatsAccording to Sam Altman, founders should not worry about copycat startups, as studies show they almost always fail. He explains that imitators lack a true sense of mission and are always a step behind, so the best strategy is to ignore them. |
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