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OpenAI’s o3 suggests AI models are scaling in new ways — but so are the costs

OpenAI’s o3 suggests AI models are scaling in new ways — but so are the costs

December 24, 2024: OpenAIs o3: Big Gains, Bigger Costs - OpenAI's o3 model marks a breakthrough in AI scaling via test-time scaling, significantly surpassing previous models on key benchmarks. However, these advancements entail substantial costs, specifically higher compute requirements during inference, which raises questions about its practicality and affordability for everyday use.

While o3 shows potential for complex problem-solving, its expense suggests it may be restricted to high-stakes applications. The model's limitations, such as inaccuracy and high energy consumption, underscore ongoing challenges in AI development and highlight the potential role of improved AI inference chips in future advancements.

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