OpenAI Update on o3 Model Price Decrease by 80%
OpenAI CEO Sam Altman posted an update on 80% price reduction for the OpenAI o3 model. A screenshot of the update is attached below.
OpenAI o3 model was launched on April 16, 2025. Currently, on OpenAI's pricing page, the o3 model is priced as follows (UPDATED);
- Input ($2.00/1M tokens)
- Cached Input ($0.50/1M tokens)
- Output ($8.00/1M tokens)
These prices have remained unchanged on the pricing page for the past week. If the 80% price decrease as posted by Sam Altman is implemented, the new prices should be as shown in the tables below;
| Service | Old Price (per 1M tokens) | New Price (per 1M tokens) |
|---|---|---|
| Input | $10.00 | $2.00 |
| Cached input | $2.50 | $0.50 |
| Output | $40.00 | $8.00 |
UPDATE (June 10, 2025): o3 prices have now been updated on the OpenAI pricing page to reflect the new prices as shown in the table above