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OpenAI’s DeepSeek Response: Catch Us If You Can

The Information · Stephanie Palazzolo · last updated

OpenAI’s release on Friday of o3-mini, its latest artificial intelligence reasoning model, wasn’t a surprise. CEO Sam Altman had previously said it would drop by then.

But it was impossible to ignore the coincidence of the release coming a few days after a blaze of news erupted over DeepSeek R1, a Chinese reasoning model that has matched or even outperformed models from OpenAI, Anthropic and Meta Platforms. More importantly, DeepSeek is open source and super inexpensive for developers to use.

With o3, it seemed as if OpenAI was saying, “You want cheaper and better? Here you go.” 

Cheaper is in the eye of the beholder, to be sure. O3-mini is cheaper to use than GPT-4o, OpenAI’s most popular non-reasoning model, which came out in May last year, although it is still more than twice as expensive as accessing DeepSeek R1 through its company-provided application programming interface.

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