Simon Willison’s Weblog

OpenAI just dropped the price of their o3 model by 80% - from $10/million input tokens and $40/million output tokens to just $2/million and $8/million for the very same model. This is in advance of the release of o3-pro which apparently is coming later today (update: here it is).

This is a pretty huge shake-up in LLM pricing. o3 is now priced the same as GPT 4.1, and slightly less than GPT-4o ($2.50/$10). It’s also less than Anthropic’s Claude Sonnet 4 ($3/$15) and Opus 4 ($15/$75) and sits in between Google’s Gemini 2.5 Pro for >200,00 tokens ($2.50/$15) and 2.5 Pro for <200,000 ($1.25/$10).

I’ve updated my llm-prices.com pricing calculator with the new rate.

How have they dropped the price so much? OpenAI's Adam Groth credits ongoing optimization work:

thanks to the engineers optimizing inferencing.