Compute Costs AI News & Updates
OpenAI's o3 Reasoning Model May Cost Ten Times More Than Initially Estimated
The Arc Prize Foundation has revised its estimate of computing costs for OpenAI's o3 reasoning model, suggesting it may cost around $30,000 per task rather than the initially estimated $3,000. This significant cost reflects the massive computational resources required by o3, with its highest-performing configuration using 172 times more computing than its lowest configuration and requiring 1,024 attempts per task to achieve optimal results.
Skynet Chance (+0.04%): The extreme computational requirements and brute-force approach (1,024 attempts per task) suggest OpenAI is achieving reasoning capabilities through massive scaling rather than fundamental breakthroughs in efficiency or alignment. This indicates a higher risk of developing systems whose internal reasoning processes remain opaque and difficult to align.
Skynet Date (+1 days): The unexpectedly high computational costs and inefficiency of o3 suggest that true reasoning capabilities remain more challenging to achieve than anticipated. This computational barrier may slightly delay the development of truly autonomous systems capable of independent goal-seeking behavior.
AGI Progress (+0.05%): Despite inefficiencies, o3's ability to solve complex reasoning tasks through massive computation represents meaningful progress toward AGI capabilities. The willingness to deploy such extraordinary resources to achieve reasoning advances indicates the industry is pushing aggressively toward more capable systems regardless of cost.
AGI Date (+2 days): The 10x higher than expected computational cost of o3 suggests that scaling reasoning capabilities remains more resource-intensive than anticipated. This computational inefficiency represents a bottleneck that may slightly delay progress toward AGI by making frontier model training and operation prohibitively expensive.
OpenAI Expands GPT-4.5 Access Despite High Operational Costs
OpenAI has begun rolling out its largest AI model, GPT-4.5, to ChatGPT Plus subscribers, with the rollout expected to take 1-3 days. Despite being OpenAI's largest model with deeper world knowledge and higher emotional intelligence, GPT-4.5 is extremely expensive to run, costing 30x more for input and 15x more for output compared to GPT-4o, raising questions about its long-term viability in the API.
Skynet Chance (+0.04%): GPT-4.5's reported persuasive capabilities—specifically being "particularly good at convincing another AI to give it cash and tell it a secret code word"—raises moderate concerns about potential manipulation abilities. This demonstrates emerging capabilities that could make alignment and control more challenging as models advance.
Skynet Date (+1 days): The extreme operational costs of GPT-4.5 (30x input and 15x output costs versus GPT-4o) indicate economic constraints that will likely slow wider deployment of advanced models. These economic limitations suggest practical barriers to rapid scaling of the most advanced AI systems.
AGI Progress (+0.05%): As OpenAI's largest model yet, GPT-4.5 represents significant progress in scaling AI capabilities, despite not outperforming newer reasoning models on all benchmarks. Its deeper world knowledge, higher emotional intelligence, and reduced hallucination rate demonstrate meaningful improvements in capabilities relevant to general intelligence.
AGI Date (+1 days): The prohibitive operational costs and OpenAI's uncertainty about long-term API viability indicate economic constraints that may slow the deployment of increasingly advanced models. This suggests practical limitations are emerging that could moderately extend the timeline to achieving and deploying AGI-level systems.