[HN Gopher] OpenAI dropped the price of o3 by 80%
       ___________________________________________________________________
        
       OpenAI dropped the price of o3 by 80%
        
       Author : mfiguiere
       Score  : 486 points
       Date   : 2025-06-10 17:41 UTC (1 days ago)
        
 (HTM) web link (twitter.com)
 (TXT) w3m dump (twitter.com)
        
       | minimaxir wrote:
       | ...how? I'd understand a 20-30% price drop from infra
       | improvements for a model as-is, but 80%?
       | 
       | I wonder if "we quantized it lol" would classify as false
       | advertising for modern LLMs.
        
         | tofof wrote:
         | Presumably because the price was about 5x higher to begin with
         | than any the competitors at the same tier of performance?
         | Perhaps it's better to get paid anything at all than to just
         | lose 100% of the customers.
        
         | drexlspivey wrote:
         | Deepseek made a few major innovations allowing them to achieve
         | major compute efficiency and then published them. My guess is
         | that OpenAI just implemented these themselves.
        
           | vitaflo wrote:
           | Wouldn't surprise me. And even with this price cut it's still
           | 4x more expensive than Deepseek R1 is.
        
       | ilaksh wrote:
       | Maybe because they also are releasing o3-pro.
        
       | MallocVoidstar wrote:
       | Note that they have not actually dropped the price yet:
       | https://x.com/OpenAIDevs/status/1932463601119637532
       | 
       | > We'll post to @openaidevs once the new pricing is in full
       | effect. In $10... 9... 8...
       | 
       | There is also speculation that they are only dropping the input
       | price, not the output price (which includes the reasoning
       | tokens).
        
         | sunaookami wrote:
         | I think that was a joke. New pricing is already in place:
         | 
         | Input: $2.00 / 1M tokens
         | 
         | Cached input: $0.50 / 1M tokens
         | 
         | Output: $8.00 / 1M tokens
         | 
         | https://openai.com/api/pricing/
         | 
         | Now cheaper than gpt-4o and same price as gpt-4.1 (!).
        
           | rvnx wrote:
           | It is slower though
        
           | MallocVoidstar wrote:
           | No, people had tested it after Altman's announcement and had
           | confirmed that they were still being billed at the original
           | price. And I checked the docs ~1h after and they still showed
           | the original price.
           | 
           | The speculation of only input pricing being lowered was
           | because yesterday they gave out vouchers for 1M free _input_
           | tokens while output tokens were still billed.
        
           | runako wrote:
           | > Now cheaper than gpt-4o and same price as gpt-4.1 (!).
           | 
           | This is where the naming choices get confusing. "Should" o3
           | cost more or less than GPT-4.1? Which is more capable? A
           | generation 3 of tech intuitively feels less advanced than a
           | 4.1 of a (similar) tech.
        
             | jacob019 wrote:
             | Do we know parameter counts? The reasoning models have
             | typically been cheaper per token, but use more tokens.
             | Latency is annoying. I'll keep using gpt-4.1 for day-to-
             | day.
        
             | koakuma-chan wrote:
             | o3 is a reasoning model, GPT-4.1 is not. They are
             | orthogonal.
        
               | runako wrote:
               | My quibble is with naming choices and differentiating.
               | Even here they are confusing:
               | 
               | - o4 is reasoning
               | 
               | - 4o is not
               | 
               | They simply do not do a good job of differentiating.
               | Unless you work directly in the field, it is likely not
               | obvious what is the difference between "our most powerful
               | reasoning model" and "our flagship model for complex
               | tasks."
               | 
               | "Does my complex task need reasoning or not?" seems to be
               | how one would choose. (What type of task is complex but
               | does not require any reasoning?) This seems less than
               | ideal!
        
               | koakuma-chan wrote:
               | This is true, and I believe apps automatically route
               | requests to appropriate models for normie users.
        
           | agsqwe wrote:
           | thinking models produce a lot of internal output tokens
           | making them more expensive than non-reasoning models for
           | similar prompt and visible output lengths
        
           | vitaflo wrote:
           | Still 4x more expensive than Deepseek R1 tho.
        
       | teaearlgraycold wrote:
       | Personally I've found these bigger models (o3/Claude 4 Opus) to
       | be disappointing for coding.
        
         | apwell23 wrote:
         | i found them all disappointing in their own ways. Atleast
         | deepseek models actually listen to what i say instead of
         | ignoring me doing their own thing like a toddler.
        
         | rvnx wrote:
         | Opus is really great but through Claude Code. If you used
         | Cursor or RooCode it could be normal that you get disappointed
        
           | bitpush wrote:
           | This matches my experience, but cant explain it. Do you know
           | what's going on?
        
             | eunoia wrote:
             | My understanding is context size. Companies like Cursor are
             | trying to minimize the amount of context sent to the models
             | to keep their own costs down. Claude Code seems to send a
             | lot more context with every request and that seems to make
             | the difference.
        
             | supermdguy wrote:
             | Just guessing, but the new Opus was probably RL tuned to
             | work better with Claude Code's tool calls
        
           | jedisct1 wrote:
           | I got the opposite experience. Not with Opus (too expensive),
           | but with Sonnet. I got things done way more efficiently when
           | using Sonnet with Roo than with Claude Code.
        
             | rgbrenner wrote:
             | same. i ran a few tests ($100 worth of api calls) with opus
             | 4 and didn't see any difference compared to sonnet 4 other
             | than the price.
             | 
             | also no idea why he thinks roo is handicapped when claude
             | code nerfs the thinking output and requires typing
             | "think"/think hard/think harder/ultrathink just to expand
             | the max thinking tokens.. which on ultrathink only sets it
             | at 32k... when the max in roo is 51200 and it's just a
             | setting.
        
               | rvnx wrote:
               | I think I could share a trick that could help:
               | 
               | From my experience (so not an ultimate truth) Claude is
               | not so great at taking the decision for planning by its
               | own: it dives immediately into coding.
               | 
               | If you ask it to think step-by-step it still doesn't do
               | it but Gemini 2.5 Pro is good at that planning but
               | terrible at actual coding.
               | 
               | So you can use Gemini as planner and Claude as programmer
               | and you get something decent on RooCode.
               | 
               | This "think wisely" that you have to repeat 10x in the
               | prompt is absolutely true
        
               | rgbrenner wrote:
               | I think you misread my comment. I wasn't asking for help.
               | I get consistent good output from Sonnet 4 using RooCode,
               | without needing Gemini for planning.
               | 
               | Edit: I think I know where our miscommunication is
               | happening...
               | 
               | The "think"/"ultrathink" series of magic words are a
               | claudecode specific feature used to control the max
               | thinking tokens in the request. For example, in claude
               | code, saying "ultrathink" sets the max thinking tokens to
               | 32k.
               | 
               | On other clients these keywords do nothing. In Roo, max
               | thinking tokens is a setting. You can just set it to 32k,
               | and then that's the same as saying "ultrathink" in every
               | prompt in claudecode. But in Roo, I can also setup
               | different settings profiles to use for each mode (with
               | different max thinking token settings), configure the
               | mode prompt, system prompt, etc. No magic keywords
               | needed.. and you have full control over the request.
               | 
               | Claude Code doesn't expose that level of control.
        
       | behnamoh wrote:
       | how do we know it's not a quantized version of o3? what's
       | stopping these firms from announcing the full model to perform
       | well on the benchmarks and then gradually quantizing it (first at
       | Q8 so no one notices, then Q6, then Q4, ...).
       | 
       | I have a suspicion that's how they were able to get gpt-4-turbo
       | so fast. In practice, I found it inferior to the original GPT-4
       | but the company probably benchmaxxed the hell out of the turbo
       | and 4o versions so even though they were worse models, users
       | found them more pleasing.
        
         | esafak wrote:
         | Are there any benchmarks that track historical performance?
        
           | behnamoh wrote:
           | good question, and I don't know of any, although it's a no
           | brainer that someone should make it.
           | 
           | a proxy to that may be the anecdotal evidence of users who
           | report back in a month that model X has gotten dumber
           | (started with gpt-4 and keeps happening, esp. with Anthro and
           | OpenAI models). I haven't heard such anecdotal stories about
           | Gemini, R1, etc.
        
           | SparkyMcUnicorn wrote:
           | Aider has one, but it hasn't been updated in months. People
           | kept claiming models were getting worse, but the results
           | proved that they weren't.
        
             | esafak wrote:
             | https://aider.chat/docs/leaderboards/by-release-date.html
        
             | __mharrison__ wrote:
             | Updated yesterday... https://aider.chat/docs/leaderboards/
        
               | vitaflo wrote:
               | That Deepseek price is always hilarious to see in these
               | charts.
        
               | SparkyMcUnicorn wrote:
               | That's not the one I'm referring to. See my other
               | comments or your sibling comment.
        
         | benterix wrote:
         | > users found them more pleasing.
         | 
         |  _Some_ users. For me the drop was so huge it became almost
         | unusable for the things I had used it for.
        
           | behnamoh wrote:
           | Same here. One of my apps straight out stopped working
           | because the gpt-4o outputs were noticeably worse than the
           | gpt-4 that I built the app based on.
        
         | lispisok wrote:
         | I swear every time a new model is released it's great at first
         | but then performance gets worse over time. I figured they were
         | fine-tuning it to get rid of bad output which also nerfed the
         | really good output. Now I'm wondering if they were quantizing
         | it.
        
           | nabla9 wrote:
           | It seems that least Google is overselling their compute
           | capacity.
           | 
           | You pay monthly fee, but Gemini is completely jammed 5-6
           | hours when North America is working.
        
             | baq wrote:
             | Gemini is simply that good. I'm trying out Claude 4 every
             | now and then and go back to Gemini to fix its mess...
        
               | fasterthanlime wrote:
               | Funny, I have the exact opposite experience! I use Claude
               | to fix Gemini's mess.
        
               | symfoniq wrote:
               | Maybe LLMs just make messes.
        
               | hgomersall wrote:
               | I heard that, but I'm getting consistent garbage from
               | Gemini.
        
               | dayjah wrote:
               | For code? Use the context7 mcp.
        
               | energy123 wrote:
               | Gemini is the best model in the world. Gemini is the
               | worst web app in the world. Somehow those two things are
               | coexisting. The web devs in their UI team have really
               | betrayed the hard work of their ML and hardware
               | colleagues. I don't say this lightly - I say this after
               | having paid attention to critical bugs, more than I can
               | count on one hand, that persisted for over a year. They
               | either don't care or are grossly incompetent.
        
               | thorum wrote:
               | Try AI Studio if you haven't already:
               | https://aistudio.google.com/
        
               | koakuma-chan wrote:
               | https://ai.dev
        
               | nabla9 wrote:
               | Well said.
               | 
               | Google is best in pure AI research, both quality and
               | volume. They have sucked at productization for years. Not
               | not just AI but other products as well. Real mystery.
        
               | energy123 wrote:
               | I don't understand why they can't just make it fast and
               | go through the bug reports from a year ago and fix them.
               | Is it that hard to build a box for users to type text
               | into without it lagging for 5 seconds or throwing a bunch
               | of errors?
        
             | edzitron wrote:
             | When you say "jammed," how do you mean?
        
           | solfox wrote:
           | I have seen this behavior as well.
        
           | mhitza wrote:
           | That was my suspicion when I first deleted my account, when
           | it felt the output got worse in ChatGPT and I found highly
           | suspicious when I saw an errand davinci model keyword in the
           | chatgpt url.
           | 
           | Now I'm feeling similarly with their image generation (which
           | is the only reason I created a paid account two months ago,
           | and the output looks more generic by default).
        
             | beering wrote:
             | Are you able to quantify how quickly your perception gets
             | skewed by how long you use the models?
        
               | mhitza wrote:
               | I can't quantity it for my past experience, that was more
               | than a year ago, and I wasn't using ChatGPT daily at the
               | time either.
               | 
               | This time around it felt pretty stark. I used ChatGPT to
               | create at most 20 different image compositions. And after
               | a couple of good ones at first, it felt worse after. One
               | thing I've noticed recently is that when working on
               | vector art compositions, the results start more
               | simplistic, and often enough look like clipart thrown
               | together. This wasn't my experience first time around.
               | Might be temperature tweaks, or changes in their prompt
               | that lead to this effect. Might be some random seed data
               | they use, who knows.
        
           | Tiberium wrote:
           | I've heard lots of people say that, but no objective
           | reproducible benchmarks confirm such a thing happening often.
           | Could this simply be a case of novelty/excitement for a new
           | model fading away as you learn more about its shortcomings?
        
             | 85392_school wrote:
             | I think it's an illusion. People have been claiming it
             | since the GPT-4 days, but nobody's ever posted any good
             | evidence to the "model-changes" channel in Anthropic's
             | Discord. It's probably just nostalgia.
        
             | herval wrote:
             | there's definitely measurements (eg
             | https://hdsr.mitpress.mit.edu/pub/y95zitmz/release/2 ) but
             | I imagine they're rare because those benchmarks are
             | expensive, so nobody keeps running them all the time?
             | 
             | Anecdotally, it's quite clear that some models are
             | throttled during the day (eg Claude sometimes falls back to
             | "concise mode" - with and without a warning on the app).
             | 
             | You can tell if you're using Windsurf/Cursor too - there
             | are times of the day where the models constantly fail to do
             | tool calling, and other times they "just work" (for the
             | same query).
             | 
             | Finally, there's cases where it was confirmed by the
             | company, like Gpt-4o's sycopanth tirade that very clearly
             | impacted its output (https://openai.com/index/sycophancy-
             | in-gpt-4o/)
        
               | drewnick wrote:
               | I feel this too. I swear some of the coding Claude Code
               | does on weekends is superior to the weekdays. It just has
               | these eureka moments every now and then.
        
               | herval wrote:
               | Claude has been particularly bad since they released 4.0.
               | The push to remove 3.7 from Windsurf hasn't helped
               | either. Pretty evident they're trying to force people to
               | pay for Claude Code...
               | 
               | Trusting these LLM providers today is as risky as
               | trusting Facebook as a platform, when they were pushing
               | their "opensocial" stuff
        
               | Deathmax wrote:
               | Your linked article is specifically comparing two
               | different versioned snapshots of a model and not
               | comparing the same model across time.
               | 
               | You've also made the mistake of conflating what's served
               | via API platforms which are meant to be stable, and
               | frontends which have no stability guarantees, and are
               | very much iterated on in terms of the underlying model
               | and system prompts. The GPT-4o sycophancy debacle was
               | only on the specific model that's served via the ChatGPT
               | frontend and never impacted the stable snapshots on the
               | API.
               | 
               | I have never seen any sort of compelling evidence that
               | any of the large labs tinkers with their stable,
               | versioned model releases that are served via their API
               | platforms.
        
               | herval wrote:
               | Please read it again. The article is clearly comparing
               | gpt4 to gpt4, and gpt3.5 to gpt3.5, in march vs june 2023
        
               | Deathmax wrote:
               | I did read it, and I even went to their eval repo.
               | 
               | > At the time of writing, there are two major versions
               | available for GPT-4 and GPT-3.5 through OpenAI's API, one
               | snapshotted in March 2023 and another in June 2023.
               | 
               | openaichat/gpt-3.5-turbo-0301 vs
               | openaichat/gpt-3.5-turbo-0613, openaichat/gpt-4-0314 vs
               | openaichat/gpt-4-0613. Two _distinct_ versions of the
               | model, and not the _same_ model over time like how people
               | like to complain that a model gets "nerfed" over time.
        
               | glitch253 wrote:
               | Cursor / Windsurf's degraded functionality is exactly why
               | I created my own system:
               | 
               | https://github.com/mpfaffenberger/code_puppy
        
             | Kranar wrote:
             | I used to think the models got worse over time as well but
             | then I checked my chat history and what I noticed isn't
             | that ChatGPT gets worse, it's that my standards and
             | expectations increase over time.
             | 
             | When a new model comes out I test the waters a bit with
             | some more ambitious queries and get impressed when it can
             | handle them reasonably well. Over time I take it for
             | granted and then just expect it to be able to handle ever
             | more complex queries and get dissappointed when I hit a new
             | limit.
        
               | echelon wrote:
               | Re-run your historical queries, or queries that are
               | similarly shaped.
        
               | throwaway314155 wrote:
               | Sounds like a _whole_ thing.
        
               | sakesun wrote:
               | They could cache that :)
        
               | echelon wrote:
               | That would make for a very interesting timing attack.
        
             | bobxmax wrote:
             | My suspicion is it's the personalization. Most people have
             | things like 'memory' on, and as the models increasingly
             | personalize towards you, that personalization is hurting
             | quality rather than helping it.
             | 
             | Which is why the base model wouldn't necessarily show
             | differences when you benchmarked them.
        
             | cainxinth wrote:
             | I assumed it was because the first week revealed a ton of
             | safety issues that they then "patched" by adjusting the
             | system prompt, and thus using up more inference tokens on
             | things other than the user's request.
        
             | colordrops wrote:
             | It's probably less often quantizing and more often adding
             | more and more to their hidden system prompt to address
             | various issues and "issues", and as we all know, adding
             | more context sometimes has a negative effect.
        
             | tshaddox wrote:
             | Yeah, it's almost certainly hallucination (by the human
             | user).
        
           | JamesBarney wrote:
           | I'm pretty sure this is just a psychological phenomenon. When
           | a new model is released all the capabilities the new model
           | has that the old model lacks are very salient. This makes it
           | seem amazing. Then you get used to the model, push it to the
           | frontier, and suddenly the most salient memories of the new
           | model are it's failures.
           | 
           | There are tons of benchmarks that don't show any regressions.
           | Even small and unpublished ones rarely show regressions.
        
           | JoshuaDavid wrote:
           | I suspect what's happening is that lots of people have a
           | collection of questions / private evals that they've been
           | testing on every new model, and when a new model comes out it
           | _sometimes_ can answer a question that previous models couldn
           | 't. So that selects for questions where the new model is at
           | the edge of its capabilities _and_ probably got lucky. But
           | when you come up with a new question, it 's generally going
           | to be on the level of the questions the new model is newly
           | able to solve.
           | 
           | Like I suspect if there was a "new" model which was best-
           | of-256 sampling of gpt-3.5-turbo that too would seem like a
           | really exciting model for the first little bit after it came
           | out, because it could probably solve a lot of problems
           | current top models struggle with (which people would notice
           | immediately) while failing to do lots of things that are a
           | breeze for top models (which would take people a little bit
           | to notice).
        
           | beering wrote:
           | It's easy to measure the models getting worse, so you should
           | be suspicious that nobody who claims this has scientific
           | evidence to back it up.
        
         | risho wrote:
         | Quantization is a massive efficiency gain for near negligible
         | drop in quality. If the tradeoff is quantization for an 80
         | percent price drop I would take that any day of the week.
        
           | behnamoh wrote:
           | > for near negligible drop in quality
           | 
           | Hmm, that's evidently and anecdotally wrong:
           | 
           | https://github.com/ggml-org/llama.cpp/discussions/4110
        
           | spiderice wrote:
           | You may be right that the tradeoff is worth it, but it should
           | be advertised as such. You shouldn't think you're paying for
           | full o3, even if they're heavily discounting it.
        
           | code_biologist wrote:
           | I would like the option to pay for the unquantized version.
           | For creative or story writing (D&D campaign materials and
           | such) quantization seems to end up in much weaker word
           | selection and phrasing. There are small semantic missteps
           | that break the illusion the LLM understands what it's
           | writing. I find it jarring and deeply immersion breaking. I'd
           | prefer prototype prompts on a cheaper quantized version, but
           | I want to be able to spend 50 cents an API call to get golden
           | output.
        
         | CSMastermind wrote:
         | This is almost certainly what they're doing and rebranding the
         | original o3 model as "o3-pro"
        
           | behnamoh wrote:
           | > rebranding the original o3 model as "o3-pro"
           | 
           | interesting take, I wouldn't be surprised if they did that.
        
           | anticensor wrote:
           | -pro models appear to be a best-of-10 sampling of the
           | original full size model
        
             | Szpadel wrote:
             | how do you sample it behind the scenes? usually best of X
             | means you generate X outputs and you choose best result.
             | 
             | if you could do this automatically, it would be game
             | changer as you could run top 5 best models in parallel and
             | select best answer every time
             | 
             | but it's not practical because you are the bottleneck as
             | you have to read all 5 solutions and compare them
        
               | joshstrange wrote:
               | I think the idea is they use another/same model to judge
               | all the results and only return the best one to the user.
        
               | anticensor wrote:
               | I think the idea is they just feed each to the RLHF
               | reward model used to train the model and return the most
               | rewarded answer.
        
               | anticensor wrote:
               | > if you could do this automatically, it would be game
               | changer as you could run top 5 best models in parallel
               | and select best answer every time
               | 
               | remember they have access to the RLHF reward model,
               | against which they can evaluate all N outputs and have
               | the most "rewarded" answer picked and sent
        
               | spott wrote:
               | I believe it is a majority vote kinda thing, rather than
               | a best single result.
        
           | tedsanders wrote:
           | Nope, not what we're doing.
           | 
           | o3 is still o3 (no nerfing) and o3-pro is new and better than
           | o3.
           | 
           | If we were lying about this, it would be really easy to catch
           | us - just run evals.
           | 
           | (I work at OpenAI.)
        
             | bn-l wrote:
             | Not quantized?
        
               | tedsanders wrote:
               | Not quantized. Weights are the same.
               | 
               | If we did change the model, we'd release it as a new
               | model with a new name in the API (e.g.,
               | o3-turbo-2025-06-10). It would be very annoying to API
               | customers if we ever silently changed models, so we never
               | do this [1].
               | 
               | [1] `chatgpt-4o-latest` being an explicit exception
        
               | ant6n wrote:
               | It was definitely annoying when o1 disappeared over
               | night, my impression is that was better at some tasks
               | than o3.
        
               | thegeomaster wrote:
               | Google could at least learn something from this attitude,
               | given their recent 03-25 -> 05-06 model alias switcharoo
               | with 0 notice :)
        
               | johnb231 wrote:
               | That is a preview / beta model with no expectation of
               | stability. Google did nothing wrong there. No one should
               | be using a preview model in production.
        
               | thegeomaster wrote:
               | Hard disagree. Of course technically they didn't do
               | anything explicitly against the public guidance (the
               | checks and balances would never let them), but naming a
               | model with a date very strongly implies immutability.
               | 
               | It's the same logic of why UB in C/C++ isn't a license to
               | do whatever the compiler wants. We're humans and we
               | operate on implications, common-sense assumptions and
               | trust.
        
               | johnb231 wrote:
               | The model is labelled as Preview. There are no guarantees
               | of stability or availability for Preview models. Not
               | intended for production workloads.
               | 
               | https://cloud.google.com/products?hl=en#product-launch-
               | stage...
               | 
               | "At Preview, products or features are ready for testing
               | by customers. Preview offerings are often publicly
               | announced, but are not necessarily feature-complete, and
               | no SLAs or technical support commitments are provided for
               | these. Unless stated otherwise by Google, Preview
               | offerings are intended for use in test environments only.
               | The average Preview stage lasts about six months."
        
               | refulgentis wrote:
               | There hasn't been a non-preview Gemini since...November?
               | The previews are the same as everyone else's release
               | cadance, "preview" is just a magic wand that meant the
               | Launchcal (google's internal signoff tool, i.e. "wave
               | will never happen again) needs less signoffs. Then it got
               | to the point date-pinned models were getting swapped in,
               | in the name of doing us a favor, and it's a...novel idea,
               | we can both agree at the least.
               | 
               | I bet someone at Google would be a bit surprised to see
               | someone jumping to legalese to act like
               | this...novelty...is inherently due to the preview status,
               | and based on anything more than a sense that there's no
               | net harm done to us if it costs the same and is better.
               | 
               | I'm not sure they're wrong.
               | 
               | But it also leads to a sort of "nobody knows how anything
               | works because we have 2^N configs and 5 bits" - for
               | instance, 05-06 was also upgraded to 06-05. Except it
               | wasn't, if you sent variable thinking to 05-06 after
               | upgrade it'd fail. (and don't get me started on the 5
               | different thinking configurations for Gemini 2.5 flash
               | thinking vs. gemini 05-06 vs. 06-05 and 0 thinking)
        
               | johnb231 wrote:
               | I honestly have no idea what you are trying to say.
               | 
               | It's a preview model - for testing only, not for
               | production. Really not that complicated.
        
               | refulgentis wrote:
               | So you don't have anything to contribute beyond, and
               | aren't interested in anything beyond, citing of terms?
               | 
               | Why are you in the comments section of a engineering news
               | site?
               | 
               | (note: beyond your, excuse me while I'm direct now,
               | boorish know-nothing reply, the _terms you are citing
               | have nothing to do with the thing people are actually
               | discussing around you_ , despite your best efforts. It
               | doesn't say "we might swap in a new service, congrats!",
               | nor does it have anything to say about that. Your
               | legalese at most describes _why they 'd pull 05-06_, not
               | _forward 05-06 to 06-05_. This is a novel idea.)
        
               | johnb231 wrote:
               | This case was simply a matter of people not understanding
               | the terms of service. There is nothing more to be said.
               | It's that simple. The "engineers" should know that before
               | deploying to prod. Basic competence.
               | 
               | And I mean I genuinely do not understand what you are
               | trying to say. Couldn't parse it.
        
               | refulgentis wrote:
               | John, do you understand that the thing you're quoting
               | says "We reserve the right to pull things", not "We
               | reserve the right to swap in a new service"?
               | 
               | Do you understand that even if it did say that, _that
               | wasn 't true either_? It was some weird undocumentable
               | half-beast?
               | 
               | I have exactly your attitude about their cavalier use of
               | preview for all things Gemini, and even people's use of
               | the preview models.
               | 
               | But I've also been on this site for 15 years and am a bit
               | wow'd by your interlocution style here -- it's quite rare
               | to see someone flip "the 3P provider swapped the service
               | on us!" into "well they said they could turn it off, of
               | course you should expect it to be swapped for the first
               | time ever!" _insert dull sneer about the quality of other
               | engineers_
        
               | johnb231 wrote:
               | How is this so hard to understand? It's a preview service
               | for testing only, not intended for production.
               | 
               | I am done with this thread. We are going around in
               | circles.
        
               | refulgentis wrote:
               | Well, no. Well, sure. You're done, but we're not going in
               | circles. It'd just do too much damage to you to have to
               | answer the simple question "Where does the legalese say
               | they can swap in a new service?", so you have to pretend
               | this is circular and just all-so-confusing, de facto, we
               | have to pretend it is confusing and/or obviously wrong to
               | use any Gemini 2+ at all.
               | 
               | It's a cute argument, as I noted, I'm emotionally
               | sympathetic to it even, it's my favorite "get off my
               | lawn." However, I've also been on the Internet long
               | enough to know you write back, at length, when people try
               | anti-intellectualism and why-are-we-even-talking-about-
               | this as interaction.
        
               | johnb231 wrote:
               | https://cloud.google.com/terms/service-terms
               | 
               | "b. Disclaimer. PRE-GA OFFERINGS ARE PROVIDED "AS IS"
               | WITHOUT ANY EXPRESS OR IMPLIED WARRANTIES OR
               | REPRESENTATIONS OF ANY KIND. Pre-GA Offerings (i) may be
               | changed, suspended or discontinued at any time without
               | prior notice to Customer and (ii) are not covered by any
               | SLA or Google indemnity. Except as otherwise expressly
               | indicated in a written notice or Google documentation,
               | (A) Pre-GA Offerings are not covered by TSS, and (B) the
               | Data Location Section above will not apply to Pre-GA
               | Offerings."
        
               | lcnPylGDnU4H9OF wrote:
               | > And I mean I genuinely do not understand what you are
               | trying to say. Couldn't parse it.
               | 
               | It's always worth considering that this may be your
               | problem. If you still don't get it, the only valuable
               | reply is one which asks a question. Also, including "it's
               | not that complicated" only serves to inflame.
        
               | 0xbadcafebee wrote:
               | There's a very large gulf between "what makes sense to
               | Google" and "what makes sense to Human Beings". I have so
               | many rants about Google's poor treatment of "customers"
               | that they feel like Oracle to me now. Like every time I
               | use them, I'm really just falling prey to my own
               | misguided idea that _this_ time I won 't get screwed
               | over.
        
               | johnb231 wrote:
               | The users aren't random "human beings" in this case. They
               | are professional software developers who are expected to
               | understand the basics. Deploying that model into
               | production shows a lack of basic competence. It is
               | clearly marked "preview" and is for test only.
        
               | 0xbadcafebee wrote:
               | That may be true, but it doesn't make the customer's
               | claims _not_ true. What Google did was counter-intuitive.
               | That 's a fact. Pointing at some fine print and saying
               | "uhh actually, technically it's your stupid human brain
               | is the problem, not us! we technically are allowed to do
               | anything we want, just look at the fine print!!" does not
               | make things better. We are human beings; we are flawed.
               | That much should be obvious to any human organization. If
               | you don't know how to make things that don't piss off
               | human beings, the problem isn't with the humans.
               | 
               | If the "preview release" you were using was v0.3, and
               | suddenly it started being v0.6 without warning, that
               | would be insane. The only point of providing a version
               | number is to give people an indicator of consistency. The
               | datestamp is a version number. If they didn't want us to
               | expect consistency, they _should not have given it a
               | version number_. That 's the whole point of rolling
               | release branches, they have no version. You don't have
               | "v2.0" of a rolling release, you just have "latest". They
               | fucked up by giving it a datestamp.
               | 
               | This is an extremely old and well-known problem with
               | software interfaces. Either you version it or you don't.
               | If you do version it, and change it, you change the
               | version, and give people dependent on the old version
               | some time to upgrade. Otherwise it breaks things, and
               | that pisses people off. The alternative is _not_
               | versioning it, which is a signal that there is no
               | consistency to be expected. Any decent software developer
               | should have known all this.
               | 
               | And while I'm at it: what's with the name flip-flopping?
               | In 2014, GCP issued a PR release explaining _It was no
               | longer using "Preview", but "Alpha" and "Beta"_
               | (https://cloudplatform.googleblog.com/2014/10/new-
               | release-pha...). But the link you showed earlier says
               | "Alpha" and "Beta" are now deprecated. But no PR release?
               | I guess that's our bad for not constantly reading the
               | fine print and expecting it to revert back to something
               | from 11 years ago.
        
               | linsomniac wrote:
               | >we'd release it as a new model with a new name
               | 
               | Speaking of a new name. I'll donate the API credits to
               | run a "choose a naming scheme for AI models that isn't
               | confusing AF" for OpenAI.
        
             | MattDaEskimo wrote:
             | What's with the dropped benchmark performance compared to
             | the original o3 release? It was disappointing to not see
             | o4-mini on it as well
        
               | refulgentis wrote:
               | What dropped benchmark performance?
        
               | MattDaEskimo wrote:
               | o3 scores noticeably worse on benchmarks compared to its
               | original announcement benchmarks
        
               | refulgentis wrote:
               | Any link / source / anything? You got quite an
               | opportunity here, OpenAI employee claiming there's no
               | difference and you got something that shows there is.
        
               | MattDaEskimo wrote:
               | Yes, the original announcement for o3 and o4-mini:
               | 
               | https://openai.com/index/introducing-o3-and-o4-mini/
               | 
               | o3 scored 91.6 on AIME 2024. 83.3 on GPQA
               | 
               | o4-mini scored 93.4, 81.4 GPQA
               | 
               | Then, the new announcement
               | 
               | https://help.openai.com/en/articles/6825453-chatgpt-
               | release-...
               | 
               | o3 scored 90 on AIME 2024, 81 GPQA
               | 
               | o4-mini wasn't measured
               | 
               | ---
               | 
               | Codeforces is the same, but they have a footnote that
               | they're using a different dataset due to saturation, but
               | still have no grounding model to compare with
        
             | energy123 wrote:
             | Is it o3 (low), o3 (medium) or o3 (high)? Different model
             | names have crept into the various benchmarks over the last
             | few months.
        
               | tedsanders wrote:
               | o3 is a model, and reasoning effort (high/medium/low) is
               | a parameter that goes into the model.
               | 
               | o3 pro is a different thing - it's not just o3 with
               | maximum remaining effort.
        
               | fragmede wrote:
               | Could someone there maybe possibly use, oh I dunno,
               | ChatGPT and come up with some better product names?
        
               | tauntz wrote:
               | Why's it called o3 then if it's a different thing?
               | There's already a rather extreme amount of confusion with
               | the model names and it's not clear _at all_ which model
               | would be "the best" in terms of response quality.
               | 
               | Here's the current state with version numbers as far as I
               | can piece it together (using my best guess at naming of
               | each component of the version identifier. Might be
               | totally wrong tho):
               | 
               | 1) prefix (optional): "gpt-", "chatgpt-"
               | 
               | 2) family (required): o1, o3, o4, 4o, 3.5, 4, 4.1, 4.5,
               | 
               | 3) quality? (optional): "nano", "mini", "pro", "turbo"
               | 
               | 4) type (optional): "audio", "search"
               | 
               | 5) lifecycle (optional): "preview", "latest"
               | 
               | 6) date (optional): 2025-04-14, 2024-05-13, 1106, 0613,
               | 0125, etc (I assume the last ones are a date without a
               | year for 2024?)
               | 
               | 7) size (optional): "16k"
               | 
               | Some final combinations of these version number
               | components are as small as 1 ("o3") or as large as 6
               | ("gpt-4o-mini-search-preview-2024-12-17").
               | 
               | Given this mess, I can't blame people assuming that the
               | "best" model is the one with the "biggest" number, which
               | would rank the model families as: 4.5 (best) > 4.1 > 4 >
               | 4o > o4 > 3.5 > o3 > o1 (worst).
        
               | rat9988 wrote:
               | o3 and o3-pro aren't the same thing still makes sense
               | though.
        
               | energy123 wrote:
               | My guess is this comes from an org structure where you
               | have multiple "pods" working on different research. Who
               | comes up with the next shippable model and when that
               | happens is kind of random and the chaotic naming system
               | comes from that. It's just my speculation and could be
               | wildly wrong.
        
               | tedsanders wrote:
               | o3 pro is based on o3 and its style and outputs will be
               | quite similar to o3.
               | 
               | As an analogy, think of it like this:
               | 
               | o3-low ~ Ford Mustang with the accelerator gently pressed
               | 
               | o3-medium ~ Ford Mustang with the accelerator pressed
               | 
               | o3-high ~ Ford Mustang with the accelerator heavily
               | pressed
               | 
               | o3 pro ~ Ford Mustang GT
               | 
               | Even though a Mustang GT is a different car than a
               | Mustang, you don't give it a totally different name (eg
               | Palomino). The similarity in name signals it has a lot of
               | the same characteristics but a souped up engine. Same for
               | o3 pro.
               | 
               | Fun fact: before GPT-4, we had a unified naming scheme
               | for models that went {modality}-{size}-{version}, which
               | resulted in names like text-davinci-002. We considered
               | launching GPT-4 as something like text-earhart-001, but
               | since everyone was calling it GPT-4 anyway, we abandoned
               | that system to use the name GPT-4 that everyone had
               | already latched onto. Kind of funny how our original
               | unified naming scheme made room for 999 versions, but we
               | didn't make it past 3.
               | 
               | Edit: When I say the Mustang GT is a different car than a
               | Mustang - I mean it literally. If you bought a Mustang GT
               | and someone delivered a Mustang with a different trim,
               | you wouldn't say "great, this is just what I ordered,
               | with the same features/behavior/value." That we call it a
               | different trim is a linguistic choice to signal to
               | consumers that it's very similar, and built on the same
               | production line, but comes with a different engine or
               | different features. Similar to o3 pro.
        
               | stonogo wrote:
               | This analogy might work better if the Mustang GT weren't,
               | in fact, the same car as the Mustang. It's just a trim
               | level, not a different car.
        
               | dwohnitmok wrote:
               | Can you elaborate on what you mean that o3 pro is a GT?
               | In particular I don't understand how to reconcile what
               | you're saying that o3 pro is in some way fundamentally
               | different from o3 (albeit based on o3) with this tweet:
               | 
               | > As o3-pro uses the same underlying model as o3, full
               | safety details can be found in the o3 system card.
               | 
               | https://x.com/OpenAI/status/1932530423911096508
        
               | tedsanders wrote:
               | Yeah, I totally get the confusion here. Unfortunately I
               | can't give the recipe behind our models, so there's going
               | to be some irreducible blurriness here, but the following
               | statements are all true:
               | 
               | - o3 pro is based on o3
               | 
               | - o3 pro uses the same underlying model as o3
               | 
               | - o3 pro is similar to o3, but is a distinct thing that's
               | smarter and slower
               | 
               | - o3 pro is not o3 with longer reasoning
               | 
               | In my analogy, o3 pro vs o3 is more than just an input
               | parameter (e.g., not just the accelerator input) but less
               | than a full difference in model (e.g., Ford Mustang vs
               | F150). It's in between, kind of like car trim with the
               | same body but a stronger engine. Imperfect analogy, and I
               | apologize if this doesn't feel like it adds any clarity.
               | At the end of the day, it doesn't really matter how it
               | works - what matters is if people find it worth using.
        
             | csomar wrote:
             | I think the parent-parent poster has explained why we can't
             | trust you (and work on OpenAI doesn't help they way you
             | think it does).
             | 
             | I didn't read the ToS, like everyone else, but my guess is
             | that degrading model performance at peak times will be one
             | of the things that can slip through. We are not suggesting
             | you are running a different model but that you are
             | quantizing it so that you can support more people.
             | 
             | This can't happen with Open weight models where you put the
             | model, allocate the memory and run the thing. With
             | OpenAI/Claude, we don't know the model running, how large
             | it is, what it is running on, etc... None of that is
             | provided and there is only one reason that I can think of:
             | to be able to reduce resources unnoticed.
        
               | rfoo wrote:
               | An (arbitrarily) quantized model is a totally different
               | model, compared to the original.
        
               | Reubachi wrote:
               | I'm not totally sure how you at this point in your online
               | presence associate someone stating their job as a "brag"
               | and not what it really is, providing
               | transparency/disclosure before stating their thoughts.
               | 
               | This is HN and not reddit.
               | 
               | "I didn't read the ToS, like everyone else, but my
               | guess..."
               | 
               | Ah, there it is.
        
             | fastball wrote:
             | Anecdotal, but about a week ago I noticed a sharp drop in
             | o3 performance. For many tasks I will compare Gemini 2.5
             | Pro with o3, running the same prompt in both. Generally for
             | my personal use o3 and G2.5P have been neck-and neck over
             | the last months, with responses I have been very happy
             | with.
             | 
             | However starting from a week ago, the o3 responses became
             | noticeably worse, with G2.5P staying about the same (in
             | terms of what I've come to expect from the two models).
             | 
             | This alongside the news that you guys have decreased the
             | price of o3 by 80% does _really_ make it feel like you 've
             | quantized the model or knee-capped thinking or something.
             | If you say it is wholly unchanged I'll believe you, but not
             | sure how else to explain the (admittedly subjective)
             | performance drop I've experienced.
        
               | IanCal wrote:
               | Are you sure you're using the same models? G2.5P updated
               | almost exactly a week ago.
        
             | fny wrote:
             | Unrelated: Can you all come up with a better naming scheme
             | for your models? I feel like this is a huge UX miss.
             | 
             | o4-mini-high o4-mini o3 o3-pro gpt-4o
             | 
             | Oy.
        
             | meta_ai_x wrote:
             | Just because you work at openAI doesn't mean you know
             | everything about openAI especially as strategic as nerfing
             | models to save costs
        
           | mliker wrote:
           | Where are you getting this information? What basis do you
           | have for making this claim? OpenAI, despite its public drama,
           | is still a massive brand and if this were exposed, would tank
           | the company's reputation. I think making baseless claims like
           | this is dangerous for HN
        
             | beering wrote:
             | I think Gell-Mann amnesia happens here too, where you can
             | see how wrong HN comments are on a topic you know deeply,
             | but then forget about that when reading the comments on
             | another topic.
        
         | ants_everywhere wrote:
         | Is this what happened to Gemini 2.5 Pro? It used to be very
         | good, but it's started struggling on basic tasks.
         | 
         | The thing that gets me is it seems to be lying about fetching a
         | web page. It will say things are there that were never on any
         | version of the page and it sometimes takes multiple screenshots
         | of the page to convince it that it's wrong.
        
           | SparkyMcUnicorn wrote:
           | The Aider discord community has proposed and disproven the
           | theory that 2.5 Pro became worse, several times, through many
           | benchmark runs.
           | 
           | It had a few bugs here or there when they pushed updates, but
           | it didn't get worse.
        
             | ants_everywhere wrote:
             | Gemini is objectively exhibiting new behavior with the same
             | prompts and that behavior is unwelcome. It includes
             | hallucinating information and refusing to believe it's
             | wrong.
             | 
             | My question is not whether this is true (it is) but why
             | it's happening.
             | 
             | I am willing to believe the aider community has found that
             | Gemini has maintained approximately equivalent performance
             | on fixed benchmarks. That's reasonable considering they
             | probably use a/b testing on benchmarks to tell them whether
             | training or architectural changes need to be reverted.
             | 
             | But all versions of aider I've tested, including the most
             | recent one, don't handle Gemini correctly so I'm skeptical
             | that they're the state of the art with respect to bench-
             | marking Gemini.
        
               | SparkyMcUnicorn wrote:
               | Gemini 2.5 Pro is the highest ranking model on the aider
               | benchmarks leaderboard.
               | 
               | For benchmarks, either Gemini writes code that adheres to
               | the required edit format, builds successfully, and passes
               | unit tests, or it doesn't.
               | 
               | I primarily use aider + 2.5 pro for planning/spec files,
               | and occasionally have it do file edits directly. Works
               | great, other than stopping it mid-execution once in a
               | while.
        
           | code_biologist wrote:
           | My use case is mostly creative writing.
           | 
           | IMO 2.5 Pro 03-25 was insanely good. I suspect it was also
           | very expensive to run. The 05-06 release was a huge
           | regression in quality, most people saying it was a better
           | coder and a worse writer. They tested a few different
           | variants and some were less bad then others, but overall it
           | was painful to lose access to such a good model. The just
           | released 06-05 version seems to be uniformly better than
           | 05-06, with far fewer "wow this thing is dumb as a rock"
           | failure modes, but it still is not as strong as the 03-25
           | release.
           | 
           | Entirely anecdotally, 06-05 seems to exactly ride the line of
           | "good enough to be the best, but no better than that"
           | presumably to save costs versus the OG 03-25.
           | 
           | In addition, Google is doing something notably different
           | between what you get on AI Studio versus the Gemini site/app.
           | Maybe a different system prompt. There have been a lot of
           | anecdotal comparisons on /r/bard and I do think the AI Studio
           | version is better.
        
         | jstummbillig wrote:
         | You can just give it a go for very little money (in Windsurf
         | it's 1x right now), and see what it does. There is no room for
         | conspiracy here, because you can simple look at what it does.
         | If you don't like it, so won't others, and then people will not
         | use it. People are obviously very capable of (collectively)
         | forming opinions on models, and then vote with their wallet.
        
         | resters wrote:
         | It's probably optimized in some way, but if the optimizations
         | degrade performance, let's hope it is reflected in various
         | benchmarks. One alternative hypothesis is that it's the same
         | model, but in the early days they make it think "harder" and
         | run a meta-process to collect training data for reinforcement
         | learning for use on future models.
        
           | SparkyMcUnicorn wrote:
           | It's a bit dated now, but it would be cool if people
           | submitted PRs for this one:
           | https://aider.chat/docs/leaderboards/by-release-date.html
        
             | __mharrison__ wrote:
             | Dated? This was updated yesterday
             | https://aider.chat/docs/leaderboards/
        
               | SparkyMcUnicorn wrote:
               | My link is to the benchmark results _over time_.
               | 
               | The main leaderboard page that you linked to is updated
               | quite frequently, but it doesn't contain multiple
               | benchmarks for the same exact model.
        
         | carter-0 wrote:
         | An OpenAI researcher claims it's the exact same model on X:
         | https://x.com/aidan_mclau/status/1932507602216497608
        
         | segmondy wrote:
         | you don't, so run your own model.
        
         | EnPissant wrote:
         | The API lists o3 and o3-2025-04-16 as the same thing with the
         | same price. The date based models are set in stone.
        
         | hyperknot wrote:
         | I got 700+ tokens/sec on o3 after the announcement, I suspect
         | it's very much a quantized version.
         | 
         | https://x.com/hyperknot/status/1932476190608036243
        
           | dist-epoch wrote:
           | Or maybe they just brought online much faster much cheaper
           | hardware.
        
             | az226 wrote:
             | Or they are using a speedy add-on decoder.
        
           | zackangelo wrote:
           | Is that input tokens or output tokens/s?
        
           | beering wrote:
           | Do you also have numbers on intelligence before and after?
        
         | Bjorkbat wrote:
         | Related, when o3 finally came out ARC-AGI updated their graph
         | because it didn't perform nearly as well as the version of o3
         | that "beat" the benchmark.
         | 
         | https://arcprize.org/blog/analyzing-o3-with-arc-agi
        
           | beering wrote:
           | The o3-preview test was with very expensive amounts of
           | compute, right? I remember it was north of $10k so makes
           | sense it did better
        
             | Bjorkbat wrote:
             | Point remains though, they crushed the benchmark using a
             | specialized model that you'll probably never have access
             | to, whether personally or through a company.
             | 
             | They inflated expectations and then released to the public
             | a model that underperforms
        
               | throwaway314155 wrote:
               | They revealed the price points for running those
               | evaluations. IIRC the "high" level of reasoning cost tens
               | of thousands of dollars if not more. I don't think they
               | really inflated expectations. In fact a lot of what we
               | learned is that ARC-AGI probably isn't a very good AGI
               | evaluation (it claims to not be one, but the name
               | suggests otherwise).
        
         | ctoth wrote:
         | From the announcement email:
         | 
         | > Today, we dropped the price of OpenAI o3 by 80%, bringing the
         | cost down to $2 / 1M input tokens and $8 / 1M output tokens.
         | 
         | > We optimized our inference stack that serves o3--this is the
         | same exact model, just cheaper.
        
         | smusamashah wrote:
         | Hw about testing same input vs output with same seed on
         | different dates. If its a different model it will return
         | different output.
        
           | zomnoys wrote:
           | Isn't this not true since these models run with a non-zero
           | temperature?
        
             | smusamashah wrote:
             | You can set the temperature too.
        
         | luke-stanley wrote:
         | I think the API has some special IDs to check for
         | reproducibility of the environment.
        
         | tedsanders wrote:
         | It's the same model, no quantization, no gimmicks.
         | 
         | In the API, we never make silent changes to models, as that
         | would be super annoying to API developers [1]. In ChatGPT, it's
         | a little less clear when we update models because we don't want
         | to bombard regular users with version numbers in the UI, but
         | it's still not totally silent/opaque - we document all model
         | updates in the ChatGPT release notes [2].
         | 
         | [1] chatgpt-4o-latest is an exception; we explicitly update
         | this model pointer without warning.
         | 
         | [2] ChatGPT Release Notes document our updates to gpt-4o and
         | other models:
         | https://help.openai.com/en/articles/6825453-chatgpt-release-...
         | 
         | (I work at OpenAI.)
        
         | az226 wrote:
         | Even classic GPT-4 from March 2023 was quantized to 4.5 bits.
        
         | rfoo wrote:
         | I don't work for OAI so obviously I can't say for them. But we
         | don't do this.
         | 
         | We don't make hobbyist mistakes of randomly YOLO trying various
         | "quantization" methods that only happen after all training and
         | claim it a day, at all. Quantization was done before it went
         | live.
        
       | visiondude wrote:
       | always seemed to me that efficient caching strategies could
       | greatly reduce costs... wonder if they cooked up something new
        
         | xmprt wrote:
         | How are LLMs cached? Every prompt would be different so it's
         | not clear how that would work. Unless you're talking about
         | caching the model weights...
        
           | koakuma-chan wrote:
           | A lot of the prompt is always the same: the instructions, the
           | context, the codebase (if you are coding), etc.
        
           | amanda99 wrote:
           | You would use a KV cache to cache a significant chunk of the
           | inference work.
        
             | biophysboy wrote:
             | Do you mean that they provide the same answer to verbatim-
             | equivalent questions, and pull the answer out of storage
             | instead of recalculating each time? I've always wondered if
             | they did this.
        
               | koakuma-chan wrote:
               | The prompt may be the same but the seed is different
               | every time.
        
               | biophysboy wrote:
               | Could you not cache the top k outputs given a provided
               | input token set? I thought the randomness was applied at
               | the end by sampling the output distribution.
        
               | Traubenfuchs wrote:
               | I bet there is a set of repetitive single, or two,
               | question user requests that makes out a sizeable amount
               | of all requests. The models are so expensive to run, 1%
               | would be enough. Much less than 1%. To make it less
               | obvious they probably have a big set of response
               | variants. I don't see how they would not do this.
               | 
               | They probably also have cheap code or cheap models that
               | normalize requests to increase cache hit rate.
        
             | xmprt wrote:
             | Using KV in the caching context is a bit confusing because
             | it usually means key-value in the storage sense of the word
             | (like Redis), but for LLMs, it means the key and value
             | tensors. So IIUC, the cache will store the results of the K
             | and V matrix multiplications for a given prompt and the
             | only computation that needs to be done is the Q and
             | attention calculations.
        
           | hadlock wrote:
           | I've asked it a question not in it's dataset three different
           | ways and I see the same three sentences in the response, word
           | for word, which could imply it's caching the core answer. I
           | hadn't previously seen this behavior before this last week.
        
           | HugoDias wrote:
           | This document explains the process very well. It's a good
           | read: https://platform.openai.com/docs/guides/prompt-caching
        
             | xmprt wrote:
             | That link explains how OpenAI uses it, but doesn't really
             | walk through how it's any faster. I thought the whole point
             | of transformers was that inference speed no longer depended
             | on prompt length. So how does caching the prompt help
             | reduce latency if the outputs aren't being cached.
             | 
             | > Regardless of whether caching is used, the output
             | generated will be identical. This is because only the
             | prompt itself is cached, while the actual response is
             | computed anew each time based on the cached prompt
        
               | singron wrote:
               | > I thought the whole point of transformers was that
               | inference speed no longer depended on prompt length
               | 
               | That's not true at all and is exactly what prompt caching
               | is for. For one, you can at least populate the attention
               | KV Cache, which will scale with the prompt size. It's
               | true that if your prompt is larger than the context size,
               | then the prompt size no longer affects inference speed
               | since it essentially discards the excess.
        
             | catlifeonmars wrote:
             | > OpenAI routes API requests to servers that recently
             | processed the same prompt,
             | 
             | My mind immediately goes to rowhammer for some reason.
             | 
             | At the very least this opens up the possibility of some
             | targeted denial of service
        
               | xmprt wrote:
               | Later they mention that they have some kind of rate
               | limiting because if over ~15 requests are being processed
               | per minute, the request will be sent to a different
               | server. I guess you could deny cache usage but I'm not
               | sure what isolation they have between different callers
               | so maybe even that won't work.
        
               | catlifeonmars wrote:
               | 15 requests/min is pretty low. Depending on how large the
               | fleet is you might end up getting load balanced to the
               | same one and if it's round robin then it would be
               | deterministic
        
               | catlifeonmars wrote:
               | So the doc mentions you can influence the cache key by
               | passing an optional user parameter. It's unclear from the
               | doc whether the user parameter is validated or if you can
               | just provide an arbitrary string.
        
           | tasuki wrote:
           | > Every prompt would be different
           | 
           | No? Eg "how to cook pasta" is probably asked a lot.
        
       | candiddevmike wrote:
       | It's going to be a race to the bottom, they have no moat.
        
         | rvnx wrote:
         | Especially now that they are second in the race (behind
         | Anthropic) and lot of free-to-download and free-to-use models
         | are now starting to be viable competitors.
         | 
         | Once new MacBooks and iPhones have enough memory onboard this
         | is going to be a disaster for OpenAI and other providers.
        
           | mattnewton wrote:
           | I'm not sure they're scared of Anthropic - they're doing
           | great work but afaict running into some scaling issues and
           | really focused on winning over developers at the moment.
           | 
           | If I was OpenAI (or Anthropic for that matter) I would remain
           | scared of Google, who is now awake and able to dump Gemini
           | 2.5 pro on the market at costs that I'm not sure people
           | without their own hardware can compete with, and with the
           | infrastructure to handle everyone switching to them tomorrow.
        
             | itomato wrote:
             | Codex Research Preview appeared in my account in the early
             | AM.
        
             | piuantiderp wrote:
             | Google is going to lap them. The hardware muscle they have
             | has not even started flexing
        
           | koakuma-chan wrote:
           | What do you mean, Google is number 1
        
           | aerhardt wrote:
           | OpenAI are second in the race to Anthropic in some benchmarks
           | (maybe?), but OpenAI still dwarves Anthropic in distribution
           | and popularity.
        
             | ratedgene wrote:
             | That's slowly changing. I know some relatively non-tech
             | savvy young people using things like Claude for various
             | reasons, so people are exploring options.
        
               | jstummbillig wrote:
               | Very, _very_ slowly.
               | 
               | OpenAI vs Anthropic on Google Trends
               | 
               | https://trends.google.com/trends/explore?date=today%203-m
               | &q=...
               | 
               | ChatGPT vs Claude on Google Trends
               | 
               | https://trends.google.com/trends/explore?date=today%203-m
               | &q=...
        
               | rvnx wrote:
               | This is such a big difference, thank you for sharing it,
               | I didn't expect the gap to be _that_ huge
        
               | sndean wrote:
               | I wonder how much of this is brand name? Like Kleenex.
               | Non-tech people might not search for LLM, generative AI,
               | etc. ChatGPT may just be what people have heard of. I'm
               | assuming OpenAI has a large advantage over Anthropic, and
               | the name helps, but I bet the name is exaggerating the
               | difference here a bit. Not everyone buys Kleenex branded
               | Kleenex.
        
               | jstummbillig wrote:
               | You are not going to find Claude when googling for
               | ChatGPT
        
           | jdprgm wrote:
           | While mac unified ram inference is great for prosumers+ I
           | really don't foresee Apple making 128GB+ options affordable
           | enough to be attractive for inference for the general public.
           | iPhone even less so considering the latest is only at 8GB.
           | Meanwhile the best model sizes will just keep growing.
        
           | paxys wrote:
           | Third behind Anthropic/Google. People are too quick to
           | discount mindshare though. For the vast majority of the
           | world's population AI = LLM = ChatGPT, and that itself will
           | keep OpenAI _years_ ahead of the competition as long as they
           | don 't blunder away that audience.
        
           | slashdev wrote:
           | Thrid for coding, after Anthropic, and Gemini, which was
           | leading last I checked.
        
         | joshuajooste05 wrote:
         | There was an article on here a week or two ago on batch
         | inference.
         | 
         | Do you not think that batch inference gives at least a bit of a
         | moat whereby unit costs fall with more prompts per unit of
         | time, especially if models get more complicated and larger in
         | the future?
        
           | minimaxir wrote:
           | Batch inference is not exclusive to OpenAI.
        
         | mrweasel wrote:
         | My understanding was that OpenAI couldn't make money at their
         | previous price point, and I don't think operation and training
         | cost have gone down sufficiently to make up for those short
         | comings. So how are they going to make money by lowering the
         | price by 80%?
         | 
         | I get the point is to be the last man standing, and poaching
         | customers by lowering the price, and perhaps attract a few
         | people who wouldn't have bought a subscription at the higher
         | price. I just question how long investors can justify pouring
         | money into OpenAI. OpenAI is also the poster child for modern
         | AI, so if they fail the market will react badly.
         | 
         | Mostly I don't understand Silicon Valley venture capital, but
         | dumping price, making wild purchases for investor money and
         | mostly only leading on branding, why isn't this a sign that
         | OpenAI is failing?
        
           | simonw wrote:
           | OpenAI's Adam Groth credits "engineers optimizing
           | inferencing" for the price drop:
           | https://twitter.com/TheRealAdamG/status/1932440328293806321
           | 
           | That seems likely to me, all of the LLM providers have been
           | consistently finding new optimizations for the past couple of
           | years.
        
         | m3kw9 wrote:
         | LLM inferencing is race to the bottom but the service layers on
         | top isn't. People always pay much more for convenience, those
         | are the thing OpenAI focuses on and is harder to replicate
        
         | Szpadel wrote:
         | for sure they are no longer clear winners, but they try to be
         | just barely on top of others.
         | 
         | right now new Gemini surpassed their o3 (barely) in benchmarks
         | for significantly less money so they cut pricing to be still
         | competitive.
         | 
         | I bet they didn't released o4 not because it's not competitive,
         | but because they are doing Nvidia game: release new product
         | that is just enough better to convince people to buy it. so IMO
         | they are holding full o4 model to have something to release
         | after competition release something better that their top horse
        
       | ninetyninenine wrote:
       | You know. because LLMs can only be built by corporations... but
       | because they're so easy to build, I see the price going down
       | massively thanks to competition. Consumers benefit because all
       | the companies are trying to out run each other.
        
         | codr7 wrote:
         | And then they all go out of business, since models cost a
         | fortune to build, and their fan club is left staring at their
         | computers trying to remember how to do anything without getting
         | it served on a silver plate.
        
           | merth wrote:
           | Investors pouring money, its probably impossible to go out of
           | business, at least for the big ones, until investors realise
           | this is wrong hill to die on.
        
             | codr7 wrote:
             | Which they will eventually; so the point stands, no matter
             | how unpopular with the AI excusers out there.
        
           | wrsh07 wrote:
           | I expect they don't go out of business: at worst they don't
           | start their next training run quite as aggressively and
           | instead let their new very good model be profitable for a
           | minute
           | 
           | Many many companies are currently thrilled to pay the current
           | model prices for no performance improvement for 2-3 years
           | 
           | We still have so many features to build on top of current
           | capabilities
        
         | croes wrote:
         | Easy doesn't mean cheap.
         | 
         | They need lots of energy and customers don't pay much, if they
         | pay at all
        
           | briian wrote:
           | Exactly,
           | 
           | The developers of AI models do have a moat, the cost of
           | training the model in the first place.
           | 
           | It's 90% of the low effort AI wrappers with little to no
           | value add who have no moat.
        
       | koakuma-chan wrote:
       | OpenAI dropped the price by so much that the server also went
       | down.
        
         | pbasista wrote:
         | Is the price drop really the reason for their recent outage?
         | 
         | Or is the price drop an attempt to cover up bad news about the
         | outage with news about the price drop?
        
           | johanyc wrote:
           | > Or is the price drop an attempt to cover up bad news about
           | the outage with news about the price drop?
           | 
           | This makes no sense. No way a global outage will get less
           | coverage than the price drop.
           | 
           | Also the earliest sign of price drop is this tweet 20 hrs ago
           | (https://x.com/OpenAIDevs/status/1932248668469445002), which
           | is earlier than the earliest outage reports 13hrs ago on
           | https://downdetector.com/status/openai/
        
             | koakuma-chan wrote:
             | > No way a global outage will get less coverage than the
             | price drop.
             | 
             | Have you seen today's outage on any news outlet? I have
             | not. Is there an HN thread?
        
               | johanyc wrote:
               | https://www.forbes.com/sites/tylerroush/2025/06/10/chatgp
               | t-o...
        
       | biophysboy wrote:
       | I don't know if this is OpenAI's intention, but the little
       | message "you've reached your usage limit!" is actively
       | disincentivizing me from subscribing. For my purposes, the free
       | model is more than good enough; the difference before and after
       | is negligible. I honestly wouldn't pay a dollar.
       | 
       | That said, I'm absolutely willing to hear people out on "value-
       | adds" I am missing out on; I'm not a knee-jerk hater (For
       | context, I work with large, complex & private
       | databases/platforms, so its not really possible for me to do
       | anything but ask for scripting suggestions).
       | 
       | Also, I am 100% expecting a sad day when I'll be forced to
       | subscribe, unless I want to read dick pill ads shoehorned in to
       | the answers (looking at you, YouTube). I do worry about getting
       | dependent on this tool and watching it become enshittified.
        
         | Traubenfuchs wrote:
         | > "you've reached your usage limit!"
         | 
         | Just switch to a competitors free offering. There are enough to
         | cycle through not to be hindered by limits. I wonder how much
         | money I have cost those companies by now?
         | 
         | How anyone believes there is any moat for anyone here is beyond
         | me.
        
           | wrsh07 wrote:
           | I expect the answer is <$1 as someone who shares a discord
           | server with a friend where we egregiously ping the models
        
         | wrsh07 wrote:
         | o3 is so good it's worth paying for a minute (just for plus)
         | just to see what it's like
         | 
         | I've never used anything like it. I think new Claude is
         | similarly capable
        
       | lvl155 wrote:
       | Google has been catching up. Funny how fast this space is
       | evolving. Just a few months ago, it was all about DeepSeek.
        
         | bitpush wrote:
         | Many would say Google's Gemini models are SOTA, although Claude
         | seems to be doing well with coding tasks.
        
           | snarf21 wrote:
           | Gemini has been better than Claude for me on a coding
           | project. Claude kept telling me it update some code but the
           | update wasn't in the output. Like, I had to re-prompt just
           | for updated output 5 times in a row.
        
             | jacob019 wrote:
             | I break out Gemini 2.5 pro when Claude gets stuck, it's
             | just so slow and verbose. Claude follows instructions
             | better and seems to better understand it's role in agentic
             | workflows. Gemini does something different with the
             | context, it has a deeper understanding of the control flow
             | and can uncover edge case bugs that Claude misses. o3 seems
             | better at high level thinking and planning, questioning if
             | it should it be done and whether the challenge actually
             | matches the need. They're kind of like colleagues with
             | unique strengths. o3 does well with a lot of things, I just
             | haven't used it as much because of the cost. Will probably
             | use it more now.
        
         | johan914 wrote:
         | I have been using Google's models the past couple months, and
         | was surprised to see how sycophantic chatGPT is now. It's not
         | just at the start or end of responses, it's interspaced within
         | the markdown, with little substance. Asking it to change its
         | style makes it overuse technical terms.
        
         | resource_waste wrote:
         | Deepseek was exciting because you could download their model.
         | They are seemingly 3rd place and have been since Gemini 2.5.
        
           | Squarex wrote:
           | I would put them on the fourth after Google, OpenAI and
           | Anthropic. Still the best open weight llm.
        
         | ookdatnog wrote:
         | If the competition boils down to who has access to the largest
         | amount of high quality data, it's hard to see how anyone but
         | Google could win in the end: through Google Books they have
         | scans of tens of millions of books, and published books are the
         | highest quality texts there are.
        
           | itake wrote:
           | I've been learning vietnamese. Unfortunately, a lot of social
           | media (reddit, fb, etc) has a new generation of language. The
           | younger generation uses so much abbreviations and acronyms,
           | ChatGPT and Google Translate can't keep up.
           | 
           | I think if you're goal is to have properly written langauge
           | using older writing styles, then you're correct.
        
             | ookdatnog wrote:
             | I don't think it's simply a stylistic matter: it seems
             | reasonable to assume that text in books tends to have
             | higher information density, and contains longer and more
             | complicated arguments (when compared to text obtained from
             | social media posts, blogs, shorter articles, etc). If you
             | want models that appear more intelligent, I think you need
             | them to train on this kind of high-quality content.
             | 
             | The fact that these tend to be written in an older writing
             | style is to me incidental. You could rewrite all your
             | college text books in contemporary social media slang and I
             | would still consider them high-quality texts.
        
         | malshe wrote:
         | I have observed that DeepSeek hallucinates a lot more than
         | others for the same task. Anyone else experienced it?
        
       | lxgr wrote:
       | Is there also a corresponding increase in weekly messages for
       | ChatGPT Plus users with o3?
       | 
       | In my experience, o4-mini and o4-mini-high are far behind o3 in
       | utility, but since I'm rate-limited for the latter, I end up
       | primarily using the former, which has kind of reinforced the
       | perception that OpenAI's thinking models are behind the
       | competition altogether.
        
         | el_benhameen wrote:
         | My usage has also reflected the pretty heavy rate limits on o3.
         | I find o4-mini-high to be quite good, but I agree that I would
         | much rather use o3. Hoping this means an increase in the
         | limits.
        
         | sagarpatil wrote:
         | Before: 50 messages per week Now: 100 messages per week
        
           | lxgr wrote:
           | That's already been the case for a few weeks though, right?
           | and it's up from 50, whereas a price reduction by 80% would
           | correspond to 5x the quota extrapolating linearly.
        
             | johnnyApplePRNG wrote:
             | Agreed 100% o3 is great but the rate limit window and the
             | quota itself both render it almost useless for more than
             | one off fixes.
             | 
             | It's great with those, however!
        
         | sunaookami wrote:
         | 200 per week now:
         | https://x.com/kevinweil/status/1932565467736027597
        
       | coffeecoders wrote:
       | Despite the popular take that LLMs have no moat and are burning
       | cash, I find OpenAI's situation really promising.
       | 
       | Just yesterday, they reported an annualized revenue run rate of
       | 10B. Their last funding round in March valued them at 300B.
       | Despite losing 5B last year, they are growing really fast - 30x
       | revenue with over 500M active users.
       | 
       | It reminds me a lot of Uber in its earlier years--fast growth,
       | heavy investment, but edging closer to profitability.
        
         | rgavuliak wrote:
         | I don't think the no moat approach makes sense. In a world
         | where more an more content and interaction is done with and via
         | LLMs, the data of your users chatting with your LLM is a super
         | valuable dataset.
        
         | bitpush wrote:
         | The problem is your costs also scale with revenue. Ideally you
         | want to have control costs as you scale (the first you build is
         | expensive, but as you make more your costs come down).
         | 
         | For OpenAI, the more people use the product, the same you spend
         | on compute unless they can supplement it with another ways of
         | generating revenue.
         | 
         | I dont unfortunately think OpenAI will be able to hit sustained
         | profitability (see Netflix for another example)
        
           | Legend2440 wrote:
           | >(see Netflix for another example)
           | 
           | Netflix has been profitable for over a decade though? They
           | reported $8.7 billion in profit in 2024.
        
             | amazingamazing wrote:
             | They increased prices and are not selling a pure commodity
             | tho
        
           | aizk wrote:
           | > sustained profitability (see Netflix for another example)
           | 
           | What? Netflix is incredibly profitable.
        
             | bitpush wrote:
             | Probably a bad example from my part, but also because of
             | increasing the costs and offering a tier with ads. I was
             | mostly talking about the Netflix as it was originally
             | concieved. "Give access to unlimited content at a flat
             | fee", which didnt scale pretty well.
        
               | whiplash451 wrote:
               | Isn't this exactly what they offer today?
        
           | tptacek wrote:
           | All costs are not equal. There is a classic pattern of
           | dogfights for winner-take-most product categories where the
           | long term winner does the best job of _acquiring customers_
           | at the expense of things like  "engineering to reduce costs".
           | I have no idea how the AI space is going to shake out, but if
           | I had to pick between OpenAI's mindshare in the broadest
           | possible cohort of users vs. best/most efficient model, I'd
           | pick the customers.
           | 
           | Obviously, lots of nerds on HN have preferences for Gemini
           | and Claude, and having used all three I completely get why
           | that is. But we should remember we're not representative of
           | the whole addressable market. There were probably nerds on
           | like ancient dial-up bulletin boards explaining why Betamax
           | was going to win, too.
        
             | awongh wrote:
             | We don't even know yet if the model is the product though,
             | and if OpenAI is the company that will make _the_ AI
             | product /model, (chat that keeps expanding into other
             | functionalities and capabilities) or will it be 10,000
             | companies using the OpenAI models. (well, it's probably
             | both, but in what proportion of revenue)
        
               | tptacek wrote:
               | Right, but it might not even matter if all the
               | competitors are in the ballpark of the final
               | product/market fit and OpenAI holds a commanding lead in
               | customer acquisition.
               | 
               | Again: I don't know. I've got no predictions. I'm just
               | saying that the logic where OpenAI is outcompeted on
               | models themselves and thus automatically lose does not
               | hold automatically.
        
             | TZubiri wrote:
             | Unlike Uber or whatsapp, there's no network effect. Don't
             | think this is a winner takes all market, there was an
             | article where we had this discussion earlier. Players who
             | get a small market share are immediately profitable
             | proportional to the market share (given a minimum size is
             | exceeded.)
        
           | Magmalgebra wrote:
           | Anyone concerned about cost should remember that those costs
           | are dropping exponenentially.
           | 
           | Similarly, nearly all AI products but especially OpenAI are
           | heavily _under_ monetized. OpenAI is an excellent personal
           | shopper - the ad revenue that could be generated from that
           | rivals Facebook or Google.
        
             | smelendez wrote:
             | It wouldn't surprise me if they try, but ironically if GPT
             | is a good personal shopper, it might make it harder to
             | monetize with ads because people will trust the bot's
             | organic responses more than the ads.
             | 
             | You could override its suggestions with paid ones, or nerf
             | the bot's shopping abilities so it doesn't overshadow the
             | sponsors, but that will destroy trust in the product in a
             | very competitive industry.
             | 
             | You could put user-targeted ads on the site not necessarily
             | related to the current query, like ads you would see on
             | Facebook, but if the bot is really such a good personal
             | shopper, people are literally at a ChatGPT prompt when they
             | see the ads and will use it to comparison shop.
        
               | whiplash451 wrote:
               | Alternative: let users reduce their monthly bill by
               | accepting a sponsored answer with a dedicated button in
               | the UI
               | 
               | (with many potential variants)
        
           | simonw wrote:
           | "... as you make more your costs come down"
           | 
           | I'd say dropping the price of o3 by 80% due to "engineers
           | optimizing inferencing" is a strong sign that they're doing
           | exactly that.
        
             | asadotzler wrote:
             | You trust their PR statements?
        
               | TZubiri wrote:
               | It's not a PR statement, it's a change in price.
               | Literally putting money where the mouth is.
        
               | theappsecguy wrote:
               | Or they are trying to gobble up market share because
               | Anthropic has been much better than OpenAI
        
               | petesergeant wrote:
               | Providers are exceptionally easy to switch. There's no
               | moat for enterprise-level usage. There's no "market
               | share" to gobble up because I can change a line in my
               | config, run the eval suite, and switch immediately to
               | another provider.
               | 
               | This is marginally less true for embedding models and
               | things you've fine-tuned, but only marginally.
        
               | Davidzheng wrote:
               | o3 probably used to have a HUGE profit margin on
               | inference, so I'd say it's unclear how much optimo was
               | done;
        
               | programjames wrote:
               | I find it pretty plausible they got an 80% speedup just
               | by making optimized kernels for everything. Even when
               | GPUs say they're being 100% utilized, there are so many
               | improvements to be made, like:
               | 
               | - Carefully interleaving shared memory loading with
               | computation, and the whole kernel with global memory
               | loading.
               | 
               | - Warp shuffling for softmax.
               | 
               | - Avoiding memory access conflicts in matrix
               | multiplication.
               | 
               | I'm sure the guys at ClosedAI have many more
               | optimizations they've implemented ;). They're probably
               | eventually going to design their own chips or use
               | photonic chips for lower energy costs, but there's still
               | a lot of gains to be made in the software.
        
               | Davidzheng wrote:
               | yes I agree that it is very plausible. But it's just
               | unclear whether it is more of a business decision or a
               | real downstream effect of engineering optimizations
               | (which I assume are happening everyday at OA)
        
               | simonw wrote:
               | Seems more likely to me then them deciding to take a
               | sizable loss on inference by dropping prices by 80% for
               | no reason.
               | 
               | Optimizing serving isn't unlikely: all of the big AI
               | vendors keep finding new efficiencies, it's been an
               | ongoing trend over the past two years.
        
               | bitpush wrote:
               | This is my sense as well. You dont drop 80% on a random
               | Tuesday based on scale, you do it with an explicit goal
               | to get market share at the expense of $$.
        
             | lossolo wrote:
             | > "engineers optimizing inferencing"
             | 
             | They finally implemented DeepSeek open source methods for
             | fast inference?
        
           | marsten wrote:
           | You raise a good point that this isn't a low marginal cost
           | business like software, telecom, or (most of) the web.
           | Efficiency will be a big advantage for companies that can
           | achieve it, in part because it will let them scale to new AI
           | use cases.
           | 
           | With the race to get new models out the door, I doubt any of
           | these companies have done much to optimize cost so far.
           | Google is a partial exception - they began developing the TPU
           | ten years ago and the rest of their infrastructure has been
           | optimized over the years to serve computationally expensive
           | products (search, gmail, youtube, etc.).
        
           | ACCount36 wrote:
           | The bulk of AI costs are NOT in inference. They're in R&D and
           | frontier training runs.
           | 
           | The more inference customers OpenAI has, the easier it is for
           | them to reach profitability.
        
         | ToucanLoucan wrote:
         | I mean sure, it's very promising if OpenAI's future is your
         | only metric. It gets notably darker if you look at the broader
         | picture of ChatGPT (and company)'s impact on our society.
         | 
         | * We have people uploading tons of zero-effort slop pieces to
         | all manner of online storefronts, and making people less likely
         | to buy overall because they assume everything is AI now
         | 
         | * We have an uncomfortable community of, to be blunt, actual
         | cultists emerging around ChatGPT, doing all kinds of shit from
         | annoying their friends and family all the way up to divorcing
         | their spouses
         | 
         | * Education is struggling in all kinds of ways due to students
         | using (and abusing) the tech, with already strained
         | administrations struggling to figure out how to navigate it
         | 
         | Like yeah if your only metric is OpenAI's particular line going
         | up, it's looking alright. And much like Uber, it's success
         | seems to be corrosive to the society in which it operates. Is
         | this supposed to be good news?
        
           | arealaccount wrote:
           | Dying for a reference on the cult stuff, a quick search
           | didn't provide anything interesting.
        
             | ToucanLoucan wrote:
             | Scroll through the ChatGPT subreddit right now and tell me
             | there isn't a TON of people in there who are legitimately
             | unwell. Reads like the back page notes of a dystopian
             | novel.
        
               | arandomhuman wrote:
               | I think this is less caused by ChatGPT/LLMs and more of a
               | phenomenon in social media circles where people flock to
               | "the thing" and have poor social skills and mental health
               | generally speaking.
        
             | wizzwizz4 wrote:
             | https://futurism.com/chatgpt-mental-health-crises, which
             | references the more famous
             | https://www.rollingstone.com/culture/culture-features/ai-
             | spi... but is a newer article.
        
               | xz0r wrote:
               | The article links to a forum post which kind of explains
               | how engagement is maximised
               | https://community.openai.com/t/uncovering-the-intent-
               | behind-...
        
               | wizzwizz4 wrote:
               | Poetic, but I don't think that really explains
               | _anything_.
        
               | xz0r wrote:
               | Ever thought about how there's a magnetic quality to
               | mirrors that keeps us looking? I see GPT in a similar
               | light, it functions as a mirror, reflecting aspects of
               | our reality.
        
             | MangoToupe wrote:
             | In addition to what the parent commenter was likely
             | referring to, there are also the Zizians:
             | https://en.wikipedia.org/wiki/Zizians
        
           | SlowTao wrote:
           | Yes but in a typical western business sense they are merely
           | optimizing for user engadgement and profits. What happens to
           | society a decade from now because of all the slop being
           | produced, that is not their concern. Facebook is just about
           | connecting friends right, totally wont become a series of
           | information moats and bubbles controlled by the algorithms...
           | 
           | A great communicator on the risks of AI being to heavily
           | intergrated into society is Zak Stein. As someone who works
           | in education, they are see first hand how people are becoming
           | dependent on this stuff rather than any kind of self
           | improvement. The people who are just handing over all their
           | thinking to the machine. It is very bizarre and I am seeing
           | it in my personal experience a lot more over the last few
           | months.
        
           | BugheadTorpeda6 wrote:
           | I absolutely agree. I find it abhorrent.
        
         | seydor wrote:
         | their moat is leaky because llm prices will be dropping forever
         | and the only viable model will be a free model. Eventually
         | everyone will catch up.
         | 
         | Plus there is the thing that "thinking models" can't really
         | solve complex tasks / aren't really as good as they are
         | believed to be .
        
           | Zaheer wrote:
           | I would wager most of their revenue is from the subscriptions
           | - both consumer and business. That pricing is detached from
           | the API pricing. The heavy emphasis on applications more
           | recently is because they realize this as well.
        
         | therealdrag0 wrote:
         | As an anecdote they have first mover advantage on me. I pay
         | monthly but mostly because it's good enough and I can't be
         | bothered to try a bunch out and switch. But if the dust settles
         | and prices drop i would be motivated to switch. How much that
         | matters maybe depends if their revenue comes from app users or
         | API plans. And first mover only works once. Now they maybe
         | coasting on name recognition, but otherwise new users maybe
         | load balanced among all the options.
        
         | jillesvangurp wrote:
         | The moat is increasingly becoming having access to billions
         | needed to finance the infrastructure needed to serve billions.
         | That's why Google is still in the game. They have that and they
         | are very good at massive scale and have some cost advantages
         | there.
         | 
         | OpenAI is very good at this as well because of their brand
         | name. For many people ChatGPT is all they know. That's the one
         | that's in the news. That's the one everybody keeps talking
         | about. They have many millions of paying users at this point.
         | 
         | This is a non trivial moat. If you can only be successful by
         | not serving most of the market for cost reasons, then you can't
         | be successful. It's how Google has been able to guard its
         | search empire for a quarter century. It's easy to match what
         | they do algorithmically. But then growing from a niche search
         | engine that has maybe a few tens of thousands of users (e.g.
         | Kagi) to Google scale serving essentially most of this planet
         | (minus some fire walled countries like Russia and China), is a
         | bit of a journey.
         | 
         | So Google rolling out search integration is a big deal. It
         | means they are readying themselves for that scale and will have
         | billions of users exposed to this soon.
         | 
         | > Their last funding round in March valued them at 300B.
         | Despite losing 5B last year, they are growing really fast
         | 
         | Yes, they are valued based on world+dog needing agentic AIs and
         | subscribing to the extent of tens or hundreds of dollars/month.
         | It's going to outstrip revenue things like MS Office in its
         | prime.
         | 
         | 5B loss is peanuts compared to that. If they weren't burning
         | that, their ambition level would be too low.
         | 
         | Uber now has a substantial portion of the month. They have
         | about 3-4 billion revenue per month. A lot of cost obviously.
         | But they managed 10B profit last year. And they are not done
         | growing yet. They were overvalued at some point and then they
         | crashed, but they are still there and it's a pretty healthy
         | business at this point and that reflects in their stock price.
         | It's basically valued higher now than at the time of the
         | Softbank investment pre-IPO. Of course a lot of stuff needed to
         | be sorted out for that to happen.
        
       | unraveller wrote:
       | I have no moat and I must make these GPUs scream.
        
       | blueblisters wrote:
       | This is the best model out there, priced level or lesser than
       | Claude and Gemini
       | 
       | They're not letting the competition breathe
        
         | Davidzheng wrote:
         | Gemini is close (if not better) so it just makes sense no?
         | o3-pro might be ahead of pack tho
        
           | blueblisters wrote:
           | o3 does better especially if you use the api (not ChatGPT)
        
         | dorianjp wrote:
         | appreciate this, the faster we get to cheap commoditization,
         | the better
        
       | seydor wrote:
       | when the race to the bottom reaches the bottom, the foundation
       | model companies will be bought by ... energy companies. You 'll
       | be paying for AI with your electricity bill
        
         | paxys wrote:
         | It'll be the opposite. Large tech companies are already running
         | their own power plants.
        
           | andyferris wrote:
           | Yes - it's common in traditional industries too. In my home
           | town the aluminum refinery bought the power station to
           | improve reliability (I should add - through upgrades not
           | screwing over the rest of the power users).
        
       | ramesh31 wrote:
       | Anthropic will need to follow suit with Opus soon. It is simply
       | too expensive for anything by an order of magnitude.
        
         | sagarpatil wrote:
         | Have they ever decreased the price in the past? I don't
         | remember.
        
       | madebywelch wrote:
       | They could drop the price 100% and I still wouldn't use it, so
       | long as they're retaining my data.
        
         | simonw wrote:
         | Sounds like you want their Zero Data Retention plan:
         | https://platform.openai.com/docs/guides/your-data#zero-data-...
         | 
         | (It's "contact us" pricing, so I have no idea how much that
         | would set you back. I'm guessing it's not cheap.)
        
           | scudsworth wrote:
           | it doesn't seem like this would supercede a court order
        
             | tech234a wrote:
             | Actually it does according to
             | https://openai.com/index/response-to-nyt-data-demands/
        
             | otterley wrote:
             | The court order doesn't require OpenAI to modify their
             | software. ZDR is implemented through a separate API with
             | separate endpoints that never retained data in the first
             | place.
        
       | sschueller wrote:
       | Has anyone noticed that OpenAI has become "lazy"? When I ask
       | questions now it will not give me a complete file or fix. Instead
       | it tells me what I should do and I need to ask a second or third
       | time to just do the thing I asked.
       | 
       | I don't see this happening with for example deepseek.
       | 
       | Is it possible they are saving on resources by having it answer
       | that way?
        
         | tedsanders wrote:
         | Yeah, our models are sometimes too lazy. It's not intentional,
         | and future models will be less lazy.
         | 
         | When I worked at Netflix I sometimes heard the same speculation
         | about intentionally bad recommendations, which people theorized
         | would lower streaming and increase profit margins. It made even
         | less sense there as streaming costs are usually less than a
         | penny. In reality, it's just hard to make perfect products!
         | 
         | (I work at OpenAI.)
        
           | ukblewis wrote:
           | Please be careful about the alternative. I've seen o3 doing
           | excessive tool calls and research for relatively simple
           | problems.
        
             | Hard_Space wrote:
             | After the last few weeks, where o3 seems desperate to do
             | tool searches or re-crunch a bad gen even though I only
             | asked a question about it, I assumed that the policy is to
             | burn through credits at the fastest possible rate. With
             | this price change, I don't know what's happening now...
        
               | Nextgrid wrote:
               | Are they actually profitable? A policy to burn through
               | credits only makes sense if they're making a profit on
               | each token - otherwise it would be counterproductive.
        
             | jillesvangurp wrote:
             | Yep, it defaults to doing a web search even when that
             | doesn't make sense.
             | 
             | Example, I asked it to write something. And then I asked it
             | to give me that blob of text in markdown format. So
             | everything it needed was already in the conversation. That
             | took a whole minute of doing web searches and what not.
             | 
             | I actually dislike using o3 for this reason. I keep the
             | default to 4o. But sometimes I forget to switch back and it
             | goes off boiling the oceans to answer a simple question.
             | It's a bit too trigger happy with that. In general all this
             | version and model soup is impossible to figure out for non
             | technical users. And I noticed 4o is now sometimes starting
             | to do the same. I guess, too many users never use the model
             | drop down.
        
           | TZubiri wrote:
           | but maybe you are saying that because you are a CIA plant
           | that's trying to make the product bad because of complex
           | reasons.
           | 
           |  _takes tinfoil hat off_
           | 
           | Oh, nvm, that makes sense.
        
           | thimabi wrote:
           | Can you share what are the main challenges OpenAI has been
           | facing in terms of increasing access to top-tier and non-lazy
           | models?
        
           | anshumankmr wrote:
           | That was a problem in GPT 4 Turbo as well...
        
             | jazzyjackson wrote:
             | IMO its just that the models are very nondeterministic, and
             | people get very different kinds of responses from it. I met
             | a number of people who tried it when it first came out and
             | it was just useless so they stopped trying it, other people
             | (including me) got gobsmacking great responses and it felt
             | like AGI was around the corner, but after enough coin flips
             | your luck runs out and you get some lazy responses. Some
             | people have more luck than others and wonder why everyone
             | around them says it's trash.
        
               | anshumankmr wrote:
               | GPT4-Turbo had some major "laziness" problems, like
               | really major ones. I posted about this a year back.https:
               | //news.ycombinator.com/item?id=39985596#39987726
               | 
               | I am not saying they haven't improved the laziness
               | problem, but it does happen anecdotally. I even got
               | similar sort of "lazy" responses for something I am
               | building with gemini-2.5-flash.
        
           | 0x1ceb00da wrote:
           | I think it's good. The model will probably make some mistake
           | at first. Not doing the whole thing and just telling the user
           | the direction it's going in gives us a chance to correct its
           | mistakes.
        
         | TillE wrote:
         | Had a fun experience the other day asking "make a graph of [X]
         | vs [Y]" (some chemistry calculations), and the response was
         | blah blah blah explain explain "let me know if you want a graph
         | of this!" Yeah ok thanks for offering.
        
         | csomar wrote:
         | I don't think that's laziness but maybe agent tuning.
        
       | polskibus wrote:
       | Is this a reaction to Apple paper showing that reasoning models
       | don't really reason?
        
         | anothermathbozo wrote:
         | Why would that be?
        
         | dragandj wrote:
         | If these kids could read, they would be very upset.
        
       | nikcub wrote:
       | fyi the price drop has been updated in Cursor:
       | 
       | https://x.com/cursor_ai/status/1932484008816050492
        
       | BeetleB wrote:
       | Why does OpenAI require me to verify my "organization" (which
       | requires my state issued ID) to use o3?
        
         | bearjaws wrote:
         | Prevent Deepseek R2 being trained on it
        
           | piskov wrote:
           | If only there were people with multiple passports or, I don't
           | know, Kyrgyzstan.
           | 
           | How exactly will passport check prevent any training?
           | 
           | At most this will block API access to your average Ivan, not
           | a state actor
        
             | BeetleB wrote:
             | Yeah, I just don't see myself using o3 when I have
             | Gemini-2.5 Pro. I don't recall if Google Cloud verified my
             | ID in the past, though. Still, no need to let yet another
             | organization have my data if I'm not getting something
             | _better_ in return.
        
               | jjani wrote:
               | > I don't recall if Google Cloud verified my ID in the
               | past, though
               | 
               | It generally does not. No idea if there are edge cases
               | where it does, but that's definitely not the norm for the
               | average user.
        
             | ivanmontillam wrote:
             | I'm an average Ivan, and I got access.
        
             | yyhhsj0521 wrote:
             | It's most likely for regulation compliance, instead of a
             | sincere attempt to block anyone from training on them.
        
         | valleyer wrote:
         | Don't bother anyway. There are lots of cases of people trying
         | and failing to go through the process, and there is no way to
         | try a second time.
         | 
         | https://community.openai.com/t/session-expired-verify-organi...
         | 
         | https://community.openai.com/t/callback-from-persona-id-chec...
         | 
         | https://community.openai.com/t/verification-issue-on-second-...
         | 
         | https://community.openai.com/t/verification-not-working-and-...
         | 
         | https://community.openai.com/t/organization-verfication-fail...
         | 
         | https://community.openai.com/t/help-organization-could-not-b...
         | 
         | https://community.openai.com/t/to-verify-an-organization-acc...
        
           | BeetleB wrote:
           | Yikes! Indeed, I won't bother.
        
       | OutOfHere wrote:
       | o3 is very much needed in VSCode GitHub CoPilot for
       | Ask/Edit/Agent modes. It is sorely missing there.
        
         | janstice wrote:
         | Sure is - and o3 is missing from the OpenAI models that Azure
         | is serving, which I suspect isn't a coincidence - if OpenAI has
         | some secret sauce that lets them undercut resellers this might
         | shake up agreements for a bit.
        
       | alliao wrote:
       | it used to take decades of erosion to make google search a hot
       | mess, now that everything's happening in light speed, we get days
       | for AI models to decay to the point of hot mess again..
        
       | godelski wrote:
       | For those wondering                 Yesterday:
       | Today       -------------           -------------       Price
       | Price       Input:                  Input:       $10.00 / 1M
       | tokens      $2.00 / 1M tokens       Cached input:
       | Cached input:       $2.50 / 1M tokens       $0.50 / 1M tokens
       | Output:                 Output:       $40.00 / 1M tokens
       | $8.00 / 1M tokens
       | 
       | https://archive.is/20250610154009/https://openai.com/api/pri...
       | 
       | https://openai.com/api/pricing/
        
       | JojoFatsani wrote:
       | O3 is really good. I haven't had the same results with o4
       | unfortunately
        
         | muzani wrote:
         | It's one of the most unfortunate naming conventions
        
         | vessenes wrote:
         | Wait, you have access to o4? All I see is o4-mini, a distill of
         | o4. I would not expect that to beat o3/o3-pro.
        
       | 34679 wrote:
       | I'd like to offer a cautionary tale that involves my experience
       | after seeing this post.
       | 
       | First, I tried enabling o3 via OpenRouter since I have credits
       | with them already. I was met with the following:
       | 
       | "OpenAI requires bringing your own API key to use o3 over the
       | API. Set up here: https://openrouter.ai/settings/integrations"
       | 
       | So I decided I would buy some API credits with my OpenAI account.
       | I ponied up $20 and started Aider with my new API key set and o3
       | as the model. I get the following after sending a request:
       | 
       | "litellm.NotFoundError: OpenAIException - Your organization must
       | be verified to use the model `o3`. Please go to:
       | https://platform.openai.com/settings/organization/general and
       | click on Verify Organization. If you just verified, it can take
       | up to 15 minutes for access to propagate."
       | 
       | At that point, the frustration was beginning to creep in. I
       | returned to OpenAI and clicked on "Verify Organization". It turns
       | out, "Verify Organization" actually means "Verify Personal
       | Identity With Third Party" because I was given the following:
       | 
       | "To verify this organization, you'll need to complete an identity
       | check using our partner Persona."
       | 
       |  _Sigh_ I click  "Start ID Check" and it opens a new tab for
       | their "partner" Persona. The initial fine print says:
       | 
       | "By filling the checkbox below, you consent to Persona, OpenAI's
       | vendor, collecting, using, and utilizing its service providers to
       | process your biometric information to verify your identity,
       | identify fraud, and conduct quality assurance for Persona's
       | platform in accordance with its Privacy Policy and OpenAI's
       | privacy policy. Your biometric information will be stored for no
       | more than 1 year."
       | 
       | OK, so now, we've gone from "I guess I'll give OpenAI a few bucks
       | for API access" to "I need to verify my organization" to "There's
       | no way in hell I'm agreeing to provide biometric data to a 3rd
       | party I've never heard of that's a 'partner' of the largest AI
       | company and Worldcoin founder. How do I get my $20 back?"
        
         | nateburke wrote:
         | I don't recall Persona being in the mix last year when I signed
         | up. Interesting development.
        
           | gwhr wrote:
           | I think it was a recent thing [1], but I thought they were
           | only considering it
           | 
           | [1] https://techcrunch.com/2025/04/13/access-to-future-ai-
           | models...
        
         | conradev wrote:
         | I was more excited by the process, like, there exists a model
         | out there so powerful it requires KYC
         | 
         | which, after using it, fair! It found a zero day
        
           | __float wrote:
           | I think they're probably more concerned about fake accounts
           | and people finding ways to get free stuff.
        
             | abeindoria wrote:
             | What free stuff? It requires a paid API.
        
               | DrammBA wrote:
               | With no intention to tarnish your pure world view, paid
               | services with low registration requirements are ideal for
               | account laundering and subscription fraud with stolen
               | credit cards
        
             | conradev wrote:
             | I actually think they're worried about foreign actors using
             | it for...
             | 
             | - generating synthetic data to train their own models
             | 
             | - hacking and exploitation research
             | 
             | etc
        
             | gscott wrote:
             | China is training their AI models using ChatGPT. They want
             | to stop or slow that down.
        
               | olalonde wrote:
               | Why? It seems counterproductive given OpenAI's mission
               | statement: "We are building safe and beneficial AGI, but
               | will also consider our mission fulfilled if our work aids
               | others to achieve this outcome."
        
               | stavros wrote:
               | Because OpenAI's actual mission statement is "money, and
               | lots of it".
        
               | conradev wrote:
               | Yeah. I think they need money to deliver AGI
        
           | hiatus wrote:
           | > which, after using it, fair! It found a zero day
           | 
           | Source?
        
             | sothatsit wrote:
             | Recently, Sean Heelan wrote a post "How I used o3 to find
             | CVE-2025-37899, a remote zeroday vulnerability in the Linux
             | kernel's SMB implementation". It might be what they are
             | referring to.
             | 
             | Link: https://sean.heelan.io/2025/05/22/how-i-used-o3-to-
             | find-cve-...
        
               | conradev wrote:
               | Yep, that's the one!
        
         | AstroBen wrote:
         | KYC requirement + OpenAI preserving all logs in the same week?
        
           | mycall wrote:
           | I think KYC has been beaten by AI agents according to
           | RepliBench [0] as obtaining compute requires KYC which has a
           | high success rate in the graphic.
           | 
           | [0] https://www.aisi.gov.uk/work/replibench-measuring-
           | autonomous...
        
           | infecto wrote:
           | KYC has been around for a few months I believe. Whenever they
           | released some of the additional thought logs you had to be
           | verified.
        
           | jjani wrote:
           | OpenAI introduced this with the public availability of o3, so
           | no.
           | 
           | It's also the only LLM provider which has this.
           | 
           | What OpenAI has that the others don't is SamA's insatiable
           | thirst for everyone's biometric data.
        
         | 34679 wrote:
         | Follow-up. I pasted the above into ChatGPT because I genuinely
         | wanted to know how to get my 20 bucks back. That request is in
         | and they say I'll get a response in 2-3 days. I then asked it
         | "What are the potential risks of agreeing to their terms?"
         | Here's the response:
         | 
         | Agreeing to Persona's terms, especially for biometric identity
         | verification, involves both privacy and long-term data security
         | risks. Here's a clear breakdown of the main risks you should be
         | aware of: 1. Biometric Data Collection
         | 
         | Risk: Biometric identifiers (like facial recognition,
         | voiceprints, etc.) are extremely sensitive and irreplaceable if
         | compromised.                   What they collect: Persona may
         | collect a selfie, video, and metadata, and extract biometric
         | templates from those for facial comparison and liveness
         | detection.              If leaked or abused: Unlike passwords,
         | you can't change your face. A future data breach or misuse
         | could lead to permanent identity compromise.           2. Data
         | Storage & Retention
         | 
         | Risk: Persona says biometric data is kept for up to one year,
         | but:                   You're relying on their internal
         | policies, not a legal guarantee.              There's no
         | technical detail on how securely it's stored or whether it's
         | encrypted at rest.           Worst-case scenario: Poorly
         | secured biometric templates could be stolen, reused, or matched
         | against other data sets by bad actors or governments.      3.
         | Third-Party Sharing and Surveillance Risks
         | 
         | Risk: Your biometric and ID data may be shared with
         | subprocessors (partners/vendors) that you haven't explicitly
         | vetted.                   Persona may transfer your data to
         | cloud providers (like AWS, GCP), verification specialists, or
         | fraud prevention services.              Depending on
         | jurisdiction, data could be subject to subpoenas, surveillance
         | laws, or government backdoors (especially in the U.S.).
         | 4. Consent Ambiguity & Future Use
         | 
         | Risk: The fine print often includes vague consent for "quality
         | assurance", "model improvement", or "fraud detection".
         | This opens the door to retraining algorithms on your biometric
         | data--even if anonymized, that's still a use of your body as
         | data.              Their privacy policy may evolve, and new
         | uses of your data could be added later unless you opt out
         | (which may not always be possible).
         | 
         | Should You Agree?
         | 
         | Only if:                   You absolutely need the service that
         | requires this verification.              You're aware of the
         | privacy tradeoff and are okay with it.              You trust
         | that Persona and its partners won't misuse your biometric data
         | --even a year down the line.
         | 
         | If you're uneasy about this, you're not alone. Many developers
         | and privacy advocates refuse to verify with biometrics for non-
         | critical services, and companies like OpenAI are increasingly
         | facing criticism for requiring this.
        
           | stevage wrote:
           | Huh, I never considered using ChatGPT to read terms of
           | serivce for me. Nice idea.
        
         | leetrout wrote:
         | I actually contacted the California AG to get a refund from
         | another AI company after they failed to refund me.
         | 
         | The AG office followed up and I got my refund. Worth my time to
         | file because we should stop letting companies get away with
         | this stuff where they show up with more requirements after
         | paying.
         | 
         | Separately they also do not need my phone number after having
         | my name, address and credit card.
         | 
         | Has anyone got info on why they are taking everyone's phone
         | number?
        
           | jazzyjackson wrote:
           | (having no insider info:) Because it can be used as a primary
           | key ID across aggregated marketing databases including your
           | voting history / party affiliation, income levels,
           | personality and risk profiles etc etc etc. If a company wants
           | to, and your data hygiene hasn't been tip top, your phone
           | number is a pointer to a ton of intimate if not confidential
           | data. Twitter was fined $150 million for asking for phone
           | numbers under pretense of "protecting your account" or
           | whatever but they actually used it for ad targeting.
           | 
           | >> Wednesday's 9th Circuit decision grew out of revelations
           | that between 2013 and 2019, X mistakenly incorporated users'
           | email addresses and phone numbers into an ad platform that
           | allows companies to use their own marketing lists to target
           | ads on the social platform.
           | 
           | >> In 2022, the Federal Trade Commission fined X $150 million
           | over the privacy gaffe.
           | 
           | >> That same year, Washington resident Glen Morgan brought a
           | class-action complaint against the company. He alleged that
           | the ad-targeting glitch violated a Washington law prohibiting
           | anyone from using "fraudulent, deceptive, or false means" to
           | obtain telephone records of state residents.
           | 
           | >> X urged Dimke to dismiss Morgan's complaint for several
           | reasons. Among other arguments, the company argued merely
           | obtaining a user's phone number from him or her doesn't
           | violate the state pretexting law, which refers to telephone
           | "records."
           | 
           | >> "If the legislature meant for 'telephone record' to
           | include something as basic as the user's own number, it
           | surely would have said as much," X argued in a written
           | motion.
           | 
           | https://www.mediapost.com/publications/article/405501/None
        
             | azinman2 wrote:
             | OpenAI doesn't (currently) sell ads. I really cannot see a
             | world where they're wanting to sell ads to their API users
             | only? It's not like you need a phone number to use ChatGPT.
             | 
             | To me the obvious example is fraud/abuse protection.
        
               | hnaccount_rng wrote:
               | They don't need to. It's totally sufficient that they can
               | correlate your chat history with your identity. That
               | makes other identifiers more valuable, if they can
               | extract your interests
        
               | brookst wrote:
               | It's a good conspiracy theory, but of course it's scoped
               | to only ChatGPT users who are also developers and using
               | specifically the o3 model via API. So if it is a
               | conspiracy, it's a fairly non-ambitious one.
        
               | cmenge wrote:
               | The typical use case of an API is not that you personally
               | use it. I have hundreds of clients all go through my API
               | key, and in most cases they themselves are companies who
               | have n clients.
        
               | lcnPylGDnU4H9OF wrote:
               | > It's not like you need a phone number to use ChatGPT.
               | 
               | I'm pretty sure you do. Claude too. The only chatbot
               | company I've made an account with is Mistral specifically
               | because a phone number was not a registration
               | requirement.
        
               | ax0ar wrote:
               | They also require it now.
        
               | prmoustache wrote:
               | The fact they don't sell ads doesn't mean they are not in
               | the business of selling users data to third parties.
               | 
               | Also Netflix wasn't initially selling ads and there you
               | have after increasing the price of their plans
               | drastically in the last few years the ad supported
               | subscription is probably the #1 plans because most people
               | aren't willing to shed 15 to 25usd/EUR every month to
               | watch content that is already littered with ads.
        
               | fsmv wrote:
               | If you sell ads you're actually incentivised not to sell
               | data because then your competitors would be able to reach
               | your users without paying you
        
               | ethbr1 wrote:
               | You're incentivized not to sell _targeting_ data, but you
               | 're _very_ incentivized to collect and maintain as much
               | of it as you can, and then offer access using it as a
               | service.
               | 
               | So, at the end of your day, company X has an overdetailed
               | profile of you, rather than each advertiser. (And also,
               | at least in the US, can repackage and sell that data into
               | various products if it chooses)
        
               | KomoD wrote:
               | > It's not like you need a phone number to use ChatGPT.
               | 
               | When I signed up I had to do exactly that.
        
               | hshdhdhj4444 wrote:
               | They may not sell ads.
               | 
               | They may still buy data from ad companies and store
               | credit cards, etc.
               | 
               | Many of them link users based on phone number.
        
               | azinman2 wrote:
               | But to do what with api users? Most api users won't be
               | individuals...
        
               | KomoD wrote:
               | I bet there's way more individuals than companies that
               | use the API
        
               | jazzyjackson wrote:
               | You're thinking ads are to advertise products. Ads are to
               | modify behavior to make you more likely to buy products.
               | 
               | ChatGPT has the capacity to modify behavior more subtly
               | than any advertising ever devised. Aggregating knowledge
               | on the person on the other end of the line is key in
               | knowing how to nudge them toward the target behavior.
               | (Note this target behavior may be how to vote in an
               | election, or how to feel about various hot topics.)
        
               | ethbr1 wrote:
               | > _Aggregating knowledge on the person on the other end
               | of the line is key in knowing how to nudge them toward
               | the target behavior._
               | 
               | It also, as Google learned, enables you to increase your
               | revenue per placement. Advertisers will pay more for
               | placement with their desired audience.
        
               | codedokode wrote:
               | Obvious goal is to know the identity of users.
        
             | sgarland wrote:
             | Tangential: please do not use a phone number as a PK. Aside
             | from the nightmare of normalizing them, there is zero
             | guarantee that someone will keep the same number.
        
               | ponector wrote:
               | Even better: phone numbers are redistributed after some
               | time of inactivity.
        
           | pembrook wrote:
           | Source: have dealt with fraud at scale before.
           | 
           | Phone number is the only way to reliably stop MOST abuse on a
           | freemium product that doesn't require payment/identity
           | verification upfront. You can easily block VOIP numbers and
           | ensure the person connected to this number is paying for an
           | actual phone plan, which cuts down dramatically on bogus
           | accounts.
           | 
           | Hence why even Facebook requires a unique, non-VOIP phone
           | number to create an account these days.
           | 
           | I'm sure this comment will get downvoted in favor of some
           | other conspiratorial "because they're going to secretly sell
           | my data!" tinfoil post (this is HN of course). But my
           | explanation is the actual reason.
           | 
           | I would love if I could just use email to signup for free
           | accounts everywhere still, but it's just too easily gamed at
           | scale.
        
             | LexGray wrote:
             | On the flip side it makes a company seem sparklingly inept
             | when they use VOIP as a method to filter valid users. I
             | haven't done business with companies like Netflix or Uber
             | because I don't feel like paying AT&T a cut for identity
             | verification. There are plenty of other methods like
             | digital licenses which are both more secure and with better
             | privacy protections.
        
               | pembrook wrote:
               | I wish we could all agree on a better way of auth -- but
               | unfortunately this is all we have. Asking normal people
               | to do anything outside of phone number or email (or
               | 'login with [other account based on phone number or
               | email]' for auth is basically impossible.
        
             | exceptione wrote:
             | Maybe they should look into a non-freemium business model.
             | But that won't happen because they want to have as much
             | personal data as possible.
             | 
             | - Parent talks about a paid product. If they wants to burn
             | tokens, they are going to pay for it.
             | 
             | - Those phone requirements do not stop professional
             | abusers, organized crime nor state sponsored groups. Case
             | in point: twitter is overrun by bots, scammers and foreign
             | info-ops swarms.
             | 
             | - Phone requirements might hinder non-professional abusers
             | at best, but we are sidestepping the issue if those
             | corporations deserve that much trust to compel regular
             | users to sell themselves. Maybe the business model just
             | sucks.
        
               | pembrook wrote:
               | I don't like requiring phone numbers either, but saying
               | OpenAI shouldn't do freemium model for hottest tech
               | product of this century (AI) is a fundamental
               | misunderstanding of how humans and the world works.
               | 
               | Also, if they don't do freemium they're getting way more
               | valuable information about you than just a phone number.
        
               | jimmydorry wrote:
               | What part of this thread relates to freemium? Use of the
               | API requires tokens that are paid for. General use of the
               | AI via the web interface does not require a phone number.
               | 
               | Only requiring the phone number for API users feels
               | needlessly invasive and is not explained by a vague
               | "countering fraud and abuse" for a paid product...
        
             | AnthonyMouse wrote:
             | > I'm sure this comment will get downvoted in favor of some
             | other conspiratorial "because they're going to secretly
             | sell my data!" tinfoil post (this is HN of course). But my
             | explanation is the actual reason.
             | 
             | Your explanation is inconsistent with the link in these
             | comments showing Twitter getting fined for doing the
             | opposite.
             | 
             | > Hence why even Facebook requires a unique, non-VOIP phone
             | number to create an account these days.
             | 
             | Facebook is the company _most_ known for disingenuous
             | tracking schemes. They just got caught with their app
             | running a service on localhost to provide tracking IDs to
             | random shady third party websites.
             | 
             | > You can easily block VOIP numbers and ensure the person
             | connected to this number is paying for an actual phone
             | plan, which cuts down dramatically on bogus accounts.
             | 
             | There isn't any such thing as a "VOIP number", all phone
             | numbers are phone numbers. There are only some profiteers
             | claiming they can tell you that in exchange for money.
             | Between MVNOs, small carriers, forwarding services, number
             | portability, data inaccuracy and foreign users, those
             | databases are practically random number generators with
             | massive false positive rates.
             | 
             | Meanwhile major carriers are more than happy to give phone
             | numbers in their ranges to spammers in bulk, to the point
             | that this is now acting as a profit center for the spammers
             | and allowing them to expand their spamming operations
             | because they can get a large number of phone numbers those
             | services claim aren't "VOIP numbers", use them for spamming
             | the services they want to spam, and then sell cheap or ad-
             | supported SMS service at a profit to other spammers or
             | privacy-conscious people who want to sign up for a service
             | they haven't used that number at yet.
        
             | SheinH wrote:
             | The discussion wasn't about freemium products though.
             | Someone mentioned that they paid 20 bucks for OpenAI's API
             | already and then they were asked for more verification.
        
           | giancarlostoro wrote:
           | Thank you for this comment... a relative of mine spent a ton
           | of money on an AI product that never came a license he cannot
           | use. I told him to contact his states AG just in case.
        
         | jiggawatts wrote:
         | This is in part "abuse prevention"[1] and in part _marketing_.
         | Making customers feel like they 're signing up to access state
         | secrets makes the models seem more "special". Sama is well
         | known to use these SV marketing tricks, like invite-only
         | access, waiting lists, etc to psychologically manipulate users
         | into thinking they're begging for entry to an exclusive club
         | instead of just swiping a credit card to access an API.
         | 
         | Google tried this with Google Plus and Google Wave, failed
         | spectacularly, and have ironically stopped with this idiotic
         | "marketing by blocking potential users". I can access Gemini
         | Pro 2.5 without providing a blood sample or signing parchment
         | in triplicate.
         | 
         | [1] Not really though, because a significant percentage of
         | OpenAI's revenue is from spammers and bulk-generation of SOE-
         | optimised garbage. Those are valued customers!
        
           | paulcole wrote:
           | HN Don't Hate Marketing Challenge
           | 
           | Difficulty: Impossible
        
           | miki123211 wrote:
           | Gemini doesn't give you reasoning via API though, at least as
           | far as I'm aware.
        
             | jiggawatts wrote:
             | Works for me?
             | 
             | Maybe you're thinking of deep research mode which is web UI
             | only for now.
        
             | jjani wrote:
             | If by reasoning you mean showing CoT, Gemini and OA are the
             | same in this regard - neither provides it, not through the
             | UI nor through the API. The "summaries" both provide have
             | zero value and should be treated as non-existent.
             | 
             | Anthropic exposes reasoning, which has become a big reason
             | to use them for reasoning tasks over the other two despite
             | their pricing. Rather ironic when the other two have been
             | pushing reasoning much harder.
        
               | finebalance wrote:
               | Google exposes their reasoning. You can use their new
               | gemini python sdk to get thought traces.
        
               | jjani wrote:
               | Google does not expose their reasoning any more. They
               | give "thought summaries" which provide effectively zero
               | value. [1][2]
               | 
               | [1] https://ai.google.dev/gemini-
               | api/docs/thinking#summaries [2]
               | https://discuss.ai.google.dev/t/massive-regression-
               | detailed-...
        
         | charliebwrites wrote:
         | Doesn't Sam Altman own a crypto currency company [1] that
         | specifically collects biometric data to identify people?
         | 
         | Seems familiar...
         | 
         | [1]
         | https://www.forbes.com/advisor/investing/cryptocurrency/what...
        
           | jjani wrote:
           | GP did mention this :)
           | 
           | > I've never heard of that's a 'partner' of the largest AI
           | company and Worldcoin founder
        
           | 93po wrote:
           | the core tech and premise doesnt collect biometric data, but
           | biometric data is collected for _training_ purposes with
           | consent and compensation. There is endless misinformation
           | (willfully and ignorantly) around worldcoin but it is not, at
           | its core, a biometric collection company
        
             | malfist wrote:
             | Collecting biometrics for training purposes is still
             | collecting biometrics.
        
         | coderatlarge wrote:
         | this reminds me of how broadcom maintains the "free" tier of
         | vmware.
        
           | teruakohatu wrote:
           | Can you explain? Is it not actually free?
        
             | coderatlarge wrote:
             | there are so many non-functional websites and signups
             | required to get to the end of the rainbow that any sane
             | person quits well before getting to any freely distributed
             | software, if, in fact, there still is some.
        
         | 5Qn8mNbc2FNCiVV wrote:
         | This feels eerily similar to a post I've read a within the last
         | month. Either I'm having a deja vu, it's a coincidence that the
         | same exact story is mentioned or theres something else going on
        
           | bgwalter wrote:
           | What should be going on? A regular Google search for "openai
           | persona verify organization" shows withpersona.com in the
           | second search result.
        
             | 5Qn8mNbc2FNCiVV wrote:
             | Yeah ok guess I misremembered it a bit but I was curious
             | too and found the previous one I've thought of:
             | https://news.ycombinator.com/item?id=43795406
        
               | Barbing wrote:
               | Good eye! In this case, complaints are numerous. See a
               | web search for:
               | 
               | openai persona verification site:community[.]openai[.]com
               | 
               | e.g. a thread with 36 posts beginning Apr 13:
               | 
               | "OpenAI Non-Announcement: Requiring identity card
               | verification for access to new API models and
               | capabilities"
               | 
               | But always good to be on look out for shenanigans :)
        
           | Retric wrote:
           | This is OpenAI's fairly dystopian process, so the exact same
           | thing happens to lots of people.
        
           | verisimi wrote:
           | It's a concerted attempt to de-anonymise the internet.
           | Corporate entities are jostling for position as id
           | authorities.
        
           | xboxnolifes wrote:
           | This is just the process for OpenAI. It's the same process I
           | went through as well.
        
         | bratao wrote:
         | You are even luck to be able to verify. Mine give me an error
         | about "Session expired" for months!! Support do not reply.
        
         | Marsymars wrote:
         | Oh I also recently got locked out of my linkedin account until
         | I supply data to Persona.
         | 
         | (So I'm remaining locked out of my linkedin account.)
        
         | fakedang wrote:
         | As someone not in the US, I do a straight nope out whenever I
         | see a Persona request. I advise everyone else to do the same.
         | Afaik, it's used by LinkedIn and Doordash too.
        
         | ddtaylor wrote:
         | I also am using OpenRouter because OpenAI isn't a great fit for
         | me. I also stopped using OpenAI because they expire your API
         | credits even if you don't use them. Yeah, it's only $10, but
         | I'm not spending another dime with them.
        
           | cedws wrote:
           | After how long do they expire?
        
             | zeograd wrote:
             | IIRC, 1 year
        
               | 0xdeafbeef wrote:
               | Same for anthropic
        
           | bonki wrote:
           | I wonder if they do this everywhere, in certain jurisdictions
           | this is illegal.
        
           | cactusplant7374 wrote:
           | That is so sleezy.
        
           | johnnyyyy wrote:
           | then you shouldn't use OpenRouter. ToS: 4.2 Credit
           | Expiration; Auto Recharge OpenRouter reserves the right to
           | expire unused credits three hundred sixty-five (365) days
           | after purchase
        
           | numlocked wrote:
           | Hi - I'm the COO of OpenRouter. In practice we don't expire
           | the credits, but _have_ to reserve the right to, or else we
           | have a uncapped liability literally forever. Can 't operate
           | that way :) Everyone who issues credits on a platform has to
           | have some way of expiring them. It's not a profit center for
           | us, or part of our P&L; just a protection we have to have.
        
             | mitthrowaway2 wrote:
             | If you're worried about the unlimited liability, how about
             | you refund the credits instead of expiring them?
        
               | diggan wrote:
               | Seems like a weird question to ask OpenRouter _Inc_ , a
               | for-profit company.
               | 
               | Really a shame OpenAI left their non-profit (and open)
               | roots, could have been something different but nope, the
               | machine ate them whole.
        
               | azemetre wrote:
               | Why is it a bad thing to ask for a company to do right by
               | their paid customers? This type of policy absolutely
               | causes the company to lose more business in the future
               | because it shows customers that they don't care about
               | customers.
               | 
               | I never heard of OpenRouter prior to this thread, but
               | will now never use them and advocate they never be used
               | either.
        
               | mitthrowaway2 wrote:
               | A fair refund policy is not in conflict with a company
               | being for-profit. I (and it seems many others) would be
               | much less inclined to buy credits from a company that
               | will expire them if I don't use it, and more inclined to
               | buy credits from a service that will refund them if I end
               | up not using it. Once I've bought them I'm more likely to
               | use them. And in addition to reducing that purchasing
               | friction and gaining market share, they can get the time-
               | value of the money between when I bought the credits and
               | when they eventually refund them.
               | 
               | Enlightened self-interest is when you realize that you
               | win by being good to your customers, instead of treating
               | customer service like a zero-sum game.
        
               | kfrane wrote:
               | From my experience with billing systems it is usually not
               | possible to refund a transaction after 6 or 12 months.
        
               | gotimo wrote:
               | even _possible_ with a some of them, but even in that
               | case they 're usually not "refunding" as much as they're
               | just "making a new transaction for the same anount the
               | other way" which does the same at the surface until
               | reversals, voids or rejections happen and it all becomes
               | a mess.
        
             | carstenhag wrote:
             | Why only 365 days? Would be way fairer and still ok for you
             | (if it's such a big issue) to expire them after 5 years.
        
             | otterley wrote:
             | Out of curiosity, what makes you different from a retailer
             | or restaurant that has the same problem?
        
         | csomar wrote:
         | > How do I get my $20 back?
         | 
         | Contact support and ask for a refund. Then a charge back.
        
         | cess11 wrote:
         | I suspect their data collection might not be legal in the EU.
         | 
         | https://withpersona.com/legal/privacy-policy
         | 
         | To me it looks like an extremely aggressive data pump.
        
           | wqaatwt wrote:
           | There are stories about e.g. Hetzner requiring all sorts of
           | data from people who want to open/verify accounts so perhaps
           | not. Might just be an anti "money laundering" thing.
           | Especially if the credit card company ends up refunding
           | everything..
        
             | 7bit wrote:
             | What stories? Can you back up that claim with some sources
             | please?
        
               | TiredOfLife wrote:
               | https://www.reddit.com/r/hetzner/search?q=id
        
               | 7bit wrote:
               | That's not a source and it is not my responsibility to
               | backup the claims you made. That is yours. If you don't
               | have any sources, and admit to just saying things that
               | are not probable, I can also live with that.
        
               | wqaatwt wrote:
               | What's the source on OpenAI doing the same? How is it
               | anymore legitimate in anyway?
               | 
               | Which kind of would make the entire "discussion" moot and
               | pointless
        
               | wut42 wrote:
               | Hetzner is famously notorious for this, but not enough
               | for publications to pick up this. So by your definitions,
               | YEARS of people talking about their experiences with this
               | is nothing?
        
               | zuppy wrote:
               | Infomaniak did request my personal id or passport for
               | creating a company account. I'm not going to provide any
               | extra source for you, this is what happened to me, you
               | can either believe it or not.
        
         | askl wrote:
         | Crazy, I already gave up registering for chatgpt because they
         | asked for my phone number. I'm not giving that to any random
         | startup.
        
         | gloosx wrote:
         | >ID Check
         | 
         | Just send them a random passport photo from the Internet,
         | what's the deal? Probably they are just vibe-verifying the
         | photo with "Is it legit passport?" prompt anyways.
        
           | sneak wrote:
           | It requires video and an app. They are collecting facial
           | biometrics.
        
             | gloosx wrote:
             | App? So you cannot verify without a mobile phone?
        
               | sneak wrote:
               | You can't sign up in the first place without a mobile
               | phone number. They require a phone number and block VoIP
               | services.
        
               | gloosx wrote:
               | Real mobile phone number to receive a code is 10C/. Maybe
               | a bit more, but certainly not more than a dollar.
        
           | _joel wrote:
           | I think modern face verification has moved on, it's been
           | video in all my encounters.
        
             | gloosx wrote:
             | still no real human is involved, as they mention their
             | verification is automated and prohabilistic -- which is
             | especially funny to hear in context of verification. Im
             | pretty sure even a kid can go around it, e.g. on the video
             | showing a photo of a person holding his passport which you
             | can find online.
        
               | tethys wrote:
               | No. You have to turn your head, and stuff. Also, even if
               | this would work, they allow only one verification per
               | person per 90 days.
        
               | gloosx wrote:
               | >one verification per person per 90 days.
               | 
               | this is absurd, how do they define "person"? On the
               | internet I can be another person from another country in
               | a minute, another minute I will be a different person
               | from a different country.
        
               | _joel wrote:
               | No, that's not how it works.
        
               | gloosx wrote:
               | So your saying it's not just feeding your video to the AI
               | model and blindly trusting it's outcome? Any evidence how
               | it works then?
        
         | sneak wrote:
         | Yeah, same. I am a paying API customer but I am not doing
         | biometric KYC to talk to a bot.
        
         | baq wrote:
         | Meanwhile the FSB and Mossad happily generate fake identities
         | on demand.
        
           | romanovcode wrote:
           | The whole point of identity verification is for the same
           | Mossad to gather your complete profile and everything else
           | they can from OpenAI.
           | 
           | Since Mossad and CIA is essentially one organization they
           | already do it, 100%.
        
         | belter wrote:
         | With all this plus the saving of all chats they can't operate
         | on the EU. But they do ....
        
         | verisimi wrote:
         | > OK, so now, we've gone from "I guess I'll give OpenAI a few
         | bucks for API access" to "I need to verify my organization" to
         | "There's no way in hell I'm agreeing to provide biometric data
         | to a 3rd party I've never heard of that's a 'partner' of the
         | largest AI company and Worldcoin founder. How do I get my $20
         | back?"
         | 
         | This should be illegal. How many are going to do the same as
         | you, but then think that the effort/time/hassle they would
         | waste to try to get their money back would not be worth it? At
         | which point you've effectively donated money to a corp that
         | implements anti-consumer anti-patterns.
        
         | righthand wrote:
         | Thank you for reminding me why I'll never touch these LLM
         | services.
        
         | shmoogy wrote:
         | I was excited about trying o3 for my apps but I'm not doing
         | this validation.. thanks for the heads up.
        
         | predkambrij wrote:
         | Interesting, it works for me through openrouter, without
         | configured openai integration. Although, I have openai account
         | and did verification with openai before. Conspiricy theory
         | would say that they are exchanging PII so openrouter knows who
         | am I :)
        
         | exceptione wrote:
         | Welcome to tech dystopia.
         | 
         |  _Hello Human Resource, we have all your data, please upload
         | your bio-metric identity, as well as your personal thoughts._
         | 
         |  _Building the next phase of a corporate totalitarian state,
         | thank you for your cooperation._
        
         | _345 wrote:
         | o3 is really powerful. I understand it tbh. They don't want
         | scammers and abusers easily accessing it
        
       | stevev wrote:
       | It was only a matter of time considering Deepseek R1's recent
       | release. OpenAI's competitor is an open-source product that
       | offers similar quality at a tenth of the cost. Now they're just
       | trying to prevent customers from leaving.
        
       | mrcwinn wrote:
       | Only at HN can the reaction to an 80% price drop be a wall of
       | criticism.
        
         | alternatex wrote:
         | "80% price drop" is just a title. The wall of criticism is for
         | the fine-print.
        
           | xboxnolifes wrote:
           | The wall of criticism is all wild speculation, not fine
           | print.
        
       | sagarpatil wrote:
       | Meanwhile Apple: Liquid Glass
        
       | boyka wrote:
       | 80%? So this is either same Trump style "art of the deal" with
       | setting unreasonable pricing in the first place or desperately
       | needing customers?
        
       | mythz wrote:
       | I've been turned off with OpenAI and have been actively avoiding
       | using any of their models for a while, luckily this is easy to do
       | given the quality of Sonnet 4 / Gemini Pro 2.5.
       | 
       | Although I've always wondered how OpenAI could get away with o3's
       | astronomical pricing, what does o3 do better than any other model
       | to justify their premium cost?
        
         | jstummbillig wrote:
         | It's just a highly unoptimized space. There is very little
         | market consolidation at this point, everyone is trying things
         | out that lead to wildly different outcomes and processes and
         | costs, even though in the end it's always just a bunch of utf-8
         | characters. o3 was probably just super expensive to run, and
         | now, apparently, it's not anymore and can beat sonnet/opus 4 on
         | pricing. It's fairly wild.
        
         | jsnider3 wrote:
         | Very few customers pick the model based on cost, for many
         | ChatGPT is the only one they know of.
        
           | hu3 wrote:
           | > Very few customers pick the model based on cost.
           | 
           | What? 3 ou of 4 companies I consulted for that started using
           | AI for coding marked cost as an important criteria. The 4th
           | one has virtually infinite funding so they just don't care.
        
             | jsnider3 wrote:
             | > 3 out of 4 companies I consulted for that started using
             | AI for coding marked cost as an important criteria.
             | 
             | And those aren't average customers.
        
       | monster_truck wrote:
       | Curious that the number of usages for plus users remained the
       | same. I don't think they're actually doing anything material to
       | lower the cost by a meaningful amount. It's just margin they've
       | always had, and they cut it because magistral is pretty
       | incredible for being completely free
        
       | maxcomperatore wrote:
       | groq is better
        
         | jsnider3 wrote:
         | No.
        
       | ucha wrote:
       | Can we know for sure that the price drop is accompanied by a
       | change in the model such as quantization?
       | 
       | On twitter, some people say that some models perform better at
       | night when there is a less demand which allows them to serve a
       | non-quantized model.
       | 
       | Since the models are only available through API and there is no
       | test to check which version of the model is served, it's hard to
       | know what we're buying...
        
       ___________________________________________________________________
       (page generated 2025-06-11 23:02 UTC)