OpenAI is set to streamline its artificial intelligence offerings by phasing out the standalone ‘o3’ model, CEO Sam Altman announced on Wednesday.
What Happened: Taking to X, formerly Twitter, Altman said that the upcoming GPT-4.5, internally known as Orion, will be the last non-chain-of-thought model.
After that, OpenAI will launch GPT-5 as an integrated system within ChatGPT and its API. The update will include advancements from o3, which will no longer be available as a separate model.
“We hate the model picker as much as you do and want to return to magic unified intelligence,” he stated.
Moreover, the free tier of ChatGPT will offer unlimited access to GPT-5 at a standard intelligence setting, subject to abuse thresholds.
“Plus subscribers will be able to run GPT-5 at a higher level of intelligence, and Pro subscribers will be able to run GPT-5 at an even higher level of intelligence.”
When a user asked Altman about the estimated time of arrival for GPT-4.5 and GPT-5, he responded vaguely saying "weeks/months."
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Why It Matters: The decision to phase out the ‘o3’ model comes after reports that OpenAI’s ‘o3’ could cost up to $3,000 per query, raising concerns about the economic viability of such models.
OpenAI is also reportedly advancing toward creating its own AI chip, which could reduce its reliance on Nvidia Corporation. The company is expected to submit its design to Taiwan Semiconductor Manufacturing Co. for fabrication soon.
Meanwhile, Elon Musk has proposed a $97.4 billion purchase of OpenAI's nonprofit division, but the startup's board reportedly intends to decline the offer.
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