Beyond the reported performance improvements, OpenAI announced a substantial price reduction for developers. O3-pro costs $20 per million input tokens and $80 per million output tokens in the API, making it 87 percent cheaper than o1-pro. The company also reduced the price of the standard o3 model by 80 percent.

New model and bold pricing strategy aim to cement OpenAI’s lead, but enterprises must navigate integration and governance challenges to unlock full potential, analysts say.