Business | Marginal revolution

OpenAI’s latest model will change the economics of software

The more reasoning it does, the more computer power it uses

A simple robot face with rolls of cash as eyes. The robot has a smiling mouth and a small antenna on top. The design is minimal, with black outlines on a light background. — Illustration: Mariaelena Caputi

Jan 20th 2025|SAN FRANCISCO

When OpenAI announced a new generative artificial-intelligence (AI) model, called o3, a few days before Christmas, it aroused both excitement and scepticism. Excitement from those who expected its reasoning capabilities to be a big step towards superhuman intelligence. Scepticism because OpenAI did not release it to the public and had every incentive to overplay the firm’s pioneering role in AI to curry favour with Donald Trump, the incoming American president.