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Jon Keegan

OpenAI announces new frontier models o3 and o3 mini

On the last day of “shipmas,” OpenAI saved what might be the biggest news for last, though the 1-800 number remains the most fun.

In a puzzling branding move, OpenAI CEO Sam Altman announced their latest frontier models: “o3” and “o3-mini.” For some reason (possibly trademark related), they’re skipping “o2” altogether.

The models are not available to the public yet, but researchers can apply to participate in “public safety testing” of the models, which are expected to be widely released at the end of January. The new models feature multistep “reasoning” like the current o1 model, but also apply the process to safety, leading to a higher success rate at catching prohibited responses, according to Altman.

Altman announced the models on a livestream and revealed that the new models had achieved the highest scores on a benchmark test that has been notoriously difficult for AI models to solve.

The ARC-AGI benchmark is a visual test that consists of a series of patterns of squares on a grid, and the model must apply unique solutions to each puzzle, which requires learning new skills with each problem.

Altman said that the o3 model performed 20% better than the current o1 model on coding benchmarks, and highlighted the performance and cost improvements for the smaller o3-mini model.

The models are not available to the public yet, but researchers can apply to participate in “public safety testing” of the models, which are expected to be widely released at the end of January. The new models feature multistep “reasoning” like the current o1 model, but also apply the process to safety, leading to a higher success rate at catching prohibited responses, according to Altman.

Altman announced the models on a livestream and revealed that the new models had achieved the highest scores on a benchmark test that has been notoriously difficult for AI models to solve.

The ARC-AGI benchmark is a visual test that consists of a series of patterns of squares on a grid, and the model must apply unique solutions to each puzzle, which requires learning new skills with each problem.

Altman said that the o3 model performed 20% better than the current o1 model on coding benchmarks, and highlighted the performance and cost improvements for the smaller o3-mini model.

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OpenAI’s models are officially coming to Amazon

Amazon is finally getting in on the hottest ticket in tech.

After Microsoft announced yesterday that it has agreed to give up its exclusive rights to sell OpenAI’s models, Amazon, as expected, will start offering them to customers — something Amazon Web Services CEO Matt Garman says users have been asking for “for a really long time.” Some models are available now in preview, and the most powerful GPT versions will show up “in the coming weeks.”

This is a big shift in the AI cloud wars. Microsoft’s early bet on OpenAI gave Azure an edge by locking up the most in-demand models. Now that exclusivity is gone, Amazon and other competitors can finally offer them too, closing a key gap and competing more directly for AI customers.

This is a big shift in the AI cloud wars. Microsoft’s early bet on OpenAI gave Azure an edge by locking up the most in-demand models. Now that exclusivity is gone, Amazon and other competitors can finally offer them too, closing a key gap and competing more directly for AI customers.

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Ship-tracking app surges as Iran war continues

As Middle East peace talks stretch on, with Tehran reportedly offering to reopen the Strait of Hormuz if the US lifts its blockade and the war ends, the owner of shipping intelligence platform MarineTraffic revealed that the app has gained millions of new users since the conflict began.

MarineTraffic’s user count jumped to 8.5 million this April, up from 3.5 million a year ago, the cofounder of its parent company, Kpler, said in an interview with the Financial Times. Paid subscribers, often workers within companies and governments looking for more data on supply chains and commodities trading, rose 11,000 in the same period.

Kpler, which also owns shipping intelligence platform FleetMon, draws its data from a range of sources, including the Automatic Identification System, satellites, and more than 500 people on-site, like port terminal operators.

Per Appfigures data, MarineTraffic is estimated to have raked in almost $1 million across March and April in app revenue (through April 27), more than double the ~$346,500 from the same months last year. Across the full year, Kpler expects to earn between $300 million and $400 million in annual recurring revenues.

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Google will supply AI models to Pentagon in classified deal, per The Information

Google has become the latest tech company to ink an agreement to supply the Department of Defense (War) with AI, having reportedly closed a classified deal that allows the Pentagon to use its AI for “any lawful government purpose,” according to The Information.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with The Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

The Information initially reported talks between the Alphabet-owned company and the US government around two weeks ago, following the messy breakdown of the relationship between Anthropic and the Trump administration — and the rushed OpenAI deal that took its place.

The move has reportedly sparked opposition among Google employees, with The Washington Post reporting that over 600 workers signed a letter to CEO Sundar Pichai to ask him to bar the Defense Department from using the company’s AI models for any classified work.

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