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OpenAI’s record-breaking test score might have cost $30,000 per puzzle

In December, OpenAI CEO Sam Altman announced that its new o3 “reasoning” model had, for the first time, achieved a winning score on the ARC-AGI benchmark, a notoriously difficult test that had stumped all prior AI models.

But that power came at a steep price. The ARC Foundation (which maintains the test) estimated that the price for the “high compute” configuration of the winning test was about $3,400 per puzzle.

But OpenAI has not yet released the computing costs of its winning tests.

Last week, the ARC Foundation updated its leaderboard of test results, and o3’s winning score was no longer on the chart:

“Only systems which required less than $10,000 to run are shown. Notably missing from this chart is o3 (high compute). For more information on this see our announcement blog post.”

The ARC Foundation thinks the actual o3 costs are more in line with the superexpensive o1-pro model, which is the most expensive in the industry. Based on the sky-high pricing of the o1-pro model, that means it may have cost up to $30,000 of computation to solve each puzzle. The ARC Foundation wrote:

“o3 pricing costs have been updated to use o1-pro pricing. We will update again once official o3 pricing is publicly available. The amount of compute was roughly 172x the low-compute configuration.”

OpenAI did not immediately respond to a request for comment.

But that power came at a steep price. The ARC Foundation (which maintains the test) estimated that the price for the “high compute” configuration of the winning test was about $3,400 per puzzle.

But OpenAI has not yet released the computing costs of its winning tests.

Last week, the ARC Foundation updated its leaderboard of test results, and o3’s winning score was no longer on the chart:

“Only systems which required less than $10,000 to run are shown. Notably missing from this chart is o3 (high compute). For more information on this see our announcement blog post.”

The ARC Foundation thinks the actual o3 costs are more in line with the superexpensive o1-pro model, which is the most expensive in the industry. Based on the sky-high pricing of the o1-pro model, that means it may have cost up to $30,000 of computation to solve each puzzle. The ARC Foundation wrote:

“o3 pricing costs have been updated to use o1-pro pricing. We will update again once official o3 pricing is publicly available. The amount of compute was roughly 172x the low-compute configuration.”

OpenAI did not immediately respond to a request for comment.

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Jon Keegan

OpenAI reportedly poaching key Apple designers, using Apple manufacturing partners for AI gadgets

New details are emerging about the mysterious AI gadgets being designed by former Apple design chief Jony Ive since OpenAI purchased his startup “io” in May.

According to a report by The Information, Ive’s team has recruited several key Apple design and hardware employees to work on the gadgets. The Information reported some details of the devices:

“One of the products OpenAI has talked to suppliers about making resembles a smart speaker without a display, the people said. OpenAI has also considered building glasses, a digital voice recorder and a wearable pin, and is targeting late 2026 or early 2027 for the release of its first devices, one of the people said.”

OpenAI is also turning to Apple’s Chinese manufacturing partners to build the products, having signed contracts with Luxshare, and has been in talks with Goertek, per the report.

“One of the products OpenAI has talked to suppliers about making resembles a smart speaker without a display, the people said. OpenAI has also considered building glasses, a digital voice recorder and a wearable pin, and is targeting late 2026 or early 2027 for the release of its first devices, one of the people said.”

OpenAI is also turning to Apple’s Chinese manufacturing partners to build the products, having signed contracts with Luxshare, and has been in talks with Goertek, per the report.

Mark Zuckerberg at Meta Connect 2025

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Rani Molla

Zuckerberg: AI might be a bubble but “misspending a couple of hundred billion” is worth it to achieve superintelligence

“It’s quite possible” that AI is a bubble, Meta CEO Mark Zuckerberg told tech journalist Alex Heath, formerly of The Verge, on his new podcast, “Access,” and for his newsletter, Sources. That isn’t stopping Zuckerberg’s social media company from going all in on AI in hopes of achieving superintelligence, aka AI that’s smarter than humans.

“If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously,” said Zuckerberg, who’s shelling out $600 billion on US data centers and infrastructure through 2028. “But what I’d say is I actually think the risk is higher on the other side.”

“The risk, at least for a company like Meta, is probably in not being aggressive enough rather than being somewhat too aggressive,” he added.

“If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously,” said Zuckerberg, who’s shelling out $600 billion on US data centers and infrastructure through 2028. “But what I’d say is I actually think the risk is higher on the other side.”

“The risk, at least for a company like Meta, is probably in not being aggressive enough rather than being somewhat too aggressive,” he added.

tech

Grok has 64 million monthly users while ChatGPT has 700 million weekly users

Daddy, it seems, is very much not home.

CEO Elon Musk spent the majority of his time at xAI this summer rather than at Tesla, where he recently claimed to have shifted his focus, The New York Times reports. The piece is full of other great details on his AI startup — read it all — but here are some notable tidbits from the story and from one of its reporters, Kate Conger, who shared extras on social media:

  • xAI’s Grok has 64 million monthly users, compared with OpenAI’s ChatGPT, which has about 700 million weekly users. Musk is currently suing OpenAI and Apple over what he says is unfavorable positioning on the iOS App Store.

  • Musk wanted Grok to be less woke and more popular, a command that led it to post antisemitic remarks and call itself “MechaHitler.”

  • Musk plans on building a Microsoft competitor called “Macrohard,” something he said he’s painting on the roof of xAI’s new Memphis data center.

  • xAI’s execs said after Grok 4, the next model will be called Grok 420.

UPDATE (September 19): Corrected headline of piece to reflect ChatGPT has 700 million weekly users, not daily.

  • xAI’s Grok has 64 million monthly users, compared with OpenAI’s ChatGPT, which has about 700 million weekly users. Musk is currently suing OpenAI and Apple over what he says is unfavorable positioning on the iOS App Store.

  • Musk wanted Grok to be less woke and more popular, a command that led it to post antisemitic remarks and call itself “MechaHitler.”

  • Musk plans on building a Microsoft competitor called “Macrohard,” something he said he’s painting on the roof of xAI’s new Memphis data center.

  • xAI’s execs said after Grok 4, the next model will be called Grok 420.

UPDATE (September 19): Corrected headline of piece to reflect ChatGPT has 700 million weekly users, not daily.

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