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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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Report: OpenAI may tailor a version of ChatGPT for UAE that prohibits LGBTQ+ content

In June of last year, OpenAI CEO Sam Altman appeared in Abu Dhabi, UAE, alongside Nvidia CEO Jensen Huang to announce “Stargate UAE,” a project that includes a 1-gigawatt AI data center in Abu Dhabi, and a commitment to invest in the Stargate USA project.

OpenAI has announced that it is interested in jumping on the “sovereign AI” train, helping countries roll out their own AI services that reflect their own language, culture, and version of history.

Today, Semafor is reporting that OpenAI is in talks to develop a tailored version of ChatGPT for the UAE that would align with the kingdom’s conservative social laws and speech restrictions, such as disallowing discussion of LGBTQ+ content. The UAE-owned MGX investment firm is an investor in OpenAI.

The company announced its OpenAI for Countries initiative in May of last year, which aims to “help interested governments build sovereign AI capability in coordination with the U.S. government — rooted in democratic values, open markets, and trusted partnerships.”

The UAE is a monarchy with a history of human rights violations.

OpenAI has announced that it is interested in jumping on the “sovereign AI” train, helping countries roll out their own AI services that reflect their own language, culture, and version of history.

Today, Semafor is reporting that OpenAI is in talks to develop a tailored version of ChatGPT for the UAE that would align with the kingdom’s conservative social laws and speech restrictions, such as disallowing discussion of LGBTQ+ content. The UAE-owned MGX investment firm is an investor in OpenAI.

The company announced its OpenAI for Countries initiative in May of last year, which aims to “help interested governments build sovereign AI capability in coordination with the U.S. government — rooted in democratic values, open markets, and trusted partnerships.”

The UAE is a monarchy with a history of human rights violations.

Allen & Co Brings Together Media And Tech Titans In Sun Valley

Analysts think Amazon’s sky-high capex is a good thing, even if there’s “shock value” for investors

That said, several analysts also lowered their price targets for Amazon the day after its downbeat earnings report.

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Big Tech’s $1.1 trillion cloud computing backlog

Now that the big dogs of cloud computing have all reported their quarterly earnings, we can step back and get a sense of the searing demand that AI is driving toward their businesses.

Amazon, Google, and Microsoft each reported hundreds of billions in RPO (remaining performance obligations) — signed contracts for cloud computing services that can’t yet be filled and haven’t yet hit the books.

Collectively, the big three cloud providers reported a $1.1 TRILLION backlog of revenue.

This gargantuan demand could be good news for the “neoscalers” like CoreWeave and Nebius. But even CoreWeave is reporting a substantial backlog of its own — $55 billion last quarter.

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Big Tech capital expenditure soared in 2025. It’s going up another 50% in 2026.

Last quarter was one for the record books when it came to Big Tech’s purchases of property and equipment. Combined, Amazon, Alphabet, Microsoft, and Meta spent nearly $400 billion on capex, sans leases, in total last year, mostly in service of building out the AI infrastructure that they hope will furnish their futures.

And 2026 is only getting more expensive.

The four are expected to spend 50% more in 2026 than in 2025: roughly $600 billion. Amazon said it’s on the hook for $200 billion in capex this year, while Google expects to spend between $175 billion and $185 billion. Not too far behind, Meta estimated its 2026 capex would be $115 billion to $135 billion. Microsoft didn’t give an estimate, but analysts have its 2026 calendar year capex at around $114 billion. However, it should be noted that analysts’ expectations for 2026 were way lower than the reality for the rest.

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