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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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Microsoft is reportedly building a super app to tame product sprawl — and finally crack mobile

Super apps are very 2010s, but they might be the future for Microsoft. The enterprise giant is working on combining its sprawling and often confusing product suite into a single super app expected by late summer, Fortune reports.

By unifying the tools, Microsoft is hoping that the massive popularity of some of its offerings — particularly GitHub Copilot — will rub off on its other, slower-growing products.

The tool will merge its coding assistant GitHub Copilot, its chat function Copilot, its Copilot Cowork tool, and a new agentic workflow called Autopilot. The move, known internally as “Delivering one Copilot,” will have the dual purpose of simplifying Microsoft’s fragmented desktop AI offerings and finally helping the office software giant gain a foothold on mobile, where competing tools have dominated.

Microsoft is taking a page from frenemy OpenAI’s playbook. In March, OpenAI announced plans for its own desktop super app to combine ChatGPT, Codex, and its Atlas browser into one central workstation.

The tool will merge its coding assistant GitHub Copilot, its chat function Copilot, its Copilot Cowork tool, and a new agentic workflow called Autopilot. The move, known internally as “Delivering one Copilot,” will have the dual purpose of simplifying Microsoft’s fragmented desktop AI offerings and finally helping the office software giant gain a foothold on mobile, where competing tools have dominated.

Microsoft is taking a page from frenemy OpenAI’s playbook. In March, OpenAI announced plans for its own desktop super app to combine ChatGPT, Codex, and its Atlas browser into one central workstation.

42

Forty-two is the answer to life, the universe, and everything in Douglas Adams’ classic “The Hitchhiker’s Guide to the Galaxy.” It’s also the number of unsupervised Robotaxis Tesla has on the road in Texas, the only state where it’s operating autonomous service, according to records from a newly required government database in the state.

That’s much lower than CEO Elon Musk had hoped, as the company struggles to ready its camera-only autonomous vehicles for commercial scale. In 2025, Musk said that the service would be available to “half the population of the US by the end of the year.”

Even smaller competition has more: Avride has 317 and Nuro has 47. Meanwhile, Tesla’s chief rival, Alphabet subsidiary Waymo, has 577 in operation in the state. Nationwide, Waymo’s fleet currently numbers more than 3,000.

Unfortunately for Tesla, figuring out how to actually scale its robotaxi fleet remains the ultimate question.

INDIA-TECHNOLOGY-AI-DIPLOMACY

Anthropic raises $65 billion at a $965 billion valuation, releases a more “honest” Claude Opus 4.8

Anthropic’s monster $965 billion valuation puts it firmly ahead of OpenAI’s $850 billion valuation as the rivals head toward expected IPOs later this year.

Jon Keegan5/28/26
tech
Jon Keegan

Report: Microsoft tries to get back in the AI coding game with new model

Microsoft wants to fight its way back into the AI coding field by releasing a new model next week at its annual Microsoft Build developer conference, The Information reports.

The company is expected to announce a new family of models as Microsoft AI CEO Mustafa Suleyman seeks to shore up the company’s own AI offerings and gradually wean it off OpenAI’s technology over the remainder of their $13 billion partnership.

Microsoft was initially well positioned to meet software developers with AI-enhanced tools. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022.

But it fumbled one of the biggest first-mover advantages in history as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved.

Microsoft was initially well positioned to meet software developers with AI-enhanced tools. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022.

But it fumbled one of the biggest first-mover advantages in history as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved.

Ojai outside

Waymo to launch free robotaxi rides in its new Ojai vans

The new vehicles are less expensive — which is important for the service to really scale.

Rani Molla5/28/26

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