The cost of new AI models can add up quickly. A new “o3” model from OpenAI costs $20 per task. Why Microsoft is paying close attention to the price.

AI founders and investors told TechCrunch that we’re now in the “second era of scaling laws,” noting how established methods of improving AI models were showing diminishing returns. One promising new method they suggested could keep gains was “test-time scaling,

See all the announcements from OpenAI’s 12-day extravaganza, including new integrations for developers and an opportunity to stress-test the next big model.

OpenAI announced the release of a new family of AI models, dubbed o3. The company claims the new products are more advanced than its previous models, including o1. The advancements, according to the startup,