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ChatGPT Maker OpenAI Drops o3 Reasoning Model As o1's Successor: Greg Brockman Calls It A 'Breakthrough' - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

By Ananya Gairola

ChatGPT Maker OpenAI Drops o3 Reasoning Model As o1's Successor: Greg Brockman Calls It A 'Breakthrough' - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

On Friday, ChatGPT-maker OpenAI unveiled its next-generation reasoning model, o3, as the successor to o1, capping off the company's 12 days of shipmas announcements.

What Happened: On the final day of its "12 Days of OpenAI" event, the AI startup revealed o3, which brings significant advancements in reasoning and coding capabilities.

Alongside o3, Microsoft Corp.-backed MSFT OpenAI also introduced o3-mini, a smaller version designed for specific, more targeted applications.

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"We view this as the beginning of the next phase of AI. Where you can use these models to do increasingly complex tasks that require a lot of reasoning," stated OpenAI CEO Sam Altman.

The company has begun rolling out o3 to select safety researchers, with plans for broader availability soon. The application window closes on Jan. 10.

Altman also stated that the o3-mini may launch by the end of January, followed by the full release of the o3 model.

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Notably, OpenAI skipped over naming the new model "o2," to avoid potential trademark conflicts with British telecom provider O2, according to The Information.

Why It Matters: OpenAI's progress is evident in the ARC-AGI benchmark, where o3 scored 87.5% on the high compute setting, tripling o1's performance on the lower setting.

The ARC-AGI test is often used to measure progress toward achieving Artificial General Intelligence (AGI) by assessing a model's performance in areas that require advanced problem-solving and reasoning.

However, ARC-AGI co-creator François Chollet also noted that o3 struggles with "very easy tasks" in ARC-AGI, suggesting it has "fundamental differences" from human intelligence.

"While the new model is very impressive and represents a big milestone on the way towards AGI, I don't believe this is AGI -- there's still a fair number of very easy ARC-AGI-1 tasks that o3 can't solve, and we have early indications that ARC-AGI-2 will remain extremely challenging for o3," Chollet stated.

As part of its "12 Days of OpenAI" event, the AI startup rolled out the ChatGPT Search engine to all users, including those on the free tier.

The AI startup also unveiled its text-to-image model, Sora, and introduced a $200 monthly ChatGPT Pro subscription.

Earlier this month, Alphabet Inc. GOOG GOOGL also launched the second generation of its Gemini AI model to regain its position at the forefront of the AI technology race.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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