Tech
tech
Jon Keegan
12/20/24

OpenAI announces new frontier models o3 and o3 mini

On the last day of “shipmas,” OpenAI saved what might be the biggest news for last, though the 1-800 number remains the most fun.

In a puzzling branding move, OpenAI CEO Sam Altman announced their latest frontier models: “o3” and “o3-mini.” For some reason (possibly trademark related), they’re skipping “o2” altogether.

The models are not available to the public yet, but researchers can apply to participate in “public safety testing” of the models, which are expected to be widely released at the end of January. The new models feature multistep “reasoning” like the current o1 model, but also apply the process to safety, leading to a higher success rate at catching prohibited responses, according to Altman.

Altman announced the models on a livestream and revealed that the new models had achieved the highest scores on a benchmark test that has been notoriously difficult for AI models to solve.

The ARC-AGI benchmark is a visual test that consists of a series of patterns of squares on a grid, and the model must apply unique solutions to each puzzle, which requires learning new skills with each problem.

Altman said that the o3 model performed 20% better than the current o1 model on coding benchmarks, and highlighted the performance and cost improvements for the smaller o3-mini model.

The models are not available to the public yet, but researchers can apply to participate in “public safety testing” of the models, which are expected to be widely released at the end of January. The new models feature multistep “reasoning” like the current o1 model, but also apply the process to safety, leading to a higher success rate at catching prohibited responses, according to Altman.

Altman announced the models on a livestream and revealed that the new models had achieved the highest scores on a benchmark test that has been notoriously difficult for AI models to solve.

The ARC-AGI benchmark is a visual test that consists of a series of patterns of squares on a grid, and the model must apply unique solutions to each puzzle, which requires learning new skills with each problem.

Altman said that the o3 model performed 20% better than the current o1 model on coding benchmarks, and highlighted the performance and cost improvements for the smaller o3-mini model.

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tech
Jon Keegan
9/11/25

OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

tech
Rani Molla
9/11/25

BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

APPLE INTELLIGENCE

Apple AI was MIA at iPhone event

A year and a half into a bungled rollout of AI into Apple’s products, Apple Intelligence was barely mentioned at the “Awe Dropping” event.

Jon Keegan9/10/25
tech
Jon Keegan
9/10/25

Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

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