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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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Rani Molla

Amazon raises the price for ad-free Prime Video to $4.99

Amazon is giving consumers more — for more. The e-commerce giant is raising the price of its ad-free Prime Video tier to $4.99 a month, up from $2.99.

On April 10, the service, now rebranded as Prime Video Ultra, will allow more concurrent streams (five instead of three) and up to 100 downloads, up from 25. Ad-free Prime Video had been included with a Prime membership until 2024, when Amazon added ads and began charging $2.99 a month to remove them.

For what it’s worth, ad-free Prime Video is still cheaper than the other increasingly expensive streaming services — if you don’t include the cost of Prime.

For what it’s worth, ad-free Prime Video is still cheaper than the other increasingly expensive streaming services — if you don’t include the cost of Prime.

tech
Rani Molla

Uber relaunches robotaxi service with Hyundai-backed Motional in Las Vegas

What happens in Vegas, keeps happening in Vegas.

Uber users in Las Vegas can now be matched with an electric Motional IONIQ 5 robotaxi along parts of the Strip and at select casinos, resorts, and the Town Square shopping district near the airport, the companies said. For now, each vehicle includes a human safety operator monitoring from behind the wheel, who the companies say will be removed by year’s end.

Uber and Hyundai-backed autonomous tech company Motional previously tested a service there in 2022. “Motional is ready to put our extensive ride hail experience to work with Uber again,” said David Carroll, vice president of commercialization at Motional, which paused its commercial deployments in 2024 to refocus on its core driverless technology after scaling back operations.

This time around, the companies will be joining a much more crowded field. Amazon-owned Zoox has been offering free rides along select destinations on the Strip since last year, and both Tesla’s Robotaxi and Alphabet-owned Waymo have plans to open up shop there in the near future.

Thanks to a spate of recent AV partnerships, Uber, which sold its own autonomous unit back in 2020, is finding itself at the center of the nascent robotaxi boom.

tech
Rani Molla

Musk says “xAI was not built right” amid executive departures, Cursor hires

There’s been a lot of turnover lately at xAI, with numerous executive departures and, yesterday, news that the SpaceX-owned company was hiring two senior leaders from Cursor, an AI coding startup that’s raising funds at a $50 billion valuation.

The reason? “xAI was not built right first time around, so is being rebuilt from the foundations up,” CEO Elon Musk posted on xAI-owned X yesterday, in response to a post about the Cursor hires. Earlier this month, Musk told a conference audience, “Grok is currently behind on coding.”

The news amounts to an admission of a reset inside xAI and an acknowledgment that the company is trailing AI peers like Anthropic and OpenAI in one of AI’s most commercially important applications: coding.

tech
Jon Keegan

War in the Middle East halts Meta’s undersea fiber project

Meta’s massive undersea cable project connecting Africa and the Middle East to Europe has run into an unexpected obstacle — not under the sea, but in the sky and land above: the war in the Middle East.

According to a report from Bloomberg, France’s Alcatel Submarine Networks, the company that is laying the cable, notified customers that it can no longer safely operate in the area.

The 2Africa project consists of a 45,000-kilometer chain of undersea fiber-optic cables that encircles Africa and runs through the Red Sea, up through the Gulf of Oman, where the Strait of Hormuz sits. Iran has declared the strait — a crucial choke point for oil and natural gas tankers — closed for traffic.

Meta is building the network in partnership with Bayobab, China Mobile, Orange, Telecom Egypt, Vodafone, WIOCC, and Center3.

The 2Africa project consists of a 45,000-kilometer chain of undersea fiber-optic cables that encircles Africa and runs through the Red Sea, up through the Gulf of Oman, where the Strait of Hormuz sits. Iran has declared the strait — a crucial choke point for oil and natural gas tankers — closed for traffic.

Meta is building the network in partnership with Bayobab, China Mobile, Orange, Telecom Egypt, Vodafone, WIOCC, and Center3.

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