OpenAI's o3 reasoning model's usage cost has dropped by 80%, confirmed CEO Sam Altman. The new price is $2 per million input tokens and $8 per million output tokens, a significant slash from the prior $10 (input) and $40 (output). The move is aimed at encouraging broader experimentation, amid industry-wide competition for affordability and performance. The discount puts pressure on higher-priced competitors and potentially benefits startups and developers who found the previous pricing prohibitive.