📌 Table of Contents
🔹 What is OpenAI o3?
🔹 Pricing Overview
🔹 How has Reasoning Improved?
🔹 The Challenge of Complex Language
🔹 Is o3 an AGI?
🔹 Hallucinations: More Frequent but Meaningful
🔹 Conclusion
🔍 Overview
In this lesson, we will explore the key features of OpenAI’s latest model “o3,” its pricing, improvements in reasoning, the rise of hallucinations, and why creativity and inaccuracies are two sides of the same coin.
📖 Lesson Start
🗣 (S)
“Hey! I heard OpenAI has a new model called o3. What makes it different? Is it really smarter than before?”
🎓 (T)
“Great question! Let’s dive into it step-by-step.”
🔹 What is OpenAI o3?
🎓 (T)
“OpenAI o3 is the latest AI model used in ChatGPT. It’s designed to have stronger reasoning skills and to generate more complex and nuanced outputs than previous models.”
🔹 Pricing Overview
🎓 (T)
“If you subscribe to a paid ChatGPT plan, you can use o3 without any extra fee!
There are several plans:
- Plus: $20/month
- Pro: $200/month
- Team: $30/month per user (or $25 if billed annually)
However, if you use the OpenAI API, you pay based on usage:
- $10 per 1 million input tokens
- $40 per 1 million output tokens
The more you use, the higher the cost.”
🎯 TIP:
“If you just want light, daily use, the Plus plan is enough. API is mainly for developers and businesses.”
🔹 How has Reasoning Improved?
🎓 (T)
“Compared to earlier models like GPT-4, o3 is much better at:
- Understanding long and complex texts
- Answering multi-condition questions accurately
Its ‘reasoning’ ability has definitely evolved!”
🗣 (S)
“Sounds powerful! But… is it easy to understand?”
🔹 The Challenge of Complex Language
🎓 (T)
“Actually, many users say o3 sometimes sounds too complicated!
It often uses technical terms or complex wording.”
🎯 TIP:
“When you want a simple answer, just add ‘Explain in simple words’ to your prompt.”
🔹 Is o3 an AGI?
🗣 (S)
“I heard something about AGI. Is o3 like human intelligence?”
🎓 (T)
“Not yet!
While o3 is excellent in:
- Reasoning
- Fast response
- Cost-performance
It does not have:
- True self-improvement
In short, o3 is a powerful tool, but not an autonomous intelligence.”
🔹 Hallucinations: More Frequent but Meaningful
🗣 (S)
“I also heard that o3 sometimes makes things up. Is that true?”
🎓 (T)
“Yes.
As its reasoning ability grew, o3 also started producing more hallucinations — very convincing but false information.”
🎯 TIP:
“Don’t just accept outputs blindly. Always double-check important facts.”
🗣 (S)
“Why would better AI make more mistakes?”
🎓 (T)
“Sam Altman, CEO of OpenAI, explained this in a very interesting way.
He said that hallucinations and creativity are two sides of the same coin.
When AI thinks freely beyond strict facts, it can create:
- New ideas
- Stories
- Poems
But this also means that sometimes, it creates things that are not true.”
🎯 TIP:
“Depending on your goal, you can encourage creativity or suppress hallucinations using your prompt settings!”
🛠 Practice
👉 Step 1
Ask AI the following two prompts:
“Tell me a simple fairy tale about a robot and a cat.”
“Tell me an accurate explanation about the tax system.”
🔎 Compare the two answers.
Check how much ‘creativity’ vs ‘accuracy’ you get!
👉 Step 2: Practical Application
Ask AI a following prompt:
“It’s perfectly fine if the story is a bit unrealistic. Write a fictional story imagining how my job field, [your field], could develop in the future.”
🎯 TIP:
If you want to bring out the AI’s creativity, asking it to create a fictional story can be very effective.
🎓 Comprehension Quiz
Which of the following is true about OpenAI o3?
A. o3 is already a fully autonomous AGI.
B. o3 always provides 100% factual information.
C. o3 has improved reasoning but can hallucinate more often.
📌 Summary
🔹 OpenAI o3 offers improved reasoning compared to GPT-4.
🔹 Paid ChatGPT users can access o3 without extra cost, but API use charges based on tokens.
🔹 o3 sometimes uses complex language, so prompts asking for simplicity are helpful.
🔹 o3 is not yet AGI, but an advanced tool.
🔹 Hallucinations are linked to AI’s creativity — they are two sides of the same coin.
🔹 For basic text generation, GPT-4o or free plans may be sufficient.
🔹 Tools like Perplexity are recommended for reliable web research.
📝 Quiz Answer
✅ Correct answer: C. o3 has improved reasoning but can hallucinate more often.
