OpenAI’s O3 Price Plunge Changes Everything for Vibe Coders

OpenAI’s o3 price plunge changes everything for vibe coders

On June 10, OpenAI slashed the list price of its flagship reasoning model, o3, by roughly 80% from $10 per million input tokens and $40 per million output tokens to $2 and $8, respectively. API resellers reacted immediately: Cursor now counts one o3 request the same as a GPT-4o call, and Windsurf lowered the “o3-reasoning” tier to a single credit as well. For Cursor users, that’s a ten-fold cost cut overnight. Latency improved in parallel. OpenA…

What is OpenAI o3 and How is it Different than other LLMs?

OpenAI is now considered another name of innovation in the field of AI, and with the launch of OpenAI o3, this claim is becoming stronger. The launch of this AI chatbot is a huge leap in how we interact with machines. It was first announced by Sam Altman on Dec 20, 2024, and on February 12, 2025, the CEO announced it would come alongside GPT-5. With excitement around this large language model building up, everyone is wondering – what exactly is …