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AI Wars: OpenAI Strikes Back Against DeepSeek
DeepSeek disrupted the AI space—OpenAI just fired back with three new AI models. Should you use them? Here’s what business owners need to know.
Troy Larson
February 05, 2025
The AI world is quickly turning into a reality show.
DeepSeek’s research LLM has turned the landscape upside-down.
In response, Sam Altman, CEO of OpenAI, has recently indicated that the company is accelerating its release timeline for new AI models.
On January 28, 2025, Altman stated, "We will obviously deliver much better models and also it's legit invigorating to have a new competitor! we will pull up some releases."
And so they did.
Yesterday they launched THREE new versions of their new reasoning mode o3—a rebuttal to DeepSeek’s R1 model.
Model | Input Cost (per 1M tokens) | Output Cost (per 1M tokens) | Key Features | Best For | Speed | Reasoning Effort |
|---|---|---|---|---|---|---|
o3 | $2.50 | $10 | Top-tier performance for complex analysis | R&D departments, high-stakes data science | Slowest | Maximum power |
o3-mini | $1.10 | $4.40 | Budget-friendly adaptive reasoning | Startups, routine STEM tasks, cost-sensitive | 24% faster than o1 | Low /Medium /High selectable |
o3-mini-high | $1.10 | $4.40 | Enhanced precision at same base cost | Tech teams needing advanced problem-solving | Slightly slower than mini | High (auto-optimized) |
As a business owner, when would you want to use o3?
Let’s start with why you would NOT use it.
You do NOT need it for typical tasks:
creating social media posts
creating emails
proofreading
correcting grammar
You WOULD want to use it when you want to do more “analytical” tasks:
building a business plan
analyzing financial data
reviewing a marketing plan
openai-4o is similar to having a quick conversation.
Using o3 is like having an in-depth conversation with a subject matter expert.
You’re going to pay more for the SME’s time, so you simply need to decide when it’s worth the extra cost.
And announcing . . .
The AI Boot Camp is scheduled for a week from Thursday!
Why start on Thursday?
Rather than going Monday to Friday, I’m going to start at the end of the week so that it gives you the weekend to catch up if you’re busy during the week.
(And I will be available on the weekends if you run into issues!)
The v2.0 price is increasing to $599, but because you are my valued newsletter subscriber (I truly mean that!) — you can get it at the v1.0 price of $499.
Use coupon code BCV2100.
Discover the thrilling world of AI creation—click now to start building your own!
Troy's One Cool Thing of the Day
Date & Time:
🗓️ Date: Thursday, February 6
⏰ Time: 12:00 PM - 1:00 PM EST
💻 Platform: Google Meet
What to expect:
🧠 Insightful Discussions: Explore the challenges and risks of depending on a single platform for data and workflows.
📉 Sustainability Concerns: Understand the implications of tool dependency and the importance of diversifying your digital toolkit.
🎤 Expert Opinions: Hear from industry thought leaders on leveraging SaaS effectively while mitigating risk.
Who’s this for?: Perfect for tech professionals, executives, and entrepreneurs, this event offers valuable insights into maintaining flexibility and resilience in digital workspaces. It's a must-attend for those concerned about the long-term sustainability of their tech solutions.
🕵🏻♂️ Here's how to find me:
My LinkedIn - I’ve joined the LinkedIn community and enhanced my profile. Let’s connect and expand our network. Connect with me.
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Disclaimer: Just a heads-up! Some of the links in this newsletter might be affiliate links, which means I could earn a small commission if you make a purchase. No extra cost to you… just a way to keep the magic coming!
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