Reasoning Price War 2: Mistral Magistral + o3's 80% price cut + o3-pro
OpenAI announced an 80% price cut for its o3 model, making it competitively priced with GPT-4.1 and rivaling Anthropic's Claude 4 Sonnet and Google's Gemini 2.5 Pro. Alongside, o3-pro was released as a more powerful and reliable variant, though early benchmarks showed mixed performance relative to cost. Mistral AI launched its Magistral reasoning models, including an open-source 24B parameter version optimized for efficient deployment on consumer GPUs. The price reduction and new model releases signal intensified competition in reasoning-focused large language models, with notable improvements in token efficiency and cost-effectiveness.