OpenAI's o3 suggests AI models are scaling in new ways - but so are the costs | TechCrunch
Briefly

AI founders and investors indicate we're entering the "second era of scaling laws," where traditional methods show diminishing returns, yet new strategies like "test-time scaling" may sustain progress.
OpenAI's o3 model achieved substantial performance milestones, outscoring others on benchmarks like the ARC-AGI test and excelling in a math challenge where competitors faltered.
With o3's launch, co-creator Noam Brown emphasized a rapid improvement trajectory, suggesting that the recent advancements in AI capabilities would continue to evolve quickly.
Jack Clark posits that advancements in AI will accelerate in 2025, as model developers integrate different scaling methodologies to maximize the potential of AI models in upcoming years.
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