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

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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 the OpenAI o3 and how is it different from its previous models? Most importantly, the discussion is around what it has for developers, businesses, and everyday users. So, let’s dive deeper and explore everything you need to know about OpenAI o3 – its features, capabilities, and its importance in the world of AI.

What is OpenAI o3?

Though it is often referred to as GPT-4.5 or GPT-4-turbo, OpenAI considers it to be on the leading edge of LLM development. It comes in two variants:

o3 – which is a base model
o3-mini – a smaller version of the o3 model optimized for better performance and cost efficiency.

This AI model from OpenAI can easily handle complex tasks as compared to the existing models, including GPT-4o. It has been designed keeping in mind the tasks that require deep analytical thinking and reasoning capabilities.

Like other AI chatbots by OpenAI, this is also based on transformer architecture and uses deep learning techniques for processing user prompts and generating output. But what makes o3 truly different from others is its increased prowess to understand context and reason through various types of complex problems.

The o3 model uses simulated reasoning that helps this model to pause and sneak back into its internal thought processes and then respond accurately. Its reasoning is more than just chain-of-thought (CoT) prompting that offers the model an integrated and autonomous approach to analyze its output.

OpenAI o3: Key Features

Now, let us explore the key features this AI chatbot has to offer.

1. Huge context window

One of the most talked-about features of OpenAI o3 is the huge context window it offers. It can support up to 128,000 tokens. If we compare it with GPT-4, then it offers up to 32,000 tokens in its premium versions.

With this increased context window, the latest version can analyze and recall more information in a single session, which is approximately 300 pages of text.

Thus, it can be very useful in applications like analyzing large documents or applications involving codebases or longer conversations.

2. Smarter and more efficient

OpenAI o3 is built over and is an improved version of GPT-4 offering high speed and cost-efficiency. It is the underlying architectural refinements, as stated by company officials, that make the model cheaper, more efficient, and respond faster to user queries. According to several user reviews, this model feels snappier and more aware. It has fewer hallucinations and better accuracy.

3. Built-in tools and multimodal capability

More than just a text-based AI model – OpenAI o3 comes with several integrated, powerful tools:

Code interpreter – this helps the model run calculations, generate plots, and analyze files
Dall E-3 – integration with Dall-E-3 helps users create and edit images with simple prompts
Browser – this tool enables o3 model to search the web to get up-to-date information
File upload and analysis – users can also upload documents that o3 can read and summarize for users.

4. Memory and Personalization

One big leap in the o3 model is its memory. While the earlier models tend to forget user preferences between chats, o3 can easily remember facts about users and provide more personalized responses.

For example, it can remember your writing style, what previous projects you worked on, and what you like about your content. Of course, the memory can be toggled on and off at any time, which provides the users full control over what o3 can remember about them. Users can also delete specific memories and wipe everything out.

Comparison of OpenAI o3 with other versions

Here is how this AI chatbot compares with other models

Feature	GPT-3.5	GPT-4	OpenAI o3
Context limit	4K tokens	Up to 32K tokens	Up to 128K tokens
speed	Fast	Slower	Faster than GPT-4
Reasoning ability	Moderate	Strong	Improved
Tool access	None	With plugins	Fully integrated
Personal memory	NA	Limited	Available

The GPT-3.5 version is available for free to users, and the premium versions of ChatGPT now use o3 by default.

What can OpenAI o3 do?

This model of OpenAI can easily handle most of the LLM activities and comes with some advanced capabilities such as:

Better reasoning: It can perform step-by-step logical reasoning to handle complex tasks
Programming and coding: It can write code with 71.7% accuracy as per SWE-bench
Mathematics: OpenAI o3 can perform mathematical operations with 96.7% accuracy (on AIME)
Self-fact checking
Science: It can do scientific research with higher accuracy.

With such rapid advancements in LLMs and chatbots, we can imagine what the future could be like. Most importantly, it will give rise to job opportunities for AI prompt engineers who can fine-tune these models for more accurate responses. Therefore, it is highly recommended to master these latest AI skills with a top AI certification for a successful career.

OpenAI o3 can be accessed through ChatGPT Plus ($20/month), ChatGPT Team/Enterprise, and OpenAI API.

Summing up!

OpenAI o3 will be a great leap in what AI is capable of. Apart from being smarter, it is more responsive, affordable, and helpful. Whether you are a developer, student, or business professional, this can be a great tool for all your work.

The post What is OpenAI o3 and How is it Different than other LLMs? appeared first on Datafloq.

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