OpenAI Releases Free AI Model Amid Chinese Rival DeepSeek’s Rise

SAN FRANCISCO, Calif. — OpenAI has launched a new artificial intelligence model, o3-mini, for free users of its ChatGPT platform, following the unexpected success of Chinese rival DeepSeek‘s R1 model. The move comes as OpenAI accelerates its product releases in response to growing competition in the AI sector.

The o3-mini model, a scaled-down version of the yet-to-be-released o3 model, offers reasoning capabilities to free users for the first time. OpenAI CEO Sam Altman announced the release on January 23, just days after DeepSeek unveiled its R1 model, which has already topped Apple‘s free app store and shaken investor confidence in U.S. tech dominance.

“Today’s launch marks the first time we’re bringing reasoning capabilities to our free users, an important step towards broadening accessibility to advanced AI in service of our mission,” OpenAI said in a statement.

DeepSeek’s R1, a reasoning model that powers its chatbot, has been developed at a fraction of the cost of OpenAI’s offerings, raising questions about the sustainability of U.S. tech firms’ multibillion-dollar investments in AI infrastructure. According to industry analysts, R1 rivals OpenAI’s models in performance, despite requiring fewer resources.

OpenAI claims that o3-mini matches its predecessor, o1, in areas such as math, coding, and science, while offering faster responses and lower operational costs. Pro users of ChatGPT, who pay $200 per month, will have unlimited access to o3-mini, while Plus users will enjoy higher usage limits compared to free users.

The full o3 model, which has not yet been released publicly, was highlighted in the International AI Safety Report published on Tuesday. Yoshua Bengio, the study’s lead author, described o3’s capabilities as “profound” and noted its breakthrough performance in abstract reasoning tests. “In some tests, o3 outperformed many human experts,” Bengio said, adding that the results had stunned even seasoned AI researchers.

The competition between OpenAI and DeepSeek underscores the rapid evolution of the AI industry, with both companies vying to deliver more advanced and cost-effective solutions. As the race intensifies, the global AI market faces increasing scrutiny over its potential risks and rewards.