ChatGPT-parent OpenAI has decided to reduce the prices for its new GPT 3.5 Turbo mode. The company also declared its intent to launch a new breed of embedding models and fixes to combat "laziness" in existing models.
What Happened: OpenAI plans to unveil the new GPT-3.5 Turbo model next week. The model will see significant reductions in both input and output costs, with input costs slashed by 50% to $0.0005 per thousand tokens and output costs down by 25% to $0.0015 per thousand tokens.
The price cuts aim to help OpenAI's customers scale their operations, especially as ChatGPT is being increasingly used to handle larger amounts of information and text, reported Business Insider.
The price reductions may also be a result of the company's efforts to enhance and streamline its models in recent months, given the growing competition in the API community.
OpenAI also plans to roll out an improved version of the GPT-4 Turbo preview model, which is more advanced than its predecessors, and includes a fix for a bug that led to "laziness."
"Today, we are releasing an updated GPT-4 Turbo preview model, gpt-4-0125-preview. This model completes tasks like code generation more thoroughly than the previous preview model and is intended to reduce cases of 'laziness' where the model doesn't complete a task. The new model also includes the fix for the bug impacting non-English UTF-8 generations," the company said in a blog post on Thursday.
The announcement came roughly three weeks after OpenAI commenced sign-ups again for its subscription model, ChatGPT Plus, which offers more features to monthly subscribers.
Why It Matters: OpenAI has been pushing the envelope in AI technology recently, with CEO Sam Altman reportedly in talks with global investors to garner funds for a network of semiconductor factories to address chip shortages for AI applications.
Earlier this month, it was also reported that OpenAI had launched initiatives to combat misinformation during crucial global elections, demonstrating a significant stride in dealing with the misuse of artificial intelligence in the democratic process.
OpenAI also issued a new framework in December last year that granted its board of directors the power to overturn decisions made by the leadership, including CEO Altman.