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OpenAI Counters DeepSeek with GPT‑3.5 Mini

Key Points

  • OpenAI is slated to launch “GPT‑3.5 Mini” (referred to as 03 Mini) today around 10 a.m. PT, positioning it as a high‑performance, free‑tier option to counter DeepSeek’s competitive offering.
  • The new model is expected to be faster and smarter than GPT‑3, giving free‑tier users up to 100 daily messages, which could pressure DeepSeek’s free tier and force OpenAI to reassess its pricing and packaging strategy.
  • Sam Altman is reportedly in Washington, D.C., for a briefing that hints at longer‑term plans—potentially a GPT‑4 rollout in the first half of the year—highlighting the national‑security relevance of the technology.
  • OpenAI continues to avoid public model naming conventions, making it unclear how “03 Mini” differs technically from the main GPT‑3 model beyond its smaller size and speed improvements.

Full Transcript

# OpenAI Counters DeepSeek with GPT‑3.5 Mini **Source:** [https://www.youtube.com/watch?v=379Isc7tJc4](https://www.youtube.com/watch?v=379Isc7tJc4) **Duration:** 00:06:31 ## Summary - OpenAI is slated to launch “GPT‑3.5 Mini” (referred to as 03 Mini) today around 10 a.m. PT, positioning it as a high‑performance, free‑tier option to counter DeepSeek’s competitive offering. - The new model is expected to be faster and smarter than GPT‑3, giving free‑tier users up to 100 daily messages, which could pressure DeepSeek’s free tier and force OpenAI to reassess its pricing and packaging strategy. - Sam Altman is reportedly in Washington, D.C., for a briefing that hints at longer‑term plans—potentially a GPT‑4 rollout in the first half of the year—highlighting the national‑security relevance of the technology. - OpenAI continues to avoid public model naming conventions, making it unclear how “03 Mini” differs technically from the main GPT‑3 model beyond its smaller size and speed improvements. ## Sections - [00:00:00](https://www.youtube.com/watch?v=379Isc7tJc4&t=0s) **Untitled Section** - ## Full Transcript
0:00Chad GPT is firing back at Deep seek and 0:02you know what you do when you're a 0:03product team and these are hard models 0:05to build and you can't just magically 0:07build another model or change everything 0:09all in a dime you respond with the thing 0:12you originally planned but you position 0:15it a little differently and they 0:17originally planned open AI did to 0:20release 03 Mini at the end of this month 0:23the heavy heavy heavy rumor is that it 0:25is today if they follow their usual 0:27practice it will be at 10:00 a.m. 0:28Pacific and about 4 half 0:30hours and if they do that you will see 0:36that 03 mini is going to be positioned 0:40versus deep seek they probably won't 0:42name deep seek on the call but it will 0:43be 0:44positioned as an amazing option even for 0:48free users they've changed that it was 0:51going to be available for plus users on 0:53a very limited basis but deep seek has 0:56upended the value chain with their free 0:58tier and so going to push that reasoning 1:01model down and even free tier users are 1:04going to get it this is a model that is 1:05supposed to be better than 01 so if 1:08we're right if what Sam mman has 1:11literally said is 1:13true then free tier users will have 1:16access to a better faster model with a 1:19100 messages a 1:22day and they still won't have a 1:24one I don't know this is why they need 1:27to get their business model and their 1:28pricing and packaging figured out 1:30because this is a 1:31mess but the point is they're nervous 1:34enough to change the availability for 03 1:35mini they know they're going to burn 1:37some cash as people use it but they need 1:39to get that market share back and win 1:40the Mind share of people who are running 1:42to deep seek that's kind of that 1:45strategy at the same time Sam has a very 1:48busy day on what's next he is in 1:50Washington DC uh I don't know how he's 1:52getting there because Reagan is closed 1:54which that's really bad um but he's in 1:58DC doing a briefing and the briefing is 2:01on rumor has it and this is this is 2:04there are rumors that I feel good about 2:06like 03 mini coming out in the next day 2:08or so and there are rumors that I'm like 2:10this is extremely sketchy but like 2:11there's probably some information in 2:13here somewhere this is in that latter 2:15category it's extremely sketchy but 2:16there's probably some information in 2:18here somewhere the rumor is that it is 2:20not 03 that he's in town to talk about 2:22that's too close to production it's 2:24something farther out but within the 2:25first half of the year uh 04 has been 2:29bandid around uh by some of the rumor 2:31vultures that might be it the point is 2:35that he feels like it has enough 2:37National Security implications which 2:40means Reed it's really really good that 2:43it's worth going to Washington to talk 2:45about one other tidbit on 03 again these 2:48guys cannot name their models for the 2:50life of them could you tell me the 2:52difference between 03 mini and 03 I 2:54would assume 03 mini is smaller as a 2:57model but that doesn't explain why it's 3:00faster 3:01automatically anyway 03 mini is fast 03 3:05mini is smarter than 01 3:07apparently um and 3:1003 was tested as part of the new 3:13international AI safety report and the 3:16results are just 3:18bonkers the test results got submitted 3:21and 3:22it's O 01 has changed the game in the 3:26fall I know it seems a long way away and 3:28there are people who are like oh R1 is 3:30better than o1 which for the record I've 3:31played with them both I don't think it 3:33is um but whether even if you believe 3:36that 03 is just Bonkers good in the test 3:39results and it's it's not 03 mini 3:41they've got to pick a different name or 3:44something they won't but they they ought 3:46to when we get our hands on that it 3:49looks like it's a model that is going to 3:52be better than all but the top few 3:56experts in the world at a wide range of 3:58fields 4:00and even 01 Pro isn't testing as well 4:05it's it's just remarkable like I'm 4:07really excited for 03 and 03 Pro so we 4:11will see that is down the road as far as 4:14I know they're not releasing 03 and 03 4:16Pro today I believe it is only 03 mini 4:19because 03 mini is a smaller model it's 4:21easier to complete safety training and 4:24yes it is a smaller model 4:27and that is 4:30that is one of those things that I wish 4:31that they would think about less to be 4:33honest with you because from a consumer 4:34perspective I don't care how much 4:36imaginary space your model takes up what 4:39I care about is the capabilities of the 4:43model what what can it actually do for 4:46me what can it do now that it couldn't 4:48do before and we have done a terrible 4:50job explaining to people how that works 4:52I actually wrote up a substack it's free 4:56on the um on the substack talking about 5:01how we don't understand the evals and 5:03the acronyms like ime and uh GP QA and 5:07like I did like what are these tests you 5:10have this little like no did this and 5:12this on the GP QA Diamond test and I'm 5:14like what what is that mean so I went 5:17and looked at the tests and I 5:18screenshotted them and I wrote about 5:19them and I kind of went through all of 5:21them I even looked at Humanity's last 5:22exam which just came out I think it's 5:25worth taking a look at because we need 5:29to understand as humans how we're 5:31measuring these things and understand 5:33how we're not measuring them like if I 5:35looked at it and I did there's a lot of 5:37math there's some real world 5:40coding there's some literature stuff on 5:43Humanity's last exam which they do the 5:44worst 5:46on 5:47but by and 5:50large we have no tests for the things we 5:54tend to use AI for every day and I think 5:57there is a gap there and I don't know 5:58how to fix it 6:00but I think that if we had a test that 6:02was more understandable to people it 6:05might help them figure out what AI can 6:07do and how AI performance differences 6:10are meaningful so something to think 6:13about I don't think we've solved that 6:14one but I think it's part of the problem 6:15it's part of why people don't understand 6:17what AI does and when a new model like 6:19deep deep sea comes along they're like 6:21what is this this is amazing or this is 6:23terrible but it's mostly like their 6:25priors their prior assumptions shaping 6:27that rather than just sort of rigorously 6:28thinking about what it can do y