Top stories today:

1. OpenAI’s o3-pro “reasoning” model debuts to replace o1-pro
2. Google rolls out Android 16 to Pixel phones earlier than expected
3. Sam Altman expects AI systems with “novel insights” for 2026
4. Elon expresses “regret” over criticisms of Trump
5. Crypto market structure bill advances in U.S. House Committee

0. Data and calendar

Listen to our AI-generated podcast summarizing today’s newsletter (beware of hallucinations):

1. OpenAI’s o3-pro “reasoning” model debuts to replace o1-pro

The new model has slightly outperformed the o3 (medium) and o1-pro in OpenAI’s benchmark testing:

• Available to ChatGPT Pro and Team users.

• Enterprise and Edu users will get it next week.

• Priced at $20/M input and $80/M output tokens in the API.

• Takes longer than o1-pro to respond, per OpenAI.

• Generating images isn’t possible, and Canvas isn’t supported.

• Tends to overthink if not given enough context.

o3-pro has been rated higher than o3 by human reviewers, OpenAI said

Relatedly, the o3 price has dropped 80% to $2/M input and $8/M output tokens, competitive with Gemini 2.5 Pro and Claude 4 Sonnet

• A new “flex” mode for synchronous processing has also been launched at $5/M input and $20/M output tokens.

3. Google rolls out Android 16 to Pixel phones earlier than expected

• Based on Material 3 Expressive design language.

• Pixel 6 and above are compatible with the update.

• Additionally, AI-powered photo edit suggestions have debuted on Google Photos for Android.

4. Sam Altman expects AI systems with “novel insights” for 2026