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Mistral and o3 AI slash reasoning prices amid competition

Mistral AI has launched its new Magistral model, signaling a potential price war in the AI reasoning market. This release coincides with o3's announcement of an 80% price reduction for its services, including its o3-pro offering. These moves suggest a competitive landscape where providers are aggressively lowering costs to attract users. AI

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RANK_REASON New model release from a significant AI lab (Mistral AI).

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COVERAGE [1]

  1. Smol AINews TIER_1 Română(RO) ·

    Reasoning Price War 2: Mistral Magistral + o3's 80% price cut + o3-pro

    **OpenAI** announced an **80% price cut** for its **o3** model, making it competitively priced with **GPT-4.1** and rivaling **Anthropic's Claude 4 Sonnet** and **Google's Gemini 2.5 Pro**. Alongside, **o3-pro** was released as a more powerful and reliable variant, though early b…