The current AI landscape is reminiscent of the late 1990s search engine competition, with various companies vying for dominance in data retrieval.

OpenAI recently announced its testing of new reasoning AI models, o3 and o3 mini, signaling increased competition in the AI landscape.

Recent updates from OpenAI also include the launch of the AI video generator Sora and the introduction of Advanced Voice Mode for enhanced interaction.

The o3 model stands out for its proficiency in programming and mathematics, as it constructs chains of thought to arrive at correct solutions rather than simply predicting the next word.

While the o3 model is not yet available for general use, safety researchers can sign up for a preview.

This development reflects a shift in AI focus towards reasoning capabilities, raising questions about the potential for achieving Artificial General Intelligence (AGI).

Despite the advancements in reasoning models, experts express concerns about their sustainability and cost-effectiveness, given the substantial computational resources they require.

Notably, o3 has been reported to struggle with simple tasks, indicating that it is not yet on par with human intelligence.

As OpenAI and its competitors enhance their reasoning capabilities, the rivalry is expected to intensify, creating more investment opportunities in the AI sector.

In practical applications, o1 has demonstrated promise in diagnostic reasoning within healthcare and aids in debugging and optimizing code in software development.

OpenAI's focus on post-training and reinforcement learning highlights their commitment to improving task handling in AI models.

While OpenAI currently leads with hundreds of millions of monthly active users and a partnership with Apple, Google is also advancing with its Gemini models.