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IFAI

Arc Prize Foundation

Company2 stories

  1. AI modelsReach 49

    OpenAI's o3 might cost $30,000 per task

    The Arc Prize Foundation just revised its compute cost estimate for OpenAI's upcoming o3 model, finding that o3 high could cost roughly $30,000 to solve a single ARC-AGI problem—ten times its initial $3,000 guess. The spike reflects intense test-time compute: the model needed 1,024 attempts per task to hit peak accuracy, using 172 times more compute than o3 low. Why it matters: Frontier reasoning gains are real, but brute-forcing complex logic might be economically unfeasible for most early applications.

  2. ResearchReach 44

    ARC Prize launches ARC-AGI-2 to break AI reasoning

    ARC Prize just unveiled ARC-AGI-2 and launched its 2025 competition to stress-test general fluid intelligence. Every test task was solved by multiple humans in two tries or less, yet pure LLMs score a clean 0% and public reasoning systems barely reach single digits. Why it matters: simply scaling up parameters won't close this reasoning gap; AGI needs fundamentally new architectures.