DeepSeek effect: OpenAI launches o3-mini ‘affordable’ reasoning AI model

OpenAI has launched o3-mini, a skimmed-down lightweight AI model, in what appears to be a strategic response to the growing popularity of DeepSeek, a Chinese AI company that has been gaining traction with its efficient and cost-effective language models.

The release of o3 Mini marks OpenAI’s latest move in the rapidly evolving AI landscape, where smaller, optimised models are becoming a key battleground.