• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechAI

Sam Altman says OpenAI’s new o3 ‘reasoning’ models begin the ‘next phase’ of AI. Is this AGI?

Sharon Goldman
By
Sharon Goldman
Sharon Goldman
AI Reporter
Down Arrow Button Icon
Sharon Goldman
By
Sharon Goldman
Sharon Goldman
AI Reporter
Down Arrow Button Icon
December 20, 2024, 3:44 PM ET
OpenAI CEO Sam Altman
OpenAI CEO Sam Altman Eugene Gologursky—Getty Images for The New York Times

OpenAI has unveiled a preview of its new o3 reasoning models, which, CEO Sam Altman said immodestly, begin the “next phase” of AI.

Recommended Video

The models, announced Friday, did so well on a prominent benchmark that some immediately questioned whether the company had in fact achieved the AI industry’s holy grail: artificial general intelligence, or AGI. It’s a much sought-after sci-fi milestone, when AI can perform at least as well as humans at certain tasks.

However, François Chollet, the benchmark’s creator, who recently left Google Research, responded with an unequivocal no. In a post on X after the OpenAI announcement, he said that while the new model is “very impressive and represents a big milestone on the way towards AGI,” there are still a “fair number” of simple tasks that o3 cannot solve. Still, Chollet added, “these capabilities are new territory, and they demand serious scientific attention.”

Meanwhile, the ARC Prize, a nonprofit initiative dedicated to advancing AGI research by challenging participants to solve the so-called ARC-AGI benchmark that OpenAI did so well on, also noted how o3 is a major advancement in AI. In a blog post, the organization said, “This is a surprising and important step-function increase in AI capabilities, showing novel task adaptation ability never seen before in the GPT-family models.”

The ARC-AGI benchmark rates an AI system’s ability to generalize and acquire new skills efficiently.

The announcement of o3 comes just a month after the AI community had grappled with speculation that the race to AGI—driven by Big Tech giants and well-funded startups like OpenAI and Anthropic—was facing significant hurdles. Concerns have centered on the so-called scaling laws, which suggest that AI performance improves predictably with increases in model size, dataset size, and computational power.

Critics argue that these predictions may no longer be holding up, and that improvements in AI are slowing. Inevitably, this raises questions about the limits of current AI approaches.

Still, the improvements represented by o3 show that those limits have not been reached yet. While it’s not AGI, the new models could lead to chatbots that handle more complex queries and solve problems step-by-step. AI search could evolve with improved semantic understanding (finding information not just based on keywords but on deeper meanings and relationships between concepts). The models may also generate more coherent stories and essays, as well as real-time problem solving.

The unveiling of the o3 model came on the 12th day of OpenAI’s product announcements, a marketing blitz timed to the holiday season. However, the “gift” can’t immediately be opened. The new models—o3 and o3 mini, a smaller, distilled model fine-tuned for particular tasks—are only available to safety researchers, who can apply to “explore and surface the potential safety and security implications of the next frontier models.”

OpenAI hasn’t confirmed a public release date.

OpenAI released its first model with what it called “enhanced reasoning capabilities,” called the o1 model, just three months ago. After the o3 announcement (which skipped o2 entirely), OpenAI researcher Noam Brown posted on X that “we have every reason to believe this trajectory will continue.”

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
Sharon Goldman
By Sharon GoldmanAI Reporter
LinkedIn icon

Sharon Goldman is an AI reporter at Fortune and co-authors Eye on AI, Fortune’s flagship AI newsletter. She has written about digital and enterprise tech for over a decade.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Image showing multiple computer screens with code.
CybersecuritySecurity
Mercor, a $10 billion AI startup that works with companies including OpenAI and Anthropic, confirms major data breach
By Beatrice NolanApril 2, 2026
1 hour ago
picture of the word "solana"
CryptoCryptocurrency
Latest crypto hack sees thieves make off with $280 million from Solana DeFi platform Drift
By Carlos GarciaApril 2, 2026
2 hours ago
Jack Dorsey and Roelof Botha think AI can make middle management obsolete 
AIBlock
Jack Dorsey and Roelof Botha think AI can make middle management obsolete 
By Jacqueline MunisApril 2, 2026
4 hours ago
china
AIChina
Meet China’s AI-powered recycling robot that sorts 220 pounds of clothes in 2 to 3 minutes
By Tian MacLeod Ji and The Associated PressApril 2, 2026
4 hours ago
In the age of vibe coding, trust is the real bottleneck
AIEye on AI
In the age of vibe coding, trust is the real bottleneck
By Sharon GoldmanApril 2, 2026
5 hours ago
A photo illustration of two laptops with eyeballs over a red background with alert signs.
CryptoNorth Korea
I knew about North Korean hackers—they still tricked me and got into my computer
By Ben WeissApril 2, 2026
5 hours ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Fortune EditorsApril 2, 2026
13 hours ago
Current price of gold as of April 1, 2026
Personal Finance
Current price of gold as of April 1, 2026
By Fortune EditorsApril 1, 2026
1 day ago
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
Success
Two-thirds of parents say their adult Gen Z kids still rely on them financially  for support—even though it's putting them under strain
By Fortune EditorsMarch 31, 2026
2 days ago
Current price of oil as of April 1, 2026
Personal Finance
Current price of oil as of April 1, 2026
By Fortune EditorsApril 1, 2026
1 day ago
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
Real Estate
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
By Fortune EditorsApril 2, 2026
13 hours ago
Deutsche Bank asked AI if it’s true that AI will solve the economy’s inflation problems. The robots answered
Economy
Deutsche Bank asked AI if it’s true that AI will solve the economy’s inflation problems. The robots answered
By Fortune EditorsApril 1, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.