OpenAI has unveiled a new AI model that it says takes longer to solve problems but gets better results, following Google's similar announcement a day earlier. The model, called o3, replaces o1 from September and spends extra time working through questions that need step-by-step reasoning.

It scores three times higher than o1 on ARC-AGI, a test measuring how well AI handles complex math and logic problems it hasn't seen before. "This is the beginning of the next phase of AI," CEO Sam Altman said during a livestream Friday.

The Microsoft-backed startup is keeping o3 under wraps for now but plans to let outside researchers test it.

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