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GM! It’s Brett again. I was watching an old interview of Steve Wozniak recently, and it got me thinking - when I was a kid, I was obsessed with creating things. I remember spending days engineering a LEPRECHAUN TRAP for St. Patrick's Day in elementary school.

While I was never a math/science kid, the creative bug has been in me from an early age and it 100% explains my chosen life path in startups.

And you know what's wild - almost every great builder I've met/read about has some version of this story - that weird kid who just couldn't stop making things.

Anyway, let's get to it.

🏠 AI

Compute Ain't Free

OpenAI kicked off their "12 Days of OpenAI" event with their full o1 model and a new $200/month ChatGPT Pro subscription.

Sam says the o1 model’s faster, smarter, and can finally handle images. Every ChatGPT Plus user gets access.

That $200 Pro tier is all about compute power. You get unlimited access to o1, GPT-4o, Advanced Voice, and this special "o1 pro mode" that supposedly thinks harder on complex problems. OpenAI's pitching this to power users - you know, the researchers and engineers who need that extra oomph.

Interestingly, the full release shows lower performance scores than the preview version on some key technical benchmarks like MLE-Bench.

And some independent testing shows the performance gap between o1 Pro and competitors like Claude Sonnet 3.5 (at $20/month) isn't nearly as wide as that 10x price difference suggests, atleast for everyone.

Though we'll need more real-world testing to validate these early findings. While OpenAI's internal testing shows the full o1 reduces major errors by 34% compared to its preview version on difficult questions, we'll get a better picture of its actual capabilities as more users start working with it.

But with OpenAI leading the consumer AI market, this move signals something bigger. This pricing strategy might be reshaping the entire AI market by creating a new pricing tier in consumer AI - one that normalizes enterprise-level pricing for power users. Don't be surprised if other AI companies follow suit.

After all, these compute costs are real, and someone's got to pay for them. OpenAI alone is looking at $5 billion in losses this year, with ChatGPT previously costing them $700,000 per day to run. Someone's got to pay for that compute.

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 👋 A Quick Note About Micro

Micro is a CRM that doesn't feel like homework and an email client that knows what matters. Simply put, it's an all-in-one productivity tool that organizes itself so you don't have to.

I built Micro with some friends because I was tired of getting guilt tripped for not hitting inbox 0 and having to bounce around between so many tools to do my job.

We're launching in 2025, but if you want early access, sign up for the waitlist at micro.so and respond to the confirmation email saying you came from Homescreen.

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