- According to OpenAI, the cost of the new GPT-4o model has been lowered to $2.50 for every million input tokens and $10.00 for every million output tokens.
- Additionally, OpenAI modified its API to include Structured Outputs, guaranteeing that the outputs correspond to the developer-provided JSON Schemas.
Developers will probably be pleased to see that OpenAI has added support for Structured Outputs for JSON to its API. This makes tight adherence to JSON Schemes possible, improving the dependability of LLM (long language model) outputs. Additionally, the update strengthens the capabilities of GPT-4o models, particularly in complex workflows or when interacting with structured data extraction. The JSON mode, introduced a year ago, is enhanced with the latest release.
The JSON Schema response format and function calling are supported by the new API. The AI business further revealed a substantial price cut for GPT-4o to more effectively compete with other AI service providers like Google and Anthropic. In comparison to the old GPT-4o model, this results in 50% lower input costs ($2.50 per million tokens), 33% cheaper output costs ($10.00 per million tokens), and a 50% overall cost reduction.
Developer Benefits
In internal testing, OpenAI reports that the new GPT-4o models—like GPT-4o-2024-08-06—have demonstrated greater dependability in matching JSON Schema. This model is a significant advancement over earlier ones. Native SDK (software development kit) support for Python and Node.js Structured Outputs is a feature of the new approach. Developers will find it much simpler to use and incorporate these functionalities into apps as a result. Additionally, models can automatically identify and respond to dangerous requests thanks to structured outputs.
A few restrictions include the inability to use simultaneous function calls, token limits, increased latency in first API responses, and support for only a portion of JSON Schema. All models that allow function calling, such as the GPT-4o, GPT-4o-mini, GPT-4-0613, and GPT-3.5-Turbo-0613, will be able to utilize the new capability.
Given that OpenAI is up against competition from Google and other AI companies in the market, the additional functionality is crucial. Furthermore, it is anticipated that the price drop will increase GPT-4o’s accessibility and draw more businesses and developers to OpenAI platforms.
Takeaways
For developers, the introduction of Structured Outputs solves a key issue, particularly in settings where greater precision is required, including data entry and the creation of multi-step workflows. Additionally, it streamlines the procedures for creating sophisticated applications that must adhere to tight data compliance and enhances the dependability of OpenAI LLMs. Such calculated features and price changes by OpenAI will strengthen its market position in the upcoming months as the AI business becomes more and more competitive.