Reasoning Price War 2: Mistral Magistral + o3's 80% price cut + o3-pro

**OpenAI** announced an **80% price cut** for its **o3** model, making it competitively priced with **GPT-4.1** and rivaling **Anthropic's Claude 4 Sonnet** and **Google's Gemini 2.5 Pro**. Alongside, **o3-pro** was released as a more powerful and reliable variant, though early benchmarks showed mixed performance relative to cost. **Mistral AI** launched its **Magistral** reasoning models, including an open-source **24B parameter** version optimized for efficient deployment on consumer GPUs. The price reduction and new model releases signal intensified competition in reasoning-focused large language models, with notable improvements in token efficiency and cost-effectiveness.