Microsoft Corp (NASDAQ:MSFT) backed OpenAI is introducing an affordable and compact version of its advanced AI model, aiming to attract a broader spectrum of developers and businesses.

The new model, named GPT-4o mini, offers a cost-effective alternative to the highly capable GPT-4o.

The San Francisco-based company said that GPT-4o mini will be available immediately for free users, as well as ChatGPT Plus and Team subscribers, with enterprise customers gaining access next week.

This new model replaces GPT-3.5 Turbo in ChatGPT, Bloomberg reports. Originally unveiled in May, GPT-4o was designed to function as a superior digital assistant capable of processing audio and visual information in real time.

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GPT-4o mini retains much of this functionality, with more features planned for future updates.

Developers have been testing GPT-4o mini over the past week. For example, email startup Superhuman used it to create automated email replies, and financial services startup Ramp utilized it to extract information from receipts.

AI companies like Anthropic and Alphabet Inc's (NASDAQ:GOOGL) Google often release smaller, less expensive versions of their top models to provide more options for developers, according to Bloomberg.

Smaller models are suitable for automating basic tasks, while larger models handle more complex functions. This strategy allows developers to choose the most appropriate tool for their needs.

Initially, GPT-4o mini can process and generate text and images, and it is the first model to use a new safety method called "instruction hierarchy," designed to prioritize certain instructions, such as those from a company, to prevent misuse.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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