The rapid commoditization of AI models continues, even with a groundbreaking new approach known as inference-time compute.

OpenAI is preparing to launch a new artificial intelligence model that it said is capable of more advanced human-like reasoning than its current offerings, ratcheting up the competition with rivals such as Alphabet Inc. ’s Google.

OpenAI announced on Friday that it was testing two new reasoning AI models, called O3 and O3 small, as part of an increasing battle with competitors like Google to develop more intelligent models that can solve challenging issues.