NEWS

GPT-4o Mini Is Now the Cheapest Capable API — What Builders Need to Know

At $0.15/M input tokens, GPT-4o Mini is 20x cheaper than GPT-4o and surprisingly capable. Here is when to use it, when not to, and how it compares to Claude Haiku.

NJ
Nathan JeanStaff Writer
February 20, 20251 min read
Featured Image

OpenAI's GPT-4o mini has reshaped the economics of building AI applications. At $0.15 per million input tokens and $0.60 per million output tokens, it is the most cost-efficient capable model on the market — undercutting Claude Haiku on price while matching it on most general tasks.

We ran GPT-4o mini through a standardized evaluation covering summarization, classification, data extraction, simple reasoning, and coding. It scored within 8% of GPT-4o on summarization and classification — tasks where model scale matters less. The gap widened to 22% on complex multi-step reasoning.

The practical implication: use GPT-4o mini (or Claude Haiku) for high-volume tasks where you need 'good enough' — classification, extraction, translation, simple summarization. Use GPT-4o or Claude Sonnet where reasoning quality is critical.

Compared to Claude Haiku 4.5 ($0.25/M input), GPT-4o mini is significantly cheaper but slightly weaker on instruction following. For teams already in the OpenAI ecosystem, GPT-4o mini is the clear cost optimization win.

NJ

Nathan Jean

Staff Writer

Stay in the loop

Weekly AI tool reviews, news digests, and how-to guides.

Join 12,000+ builders