O3 Pro's Launch, Reddit's Lawsuit Against Anthropic, and Cisco's New AI-Driven Networking Gear

[00:00:02] It's Wednesday, June 11th, 2025, and I'm Dave Sill for Things to Know Today. OpenAI debuts O3 Pro with enterprise-grade accuracy, but at a steep cost and slower pace. ChatGPT still leads, but model diversity surges. Reddit sues Anthropic, escalating the AI data war. And Evergreen hits its 100th MSP acquisition, signaling a global scale for the buy and hold strategy. This is the Business of Tech.

[00:00:32] OpenAI has launched the O3 Pro artificial intelligence model, which emphasizes increased reliability and enhanced tool integration for enterprise applications, albeit at the cost of slower response times. The new model is designed to deliver more accurate and detailed answers, making it particularly appealing to developers and businesses that prioritize precision.

[00:00:53] The O3 Pro model, which replaces the previous O1 Pro, has been reported to take significantly longer to generate responses. For instance, one user noted a response time of three minutes for a simple greeting. OpenAI stated that the O3 Pro model is particularly suited for complex inquiries where accuracy outweighs the need for speed.

[00:01:16] Pricing for the O3 Pro model is notably higher than its predecessor, costing $20 per input and $80 per output, compared to the O3 model's new reduced rates of $2 and $8, respectively.

[00:01:29] The launch of O3 Pro comes as OpenAI reports reaching 3 million business users, with a notable 50% increase in enterprise clients since February, as well as hitting $10 billion in annual recurring revenue, just under three years after the launch of its ChatGPT chatbot. This revenue includes sales from consumer products, business services, and application programming interfaces, while excluding licensing revenue from Microsoft and one-time deals.

[00:01:58] And in the previous year, OpenAI recorded approximately $5.5 billion in annual recurring revenue. Despite this rapid growth, the San Francisco-based startup reported a loss of around $5 billion last year. OpenAI aims for a remarkable $125 billion in revenue by the year 2029, according to confidential sources.

[00:02:19] As of late March, OpenAI supports 500 million weekly active users and has 3 million paying business users, a significant increase from 2 million reported in February. To meet this demand, OpenAI has entered a significant partnership with Alphabet's Google Cloud service to enhance its computing capabilities, marking a notable shift in the competitive landscape of artificial intelligence.

[00:02:42] The collaboration, finalized in May, allows OpenAI to diversify its computing sources, reducing its reliance on Microsoft, which has been its primary infrastructure partner. Analysts at Scotiabank described the arrangement as somewhat surprising, underscoring the willingness of both companies to overlook their competitive rivalry to meet massive computing needs.

[00:03:02] Google's cloud sales accounted for 12% of Alphabet's total revenue in 2024, showing the importance of cloud services in the company's overall strategy as it seeks to balance its enterprise and consumer business segments. Why do we care? Well, OpenAI's O3 Pro is not just a model, it is a signal. The company is clearly betting that enterprises will pay top dollar for precision, and that they'll accept trade-offs in speed and cost if the output is measurably better.

[00:03:32] This creates a clear service design opportunity for IT service providers. Build AI offerings around use cases where latency is tolerable but stakes are high, such as contract review, compliance automation, or executive decision support. Now, at $20 per input and $80 per output, O3 Pro's costs are prohibitively high for most SMBs and many mid-market clients. It locks out smaller players and could deepen the divide between tech haves and have-nots.

[00:04:02] Adding in the legal risks around data sourcing and the complexity of multi-cloud orchestration, the bar for AI entry is rising, especially for smaller providers. That is a strategic opportunity. MSPs who can simplify this complexity and provide AI that's compliant, cost aligning, and contextualize will quickly win client trust. Additionally, more accurate and detailed answers is vague.

[00:04:27] Without published benchmarks, testing transparency, or real-world validation, it's unclear how O3 Pro performs compared to Claude or Gemini in enterprise contexts. Now, at the same time, diversification of OpenAI's cloud partnerships should prompt MSPs to review their own stack decisions. Just as OpenAI is hedging its infrastructure bets, service providers should reassess their AI vendor dependencies and look for multi-cloud, model-agnostic architectures.

[00:04:55] The game is no longer about which AI model is best overall, it's about which model is best for each use case and how you deliver that to clients. OpenAI may be winning on revenue, but reliability, profitability, latency, and access equity remain unresolved. That is where IT providers can step in to optimize, contextualize, and operationalize AI. This episode is supported by Comet Backup.

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[00:05:51] Comet Backup, for the everyday IT heroes. Visit cometbackup.com to start your free 30-day trial today. Get $100 free credit when you sign up with the promo code MSPRADIO. Comet Backup, be the hero, save the day. They weren't alone with announcements. DeepSeq has announced that its upgraded artificial intelligence model demonstrates improved capabilities in mathematics, programming, and logic while reducing instances of hallucination.

[00:06:19] This enhancement to the R1 model comes after it previously gained attention for competing with large US developers at a significantly lower cost. The upgrade reflects a deeper reasoning ability, which DeepSeq claims sets it apart from previous iterations. The announcement was made via a post on the AI model platform Hugging Face, emphasizing the advancements made despite the company's limited resources compared to its competitors.

[00:06:42] And notably, Reddit has filed a lawsuit against Anthropic, accusing it of illegally using data from Reddit's platform to train its AI systems. The lawsuit claims that Anthropic attempted to access Reddit data over 100,000 times, violating the site's content policy and enriching itself without compensating Reddit or respecting user privacy. Reddit's chief legal officer Ben Lee stated that the company will not tolerate the commercial exploitation of its content without proper returns for its users.

[00:07:12] The lawsuit highlights the ongoing conflict between social media companies and AI firms over data usage as companies increasingly restrict access to their data to protect user privacy. Reddit, which has over 100 million daily active users, has recently begun to recognize the value of its user-generated content as seeking licensing agreement with other companies in the industry.

[00:07:34] All that said, ChatGPT continues to dominate the enterprise artificial intelligence landscape, according to New Relic's first AI-unwrapped 2025 AI Impact Report, which analyzes data from 85,000 businesses. The report reveals that over 86% of all large language model tokens processed by New Relic customers were associated with ChatGPT, highlighting its widespread adoption for general-purpose tasks.

[00:07:59] Chief Technical Strategist Nick Benders noted that while ChatGPT remains the leading model, developers are rapidly exploring new options as they're released. Notably, there's been a 92% increase in the number of unique models used in AI applications in early 2025, indicating a trend towards broader model experimentation.

[00:08:20] Python has reaffirmed its position as the favored programming language for AI, with a 45% increase in adoption since the last quarter, while Node.js and Java also saw significant growth. The report underscores the increasing need for robust AI monitoring solutions, with New Relic reporting a steady 30% growth in the use of its AI monitoring service. Why do we care?

[00:08:46] ChatGPT isn't going anywhere, but the dominance of one model is giving a way to fit-for-purpose AI stacks shaped by legal, financial, and performance constraints. Reddit's lawsuit against Anthropic underscores the increasing friction around data sourcing for AI. This has direct implications for providers offering AI-infused services, particularly those integrating user-generated content or third-party platforms. The legal exposure is real.

[00:09:11] Any AI solution that pulls data from the open web or platforms like Reddit, Stack Overflow, or Twitter may be subject to retroactive licensing claims. And data provenance matters. IT providers must vet the datasets and model training pipelines of their vendors, especially in regulated or IP-sensitive sectors. So smart providers will help clients navigate AI model selection like CloudChoice, balancing price, capability, and compliance.

[00:09:39] They'll build practices around AI observability, monitoring, and governance, following the signal from New Relic's growth in monitoring demand. And invest in developer talent and AI orchestration frameworks to deliver module-adaptable solutions, not locked-in workflows. In short, AI is no longer about picking the best model. It's about delivering measurable value using the right model for the right job. That's a core services opportunity.

[00:10:07] Cisco Systems has announced the launch of new routers and switches designed to optimize artificial intelligence deployments in campus environments. The company, in collaboration with NVIDIA, has unveiled hardware that aims to triple throughput compared to previous versions, supporting the increased demands of branch office networks. The new hardware includes models from the secure router family capable of handling up to 51.2 terabits per second with minimal latency.

[00:10:33] Cisco's advancements also feature the deep network model, a large language model intended to enhance network management through automation. The model is set to provide capabilities such as a natural language interface for troubleshooting and a user-friendly interface for enhanced collaboration among IT teams. Cisco emphasizes that these features will allow network management to occur at machine speed while still keeping IT professionals in control.

[00:10:58] And Apple did announce that Intel-based Macs will no longer receive major software updates following the launch of Mac OS Tahoe this fall. This decision marks the end of a transition that began in 2020 when Apple introduced its first in-house processors, effectively phasing out Intel chips from its product lineup. Apple's senior director of developer relations stated during the WWDC platform's State of the Union keynote that Mac OS Tahoe will be the final release for Intel Macs.

[00:11:26] While these devices will not receive major updates, they will continue to receive security updates for three additional years. Infected models include the 16-inch MacBook Pro released in 2019, among others. Apple is now focusing on its silicon chip, emphasizing that these processors enable advancements previously deemed impossible. Why do we care? Well, Cisco is laying the groundwork for a new AI-aware network layer, one that anticipates the decentralization of AI workloads.

[00:11:55] For providers, this is a call to treat networking as an active part of AI architecture, not a passive utility. The emergence of AI-powered troubleshooting also foreshadows a shrinking role for lower-tier support staff. MSPs should invest in upskilling and automation strategy now. On the Apple side, the sunsetting of Intel Macs marks a clear lifecycle checkpoint for customers still holding on to older devices. The transition isn't surprising, but it now has a concrete deadline.

[00:12:23] For providers, this is a hardware refresh catalyst and an opportunity to guide clients through a broader platform modernization strategy. Evergreen Services Groups has celebrated a significant milestone by announcing its 100th acquisition of a managed IT service provider, welcoming Red, an Australian company based in Brisbane. The acquisition marks a crucial step for Evergreen's strategy to enhance its presence in the Australia and New Zealand region.

[00:12:52] Founded in 2016, Red has built a reputation for exceptional service and strong client relationships, aligning closely with Evergreen's vision. Craig Fulton, M&A advisor at Evergreen, emphasized that Red's leadership values resonate with the company's long-term goals, positioning them for continued growth and shared insights within Evergreen's network. Evergreen was recognized as the first partner of Pax 8 to generate over $1 billion in IT services revenue. Why do we care?

[00:13:20] Evergreen hitting 100 acquisitions with the Red deal is proof that the buy-and-hold model in managed services scales and is going global. This isn't just an M&A milestone, it's a signal that new ownership frameworks are reshaping the IT services landscape. Let's look at that it took Evergreen 7 years to reach 100 acquisitions. The pace has appeared to slow relative to earlier years, possibly due to market saturation, higher valuations, or tighter credit markets.

[00:13:47] My sources tell me that the available market of acquirable MSPs has shrunk because they have all been bought up. For independent MSPs, it means two things. Evergreen is not a niche story. It's a legitimate strategic player whose scale creates pricing, hiring, and competitive pressure in any region it enters. But also, it shows there are alternatives to PE roll-ups that often hollow out service quality for EBITDA gains.

[00:14:13] If you want to keep your culture, your team, and your vision, there's a global model for that. The broader message? Strategic buyers are evolving, and savvy MSPs should begin planning their ownership future before the field becomes too crowded. With every new breach and threat that I cover, it's clear that cybersecurity isn't a luxury anymore. It's a necessity. That's where Huntress comes in. Their fully-managed cybersecurity platform is built for every kind of business.

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[00:15:01] This potent combination of purpose-built cybersecurity and threat hunting expertise is one of the many reasons why G2 users have voted Huntress the number one rated EDR for growing businesses. To see what people-powered cybersecurity looks like, visit Huntress.com slash MSB Radio. Thanks for listening. Today is National Corn on the Cob Day, National German Chocolate Cake Day, and National Making Life Beautiful Day.

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