ALICE 3 is proposed as the next-generation experiment to address unresolved questions about the quark-gluon plasma by precise measurements of heavy-flavour probes as well as electromagnetic radiation in heavy-ion collisions in LHC Runs 5 and 6. In order to achieve the best possible pointing resolution a concept for the installation of a high-resolution vertex tracker in the beampipe is being developed. It is surrounded by a silicon-pixel tracker covering roughly 8 units of pseudorapidity. To achieve the required particle identification performance, a combination of a time-of-flight system and a Ring-Imaging Cherenkov detector is foreseen. Further detectors, such as an electromagnetic calorimeter, a muon identifier, and a dedicated forward detector for ultra-soft photons, are being studied. In this presentation, we will explain the detector concept and its physics reach as well as discuss the R&D challenges.