OpenAI Cuts Prices on Smaller Models as Businesses Scrutinize AI Spend
Eisman said Moonshot AI’s cheaper models and released weights could force US labs to cut prices as OpenAI and Anthropic prepare for public markets.
- On Thursday, OpenAI slashed prices for its low- and mid-tier GPT-5.6 models—Luna and Terra—by 80% and 20% respectively, aiming to ease mounting financial pressure on corporate clients in the competitive enterprise AI market.
- U.S. firms face mounting competition from Chinese rivals like Moonshot AI, whose Kimi and GLM-5.2 models nearly match performance at significantly lower costs, forcing OpenAI to address customer concerns over ballooning expenses.
- Anthropic's mid-tier Claude Sonnet 4.6 costs $3 per million input tokens and $15 per million output tokens, remaining costlier than OpenAI's new rates as firms shift from flat subscriptions to usage-based pricing models.
- Investor Steve Eisman argued OpenAI and Anthropic should be "petrified," stating, "If I was the head of Anthropic or OpenAI, I'd be petrified," as both labs prepare for public offerings amid the pricing war.
- Despite competitive pressures, OpenAI and Anthropic report a combined run rate above $75 billion, yet experts expect "gut check moments" to occur regularly during this 10-year buildout phase.
16 Articles
16 Articles
OpenAI cuts prices on smaller models as businesses seek lower AI costs
OpenAI has officially announce to cut the prices of two of its low and mid-tier AI models on Thursday, a move that may intensify competition in the industry as U.S. companies battle cheaper Chinese...
OpenAI cuts prices on smaller models as businesses scrutinize AI spend
OpenAI slashed prices of its low- and mid-tier AI models on Thursday, a move that may intensify competition in the industry as U.S. companies battle cheaper Chinese rivals for customers increasingly wary of the technology's ballooning costs.
The Economic Times
Times of IndiaOpenAI cuts prices on smaller models as businesses scrutinise AI spend
The ChatGPT maker lowered the cost of its smaller GPT-5.6 Luna model by 80% and its mid-tier Terra by 20%, while leaving the price of its biggest and flagship Sol model unchanged.
Zero Hedge
BizTocOpenAI Slashes GPT-5.6 Luna Price By 80% As China's Cheaper Models Close In
OpenAI Slashes GPT-5.6 Luna Price By 80% As China's Cheaper Models Close In OpenAI just cut the price of its cheapest GPT-5.6 model by 80 percent, three weeks after launch - the clearest signal yet that the company that kicked off the generative AI boom is being dragged into a price war it did not start. On Thursday the company said GPT-5.6 Luna, its speed-focused model, now costs 20 cents per million input tokens and $1.20 per million output to…
Steve Eisman Says He'd Be 'Petrified' Running OpenAI or Anthropic as Cheap Chinese Models Threaten Price
Steve Eisman says cheap Chinese AI models spell a price war for OpenAI and Anthropic just as both prepare to go public. Polymarket puts Anthropic's IPO odds near 69%.
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