Summary OpenAI reduced prices for GPT-5.6 Luna and Terra models, aiming to boost adoption and compete with lower-cost Chinese AI rivals.
NEW YORK (Reuters) – OpenAI has sharply reduced the prices of its low- and mid-tier artificial intelligence models, intensifying competition as U.S. AI firms seek to counter lower-cost Chinese rivals and address growing concerns over rising AI expenses.
The ChatGPT maker cut the price of its smaller GPT-5.6 Luna model by 80% and reduced the cost of its mid-tier Terra model by 20%, while keeping the pricing of its flagship Sol model unchanged.
The move reflects increasing pressure from businesses facing high AI-related costs, prompting major U.S. AI developers to reassess their pricing strategies. Technology executives have also argued that more affordable AI services are essential for wider adoption.
OpenAI's pricing changes are expected to increase competitive pressure on Anthropic, whose Claude models remain widely used by enterprises and software developers but are positioned at the higher end of the market.
Both companies are also facing growing competition from Chinese open-source AI developers, including Z.ai, whose GLM-5.2 model has been praised for delivering performance close to leading U.S. systems at a significantly lower cost.
Analysts said lower prices could drive greater adoption of OpenAI's and Anthropic's technologies but may also weigh on their financial performance as both companies move closer to widely anticipated initial public offerings.
OpenAI said the reductions apply only to its smaller and mid-tier models but noted that these systems are now capable of handling tasks that previously required premium AI models, allowing businesses to lower their operating costs.
