OpenAI's new model cuts prices again
Prices for tokens — a basic unit for AI usage — have been falling sharply.
TL;DR
- OpenAI launched a cheaper GPT-6.1 Terra model, costing up to 50% less per token.
- AI token prices have fallen significantly, dropping 35% since the end of June.
- This price reduction suggests a price war between major AI model makers.
- While token usage has surged, token spending growth appears to be flattening.
- Investors are concerned with token spending, which combines usage and price.