tech
OpenAI and Anthropic in price war as Chinese AI rivals gain ground
US groups release cheaper models after new challenges to their trillion-dollar ambitions.
TL;DR
- US AI labs like OpenAI and Anthropic are lowering prices on their models.
- This is in response to customers switching to cheaper AI models from Chinese competitors.
- Companies are looking to reduce high AI costs, making them more receptive to alternatives.
- Chinese AI developers like Moonshot and DeepSeek are gaining traction with their cost-effective models.
- OpenAI cut prices for GPT-5.6 Luna by 80%, and Anthropic launched Claude Opus 5 at half the price of its most capable model.
- These price reductions aim to make mid-tier US AI products more competitive with Chinese offerings.
- The competition is intensifying as US AI companies plan for potential initial public offerings.
- Some businesses have responded to rising AI bills by capping usage or testing cheaper options, with companies like DoorDash and Airbnb adopting Chinese-made models.