OpenAI prepares major price cuts as AI price war escalates

OpenAI is reportedly preparing major price cuts for ChatGPT usage as competition with Anthropic intensifies and enterprise customers push back against soaring AI costs. The Wall Street Journal says OpenAI expects Anthropic to lower prices soon, prompting a preemptive move to reduce token rates across its own models. Businesses have complained that AI expenses are ballooning, with some companies spending more on AI tools than on employees, and even OpenAI’s CEO acknowledges that costs have become a serious problem. Meanwhile, Anthropic’s rapid growth, driven by the popularity of Claude Code, has put pressure on OpenAI, especially as Google’s cheaper Gemini Flash tiers undercut both rivals. A full‑scale price war could be risky for companies already losing billions on compute, but users stand to benefit from significantly lower AI bills.

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