OpenAI considers cutting prices to step up competition with Anthropic
OpenAI is considering a significant reduction in prices for its AI products in order to strengthen competition with Anthropic and attract some of its users, according to people familiar with the matter.
According to The Wall Street Journal, the company is discussing a substantial cut in token prices — the unit of measurement AI developers use to charge for their products. The move, the report noted, may be linked to expectations of similar price reductions from Anthropic.
The company currently offers users tiered subscriptions priced at $8, $20, $100 and above per month for access to its flagship GPT-5.5 models. Anthropic, meanwhile, charges $17 per month with an annual Claude Pro subscription, while Claude Max starts at $100 per month and above.
Why OpenAI wants to cut prices
The report about a potential price reduction comes amid intensifying competition between OpenAI and Anthropic.
On Monday, OpenAI confidentially filed for an initial public offering with the U.S. Securities and Exchange Commission. This came shortly after Anthropic submitted a similar filing.
On May 28, Anthropic closed its Series H funding round at a valuation of $965 billion, slightly surpassing OpenAI, which was valued at $852 billion in March.
In May, ChatGPT became the first app to reach 1 billion monthly users roughly three years after its launch in November 2022. According to estimates from market intelligence firm Sensor Tower, the service surpassed the previous record set by Google Maps, which took around five years after launch to reach the same milestone.
Who else could join the race
Competition in the AI market is not limited to the rivalry between OpenAI and Anthropic. The largest players still include Google DeepMind with its Gemini model family, Meta with Llama, xAI with Grok, as well as DeepSeek, Mistral, Alibaba and a number of other developers promoting both closed and open models.
At the same time, competition is not only about the quality of the models themselves, but also about distribution. Google has Search, Android, YouTube and Workspace; Meta has Facebook, Instagram, WhatsApp and an open strategy with Llama; xAI has integration with X; while Chinese and European players have their own markets, enterprise customers and lower-cost solutions.
As a reminder, OpenAI plans to modernize ChatGPT to create higher-margin products.
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