OpenAI's latest AI models just got up to 80% cheaper
What's the story
OpenAI has announced a major price cut for two of its latest artificial intelligence (AI) models, the GPT-5.6 Terra and Luna. The move comes roughly three weeks after their public debut. The company is under pressure to cater to a more cost-sensitive customer base, with enterprises hesitant to adopt expensive models without clear visibility of return on their investments.
Pricing strategy
Terra and Luna's pricing adjusted, Sol remains unchanged
OpenAI's GPT-5.6 series includes three models: Sol, the most powerful; Terra, a mid-tier model; and Luna, the fastest.
The company has reduced Terra's price by 20% to $2 per million input tokens and $12 per million output tokens.
Luna's price has been slashed by a whopping 80% to just 20 cents per million input tokens and $1.20 per million output tokens.
However, Sol's pricing remains unchanged.
Strategic shift
AI spending balloons into billions
OpenAI's price cuts come as many companies are trying to rein in their AI spending, which has sometimes ballooned into billions of dollars.
The company said its strategy is focused on improving both capability and efficiency so that each generation of intelligence can do more work at a lower cost.
This move also comes as Chinese start-ups and US tech giants like Google and Microsoft have been promoting cost-effective models.