The Wall Street Journal reported on June 10, 2026 that OpenAI is considering major cuts to the price of its AI services, a pre-emptive move anticipating intensifying competition with rival Anthropic for users. Outlets including Indian Express followed with coverage in early July.
June 10 · AI Pricing War
OpenAI Weighs "Drastic" Token Price Cuts to Fend Off Anthropic
Facing intensifying rivalry with Anthropic and customer complaints over rising AI bills, OpenAI is internally debating sharp reductions to token prices — with no timeline, target models, or figures confirmed.
$5→$30
GPT-5.5 API today: per 1M tokens in / out — the price now on the table
up to 90%
Cache discount both firms already offer on repeated tokens
0
New prices, models or dates confirmed — talks remain in flux
API Output Price · per 1M tokens
Where the two rivals stand today — the figures a price war would compress.
Individual plans mirror each other too: $20 (Plus / Pro), scaling to $100–$200 (Pro / Max). OpenAI expects Anthropic to match any cut.
Why cut prices now?
Rivalry
→
Cost pain
→
IPO run-up
Good for users
Relief for enterprises facing high bills. Rapid commoditization of frontier models and Google's cuts are already adding downward pressure.
Sustainability doubts
Critics call the idea "fundamentally insane" and a "sign of desperation" — eroding revenue while costs stay high. Neither firm easily absorbs margin compression.
Nothing has been implemented.
No proposed prices, target models or timing are confirmed. The open question: will OpenAI act — and at what scale and scope?
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