OpenAI eyes major price cuts as competition with Anthropic heats up: Report
OpenAI is reportedly weighing lower token prices while preparing for potential pricing changes from Anthropic.
OpenAI is considering significant price cuts for its artificial intelligence products as competition with rival Anthropic intensifies, according to a report by The Wall Street Journal.
The report said OpenAI is weighing substantial reductions in what it charges customers for tokens, the units used by AI companies to measure and bill usage of their models. The move is reportedly being discussed as the company prepares for the possibility that Anthropic could introduce similar pricing changes.
OpenAI CEO Sam Altman recently acknowledged those concerns. Speaking at an event, Altman said the cost of using AI had become “a huge issue,” as quoted by WSJ.
“I think we’ll have a lot of ways we can help people get more value for less spend,” he said.
OpenAI's discussions around pricing reportedly reflect a broader battle taking shape among leading AI companies as they compete for enterprise customers. Large businesses are increasingly becoming the most valuable users of AI platforms, often spending significant amounts on tools designed to improve employee productivity and automate tasks.
However, cutting prices could come with challenges. Both OpenAI and Anthropic already spend heavily on the computing infrastructure needed to train and run advanced AI models. Lower prices could put additional pressure on profit margins at a time when the industry is investing billions of dollars in chips, data centres and cloud capacity.
The reported move also highlights how competition between the two companies has intensified over the past year.
Anthropic has recently gained momentum in the enterprise market, helped by the popularity of its coding assistant Claude Code among software developers. The tool's rapid adoption contributed to a sharp increase in the startup's revenue and helped boost its valuation.
OpenAI, meanwhile, has been putting greater focus on its own coding product, Codex, as it looks to strengthen its position with developers and business customers.
In another development, Anthropic CEO Dario Amodei recently called for stronger regulation of advanced AI systems. In a lengthy policy essay titled “Policy on the AI Exponential”, he argued that frontier AI models should undergo mandatory safety testing and independent audits before deployment, saying the technology's capabilities are advancing faster than governments can respond.
The report said OpenAI is weighing substantial reductions in what it charges customers for tokens, the units used by AI companies to measure and bill usage of their models. The move is reportedly being discussed as the company prepares for the possibility that Anthropic could introduce similar pricing changes.
The potential cuts come at a time when businesses are becoming more sensitive to the cost of using advanced AI tools. While companies continue to experiment with generative AI across coding, customer service, research and productivity tasks, many are also looking closely at whether the benefits justify the growing bills.
OpenAI CEO Sam Altman recently acknowledged those concerns. Speaking at an event, Altman said the cost of using AI had become “a huge issue,” as quoted by WSJ.
“I think we’ll have a lot of ways we can help people get more value for less spend,” he said.
OpenAI's discussions around pricing reportedly reflect a broader battle taking shape among leading AI companies as they compete for enterprise customers. Large businesses are increasingly becoming the most valuable users of AI platforms, often spending significant amounts on tools designed to improve employee productivity and automate tasks.
However, cutting prices could come with challenges. Both OpenAI and Anthropic already spend heavily on the computing infrastructure needed to train and run advanced AI models. Lower prices could put additional pressure on profit margins at a time when the industry is investing billions of dollars in chips, data centres and cloud capacity.
The reported move also highlights how competition between the two companies has intensified over the past year.
Anthropic has recently gained momentum in the enterprise market, helped by the popularity of its coding assistant Claude Code among software developers. The tool's rapid adoption contributed to a sharp increase in the startup's revenue and helped boost its valuation.
OpenAI, meanwhile, has been putting greater focus on its own coding product, Codex, as it looks to strengthen its position with developers and business customers.
In another development, Anthropic CEO Dario Amodei recently called for stronger regulation of advanced AI systems. In a lengthy policy essay titled “Policy on the AI Exponential”, he argued that frontier AI models should undergo mandatory safety testing and independent audits before deployment, saying the technology's capabilities are advancing faster than governments can respond.
(Edited by : Sudarsanan Mani)
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