- OpenAI announced it is slashing the price of two of its latest artificial intelligence models, GPT-5.6 Terra and GPT-5.6 Luna.
- The company said it is reducing the price of Terra by 20% and the cost of Luna by 80%.
- The company is facing pressure to cater to a more cost-sensitive customer base and fend off competition from Chinese startups and other tech giants.
Do you think, will other AI model makers cut prices, by the end of August 2026?
OpenAI on Thursday announced it is slashing the price of two of its latest artificial intelligence models, GPT-5.6 Terra and GPT-5.6 Luna, roughly three weeks after their public release.
The company is facing pressure to cater to a more cost-sensitive customer base, where enterprises have been less inclined to deploy expensive models without a clear picture of the return on their investments. It’s also working to fend off competition from Chinese startups and tech giants Google and Microsoft, which have been touting cost-effective models.
OpenAI launched three models as part of its GPT-5.6 series, including Sol, the most powerful offering, Terra, the mid-tier model, and Luna, its fastest offering.
The company said Thursday that it’s reducing the price of Terra by 20% to $2 per million input tokens and $12 per million output tokens. It’s cutting the cost of Luna by 80% to 20 cents per million input tokens and $1.20 per million output tokens. Sol’s pricing remains the same.
“Our strategy remains focused on advancing both capability and efficiency so each generation of intelligence can accomplish more work at a lower cost,” OpenAI said in a release.
OpenAI kickstarted the AI boom with the launch of ChatGPT in 2022, prompting companies across the U.S. to rush to deploy the technology and incentivize adoption within their workforces. The era of so-called tokenmaxxing was born, where employers encouraged staffers to use as much AI as possible without worrying about costs.
Source: CNBC; https://www.cnbc.com/2026/07/30/open-ai-price-cut-gpt.html
