OpenAI is considering sharp cuts to the prices it charges for AI services, according to people familiar with the matter.

The company is looking to win users from Anthropic.

The discussions remain in flux.

Any reduction would extend a broader downward trend in OpenAI’s application programming interface pricing.

One industry pricing report said the company halved GPT-3.5 Turbo token prices in 2023. OpenAI later introduced cheaper tiers such as GPT-4o mini in 2024.

The same report said AI model pricing across providers has become increasingly competitive across providers.

Cheaper plans and aggressive discounts lowering token costs for users. The trend is also putting pressuring on profit margins.

🔗 Source: Reuters

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