AI Price Plunge: Usage Soars, Revenue Up for OpenAI

The price of AI is falling fast, but this isn't necessarily bad news for the industry. OpenAI recently cut the price of its GPT-5.6 Luna model by 80% and its mid-range Terra model by 20%. What's interesting is that customers then started using dramatically more AI. Analysts found that after the price cuts, the effective price of using Luna fell roughly tenfold, while consumption jumped about 14-fold. For Terra, the effective price fell roughly threefold, and usage increased about fivefold. Remarkably, usage rose faster than prices fell. OpenAI's revenue from Luna increased about 34%, and Terra revenue rose about 45%. This suggests that making a useful resource cheaper can encourage more uses for it. This pattern has been seen with computers: as prices dropped, usage and revenue soared. Lower AI prices could make it economical to use AI for many more tasks. This could mean more documents analyzed, more customer questions answered, and more software written.