OpenAI Price Cuts: Burry Sees DeepSeek Competition

OpenAI is cutting prices for its AI models to make artificial intelligence more accessible. The company believes lower costs drive demand and fund future models. OpenAI says its models are now used by over a billion active users and more than two million businesses. They aim to deliver more useful intelligence, not just bigger models. Efficiency gains, like those from GPT-5.6 Sol, have reduced serving costs by 20%. Michael Burry, the "Big Short" investor, suggests OpenAI's price cuts are a reaction to new competition. DeepSeek just released the beta version of its V4 Flash model, with a V4 Pro version coming soon. DeepSeek also announced a permanent 75% price cut for its V4 model services back in May. OpenAI recently cut prices for its GPT-5.6 Luna model by 80% and GPT-5.6 Terra by 20%. These changes offer customers more flexibility in balancing intelligence, speed, reliability, and cost. This matters because intensifying competition is making advanced AI more affordable and widely available.