OpenAI Price Cuts: Sam Altman Slashes AI Model Costs

OpenAI CEO Sam Altman has announced major price cuts for two of the company's AI models. The cost of using GPT-5.6 Luna will drop by 80%, and GPT-5.6 Terra will see a 20% reduction. Altman stated that OpenAI aims to offer the best price-to-intelligence tradeoff at every level. The company attributes these improvements to increased efficiency in their models and inference systems. An analyst noted this signals the end of "tokenmaxxing," as enterprises are pushing back on high AI bills. These price adjustments also affect how usage is counted against paid subscriptions for Codex and ChatGPT Work. This move highlights the ongoing competition and focus on cost efficiency in the AI industry.