OpenAI Slashes AI Model Prices Up To 80%, Boosts Speed

OpenAI has significantly reduced the API pricing for its cheapest AI models. The company states these price cuts are a result of efficiency improvements, some of which were driven by the AI model itself. GPT-5.6 Luna, their fastest and most affordable option, is now 80% cheaper. GPT-5.6 Terra, designed for everyday tasks, has seen a 20% price reduction. These changes went into effect on July 30th. OpenAI also introduced a new "Fast mode" for the API. This mode, replacing the old Priority Processing tier, runs up to 2.5 times faster for GPT-5.6 Sol at double the price, with no change in output quality. Luna is now said to match models that were considered top-tier a year ago, at a fraction of the cost and nearly nine times the speed. It reportedly outperforms a rival model, Claude Fable 5, on a professional-work benchmark, with an estimated cost per task almost 99% lower. The company attributes these gains to improvements in model architecture, inference systems, and how models connect to tools. What's interesting is that GPT-5.6 Sol itself helped find these efficiencies, by autonomously rewriting production kernels and running experiments. This could mean more powerful and affordable AI tools for everyone.