OpenAI Slashes ChatGPT Prices Up to 80% Amid Kimi K3 Impact

OpenAI has significantly cut prices for its GPT-5.6 family of AI models, with reductions up to 80%. This move comes as US AI companies face growing competition from more affordable models, particularly from China. Specifically, the price for GPT-5.6 Luna has dropped by 80%, now costing 20 cents per million input tokens and $1.20 per million output tokens. GPT-5.6 Terra sees a 20% price reduction. These new prices make OpenAI's models cheaper than some competitors, like Kimi K3. OpenAI CEO Sam Altman announced these changes, noting the pressure from cheaper Chinese open-weight models. The company also introduced a "fast mode" for its most advanced model, GPT-5.6 Sol, offering 2.5 times the speed for double the price. This broad shift in pricing aims to offer a better price-to-intelligence ratio, especially as companies become more cost-conscious about AI spending.