OpenAI cuts prices on smaller models as businesses scrutinize AI spend

July 30 : OpenAI slashed prices of its low- and mid-tier AI models on Thursday, a move that may intensify competition in the industry as U.S. companies battle cheaper Chinese rivals for customers increasingly wary of the technology's ballooning costs.The ChatGPT maker lowered the cost of its smaller GPT-5.6 Luna model by 80 per cent and its mid-tier Terra by 20 per cent, while leaving the price of its biggest and flagship Sol model unchanged.The cuts show that rising cost scrutiny by businesses facing hefty AI bills is forcing American labs to rethink pricing. Many tech CEOs have also said in recent months that cheaper AI options are key to the technology's widespread adoption.OpenAI's new pricing also turns up the heat on Anthropic, whose Claude models dominate enterprise and developer us