AI price wars: OpenAI cuts GPT-5.6 Luna prices by 80% as model competition shifts toward cost

OpenAI cut prices for two GPT-5.6 models, reducing Luna by 80% and Terra by 20%, while adding a higher-priced Fast mode for its flagship Sol model. The move follows new lower-cost releases from Anthropic and Google aimed at faster inference and more efficient agent workloads.

The announcement signals that frontier AI vendors are increasingly competing on price-performance, not just benchmark gains. Cheaper fast models could accelerate enterprise adoption, but they may also pressure margins and make infrastructure efficiency a core competitive advantage.