OpenAI and Anthropic Cut Prices as Chinese AI Competitors Gain Traction

OpenAI and Anthropic are lowering prices on their AI models to hold onto budget-conscious customers defecting to cheaper Chinese alternatives. Rising AI costs have pushed companies to reduce usage, helping Chinese developers like Moonshot and DeepSeek attract users worldwide. OpenAI cut prices for its GPT-5.6 Luna model by 80%, while Anthropic launched Claude Opus 5 at half the price of its flagship Fable 5 model.