OpenAI and Anthropic Slash Prices as Chinese AI Competitors Gain Ground

OpenAI and Anthropic are cutting prices on their AI models to hold onto cost-conscious customers defecting to cheaper Chinese alternatives. Rising AI costs have pushed businesses to reduce usage and seek more affordable options, benefiting Chinese developers like Moonshot and DeepSeek globally. OpenAI reduced the price of its GPT-5.6 Luna model by 80%, while Anthropic launched Claude Opus 5 at half the cost of its flagship Fable 5 model.