OpenAI and Anthropic slash prices as Chinese AI competitors lure cost-conscious users

Major US AI labs including OpenAI and Anthropic are cutting prices on their latest models to hold onto customers facing rising AI costs. As bills climb, many businesses are reducing usage and seeking cheaper options, allowing Chinese developers like Moonshot and DeepSeek to gain traction globally.

OpenAI announced an 80 percent price cut for its fastest and most affordable model, GPT-5.6 Luna, while Anthropic introduced Claude Opus 5 at half the price of its top-tier Fable 5. The moves reflect an intensifying price war driven by competitive pressure from Chinese rivals.

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