Good news for ChatGPT users! OpenAI may slash prices to take on Anthropic

OpenAI is reportedly considering reducing prices for its ChatGPT subscription plans, API access for developers, or other paid AI services. This may help the company to attract new users as competition intensifies with its rival Anthropic. 

According to a Wall Street Journal report, OpenAI is evaluating major reductions in token pricing, which is used to measure AI usage and calculate costs. According to people familiar with the matter, it is also expected that Anthropic may also cut its prices. The reduced AI prices may benefit developers, startups, and businesses that build products using AI models.

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Previously, OpenAI Chief Executive Sam Altman talked about the growing cost of AI usage and how businesses cannot continue offering powerful models without a planned ROI. Altman said, “I think we’ll have a lot of ways we can help people get more value for less spend.” This has also raised concerns for “tokenmaxxing,” where businesses have already maximised their AI usage, and are spending millions on AI tools.

While reduced pricing may attract new users to ChatGPT or Claude, it may have an impact on profit margin for both OpenAI and Anthropic. Reportedly, these companies are already losing billions of dollars in computing power, specialised chips, electricity, and data centres to run powerful AI models. 

OpenAI has also shifted its focus towards enterprise customers, and is planning to revamp ChatGPT into a “Superapp” that could combine image generation, Codex, and other services. 

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On the other hand, Anthropic has already gained momentum for its enterprise offerings with its coding assistant, Claude Code. It also surpassed OpenAI's valuation for the first time at at $965 billion. Now, OpenAI is expanding its Codex tool to win back developers and enterprise clients.

If OpenAI plans for a price cut, it may potentially start a price war between OpenAI and Anthropic. In addition, it may also come as an early stress test of whether they can still generate enough revenue while absorbing the enormous costs of running AI systems.