OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?
Major AI companies like OpenAI and Anthropic have aggressively cut prices for their large language models to remain competitive. The price reductions are driven by the need to capture market share and optimize costs for high-volume tasks like agentic coding.
Why it matters
Rapid price deflation in AI models makes advanced automation more accessible to businesses and developers, accelerating the adoption of AI agents.
Let's look at a quick timeline of the major LLM model announcements from both OpenAI and Anthropic over the past few months. All pricing numbers provided are input MTok / output MTok / cache read MTok .
OpenAI announced GPT-5.6 Sol and Luna. Sol is the direct successor to GPT 5.5 at the same price of $5 / $30 / $0.50 , while Luna is a small model specifically designed for cheaper use cases at $1 / $6 / $0.10 . They also announced a Terra model that's in between those two models, but few cared about it.
Anthropic announced Claude Sonnet 5, which Anthropic claimed to be closer to their Opus models, but feedback was mixed. Notably, it had launch pricing of $2 / $10 / $0.20 which was initially supposed to be temporary but would go up.
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