OpenAI Weighs Sharp Price Cuts as AI Competition Heats Up

OpenAI is considering a significant reduction in prices for its artificial intelligence services, The Wall Street Journal reported. The move comes two days after the company filed documents ahead of an initial public offering, amid intensifying competition with Anthropic.

According to the report, published in Maariv, OpenAI is weighing a cut in the price of tokens, the unit of measurement AI companies use to charge customers for access to their models. People familiar with the matter said the move could come ahead of similar price cuts by Anthropic.

In recent years, more business executives have voiced criticism of the high cost of AI services. OpenAI CEO Sam Altman recently addressed the issue, saying the costs had become a "big problem," and added that the company is looking for ways to let users get more value for less money.

However, a sharp price cut could hurt the profitability of OpenAI and Anthropic, which are already facing especially high computing costs needed to run AI models and process complex tasks. The main battle between the companies is taking place over business customers, who are investing large sums in AI tools to improve productivity.

Anthropic has gained strength after its Claude Code tool became popular among software engineers, while OpenAI is trying to bolster its position with Codex. According to the report, some companies that have already spent large amounts on Anthropic products are now considering reducing expenses, amid a broader industry debate over increased token use that does not always produce a clear return on investment.

An AI price war could become an early test of the business models of both companies, especially ahead of possible public offerings. Investors see a key risk in the fact that many products in the field are easily substitutable, and customers can switch between AI providers relatively quickly.