[AINews] GPT 5.6 price cut by 20%-80%: Cost of GPT 5.4 Intelligence dropped 13x in 4 months due to GPT 5.6 recursive self-optimization
Latent Space ● Covered by 14 sources
OpenAI cut GPT-5.6 model prices by 20–80% and introduced a faster inference tier, driven by self-optimization improvements in kernel rewriting, speculative decoding, and caching that reduced serving costs. GPT-5.4 intelligence now costs roughly one-thirteenth of its March price at the same performance level, representing an annualized rate of approximately 2,000x cost reduction. The price cuts shift downstream AI workflows toward cheaper models, with tools like ChatGPT auto-review and Codex moving from GPT-5.4 to Luna at roughly 10x lower cost.
Why it matters
Distillation is all you need!
