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Chinese AI competitors may have forced OpenAI’s hand on pricing

The New Stack Amanda Caswell Covered by 7 sources

OpenAI cut API prices for two GPT-5.6 models three weeks after launch, with Luna dropping 80% and Terra dropping 20%, citing infrastructure improvements in GPU kernels and speculative decoding. Luna now costs $0.20 per million input tokens and $1.20 per million output tokens, down from $1 and $6 respectively. The rapid repricing reflects intensified competition from lower-cost Chinese AI models, forcing OpenAI to compete on price rather than performance alone as developers increasingly care about inference costs for agent-based workloads.

Why it matters

OpenAI has lowered API prices for two GPT-5.6 models only three weeks after their launch. On Thursday, the company announced The post Chinese AI competitors may have forced OpenAI’s hand on pricing appeared first on The New Stack.

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