OpenAI slashes prices amid strong competition

OpenAI is slashing model prices, with ChatGPT 5.6 Luna dropping 80% and Terra dropping 20%, while adding a faster but more expensive mode. Price is becoming a key battleground in AI as cheaper Chinese open-source models pressure U.S. vendors. Microsoft and Anthropic are also emphasizing pricing and efficiency, while internally OpenAI touts strong revenue growth and 1B+ users. - OpenAI cuts price of ChatGPT 5.6 Luna by 80% and Terra by 20% - Fast mode added at higher cost for speed - Price war intensifies with Chinese open-source models undercutting on cost - Microsoft CEO discusses undercutting on AI pricing to differentiate - Anthropic focuses on price per task and efficiency - OpenAI internally reports adding more net new ARR in July than in all of Q2 - ChatGPT business surpasses 1 billion users - Anthropic dominates on coding