OpenAI price cut slashes Luna fees 80% as AI price wars intensify

OpenAI announced an aggressive OpenAI price cut on its GPT-5.6 frontier series, slashing Luna’s fees by ↓ 80% and trimming Terra by 20%.

OpenAI price cut reshapes AI pricing competition

The Luna model now costs $0.20 per million input tokens and $1.20 per million output tokens, a combined $1.40 per million, positioning it below Google’s Gemini Flash‑Lite and alongside DeepSeek’s flash offering.

Terra’s new combined price of $14 per million tokens matches Google’s Gemini 3.1 Pro, while the flagship Sol Standard stays at $35 per million, and a new Sol Fast tier commands a premium of $70 per million, delivering ↑ 2.5x throughput without altering model intelligence.

“Major price cuts today,” Sam Altman wrote on X.

Analysts note the move follows Google’s recent Gemini Flash releases and Anthropic’s unchanged Opus 5 pricing, turning token‑cost economics into a front‑line competitive lever.Enterprise buyers will now weigh pure per‑token rates against total execution cost, a dynamic highlighted during the recent pandemic surge in AI‑driven automation.

For broader market context see Reuters and Bloomberg.