OpenAI slashes prices on smaller models, cuts GPT-5.6 Luna cost by 80%

Published Jul 30, 05:01 PM UTC

OpenAI announced significant price reductions on its smaller AI models on July 30, 2026, cutting the cost of its GPT-5.6 Luna model by 80% and its mid-tier Terra model by 20%, while leaving its flagship Sol model unchanged. The move comes as businesses increasingly scrutinize the high costs of AI technology and as U.S. AI labs face competition from cheaper Chinese rivals like Z.ai's GLM-5.2. The price cuts also intensify pressure on Anthropic, whose Claude models are costlier. OpenAI cited efficiency gains from GPT-5.6 as enabling the reductions. Analysts note that while lower prices may boost usage, they could strain finances ahead of anticipated IPOs. The shift from flat subscriptions to usage-based pricing has left companies with unpredictable and often higher bills, despite falling per-token costs.