# OpenAI and Anthropic cut LLM prices by up to 80%

Digest AI · Business & Funding · published 2026-10-25T21:11:31Z

Canonical: https://digestai.news/story/openai-and-anthropic-cut-llm-prices-by-up-to-80

## Summary

OpenAI announced a series of price reductions for its GPT‑5.6 family in mid‑2026, most dramatically slashing the Luna model’s input, output and cache‑read rates by 80% to $0.20 / $1.20 / $0.02 in July. A later cut lowered Sol’s rates by roughly 20% to $4 / $20 / $0.40 for three months. Anthropic mirrored the moves, making the temporary Sonnet 5 discount permanent and later trimming Claude Opus 5.5’s input/output fees by 20% and its cache‑read cost, yielding a total 40‑60% reduction.

The pricing war appears driven by competition from open‑weight models such as DeepSeek’s Flash V4.1 and Moonshot AI’s Kimi K3.1 Pro, which offer lower effective token costs. Both firms are also nearing IPOs, adding pressure to demonstrate sustainable economics despite large R&D losses. Analysts note that while token prices fall, overall spend may rise as higher‑quality models accelerate adoption.

Vercel’s AI gateway data shows the average cost per token has dropped to 43.3% of its April 2026 level, yet profit‑per‑token margins remain healthy for the providers, suggesting the price cuts are strategic rather than loss‑leading.

## Key points

- OpenAI cut GPT‑5.6 Luna price by 80% to $0.20/$1.20/$0.02 in July 2026
- Anthropic made Sonnet 5 discount permanent and reduced Opus 5.5 costs by 20% input/output plus larger cache cut
- Both firms’ cuts respond to cheaper open‑weight models like DeepSeek Flash V4.1 and Moonshot Kimi K3.1 Pro

## Why it matters

Steeper price cuts lower token costs, expanding access to powerful LLMs for developers and businesses while intensifying market competition ahead of both companies' IPOs.

## Sources

1. [OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?](https://minimaxir.com/2026/10/cheap-llms) (minimaxir.com, 2026-10-25)

Part of the developing story: [Open-Weight AI War Zhipu's Rise](https://digestai.news/thread/zhipu-automates-infrastructure-with-glm-5-3s-outer-rsi-loop-in-under-two-weeks) (6 stories)

## Cite

Digest AI, "OpenAI and Anthropic cut LLM prices by up to 80%", 25 October 2026, https://digestai.news/story/openai-and-anthropic-cut-llm-prices-by-up-to-80

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