OpenAI Slashes AI Model Prices — Your API Costs Just Got a Lot Cheaper
OpenAI cut the price of its GPT-5.6 Luna model by 80%, dropping API costs from $1 to just 20 cents per million input tokens. GPT-5.6 Terra also got a 20% reduction. If your business uses any AI-powered tools or has developers building with OpenAI's API, expect your costs to drop significantly — or expect your software vendors to pass savings along. This is a direct result of rising competition from open-source AI models forcing proprietary providers to compete on price.