OpenAI and Anthropic slashed LLM prices by up to 80% — and it isn't generosity
OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?
A timeline of model launches from June to September 2026 shows OpenAI and Anthropic trading price cuts: GPT-5.6 Luna dropped 80%, Sonnet 5's launch discount became permanent, and Opus 5.5 and GPT-6.1 Sol halved cache costs. The author argues this is tit-for-tat competition, not loss-leading — open-weight rivals like DeepSeek and Kimi, plus 29 providers on OpenRouter, keep pressure on prices.
No one cuts prices by 80% unless there is some externality in play.