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OpenAI blinks in face-off with Chinese rivals, drops pricing for some models up to 80%

In a bid to defend its market share against rapidly advancing, lower-cost Chinese rivals, US artificial intelligence firm OpenAI has launched an aggressive price war, slashing prices for its latest GPT-5.6 model line-up by up to 80 per cent. In a post on social media platform X on Thursday, OpenAI CEO Sam Altman announced an 80 per cent drop in developer pricing for its lightweight GPT-5.6 Luna…

OpenAI blinks in face-off with Chinese rivals, drops pricing for some models up to 80%

In a strategic move to battle Chinese AI competitors, OpenAI has slashed prices for its GPT-5.6 model lineup by up to 80%. CEO Sam Altman announced the dramatic price cuts in a post on X, revealing that the developer pricing for the lightweight GPT-5.6 Luna model has dropped to $0.20 per million input tokens and $1.20 per million output tokens.

This represents an 80% reduction and pushes the model into the top tier of intelligence-per-dollar rankings according to research firm Artificial Analysis, which also found it outperforms Chinese rivals like Zhipu AI's GLM-5.2 and MiniMax's M3. OpenAI also introduced a "fast mode" for its flagship GPT-5.6 Sol model, promising a performance boost up to 2.5 times.

The company cut rates for its mid-tier GPT-5.6 Terra model by 20%, bringing it down to $2 per million input tokens and $12 per million output tokens. Despite OpenAI's price reductions, other Chinese models remain competitive, with Zhipu AI's GLM-5.2 at $1.40 per million input tokens and $4.40 per million output tokens, and MiniMax's M3 at $0.30 per million input tokens and $0.60 per million output tokens.

Written by urgent.news from SCMP Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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