OpenAI mulls slashing prices as it competes with Anthropic for users: WSJ

In a strategic move to attract more users, OpenAI is contemplating significant price reductions for its artificial intelligence services, according to a report from the Wall Street Journal. This potential shift aims to draw customers away from its competitor, Anthropic, as the race for dominance in the AI sector intensifies. Sources indicate that OpenAI is evaluating major cuts to its pricing structure, particularly for tokens, which are the billing units commonly used in the AI industry. This decision comes as the company anticipates similar pricing strategies from Anthropic, which has recently been gaining traction in the market. Currently, OpenAI offers tiered subscription plans for its highly regarded GPT-5.5 models, charging $8, $20, and $100 or more monthly. In contrast, Anthropic provides its users with more competitive options, such as a $17 monthly fee for its Claude Pro service and higher-tier plans starting at $100 for Claude Max. This potential shift in pricing comes at a time when both companies are positioning themselves for growth. OpenAI recently filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission, just after Anthropic's own IPO filing. The competitive landscape is further highlighted by Anthropic's recent Series H funding round, which valued the company at $965 billion, surpassing OpenAI's valuation of $852 billion reported in March. In terms of user engagement, OpenAI's ChatGPT has made headlines by becoming the first application to achieve 1 billion monthly users within just three years of its launch in November 2022, outpacing Google Maps, which took five years to reach that milestone, as per estimates from market intelligence firm Sensor Tower.