OpenAI is reportedly preparing steep price cuts for its AI services to lure customers from rival Anthropic
The move comes as both firms secretly file for IPOs and Anthropic edges ahead in valuation.
CEO Sam Altman pushes to make advanced AI more abundant, affordable and widely accessible worldwide.
OpenAI Plans Steep AI Price Cuts to Beat Anthropic as Both Race Toward IPO
ChatGPT charges customers in a tiered subscription of $8, $20 and $100 and above each month for accessing its flagship GPT-5.5 models
OpenAI CEO Sam Altman File Phot
Summary
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OpenAI is planning sharp price cuts to its artificial intelligence price offerings, intending to attract customers away from Anthropic, said a Wall Street Journal report on Wednesday.
The company is considering significant cuts to what it charges for its AI-tokens. The measures follow "in anticipation of similar cuts the company is expecting at Anthropic," a source said as quoted by WSJ.
The AI Rivalry
Currently, ChatGPT charges customers in a tiered subscription of $8, $20 and $100 and above each month for accessing its flagship GPT-5.5 models.
Anthropic, on the other hand, charges its customers with $17 each month with an annual subscription to Claude Pro, and $100 and above monthly for a subscription to Claude Max.
ChatGPT currently supports more than 900 million weekly active users and became the first app to reach 1 billion monthly active users in May, nearly three years after its launch in November 2022, said the CNBC report.
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ChatGPT faces strong competition from rivals like Anthropic, Google and Elon Musk's SpaceX.
Both ChatGPT and Anthropic confidentially filed for IPO with the US Securities and Exchange Commission (SEC) earlier this month, days before SpaceX was set to hit the public market.
Shortly before this, Anthropic closed its Series H funding round on May 28 at a $965 billion valuation, surpassing OpenAI, which was valued at $852 billion in the month of March.
What's Next for OpenAI
In a blog post on Monday, OpenAI CEO Sam Altman wrote, "Now we are entering the third phase," adding that the economy is beginning to be reshaped around AI. Now, the central question is how to make advanced AI abundant, affordable, safe, useful and easy enough for every person and organisation to benefit from it.
Notably, OpenAI recently announced a new initiative called ‘Open Dialogues’ in India, aimed at helping parents, caregivers, and educators understand how to support young people using artificial intelligence.
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The programme is designed to address growing questions around AI use, digital wellbeing, online safety, and responsible technology habits as AI tools become more common in everyday life, according to a company media release.