OpenAI is considering drastic price cuts for its AI tokens to compete with rival Anthropic, as CEO Sam Altman acknowledges that high costs have become a "huge issue" for enterprise customers. The move comes as businesses begin to ration AI usage and could trigger a price war, threatening the profitability of both companies as they prepare for initial public offerings.
OpenAI token pricing strategy
- ▪The potential price reductions would focus on "tokens," the unit of measurement AI firms use for billing
- ▪Discussions regarding the potential price cuts are ongoing and a final decision has not been reached
- ▪OpenAI anticipates that its rival Anthropic will make similar price cuts
- ▪OpenAI is considering drastic price cuts for its AI services to win customers from its competitor Anthropic
Enterprise AI cost pressures
- ▪Companies including Uber, Meta, Microsoft, Salesforce, and DoorDash have implemented new controls to manage AI spending
- ▪Some enterprise customers have started to pull back on AI spending or ration usage due to rapidly increasing costs
- ▪OpenAI CEO Sam Altman acknowledged at a recent event that the high cost of AI usage has become a "huge issue" for businesses
- ▪Due to usage-based billing, an AI workload that previously cost $200 a month can increase to several thousand dollars
Tokenmaxxing trend reversal
- ▪As costs have skyrocketed, companies are now reversing the "tokenmaxxing" trend by rationing AI access and promoting cheaper tools
- ▪Uber's CTO, Praveen Neppalli Naga, stated that the company had exhausted its entire 2026 AI token budget by April
- ▪"Tokenmaxxing" emerged as a trend encouraging heavy use of AI tokens for work, sometimes as a productivity metric
AI subscription price competition
- ▪OpenAI's current consumer subscription tiers are priced at $8, $20, and $100 per month
- ▪Google recently reduced the price of its cheapest Gemini AI Plus plan from $8 to $5 per month
- ▪Anthropic offers Claude Pro for $17 per month with an annual subscription, and Claude Max for $100 or more per month
OpenAI-Anthropic rivalry
- ▪A potential price war could deepen the existing multi-billion dollar losses at both OpenAI and Anthropic
- ▪OpenAI is projected to have a cash burn of approximately $27 billion in 2026 and may not reach profitability until 2029 or later
- ▪Both OpenAI and Anthropic have confidentially filed for initial public offerings (IPOs)
- ▪In a May 2026 funding round, Anthropic's valuation reached up to $965 billion, surpassing OpenAI's $852 billion valuation from March 2026
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