OpenAI reduces pricing for GPT-5.6 Terra and Luna AI models
OpenAI has announced significant price cuts for two of its latest artificial intelligence models, GPT-5.6 Terra and GPT-5.6 Luna. The company reduced the cost of Terra by 20% to $2 per million input tokens and $12 per million output tokens, while cutting Luna's pricing by 80%, bringing it down to just 20 cents per million input tokens and $1.20 for outputs. The move comes as businesses become more cost-conscious in their AI spending following initial enthusiasm that led to high expenses from token usage. OpenAI is also responding to competitive pressures, particularly from Chinese startups like Moonshot AI and tech giants such as Google and Microsoft, which have introduced models with strong performance at lower costs. Anthropic recently launched a new model called Claude Opus 5, emphasizing cost-effectiveness. The pricing changes reflect OpenAI's strategy of improving efficiency alongside capability to ensure each generation of its AI can perform more work for less money.
Topics: AI pricing competition GPT-5.6 models OpenAI