OpenAI, Anthropic slash prices amid Chinese AI threat

OpenAI and Anthropic are cutting prices on mid-tier AI models as Chinese rivals DeepSeek and Moonshot lure cost-conscious customers away. OpenAI slashed GPT-5.6 Luna prices by 80 percent, while Anthropic launched Claude Opus 5 at half the price of its flagship model. Overall prices from leading US labs have fallen nearly a quarter since mid-July. The price war comes as businesses including DoorDash and Airbnb turn to cheaper Chinese alternatives to control rising AI bills. Both US companies are also pursuing trillion-dollar IPOs, adding pressure to demonstrate profitability while defending market share against increasingly capable open-source Chinese models.