OpenAI considering drastic price cuts to compete with Anthropic - report

(Sharecast News) - OpenAI is reportedly considering drastically lowering the prices it charges users as it seeks to win customers from rival Anthropic. According to the Wall Street Journal, citing people familiar with the matter, the company is weighing significant cuts to what it charges for tokens, the unit of measurement AI firms use to bill for their products. It was understood the move would be in anticipation of similar cuts the company expects at Anthropic.

The news comes as business executives have begun to balk at the high prices for AI usage. OpenAI chief executive Sam Altman said at a recent event that costs had become "a huge issue."

"I think we'll have a lot of ways we can help people get more value for less spend," he said.

Earlier this week, OpenAI confidentially filed for an IPO, following in the footsteps of Anthropic.