OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?
What happened
OpenAI and Anthropic dramatically reduced the prices of several of their large language models, with OpenAI cutting GPT‑5.6 Luna’s cost by about 80% and lowering Sol’s price by roughly 20%, while Anthropic made the temporary Sonnet 5 discount permanent and introduced cheaper pricing for Fable 5.1 with a lower cache‑read fee. These price cuts bring the cost per token for input, output, and cache reads down significantly across the board.
Why it matters
Lower prices make the models more competitive and affordable for users, especially for agentic coding tasks where cache reads dominate costs, potentially increasing adoption and market pressure on other providers.
Is this a big deal?
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