Generated

OpenAI reduces prices for GPT-5.6 Terra and Luna models to compete with global tech rivals

OpenAI has announced a price reduction for two of its latest artificial intelligence models, GPT-5.6 Terra and GPT-5.6 Luna, approximately three weeks after their public release. The company is lowering the price of Terra by 20% and Luna by 80% to cater to a more cost-sensitive customer base and to compete with cost-effective models from Chinese startups, Google, and Microsoft. The price cuts come as enterprises seek a clearer return on investment for expensive AI models. OpenAI engineering lead Thibault Sottiaux acknowledged that the company underestimated the cost of real-world agentic execution for its most powerful model, GPT-5.6 Sol. In response, the company reset usage limits for ChatGPT Work and Codex users and implemented backend inference improvements to make Sol sessions last 18% longer. These adjustments reflect a shift toward efficiency as AI developers watch Chinese open-weight models, such as Moonshot AI's Kimi K3, rapidly catch up to leading American proprietary offerings.

Sources