OpenAI may slash prices dramatically as Anthropic's challenge grows: Report

The artificial intelligence race has largely been defined by bigger models, smarter capabilities and eye-catching product launches. Now, another battleground is emerging: price.

OpenAI is reportedly exploring significant reductions in the fees it charges customers for using its AI models, a move that could intensify competition with rival Anthropic and reshape how businesses pay for generative AI. According to a report by The Wall Street Journal, the ChatGPT maker is weighing substantial cuts to token pricing as it seeks to attract more customers and defend its position in an increasingly crowded market.

The discussions come at a time when enterprise spending on AI is under greater scrutiny than ever before. While companies remain eager to deploy AI tools across their organisations, many executives are beginning to question whether soaring usage costs are delivering enough value to justify the investment.

If implemented, the cuts could make ChatGPT-powered services significantly cheaper for businesses and developers while setting the stage for a broader pricing battle across the AI industry.

More from Tech

ChatGPT may get cheaper

According to The Wall Street Journal, OpenAI is considering major reductions in what it charges customers per token, the standard unit AI companies use to measure and bill model usage.

People familiar with the matter told the publication that the company is evaluating the move partly because it expects Anthropic to pursue similar pricing reductions. The goal would be to make OpenAI's products more attractive to businesses that are increasingly cautious about AI spending.

The issue has become important enough for OpenAI CEO Sam Altman to publicly acknowledge it. Speaking at a recent event, Altman described costs as "a huge issue" and suggested that the company is looking for ways to improve affordability.

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

The challenge is that cheaper AI comes at a cost to providers. Both OpenAI and Anthropic spend enormous sums on computing infrastructure required to train and run advanced models. Aggressive price reductions could therefore put further pressure on profit margins, even as they help attract new customers.

Nevertheless, OpenAI appears willing to consider the trade-off as competition intensifies in the enterprise market, where large organisations are spending millions of dollars annually on AI services.

Why are users switching from ChatGPT?

The reported pricing review comes as Anthropic continues to gain ground against OpenAI.

Much of Anthropic's recent momentum has been driven by Claude Code, its coding-focused AI product, which became popular among software developers and engineering teams. The tool's rapid adoption helped fuel a surge in revenue and strengthened Anthropic's position among enterprise customers.

OpenAI has responded by making its own coding product, Codex, a major strategic priority.

At the same time, ChatGPT has faced some challenges in retaining momentum among certain user groups. Earlier this year, reports indicated a sharp decline in ChatGPT usage during a period when OpenAI's partnership with the US Department of Defense attracted public attention.

According to previously reported data from market intelligence firm Sensor Tower, US uninstalls of the ChatGPT mobile app jumped 295 per cent on February 28 compared with the previous day.

During the same period, downloads of Anthropic's Claude reportedly increased, suggesting that some users were exploring alternatives.

Enterprise customers are also becoming more disciplined about AI spending. Some companies that enthusiastically adopted AI tools are now attempting to control costs. Earlier this year, an Uber executive reportedly said the company had already exhausted its 2026 budget for agentic AI initiatives. Another executive later questioned whether productivity gains from AI coding tools were translating into meaningful customer-facing improvements.

Those concerns have contributed to growing debate in Silicon Valley around "tokenmaxxing", the practice of consuming large volumes of AI tokens in pursuit of productivity gains that may not always generate a clear return on investment.

ChatGPT vs Claude pricing

Today, OpenAI and Anthropic offer relatively similar entry-level pricing.

The rivalry between OpenAI and Anthropic is no longer just about which company has the smartest AI model. Increasingly, it is also about who can offer the best value to users.

At the consumer level, the competition appears relatively balanced. OpenAI's ChatGPT Plus and Anthropic's Claude Pro are both priced at around $20 per month, offering access to premium models, higher usage limits and advanced features. However, the similarities begin to fade as users move up the pricing ladder.

OpenAI's most expensive consumer offering, ChatGPT Pro, costs $200 per month and is aimed at researchers, developers and power users who require significantly higher usage limits and priority access to the company's most advanced models.

Anthropic, meanwhile, has introduced a more gradual pricing structure. Alongside Claude Pro, the company offers Claude Max 5x at $100 per month and Claude Max 20x at $200 per month, giving users intermediate options before reaching the highest tier. Industry observers have noted that this provides greater flexibility for customers whose needs fall between basic and heavy enterprise usage.

The real contest, however, lies in enterprise pricing, where companies pay based on token consumption rather than subscription fees. Tokens are the units used by AI companies to measure how much text, code or data is processed by a model.

This is where costs can escalate quickly.