OpenAI is considering the real possibility of significantly reducing prices for users in order to attract customers from its largest competitor, Anthropic.
OpenAI is considering the real possibility of significantly reducing prices for users in order to attract customers from its largest competitor, Anthropic.
According to people familiar with the matter, cited by the WSJ, the company is considering a significant reduction in the price of tokens used to pay for its products.
OpenAI CEO Sam Altman also said during a recent event that costs have become a «huge issue» for users.
«I think we’re going to have a lot of ways to help people get more value for less,» he said.
At the same time, a sharp price drop could potentially reduce the profitability of both companies, which are already losing billions of dollars due to the enormous cost of computing resources required by artificial intelligence systems to process requests and perform tasks.
Anthropic’s revenue recently skyrocketed after its Claude Code tool went viral among software engineers, and the startup surpassed OpenAI’s valuation for the first time. OpenAI has since focused its attention on its own coding tool, Codex.
«A price war would test the strength of both companies’ business models ahead of their long-awaited public offerings. OpenAI and Anthropic have generated most of their revenue from new AI products, which has fueled their growth. But the main risk is the interchangeability of their products and the ease with which customers can switch from one to the other,» the publication wrote. .
As a reminder, OpenAI has filed a confidential initial public offering (IPO) application with the U.S. Securities and Exchange Commission. The ChatGPT developer plans to go public in the fourth quarter of this year.
The filing of documents took place just a week after a similar step by Anthropic.
