OpenAI priced GPT-5 so low, it may spark a price war
15 days ago
- #AI
- #Pricing
- #OpenAI
- OpenAI launched GPT-5, its newest flagship model, shortly after releasing two open-source models.
- GPT-5 is competitively priced, with input tokens costing $1.25 per million and output tokens $10 per million.
- The model performs well across various tasks, especially coding, and is cheaper than GPT-4o.
- OpenAI's pricing undercuts competitors like Anthropic's Claude Opus 4.1 and matches Google's Gemini 2.5 Pro for basic usage.
- Developers praise GPT-5's aggressive pricing, calling it a 'pricing killer' compared to other models.
- The launch may trigger a price war among AI model providers, benefiting startups and developers.
- Despite high infrastructure costs (e.g., OpenAI's $30B Oracle deal, Meta's $72B AI spend), OpenAI is lowering prices.
- TechCrunch Disrupt 2025 features top tech and VC leaders, offering insights for startup growth.