Leading US AI labs such as OpenAI and Anthropic are releasing cheaper models as they fight to retain cost-conscious customers who are switching to cut-price alternatives from Chinese rivals.
The price war comes as rising AI bills push companies to curb usage and seek cheaper models, helping Chinese developers including Moonshot and DeepSeek make inroads with users from Silicon Valley to Europe.
OpenAI recently said that it was slashing prices for GPT-5.6 Luna, its “fastest and most affordable model”, by 80 percent. Anthropic has launched Claude Opus 5, touting the system’s “frontier intelligence... at half the price” of Fable 5, the company’s most capable model.