OpenAI cuts prices for GPT-5.6 Luna and Terra models

OpenAI announced significant price cuts for two of its newest artificial intelligence models on Thursday, July 30, 2026, slashing costs in response to intensifying competition and growing customer scrutiny over AI spending. The company reduced the price of its GPT-5.6 Luna model by 80% and its mid-tier GPT-5.6 Terra model by 20%, just weeks after the models became widely available earlier in July.

The new pricing sets Luna at $0.20 per million input tokens and $1.20 per million output tokens, down from $1 and $6 respectively. Terra now costs $2 per million input tokens and $12 per million output tokens, reduced from $2.50 and $15. The price for the flagship GPT-5.6 Sol model remains unchanged, though OpenAI introduced a new "Fast mode" for its API that offers speeds up to 2.5 times faster than standard processing at twice the cost.

In a statement, OpenAI said its strategy focuses on advancing both capability and efficiency so each generation of intelligence can accomplish more work at a lower cost. The company attributed the price reductions to efficiency gains achieved since the models' launch, including a 20% reduction in serving costs from production improvements and a 15%...