OpenAI weighs major token price cuts to rival Anthropic

OpenAI is actively considering significant price reductions for its artificial intelligence services, according to reports citing sources familiar with internal discussions. The potential cuts, which would apply to the "tokens" used to bill for AI usage, are seen as a preemptive move ahead of expected price competition from rival Anthropic. This strategic deliberation comes as both leading AI firms have confidentially filed for initial public offerings, intensifying their rivalry in a market where corporate spending on AI has become a major point of contention.

The pressure to reduce prices stems from a rapidly shifting competitive landscape. Anthropic has experienced substantial growth, particularly driven by its Claude Code software development tool. Reports indicate Anthropic's annualized revenue run rate surged from an estimated $1 billion at the start of 2025 to approximately $47 billion by May 2026. This momentum helped Anthropic secure a $65 billion funding round in late May, valuing the company at $965 billion and briefly surpassing OpenAI's most recent valuation of around $852 billion. OpenAI, while still leading in overall revenue with $5.7 billion reported in the...