AI price wars: OpenAI cuts GPT-5.6 Luna prices by 80% as model competition shifts toward cost

To quote an ancient Jedi Master "Begun, the AI price wars have!"OpenAI is sharply reducing the prices of two models in its GPT-5.6 frontier series, cutting GPT-5.6 Luna, the smallest and fastest model in the series, by 80% and GPT-5.6 Terra, the mid-tier model, by 20%, while adding a premium Fast mode for its flagship GPT-5.6 Sol model.The cuts place Luna much closer to the lowest-cost commercial models in the market and arrive just a few days after Anthropic released its highly performant Claude Opus 5 at the same price as Opus 4.8, and Google introduced Gemini 3.6 Flash and Gemini 3.5 Flash-Lite, two rival models built around lower inference costs, faster execution and more efficient agent workloads. OpenAI is successfully undercutting Google's price per intelligence and attempting to sw