OpenAI and Google cut prices on large language models
Major US AI developers such as OpenAI and Google are aggressively cutting fees for using their large language models, driven by intense competition in the artificial intelligence sector.
When market leaders start a price war, it is always a signal: the race for users is entering a new phase. Lowering the cost of access to cutting edge AI models makes technology more affordable for start ups and developers, but at the same time intensifies competition worldwide. Behind every pricing decision lie not only marketing calculations but also strategic calculus: whoever wins the ecosystem faster will set the standards for the future. And in this race, American giants are increasingly looking over their shoulders at their Chinese competitors, whose open source models and democratic prices are changing the rules of the game.
On Friday, OpenAI announced it was cutting the base price of GPT 5.6 Sol, a promising AI model for developers, by more than 20 per cent, with the reduction taking effect immediately. The discount will last for three months. At the end of last month, the company also cut prices on several other models, reducing mid range models by 20 per cent and lower tier models by 80 per cent. Meanwhile, Google, owned by Alphabet, recently released Gemini 3.7 Flash and cut its price by roughly half compared with the previous version.
Some US media have noted that pricing competition for large AI models is becoming increasingly fierce, and the open source and pricing strategies of some Chinese AI companies are putting pressure on their US competitors. The market for large language models has seen a true boom over the past two years. US companies such as OpenAI and Google have long dominated the sector, setting high prices for their products and reaping super profits. However, the emergence of Chinese open source models and the aggressive pricing policies of companies such as DeepSeek and Alibaba have forced leaders to rethink their strategies.
Price cuts are not only an attempt to hold market share but also a response to the growing availability of alternatives. OpenAI's temporary discounts and the sharp price reduction for Gemini may be aimed at attracting developers and strengthening ecosystems ahead of the expected release of new models in 2027. Analysts warn that the price war could lead to market consolidation and the squeezing out of smaller players.
As CCTV+ reports, pricing competition in the large language model market is only intensifying. Tariff cuts by the largest players are making AI technologies more affordable for businesses and developers around the world. Yet behind this process lies not only a battle for customers but also a global rivalry between technological powers, where China is increasingly asserting its position. In the coming years, further price declines and the emergence of new models can be expected, which will ultimately benefit users, who will gain more powerful tools for less money.
