OpenAI Slashes Prices for GPT-5.6 Luna and Terra

OpenAI Drastically Cuts Prices for GPT-5.6 Luna and Terra

OpenAI is reducing the prices of GPT-5.6 Luna by 80% and Terra by 20%, effective July 30. Luna will be priced at $0.20 per million input tokens and $1.20 per million output tokens, while Terra will drop to $2 and $12. The prices for Sol remain unchanged. OpenAI claims that Luna matches the performance of last year's leading models, but a task that previously cost one dollar with those models now costs only about 6 cents on Luna, making it nearly nine times faster. All models are available through ChatGPT Work, Codex, and the OpenAI API.

OpenAI states that these reductions are made possible by GPT-5.6 Sol, which has made the company's infrastructure more efficient. The model is said to have autonomously optimized the GPU software, reducing deployment costs by 20%. It has also improved token generation by over 15% through speculative decoding.

Price pressure in the AI market has likely also played a role, particularly due to low-cost Chinese suppliers. Microsoft is now openly promoting its own AI models as cheaper alternatives to OpenAI. This price war could harm the market as a whole if it slows revenue growth for leading labs whose balance sheets are tied to massive infrastructure investments.