GPT-5 launch redefines the AI market

How GPT-5 could ignite an AI price war
ChatGPT page. Photo: Freepik

OpenAI has unveiled its new flagship AI model, GPT-5, to a huge fanfare in the tech industry. Just days before, the company had released two open-source models, but the biggest surprise wasn't the release, but the price of GPT-5.

According to OpenAI CEO Sam Altman, it's "the best model in the world." He emphasized that he was satisfied with the value that the company was able to offer, according to the TechCrunch publication.

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"Very happy with the price we were able to offer!" Altman noted

GPT-5 pricing and comparison with competitors

The GPT-5 API costs USD 1.25 per million input tokens and USD 10 per million output tokens. It is significantly cheaper than its main programming competitor, Anthropic's Claude Opus 4.1, which starts at USD 15 per input and USD 75 per million output tokens. Even OpenAI's previous model, GPT-4o, was more expensive.

This strategy looks especially attractive given that GPT-5 only slightly outperforms its competitors in terms of performance in tests, but demonstrates considerable versatility in solving tasks, especially in programming.

Developer and market reaction

Developers have responded to the new pricing policy mostly positively. One prominent engineer, Simon Willison, called the prices "aggressively competitive." The move has already been dubbed a "price killer" on forums and social media.

For startups and small teams building products based on large language models, the cost reduction means real relief from financial pressure.

The beginning of the price war in AI

Analyzing the market situation, many experts believe that OpenAI's aggressive pricing strategy will force competitors such as Google and Anthropic to lower their own tariffs. It could be the beginning of a full-fledged price war in the field of AI.

However, such a move seems contradictory because the companies themselves bear gigantic infrastructure costs. For example, OpenAI has a contract with Oracle for USD 30 billion per year, Meta plans to invest up to USD 72 billion in AI, and Alphabet — up to USD 85 billion in 2025.

Implications for the industry and users

If a price war breaks out, consumers and developers will be the ones who will benefit most. Access to powerful language models will become cheaper, opening up new opportunities for innovation.

At the same time, a prolonged price decline could negatively impact companies' profitability and force them to rethink their business models.

Sam Altman hinted that OpenAI is prepared for such a scenario.

"We are confident that we can combine the highest quality with an affordable price, even in a competitive environmentі," he said.

What to expect in the future

Experts predict that the coming months will be decisive. If competitors lower prices, the era of cheaper and more accessible AI solutions will begin.

If it does not happen, OpenAI can significantly increase its market share, using price advantage as its main tool of struggle.

Read also:

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AI ChatGPT OpenAI Sam Altman
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