OpenAI is considering massive product-wide price cuts to address industry concerns and keep up with the rising popularity of competitor AI companies, according to the Wall Street Journal.
Speaking to anonymous insiders, the publication reported that the Sam Altman-led company is debating reducing subscription usage costs to retain its customer base — competitors like Anthropic are reportedly debating the same move.
According to those close to the company, this may include lowering costs for highly sought after tokens, a response to an ebbing trend among tech companies known as "tokenmaxxing" or the burning out of processing tokens (and entire corporate budgets) in order to boost the productivity of their AI products.
According to the Wall Street Journal, business executives across the industry have criticized AI costs. Altman recently said that high prices are a "a huge issue" for the company, but the decision hasn't been finalized just yet, insiders told the Journal. Meanwhile, investors are also beginning to cool on AI, amid ebbing stock market numbers from major players like Nvidia.
Still, OpenAI is making moves to become a more profit-driven company. On Monday, OpenAI officially announced it was filing for an IPO, with a yet-undetermined timeline. Industry rumors suggest OpenAI could go public as early as September and could be valued at $1 trillion. Anthropic also recently filed for public status, suggesting the AI price wars are only just getting started.
Disclosure: Ziff Davis, Mashable’s parent company, in April 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.
Source: Mashable