OpenAI and Anthropic reduced prices for large language model APIs by up to 80% over a period of a few months.

What it means

OpenAI and Anthropic have cut prices for their flagship large language model APIs (GPT-4o and Claude 3.5 Sonnet) by up to 80% between June and October 2026. The reductions are driven by competition from cheaper open-weight models and a push to capture enterprise volume ahead of potential IPOs. The analysis, primarily by Max Woolf, traces a detailed timeline of the price drops.

Accuracy & sourcesGrounded

The claim is well-supported by multiple secondary sources and a primary blog post by Max Woolf that provides a dated timeline. The reporting is close to this primary source, and the price cuts are consistently reported across outlets. The claim is solid, though the exact percentages and models affected may vary slightly by source.

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