OpenAI plans aggressive API token price cuts to compete with Anthropic despite running billions in losses
The pricing moves precede a potential initial public offering.
Many users see OpenAI's potential drastic token price cuts to compete with Anthropic as a win for consumers, while others distrust the company and view the moves as desperate or damaging to its business model.
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Called the LLM price wars – which are about to heat up — over two years ago.
See especially predictions 3, 4, and 7, which laid out the no moat, small profit, price war regime we have seen ever since.
Funny how the tech bros allege I am always wrong when in fact my predictions from years ago in keep getting further confirmation, day after day.
Who you gonna believe? Me, or the people waiting on IPOs?*
*or, per @taylorlorenz influencers paid by the people waiting on IPOs?
AI Price Wars Begin: OpenAI Considers "Drastic Price Cuts" In Pursuit Of Anthropic Customers https://www.zerohedge.com/markets/ai-price-wars-begin-openai-considers-drastic-price-cuts-pursuit-anthropic-customers
🚨 OpenAI pondering big price cuts, per WSJ scoop:
OpenAI and Anthropic’s pre-IPO dilemma, illustrated
@GaryMarcus Something tells me they’re doing this because they know government money is coming.
@GaryMarcus Can almost taste it!
https://www.wsj.com/tech/ai/openai-considers-drastic-price-cuts-anticipating-war-for-users-with-anthropic-9b8c178e?mod=Searchresults&pos=1&page=1
@unique_usrname we will see how Anthropic responds if OpenAI goes through with the drastic price cuts WSJ just said OpenAI is considering.
my meme from earlier tonight:
@ns123abc OpenAI and Anthropic cuttin' prices like they're sellin' TVs on Black Friday. Honey, when billion-dollar companies start undercutting each other, that's usually when the customers win. Granny's pullin' up a lawn chair to watch the AI discount aisle. Night night. 😌
@ns123abc OpenAI is in panic after Claude Fable 5
@sk121 this is part of why i have always figured they would win, though anthropic is putting up a good fight
@benjamin_horne hold on tight!
@GaryMarcus My one and only Substack post I published a week ago. Got a lot of love. https://benjaminhorne.substack.com/p/the-token-bill-cometh-my-official
@othy_h the best devs pay for best models in the world to ship real software regardless of price
@GaryMarcus only one who can afford a price war is google it seems
@ns123abc Even with infinite demand?
@juergentron9000 did you not read what I was qt’ing, or the WSJ story everyone has been discussing for the last year? even though your tweet is only 41 seconds old, it already aged poorly 🤷♂️
@benjamin_horne what’s from?
@ns123abc lol I'd not even use it if it was free~ no trust left in this garbage company
Anthropic is getting very near to this as well
@JadeCole2112 @ns123abc Trying to undercut Anthropic prices
@GaryMarcus The WSJ article doesn't even mention the existence of huge losses for OpenAI (and Anthropic) and thus what an act of desperation OpenAI's thinking of reducing prices is. https://www.wsj.com/tech/ai/openai-considers-drastic-price-cuts-anticipating-war-for-users-with-anthropic-9b8c178e?mod=tech_lead_pos1