OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?

Re:OpenAI and Anthropic cut their LLM prices by up to 80% wi... by eeedda on Sunday October 25, 2026 @11:08PM (#50238598)

Yes but its growth rates with respect to expenditures, and in particular capital expenditures (R&D etc), which we have no idea about.

Gross margins here are irrelevant: if they can't charge a high enough price to cover all expenditures and rely on cash raised via fund-raises, they are not financially healthy.

Could they be one day? Maybe.

[ Parent | on HN ]

Re:OpenAI and Anthropic cut their LLM prices by up to 80% wi... by _heimdall on Sunday October 25, 2026 @11:37PM (#50238802)

I think we agree in a backwards kind of way.

Yes they do need to grow margins to cover expenses, eventually when Amazon had to turn a profit.

My point was only that the numbers we do know clearly show a drop in growth rate of revenue, I can't judge numbers that aren't publicly known.

[ Parent | on HN ]