OpenAI announced significant price cuts on Thursday for two models in its GPT-5.6 series, reducing Terra by 20 percent and Luna by 80 percent. The new Terra pricing stands at $2 per million input tokens and $12 per million output tokens, while Luna drops to 20 cents for inputs and $1.20 for outputs. Sol, the third model in the series launched three weeks ago, retains its existing pricing.
The reductions come as major AI developers race to offer more cost-effective solutions. Anthropic recently released Claude Opus 5 at half the price of Claude Fable 5, while Google debuted Gemini 3.6 Flash this month. Microsoft CEO Satya Nadella highlighted cost-effective models during Wednesday's earnings call, and China's Moonshot AI released the open-weight Kimi K3 in mid-July.
OpenAI's chief financial officer Sarah Friar said the company's July annual recurring revenue already exceeded total second-quarter revenue. The firm, which reported a $38.5 billion net loss in 2025 against $13.07 billion in revenue, is seeking up to $250 billion to build a data center in Ohio.