OpenAI priced GPT5 so low, it may spark a price war | TechCrunch

News Source : TechCrunch
News Summary
- OpenAI's GPT-5 AI model costs $1.25 per 1 million tokens of input, and $10 for 1 million output.
- This pricing mirrors Google’s Gemini 2.5 Pro basic subscription, which is also popular for coding-related tasks.
- Will competitors like Anthropic follow?
- Will Google — who undercut OpenAI on pricing before — get even more affordable?
- If so, we could be witnessing the start of a much-awaited LLM price war.
- The underlying economics of vibe-coding tool providers is pretty shaky because of the high and unpredictable fees they have to pay model makers.
OpenAI astounded the tech industry for the second time this week by launching its newest flagship model, GPT5, just days after releasing two new freely available models under an open source license. [+3603 chars]