OpenAI considers slashing AI service prices to compete with Anthropic, risking margin pressure before both firms go public.
OpenAI is evaluating significant price reductions for its AI services to challenge rival Anthropic, as both companies prepare for upcoming initial public offerings. The move aims to attract enterprise customers but could squeeze profitability amid rising corporate scrutiny over AI spending costs.
Anthropic and OpenAI have filed confidentially for IPOs, with OpenAI targeting a public listing within the next year. Analysts warn that price cuts could trigger a rapid response from competitors, accelerating a broader repricing of AI services in a market where demand elasticity remains uncertain.
Corporate clients have already begun capping or rationing AI usage due to high costs, increasing pressure on providers to adjust pricing. OpenAI CEO Sam Altman acknowledged the issue at a recent event, signaling potential strategic shifts to maintain market share.