OpenAI cuts its priciest model in half — and the race is on

OpenAI slashed the price of its top-tier o3 model to $15 per million tokens, roughly half what it was charging. That is the kind of move that rattles the whole industry. Anthropic's Claude Sonnet 3.7 at $8 per million tokens is already cheaper, and Google's Gemini is running a 50 percent markdown on its most capable model. OpenAI is not the only one cutting — it is leading the charge.

The price war started in 2024 and has not let up. Models keep getting better while the cost of running them drops. That is what happens when you ship, iterate fast, and compete hard. The winners are the companies that use these models in real products, not the ones hoarding them.

Why this matters for us: la gente who depend on affordable tools for their work — the abuelas doing taxes online, the small shop owner using AI to write Spanish and English listings, the cousin running a delivery app — they win when the big companies fight over prices instead of over who gets the profits.