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Applied AI·July 30, 2026·1 min read

AI price wars: OpenAI cuts GPT-5.6 Luna prices by 80% as model competition shifts toward cost

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An 80% price cut on GPT-5.6 Luna and 20% on Terra says the frontier-model moat is shifting from raw capability to unit economics and integration. If you’re paying list for inference, you’re overpaying — re-bid contracts and design your stack to swap models as price/performance moves.