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Applied AI·October 25, 2026·1 min read

OpenAI and Anthropic cut their LLM prices by up to 80% within a few months. Why?

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An 80% price drop in frontier LLM APIs in months is compressing margins for anyone reselling raw tokens and pushing value up into orchestration, data, and workflow depth. If your AI product’s moat is “we call the model for you,” assume your pricing power is decaying and move up-stack fast.