OpenAI is exploring significant price reductions for its AI services to better compete with rival Anthropic. Internal discussions focus on lowering the cost of tokens, the standard unit for AI model usage.

The move coincides with both firms preparing for initial public offerings. Enterprise customers are increasingly pressuring providers over the high costs of AI implementation.

The potential cuts signal an escalating rivalry that could trigger a sector-wide price war. Competitors like Google are already adjusting pricing strategies in a broader market shift toward competitive rates.