OpenAI has drastically cut the prices of its GPT-5.6 Luna and Terra models, with Luna’s cost dropping by 80% and Terra’s by 20%. Luna now costs $1.40 per million tokens, making it one of the lowest-cost commercial AI models and directly competing with Google’s lower-priced Gemini models. Terra’s pricing aligns with Google’s Gemini 3.1 Pro Preview, while OpenAI introduces a premium Fast mode for its Sol model, priced at double the standard rate. These price cuts come shortly after Google’s launch of cost-efficient Gemini 3.6 Flash and 3.5 Flash-Lite models and Anthropic’s release of Claude Opus 5, highlighting a shift in the AI market focus towards cost-efficiency alongside performance. OpenAI’s Luna targets high-throughput, low-latency applications, while Terra balances capability and cost for general use. The move signals that AI competition is no longer just about access to powerful models but also about making them economically viable for high-volume production workloads.
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