OpenAI GPT-5: Revolutionary Pricing Unleashes AI Price War

Key Points

1. OpenAI GPT-5 is priced at $1.25 per 1 million input tokens and $10 per 1 million output tokens, with cached input at $0.125 per 1 million tokens, significantly undercutting competitors.

2. Competitors like Google Gemini 2.5 Pro and Anthropic Claude Opus 4.1 face pressure to lower their prices due to GPT-5's aggressive pricing strategy.

3. Developers praise GPT-5's pricing as a game-changer, reducing operational costs and democratizing access to advanced AI capabilities.

4. The AI industry may be on the verge of a price war, which could benefit startups and the broader AI ecosystem by lowering costs and fostering innovation.

5. Despite massive investments in AI infrastructure (e.g., OpenAI's $30B Oracle contract, Meta's $72B AI spend), OpenAI's pricing strategy aims to prioritize accessibility over short-term margins.