If deepseek operate on 80% margins as some suggested, this means that OpenAI reduced theirs from 1600% to 1200%.
The margin is defined as (price-cost of goods)/(price); the highest it can be is 100%.
Fair point. Markup then.
GPT 5.6 Sol 20% price reduction
61–70 of 87 posts
Re: GPT 5.6 Sol 20% price reduction
#62Or put differently, when lobbying doesn’t make you competitive you have to lower your prices.
I hope these type of dismissive comments stop in HN. OpenAI have been reducing prices since for ever so these kinda things are really the consequence of finding efficiencies and passing it down due to competition and increasing demand.
OpenAI, Anthropic and Google have also been calling for banning their competition, for years now, especially when they have the gall to use the same tactics as OpenAI itself. For example:
https://nypost.com/2026/07/13/business/how-china-is-ripping-...
https://www.techbrew.com/stories/openai-anthropic-google-dis...
Then Altman and Amodei (Amodei is still at it) were declaring that after illegally training on all books (yes it was illegal at that time), we're going to take your jobs and absolutely everything.
You can't be that tonedeaf, frankly threatening, and not expect pushback. Come on.
Re: GPT 5.6 Sol 20% price reduction
#63Earlier quoted context omitted.
I hope these type of dismissive comments stop in HN. OpenAI have been reducing prices since for ever so these kinda things are really the consequence of finding efficiencies and passing it down due to competition and increasing demand.
OpenAI, Anthropic and Google have also been calling for banning their competition, for years now, especially when they have the gall to use the same tactics as OpenAI itself. For example: https://nypost.com/2026/07/13/business/how-china-is-ripping-... https://www.techbrew.com/stories/openai-anthropic-google-dis... Then Altman and Amodei (Amodei is still at it) were declaring that after illegally training on all books…
You think they reduce prices because lobbying didn’t work? Like the last 100 times they did it? What kind of logic is that? I’m questioning this logical chain.
I’m not disputing what you said in essence although the training on books being illegal is laughable.
Re: GPT 5.6 Sol 20% price reduction
#64Re: GPT 5.6 Sol 20% price reduction
#65discounting your most valuable model 20% today without a better model in the wing ... pushing your API subscriber base towards a competitor with an exclusive 50%, openrouter, the other day ... slashing paying codex subscriber usage limits to the point that many are cancelling long term contracts they've had with the company ... is altman playing 4d chess or something I'm not aware of? because from the outside, each o…
Or maybe… you know.. their margins are that high and by passing down the efficiency gains to consumer they can get market share and induce more demand? What’s 4d chess in this?
OpenAI bleeds money. They need to keep raising money like crazy because of that.
Their margins are obviously not high, particularly on subscriptions
Re: GPT 5.6 Sol 20% price reduction
#66Earlier quoted context omitted.
Or maybe… you know.. their margins are that high and by passing down the efficiency gains to consumer they can get market share and induce more demand? What’s 4d chess in this?
OpenAI bleeds money. They need to keep raising money like crazy because of that. Their margins are obviously not high, particularly on subscriptions
This announcement wasn’t for subscriptions though so what’s your point?
Re: GPT 5.6 Sol 20% price reduction
#67Earlier quoted context omitted.
OpenAI bleeds money. They need to keep raising money like crazy because of that. Their margins are obviously not high, particularly on subscriptions
This announcement wasn’t for subscriptions though so what’s your point?
My point is that it requires a lot of willful blindness to ignore how unprofitable they are, to believe that they are in any way in the position of sustainably lowering prices.
Re: GPT 5.6 Sol 20% price reduction
#68Earlier quoted context omitted.
OpenAI, Anthropic and Google have also been calling for banning their competition, for years now, especially when they have the gall to use the same tactics as OpenAI itself. For example: https://nypost.com/2026/07/13/business/how-china-is-ripping-... https://www.techbrew.com/stories/openai-anthropic-google-dis... Then Altman and Amodei (Amodei is still at it) were declaring that after illegally training on all books…
You think they reduce prices because lobbying didn’t work? Like the last 100 times they did it? What kind of logic is that? I’m questioning this logical chain. I’m not disputing what you said in essence although the training on books being illegal is laughable.
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Re: GPT 5.6 Sol 20% price reduction
#69Earlier quoted context omitted.
This announcement wasn’t for subscriptions though so what’s your point?
My point is that it requires a lot of willful blindness to ignore how unprofitable they are, to believe that they are in any way in the position of sustainably lowering prices.
You are wrong and the margins are pretty great on API. Do you want to have a bet when they go public?
Re: GPT 5.6 Sol 20% price reduction
#70They really need to start marketing a new series of models specifically for coding. Even if it's the same model underneath, just call it something else and make it sound like some turbo coder that can run circles around claude and make it 50% cheaper for businesses. I don't have any love for openai but I don't want anthropic running away with it either, and it's clear heavy AI use is going to be in coding. Consumer use is shallow. They're trying to be Apple, and it's not working.