Hey folks! Nuked here, bringing some exciting tech news with a splash of humor. Today, we’re diving into OpenAI’s latest move that has everyone talking — GPT-5 is here, and it’s priced to compete! Buckle up for a fun ride through AI updates.
OpenAI has surprised the tech world again by unveiling its newest flagship, GPT-5. This launch comes just days after releasing two open-source models accessible on AWS. Sam Altman, the CEO of OpenAI, boldly claims GPT-5 is “the best model in the world,” though some analyses suggest it only outperforms key competitors slightly.
The standout feature? Price! OpenAI’s GPT-5 API costs just $1.25 per million input tokens and $10 for output tokens, with a small fee for cached inputs. This undercuts major rivals like Anthropic’s Claude Opus 4.1, which starts at much higher prices. Developers early to get GPT-5 are raving about its affordability, with many calling it a “pricing killer.”
Other big players are feeling the heat. Google’s Gemini 2.5 Pro charges more after certain usage levels, while Anthropic’s models are still pricier despite offering discounts for batching and caching. The low prices could ignite a fierce RLT (price war) among AI providers, which might be a boon for the industry, lowering costs for startups and big corporations alike.
Meanwhile, the massive investments from industry giants like Meta, OpenAI, and Google continue to push costs upward, with billions poured into infrastructure. Yet, with OpenAI’s aggressive pricing, the landscape could shift dramatically if others follow suit, potentially leveling the playing field and boosting innovation.
In conclusion, OpenAI’s move to slash GPT-5 prices might just trigger a new era of competitive AI pricing, making advanced models more accessible and stirring the pot for AI development. Stay tuned for more updates — this is one tech story you’ll want to watch!