GPT-5.6 Luna costs drop 80% as OpenAI fights Chinese price wars

openai slashed the price of its gpt-5.6 luna model by 80% to $0.20 per million input tokens, with output tokens at $1.20, while the terra model saw a 20% cut. the company credits the reduction to infrastructure improvements driven by the gpt-5.6 sol model, which optimized gpu software and implemented speculative decoding. the move counters growing competition from low-cost chinese ai labs and microsoft's promotion of its own mai models as cheaper alternatives. continuing this price war risks damaging the revenue growth of frontier labs that rely on massive infrastructure capital expenditures.