OpenAI considers price cuts for ChatGPT as competition rises and losses widen

OpenAI is reportedly reviewing lower pricing for its ChatGPT service in response to mounting competition from Google’s Gemini models and Anthropic, as well as budget constraints voiced by enterprise customers. The move is aimed at retaining market share amid pressure from rivals that have already begun offering cheaper AI options.

Financial disclosures show OpenAI generated about $13 billion in revenue last year, but its spending reached $34 billion, resulting in rapidly expanding losses. The company’s quarterly loss rose from $5 billion in 2024 to roughly $39 billion in 2025, driven by hefty research‑and‑development, sales, and marketing expenditures. Both OpenAI and Anthropic are also preparing for potential U.S. IPOs, with valuations in the $850‑$965 billion range.