TLDR
- OpenAI is weighing sharp cuts to token prices as competition with Anthropic intensifies
- Anthropic’s annualized revenue has grown from $1 billion to an estimated $47 billion in roughly 16 months
- Claude Code hit $1 billion in annualized revenue within six months of launch
- Both companies are eyeing IPOs, making a price war a risky move for valuations
- OpenAI CEO Sam Altman has called AI costs “a huge issue” for customers
OpenAI is considering cutting the prices it charges for AI tokens, according to a Wall Street Journal report published June 10. The move is being discussed as a direct response to growing competition from Anthropic.
The talks are still ongoing and no final decision has been made.
Why the Pressure Is Building
Anthropic’s growth has been fast. Its annualized run rate was around $1 billion at the start of 2025. By May 2026, some analysts estimate that figure had reached $47 billion.
Claude Code, Anthropic’s AI coding tool, launched publicly in May 2025. It hit $1 billion in annualized revenue within six months. By February 2026, it had passed $2.5 billion.
Business subscriptions to Claude Code quadrupled in the first quarter of 2026. That growth has helped Anthropic gain ground in the enterprise market, where OpenAI has traditionally been strong.
OpenAI reported a revenue run rate of around $13 billion in 2025. The company does not expect to turn a profit or produce positive free cash flow until 2030.
OpenAI CEO Sam Altman has publicly acknowledged that AI costs have become “a huge issue” for customers. The company says it is looking at ways to deliver more value at lower prices.
The IPO Problem
Both companies are preparing for public listings. OpenAI is in discussions for a funding round that would value it at $750 billion. Anthropic closed a $30 billion Series G round in February 2026 at a $380 billion valuation.
Cutting prices before an IPO is a complicated move. Lower prices can attract more customers and drive higher volume, but they also put pressure on margins.
AI infrastructure is expensive. OpenAI’s own leadership has said training a single competitive model can cost close to, or in some cases well over, $1 billion. Cutting token prices in that environment does not automatically lead to higher profits.
It can simply mean larger losses spread across a bigger customer base.
What This Means for the Market
Businesses that use AI tools could benefit if prices fall. Lower costs would make it easier for companies to deploy AI at scale.
But for OpenAI and Anthropic, the timing is delicate. Both need to show investors a path to profitability. A price war between two of the biggest names in AI, right before both attempt to go public, adds risk to those plans.
Anthropic’s Fable 5 launch has added direct pressure on OpenAI’s market position. The pace of that competition appears to be driving decisions that would otherwise seem counterproductive heading into a public listing.
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