US AI Giants Enter Price War as Chinese Competitors Advance

Major American artificial intelligence companies are cutting costs on their models to compete with increasingly popular cheaper alternatives from Chinese firms. The competitive pressure stems from customers seeking to reduce AI expenditures, creating an opening for companies like Moonshot and DeepSeek to expand globally. OpenAI reduced pricing on GPT-5.6 Luna by 80 percent, positioning it as an affordable option, while Anthropic introduced Claude Opus 5 at half the cost of its flagship Fable 5 model.