OpenAI API Pricing Reduction
Narrative
GPT-4o price cut 40%. GPT-5 Turbo down 30%. Response to competitive pressure. Volume discounts expanded.
Reality
Pricing cuts implemented immediately. Migration from GPT-4 accelerated. API call volume increased 60%. But margin pressure evident. Competitive response to DeepSeek efficiency.
Implication
Acknowledged pricing pressure from open models and Chinese labs. API economics shifted. Volume over margin. Commoditization accelerating. Developer cost barriers lowered.