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OpenAI priced GPT-5 so low, it may spark a price war | TechCrunch

OpenAI priced GPT-5 so low, it may spark a price war | TechCrunch

OpenAI astounded the tech industry for the second time this week by launching its newest flagship model, GPT-5, just days after releasing two new freely available models under an open source license.

OpenAI CEO Sam Altman went so far as to call GPT-5 “the best model in the world.” That may be pride or hyperbole, as TechCrunch’s Maxwell Zeff reports that GPT-5 only slightly outperforms other leading AI models from Anthropic, Google DeepMind, and xAI on some key benchmarks, and slightly lags on others.

Still, it’s a model that performs well for a wide variety of uses, particularly coding. And, as Altman pointed out, one area where it is undoubtedly competing well is price. “Very happy with the pricing we are able to deliver!” he tweeted.

The top-level GPT-5 API costs $1.25 per 1 million tokens of input, and $10 per 1 million tokens for output (plus $0.125 per 1 million tokens for cached input). This pricing mirrors Google’s Gemini 2.5 Pro basic subscription, which is also popular for coding-related tasks. Google, however, charges more if inputs/outputs cross a heavy threshold of 200,000 prompts, meaning its most consumption-heavy customers end up paying more.

But OpenAI is really undercutting Anthropic’s Claude Opus 4.1, which starts at $15 per 1 million input tokens and $75 per 1 million output tokens. (Anthropic does, however, offer big discounts for prompt caching and batch processing — storing/reusing prompts and processing multiple requests together.)

Anthropic’s model has been extremely popular among programmers, both as a choice within popular coding assistant Cursor and powering its own such assistant, Claude Code. (Note that Cursor offered GPT-5 as an option minutes after it was announced.)

Developers who have had early access to GPT-5 are touting the pricing. Simon Willison, one of the developers featured in OpenAI’s launch video, writes in his review: “The pricing is aggressively competitive with other providers.” (Emphasis his.)

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But GPT-5 is also priced competitively with GPT-4o. OthersideAI’s co-founder and CEO, Matt Shumer (maker of HyperWrite), writes that GPT-5 “is cheaper than GPT-4o, which is fantastic. Intelligence per dollar continues to increase.”

Some on X called OpenAI’s fees for the model “a pricing killer,” while others on Hacker News are offering similar praise.

Will competitors like Anthropic follow? Will Google — who undercut OpenAI on pricing before — get even more affordable? If so, we could be witnessing the start of a much awaited LLM price war.

There’s no doubt a price war would be welcome. The underlying economics of vibe-coding tool providers, for instance, is pretty shaky because of the high and unpredictable fees they have to pay model makers, as TechCrunch’s Marina Temkin reports. And there are countless startups building on top of AI models as well.

Silicon Valley has been hoping that the LLM price-to-performance ratio will eventually improve, along with inference costs. But it seemed like such an equalization could be years away as the tech industry invests hundreds of billions to build data centers and infrastructure to support growing AI demand. 

OpenAI itself has a $30 billion-per-year contract with Oracle for capacity, when it only recently hit annual recurring revenue of $10 billion. Meanwhile, Meta plans to spend up to $72 billion on AI infrastructure in 2025, and Alphabet has set aside $85 billion for capital expenditures in 2025, driven by AI needs. In the face of such enormous expenses, costs typically go one way: upwards.

Given such investments, it may be too soon for startups looking at their rising model API bills to rejoice from OpenAI’s lone move to lower pricing. 

Yet this week, OpenAI threw down the gauntlet to put pressure on prices not just once but twice. We’ll see if others follow.

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Volvo’s compact, quirky EX30 had a lot of problems when it was first released. Tariffs essentially erased its affordability, making it more expensive to own, and a battery recall made it dangerous to park indoors. But its discontinuation didn’t spell the end of Volvo’s efforts to sell more affordable electric models. In fact, the Swedish automaker is already at work on a new offering for the US market.

The news of an affordable Volvo EV for the US came during a media roundtable this week related to the US launch of the new EX60. Luis Rezende, president of Volvo Cars America, said that the decision to discontinue the EX30 was not solely about tariffs and profitability, noting that the company is preparing to introduce a new EV in 2027 that will occupy a similar role in the lineup — though not necessarily at exactly the same price point as the EX30.

“Very similar, I would say,” Rezende said about the mystery EV’s price comparison to the EX30. “It’s going to be an EV that will deliver a lot of good things in a bigger space, but it will be also fun to drive, I can promise you.”

Other than that, details were scarce. Volvo’s executives talked later about the desire to build a larger, family-oriented SUV at its factory in Charleston, South Carolina — though that vehicle will likely use a “multi-fuel” strategy rather than being exclusively electric from launch.

The EX60, which will start customer deliveries in the US this summer, is Volvo’s attempt at a reset in the US. The compact SUV, which is built on a different architecture than the EX30, will start at $59,795 for the entry-level P6 Plus version, and climbs up to $68,745 for the more powerful P10 AWD Ultra variant.

Volvo is the latest automaker to try, and stumble, in its efforts to build an affordable EV for the US market that is both desirable and profitable for the company. To date, few have pulled it off, as it requires a certain level of scale, vertical integration, and mastery of the supply chain that only companies in China seem to have really nailed down. Of course, Volvo is owned by China’s Geely, but the company’s desire to sell EVs in North America will necessitate a different approach to affordability.

Affordability was one of the EX30’s main selling points. When it was first announced in 2023, Volvo said the price would start at $34,950, positioning it as the smaller, less expensive EV that many people were clamoring for. But after the election of Donald Trump, Volvo was forced to delay the EX30’s arrival in the US until 2025, citing newly leveled tariffs against vehicles built in China. Eventually, the model that went on sale in the US started at $44,900, about $10,000 more than the original price.

Then, in February, further bad news as Volvo issued a recall for the EX30 because the vehicles’ batteries were at risk of overheating or catching on fire. The next month, Volvo pulled the plug on the vehicle in the US.

Correction May 18th: A previous version of this story stated that the EX60 is the only Volvo EV in the US. The EX90 is also available.

Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
#Volvo #teases #affordable #replace #discontinued #EX30Cars,Electric Cars,News,Transportation,Volvo">Volvo teases a new affordable EV to replace discontinued EX30Volvo’s compact, quirky EX30 had a lot of problems when it was first released. Tariffs essentially erased its affordability, making it more expensive to own, and a battery recall made it dangerous to park indoors. But its discontinuation didn’t spell the end of Volvo’s efforts to sell more affordable electric models. In fact, the Swedish automaker is already at work on a new offering for the US market.The news of an affordable Volvo EV for the US came during a media roundtable this week related to the US launch of the new EX60. Luis Rezende, president of Volvo Cars America, said that the decision to discontinue the EX30 was not solely about tariffs and profitability, noting that the company is preparing to introduce a new EV in 2027 that will occupy a similar role in the lineup — though not necessarily at exactly the same price point as the EX30.“Very similar, I would say,” Rezende said about the mystery EV’s price comparison to the EX30. “It’s going to be an EV that will deliver a lot of good things in a bigger space, but it will be also fun to drive, I can promise you.”Other than that, details were scarce. Volvo’s executives talked later about the desire to build a larger, family-oriented SUV at its factory in Charleston, South Carolina — though that vehicle will likely use a “multi-fuel” strategy rather than being exclusively electric from launch.The EX60, which will start customer deliveries in the US this summer, is Volvo’s attempt at a reset in the US. The compact SUV, which is built on a different architecture than the EX30, will start at ,795 for the entry-level P6 Plus version, and climbs up to ,745 for the more powerful P10 AWD Ultra variant.Volvo is the latest automaker to try, and stumble, in its efforts to build an affordable EV for the US market that is both desirable and profitable for the company. To date, few have pulled it off, as it requires a certain level of scale, vertical integration, and mastery of the supply chain that only companies in China seem to have really nailed down. Of course, Volvo is owned by China’s Geely, but the company’s desire to sell EVs in North America will necessitate a different approach to affordability.Affordability was one of the EX30’s main selling points. When it was first announced in 2023, Volvo said the price would start at ,950, positioning it as the smaller, less expensive EV that many people were clamoring for. But after the election of Donald Trump, Volvo was forced to delay the EX30’s arrival in the US until 2025, citing newly leveled tariffs against vehicles built in China. Eventually, the model that went on sale in the US started at ,900, about ,000 more than the original price.Then, in February, further bad news as Volvo issued a recall for the EX30 because the vehicles’ batteries were at risk of overheating or catching on fire. The next month, Volvo pulled the plug on the vehicle in the US.Correction May 18th: A previous version of this story stated that the EX60 is the only Volvo EV in the US. The EX90 is also available. Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Andrew J. HawkinsCloseAndrew J. HawkinsPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Andrew J. HawkinsCarsCloseCarsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All CarsElectric CarsCloseElectric CarsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All Electric CarsNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsTransportationCloseTransportationPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TransportationVolvoCloseVolvoPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All Volvo#Volvo #teases #affordable #replace #discontinued #EX30Cars,Electric Cars,News,Transportation,Volvo

its discontinuation didn’t spell the end of Volvo’s efforts to sell more affordable electric models. In fact, the Swedish automaker is already at work on a new offering for the US market.

The news of an affordable Volvo EV for the US came during a media roundtable this week related to the US launch of the new EX60. Luis Rezende, president of Volvo Cars America, said that the decision to discontinue the EX30 was not solely about tariffs and profitability, noting that the company is preparing to introduce a new EV in 2027 that will occupy a similar role in the lineup — though not necessarily at exactly the same price point as the EX30.

“Very similar, I would say,” Rezende said about the mystery EV’s price comparison to the EX30. “It’s going to be an EV that will deliver a lot of good things in a bigger space, but it will be also fun to drive, I can promise you.”

Other than that, details were scarce. Volvo’s executives talked later about the desire to build a larger, family-oriented SUV at its factory in Charleston, South Carolina — though that vehicle will likely use a “multi-fuel” strategy rather than being exclusively electric from launch.

The EX60, which will start customer deliveries in the US this summer, is Volvo’s attempt at a reset in the US. The compact SUV, which is built on a different architecture than the EX30, will start at $59,795 for the entry-level P6 Plus version, and climbs up to $68,745 for the more powerful P10 AWD Ultra variant.

Volvo is the latest automaker to try, and stumble, in its efforts to build an affordable EV for the US market that is both desirable and profitable for the company. To date, few have pulled it off, as it requires a certain level of scale, vertical integration, and mastery of the supply chain that only companies in China seem to have really nailed down. Of course, Volvo is owned by China’s Geely, but the company’s desire to sell EVs in North America will necessitate a different approach to affordability.

Affordability was one of the EX30’s main selling points. When it was first announced in 2023, Volvo said the price would start at $34,950, positioning it as the smaller, less expensive EV that many people were clamoring for. But after the election of Donald Trump, Volvo was forced to delay the EX30’s arrival in the US until 2025, citing newly leveled tariffs against vehicles built in China. Eventually, the model that went on sale in the US started at $44,900, about $10,000 more than the original price.

Then, in February, further bad news as Volvo issued a recall for the EX30 because the vehicles’ batteries were at risk of overheating or catching on fire. The next month, Volvo pulled the plug on the vehicle in the US.

Correction May 18th: A previous version of this story stated that the EX60 is the only Volvo EV in the US. The EX90 is also available.

Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.

#Volvo #teases #affordable #replace #discontinued #EX30Cars,Electric Cars,News,Transportation,Volvo">Volvo teases a new affordable EV to replace discontinued EX30

Volvo’s compact, quirky EX30 had a lot of problems when it was first released. Tariffs essentially erased its affordability, making it more expensive to own, and a battery recall made it dangerous to park indoors. But its discontinuation didn’t spell the end of Volvo’s efforts to sell more affordable electric models. In fact, the Swedish automaker is already at work on a new offering for the US market.

The news of an affordable Volvo EV for the US came during a media roundtable this week related to the US launch of the new EX60. Luis Rezende, president of Volvo Cars America, said that the decision to discontinue the EX30 was not solely about tariffs and profitability, noting that the company is preparing to introduce a new EV in 2027 that will occupy a similar role in the lineup — though not necessarily at exactly the same price point as the EX30.

“Very similar, I would say,” Rezende said about the mystery EV’s price comparison to the EX30. “It’s going to be an EV that will deliver a lot of good things in a bigger space, but it will be also fun to drive, I can promise you.”

Other than that, details were scarce. Volvo’s executives talked later about the desire to build a larger, family-oriented SUV at its factory in Charleston, South Carolina — though that vehicle will likely use a “multi-fuel” strategy rather than being exclusively electric from launch.

The EX60, which will start customer deliveries in the US this summer, is Volvo’s attempt at a reset in the US. The compact SUV, which is built on a different architecture than the EX30, will start at $59,795 for the entry-level P6 Plus version, and climbs up to $68,745 for the more powerful P10 AWD Ultra variant.

Volvo is the latest automaker to try, and stumble, in its efforts to build an affordable EV for the US market that is both desirable and profitable for the company. To date, few have pulled it off, as it requires a certain level of scale, vertical integration, and mastery of the supply chain that only companies in China seem to have really nailed down. Of course, Volvo is owned by China’s Geely, but the company’s desire to sell EVs in North America will necessitate a different approach to affordability.

Affordability was one of the EX30’s main selling points. When it was first announced in 2023, Volvo said the price would start at $34,950, positioning it as the smaller, less expensive EV that many people were clamoring for. But after the election of Donald Trump, Volvo was forced to delay the EX30’s arrival in the US until 2025, citing newly leveled tariffs against vehicles built in China. Eventually, the model that went on sale in the US started at $44,900, about $10,000 more than the original price.

Then, in February, further bad news as Volvo issued a recall for the EX30 because the vehicles’ batteries were at risk of overheating or catching on fire. The next month, Volvo pulled the plug on the vehicle in the US.

Correction May 18th: A previous version of this story stated that the EX60 is the only Volvo EV in the US. The EX90 is also available.

Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.
#Volvo #teases #affordable #replace #discontinued #EX30Cars,Electric Cars,News,Transportation,Volvo
Anthropic announced Monday it has acquired Stainless, a startup founded by former Stripe engineer Alex Rattray whose software is widely used by rival AI labs, including OpenAI and Google.

Anthropic didn’t disclose terms of the deal. However, The Information reported last week that Anthropic was in talks to acquire Stainless, which is backed by Sequoia Capital and Andreessen Horowitz, for more than $300 million.

The acquisition will take a key infrastructure supplier out of the hands of Anthropic’s competitors. The company told TechCrunch it will wind down all hosted Stainless products, including its SDK generator. An Anthropic spokesperson said Stainless customers will still own the SDKs they’ve generated to date, and have full rights to modify and extend them however they wish.

The New York-based startup, founded in 2022, rose to prominence in the emerging AI industry for automating the creation and maintenance of software development kits, or SDKs — the libraries developers use to interact with APIs.

Rattray developed software that could take API specifications and turn them into production-ready SDKs across multiple programming languages, including Python, TypeScript, Kotlin, Go, and Java. It became a popular tool because the platform automatically updates the SDKs as APIs change and eliminated the time-consuming process of manually maintaining them.

The technology is particularly valuable to companies like Anthropic, OpenAI, Google, Replicate, Runway, and Cloudflare that are building AI agents that can connect to external software and complete tasks on behalf of users. Stainless’s SDK tools are an easy way to build and maintain those connections — but going forward, the tools will only be available to Anthropic, not its competitors.

According to Anthropic, Stainless software has powered the generation of every official Anthropic SDK since the earliest days of its API.

“I started Stainless because SDKs deserve as much care as the APIs they wrap,” Rattray said in a press release posted Monday. “Anthropic was one of the first teams to bet on this with us. We have been watching what developers have built on Claude over the last few years, which made bringing our teams together an easy decision. The team gets to keep doing the work we love, on the platform where it matters most.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Anthropic #acquired #dev #tools #startup #OpenAI #Google #Cloudflare #TechCrunchAnthropic,Stainless">Anthropic has acquired the dev tools startup used by OpenAI, Google, and Cloudflare | TechCrunch
Anthropic announced Monday it has acquired Stainless, a startup founded by former Stripe engineer Alex Rattray whose software is widely used by rival AI labs, including OpenAI and Google.

Anthropic didn’t disclose terms of the deal. However, The Information reported last week that Anthropic was in talks to acquire Stainless, which is backed by Sequoia Capital and Andreessen Horowitz, for more than 0 million. 







The acquisition will take a key infrastructure supplier out of the hands of Anthropic’s competitors. The company told TechCrunch it will wind down all hosted Stainless products, including its SDK generator. An Anthropic spokesperson said Stainless customers will still own the SDKs they’ve generated to date, and have full rights to modify and extend them however they wish.

The New York-based startup, founded in 2022, rose to prominence in the emerging AI industry for automating the creation and maintenance of software development kits, or SDKs — the libraries developers use to interact with APIs.

Rattray developed software that could take API specifications and turn them into production-ready SDKs across multiple programming languages, including Python, TypeScript, Kotlin, Go, and Java. It became a popular tool because the platform automatically updates the SDKs as APIs change and eliminated the time-consuming process of manually maintaining them.

The technology is particularly valuable to companies like Anthropic, OpenAI, Google, Replicate, Runway, and Cloudflare that are building AI agents that can connect to external software and complete tasks on behalf of users. Stainless’s SDK tools are an easy way to build and maintain those connections — but going forward, the tools will only be available to Anthropic, not its competitors.

According to Anthropic, Stainless software has powered the generation of every official Anthropic SDK since the earliest days of its API.


“I started Stainless because SDKs deserve as much care as the APIs they wrap,” Rattray said in a press release posted Monday. “Anthropic was one of the first teams to bet on this with us. We have been watching what developers have built on Claude over the last few years, which made bringing our teams together an easy decision. The team gets to keep doing the work we love, on the platform where it matters most.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#Anthropic #acquired #dev #tools #startup #OpenAI #Google #Cloudflare #TechCrunchAnthropic,Stainless

reported last week that Anthropic was in talks to acquire Stainless, which is backed by Sequoia Capital and Andreessen Horowitz, for more than $300 million.

The acquisition will take a key infrastructure supplier out of the hands of Anthropic’s competitors. The company told TechCrunch it will wind down all hosted Stainless products, including its SDK generator. An Anthropic spokesperson said Stainless customers will still own the SDKs they’ve generated to date, and have full rights to modify and extend them however they wish.

The New York-based startup, founded in 2022, rose to prominence in the emerging AI industry for automating the creation and maintenance of software development kits, or SDKs — the libraries developers use to interact with APIs.

Rattray developed software that could take API specifications and turn them into production-ready SDKs across multiple programming languages, including Python, TypeScript, Kotlin, Go, and Java. It became a popular tool because the platform automatically updates the SDKs as APIs change and eliminated the time-consuming process of manually maintaining them.

The technology is particularly valuable to companies like Anthropic, OpenAI, Google, Replicate, Runway, and Cloudflare that are building AI agents that can connect to external software and complete tasks on behalf of users. Stainless’s SDK tools are an easy way to build and maintain those connections — but going forward, the tools will only be available to Anthropic, not its competitors.

According to Anthropic, Stainless software has powered the generation of every official Anthropic SDK since the earliest days of its API.

“I started Stainless because SDKs deserve as much care as the APIs they wrap,” Rattray said in a press release posted Monday. “Anthropic was one of the first teams to bet on this with us. We have been watching what developers have built on Claude over the last few years, which made bringing our teams together an easy decision. The team gets to keep doing the work we love, on the platform where it matters most.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Anthropic #acquired #dev #tools #startup #OpenAI #Google #Cloudflare #TechCrunchAnthropic,Stainless">Anthropic has acquired the dev tools startup used by OpenAI, Google, and Cloudflare | TechCrunch

Anthropic announced Monday it has acquired Stainless, a startup founded by former Stripe engineer Alex Rattray whose software is widely used by rival AI labs, including OpenAI and Google.

Anthropic didn’t disclose terms of the deal. However, The Information reported last week that Anthropic was in talks to acquire Stainless, which is backed by Sequoia Capital and Andreessen Horowitz, for more than $300 million.

The acquisition will take a key infrastructure supplier out of the hands of Anthropic’s competitors. The company told TechCrunch it will wind down all hosted Stainless products, including its SDK generator. An Anthropic spokesperson said Stainless customers will still own the SDKs they’ve generated to date, and have full rights to modify and extend them however they wish.

The New York-based startup, founded in 2022, rose to prominence in the emerging AI industry for automating the creation and maintenance of software development kits, or SDKs — the libraries developers use to interact with APIs.

Rattray developed software that could take API specifications and turn them into production-ready SDKs across multiple programming languages, including Python, TypeScript, Kotlin, Go, and Java. It became a popular tool because the platform automatically updates the SDKs as APIs change and eliminated the time-consuming process of manually maintaining them.

The technology is particularly valuable to companies like Anthropic, OpenAI, Google, Replicate, Runway, and Cloudflare that are building AI agents that can connect to external software and complete tasks on behalf of users. Stainless’s SDK tools are an easy way to build and maintain those connections — but going forward, the tools will only be available to Anthropic, not its competitors.

According to Anthropic, Stainless software has powered the generation of every official Anthropic SDK since the earliest days of its API.

“I started Stainless because SDKs deserve as much care as the APIs they wrap,” Rattray said in a press release posted Monday. “Anthropic was one of the first teams to bet on this with us. We have been watching what developers have built on Claude over the last few years, which made bringing our teams together an easy decision. The team gets to keep doing the work we love, on the platform where it matters most.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#Anthropic #acquired #dev #tools #startup #OpenAI #Google #Cloudflare #TechCrunchAnthropic,Stainless

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