OpenAI slashes prices for GPT-4.1, igniting AI price war among tech giants
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Summary
ChatGPT’s developer, OpenAI, has unveiled GPT-4.1, its latest artificial intelligence (AI) tool, which has been designed to enhance coding and context capability to as many as one million tokens and slash API prices to undercut its rivals in the increasingly competitive generative AI market.
It comes with a 54.6% win rate on the SWE-bench coding benchmark, and performed better than Anthropic’s Claude 3.7 Sonnet in 54.9% of cases in Qodo.ai’s real-world tests.
The new pricing strategy is targeting affordability and includes a generous 75% caching discount to incentivise developers to reuse prompts, particularly for iterative coding and conversational agents.
It has undercut Anthropic, its main market competitor, by a significant amount, although Anthropic still offers strong caching discounts of up to 90%, meaning that OpenAI’s positioning as the more budget-friendly option is likely to appeal mainly to startups and smaller teams.