Faced with an exodus of corporate clients toward free open-weight alternatives (especially after the release of the Chinese Kimi K3), Sam Altman is utilizing accumulated financial reserves for a price war. By dropping the cost of intelligence down to the level of basic electricity expenses, OpenAI is attempting to kill the unit economics of independent Small Language Model (SLM) developers. For businesses, this means a temporary period of ultra-cheap inference; however, in the long-term macroeconomic perspective, this dumping aims to purge competitors and subsequently allow the monopolist to dictate prices.
Source: OpenAI / AFP / Malay Mail
PricingOpenAISLMB2BMacroeconomics