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OpenAI · AI prices2 min read

OpenAI's newest AI model costs half as much as its last one

OpenAI's new GPT 6.1 Terra model costs half as much as its cheaper Sol model, a sign that AI is getting cheap fast for businesses and workers alike.

By the Dashline deskSource: investingLive
OpenAI's newest AI model costs half as much as its last one
Photo: Pauli Rautakorpi, CC BY 2.0

OpenAI has released GPT 6.1 Terra, a cheaper AI model that costs half as much as Sol, its last budget option. Terra is not as strong as GPT-6 Astra, the company's top model. But it is far more efficient, and that is the point.

What changed

Sol already comes close to Astra at one fifth of the price. Terra cuts the price in half again. OpenAI says Terra is especially good at automated computer use, which means AI carrying out tasks on a computer. The source article is doubtful of claims that any of these models write naturally, but it notes steady gains across all tasks.

Who it affects

The article's author argues AI is becoming a commodity. Soon, he says, very cheap models will cover 99% of use cases. In his view, profits then shift from AI makers to companies that use the tools to save money, with layoffs along the way.

His example is a company with high labor costs. If it automated 10 to 20% of routine administrative work, the effect on its profit margin could be large. This is one writer's opinion, not a settled outcome.

What is not known

The material gives no actual prices and no test results for Terra. It also calls OpenAI's current lineup of models somewhat confusing, so choosing the right one may take some effort. In other news, Anthropic has filed for an IPO, and the Nasdaq was up 1.0% at the time of writing.

The takeaway

AI is getting cheaper quickly, so routine office tasks are the likeliest place to feel the change first.

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