OpenAI cuts prices to pull Rippling, Replit from Anthropic

OpenAI is pulling large customers away from Anthropic with steep discounts, The Information reported, as Rippling, Replit and DataCamp shift more of their spending to OpenAI's models.

The discounts show the two leading model developers competing on price for business customers, with OpenAI partly giving up its own margins to gain market share, according to the publication. Steve Hou, head of research at Silicon Data, discussed a related squeeze on Bloomberg's Merryn Talks Money on Monday: token prices, what customers pay per unit of text a model processes, are falling while the cost of computing power is rising.

Parker Conrad, Rippling's chief executive, said the company raised OpenAI's share of its coding workload from 16% to 52%, while Anthropic's share fell from 57% to 18%.

Replit switched after OpenAI offered more than 30% off a contract worth over $100 million a year. Jonathan Cornelissen, DataCamp's chief executive, said OpenAI's pricing cut the company's costs by 80% to 90%.

A US bank with more than $7 billion in assets had its ChatGPT seats doubled to 500 employees at no extra charge, paying under $7 per user instead of the usual $20 or more, The Information reported.

OpenAI has also achieved lower prices through its Sol and Luna model lines, which rely on more efficient models and infrastructure, the publication reported. Anthropic's growth slowed from the second quarter to the third, according to an investor memo it cited.

Both companies face further price pressure from China, where new models from DeepSeek and Kimi deliver comparable performance for a fraction of the cost, The Information reported.

Anthropic was founded in 2021 by former OpenAI employees, including chief executive Dario Amodei, and sells its Claude models to businesses and developers. OpenAI makes ChatGPT and sells access to its models to companies building their own products.