Source: OpenAI BlogAugust 25, 2026

GPT-5.6 Luna Price Slashed 80% to $0.20 Per Million Input Tokens

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OpenAI cut GPT-5.6 Luna pricing by 80% to $0.20 per million input tokens and Terra by 20% — the sharpest single-week API price reduction from any major lab this year. The move signals commodity pricing dynamics accelerating faster than most organizations anticipated.

Key Points:

• GPT-5.6 Luna: reduced from approximately $1.00 to $0.20 per million input tokens — an 80% price cut, effective immediately for all OpenAI API customers.

• GPT-5.6 Terra: reduced by 20%, making it competitive with Gemini 3.6 Flash on cost-per-token for mid-tier workloads.

• GPT-5.6-Cyber (Daybreak program): specialized cybersecurity model achieving 95% completion on defensive cyber tasks compared to a 1-2% human analyst baseline.

• The price cuts apply across API tiers; existing enterprise contracts need to be renegotiated to capture the new pricing.

• ChatGPT retrieval change: Reddit's share of ChatGPT citations dropped from 3.83% to 0.52% in three days following changes in how ChatGPT sources and cites information.

Why It Matters: An 80% price reduction is not incremental optimization — it signals OpenAI prioritizing volume and market share over margin. For enterprises, tasks that cost $1,000/month now cost $200. Run a cost comparison this week; the savings are available immediately.