OpenAI priced GPT-5 so low, it may spark a price war

OpenAI's newly launched GPT-5 model offers competitive pricing that may spark an industry-wide price war. Despite CEO Sam Altman's bold claims, performance tests show it only marginally outperforms or slightly lags behind competitors. The model excels in coding and is priced aggressively at $1.25 per million input tokens and $10 per million output tokens, matching Google's Gemini 2.5 Pro and undercutting Anthropic's Claude Opus. This pricing strategy comes amid massive infrastructure investments by major tech companies, potentially benefiting startups and developers using these models.