AI BriefingUnsustainable Subsidies
Key point
The AI model pricing strategies of Google, OpenAI, and Anthropic are unfolding in different directions.
Details
Google's AI has been rising in price 3x every year. OpenAI's flagship model maintained a low, seemingly subsidized price for a while before rising again. Anthropic's AI held its price steady for a time before recently cutting the price of its most powerful model.
Comparing current absolute prices:
- Gemini 3.1 Pro: $2.00 input/$12.00 output (per million tokens)
- Claude Opus 4.7: $5.00/$25.00
- GPT-5.5: $5.00/$30.00
Google raised prices across all its models but still maintains a low-price strategy at less than half of its competitors. Anthropic held premium pricing until the end of last year.
Price fluctuations reflect strategic shifts: cuts when cash is abundant and market share matters, hikes when cash is scarce and margin matters. All three vendors are currently in the latter situation, as capital expenditures keep hitting new records.
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