OpenAI slashes prices for GPT-4.1, igniting AI price war among tech giants

1 week ago 61

April 14, 2025 12:55 PM

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OpenAI released GPT-4.1 this morning, directly challenging competitors Anthropic, Google and xAI.By ramping up its coding and context-handling capabilities to a whopping one-million-token window and aggressively cutting API prices, GPT-4.1 is positioning itself as the go-to generative AI model. If you’re managing budgets or crafting code at scale, this pricing shake-up might just make your quarter.

Performance upgrades at Costco prices

The new GPT-4.1 series boasts serious upgrades, including a 54.6% win rate on the SWE-bench coding benchmark, marking a considerable leap from prior versions. But the buzz isn’t just about better benchmarks. Real-world tests by Qodo.ai on actual GitHub pull requests showed GPT-4.1 beating Anthropic’s Claude 3.7 Sonnet in 54.9% of cases, primarily thanks to fewer false positives and more precise, relevant code suggestions..

OpenAI’s new pricing structure—openly targeting affordability—might finally tip the scales for teams wary of runaway AI expenses:

ModelInput cost (per Mtok)Output cost (per Mtok)
GPT-4.1$2.00$8.00
GPT-4.1 mini$0.40$1.60
GPT-4.1 nano$0.10$0.40

The standout here? That generous 75% caching discount, effectively incentivizing developers to opt...

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