AI Labs Cut Model Prices Sharply as Usage Surges, Signaling Bullish Demand

OpenAI, Anthropic, xAI and Chinese providers released cheaper, more capable AI models this week, cutting costs for top business customers by up to 50% and driving sharp usage gains that analysts call a bullish signal for the AI boom. OpenAI released GPT-6 Sol and GPT-6 Luna on Sept. 22, reducing costs for top business customers by 50% versus prior iterations. Anthropic released Opus 5.5 the same day, saying it runs about 40% cheaper than Opus 5 at comparable intelligence. xAI launched Grok 4.7 on Sept. 21, though rivals erased much of its price advantage within 24 hours. Citadel Securities told clients that falling per-token costs are fueling usage and raising overall AI spending. Morgan Stanley called Chinese open-weight competition another bullish signal, citing increased computing demand. DeepSeek's V4.1 Flash hit No. 1 on OpenRouter's leaderboard, with usage up 172% this week. Analysts describe the dynamic as Jevons Paradox: cheaper intelligence expands consumption, supporting the trillions in projected AI spending even as labs face margin pressure.