source avatarAlvin Foo

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AI prices are falling off a cliff, and open source is the main reason. OpenAI just cut GPT-5.6 Luna by 80% (now $0.20 / $1.20 per million tokens) and dropped Terra 20%. Their own chart shows Luna delivering top-tier intelligence at a fraction of the cost of Claude and Gemini. Closed models are being forced to compete because open-weight models keep raising the bar on performance while driving costs toward zero. The price/intelligence curve is collapsing faster than almost anyone predicted.

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