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Every AI Company Is Losing Money. They Call It Strategy.

OpenAI loses $1.35 for every dollar earned. Their competitors said hold my beer and started losing more.

Behind the artwork ↓
Mr. Chicken at a poker table with AI company robots, all throwing burning money into the pot during an AI price war
FROM THE SKETCHBOOK
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CategoryArt & illustrations
PublishedMay 13, 2026
Read time2 min
Covered here
  • AI Tools
  • Tech
  • Chickens
  • Culture

OpenAI is losing $1.35 for every dollar it earns. Anthropic saw that and said, "Amateurs."

Welcome to the AI pricing war, where the winning strategy is apparently to bleed faster than the other guy. GPT-5.2 dropped to $1.75 per million tokens. Claude matched. Gemini undercut. Grok went lower. Everyone's racing to the bottom like it's a competition to see who can hand out the most free chicken.

The numbers don't lie: 40 to 70 percent price cuts across the board since 2024. A 93 percent drop on GPT-4o alone. Ninety-three percent. That's not a pricing strategy. That's a liquidation sale at a store that's definitely on fire.

Here's the part nobody says out loud. Every single one of these companies — OpenAI, Google, Anthropic, Meta — is pricing inference below cost. Not because they cracked efficiency. Because they're terrified someone else grabs the market first. It's the Silicon Valley equivalent of giving away free chicken to make sure nobody visits the other food cart.

The $100-a-month ChatGPT tier they launched in April? That's not for developers. That's for the shareholders. "See? People will pay!" Meanwhile the API is hemorrhaging cash like a manok with its head cut off.

Sam Altman is playing the world's most expensive game of Pusoy Dos. Dario Amodei just raised. Sundar's all in. Elon threw in his chips and his ego. Nobody's folding. Nobody can afford to fold. The entire AI economy is a table of billionaires bluffing each other with borrowed chips.

And the developers? We're just eating cheap tokens while the music plays. When the music stops — and it always stops — those 93-percent discounts become 93-percent price hikes. "We need to reach profitability," they'll say. "We value our partnership with the developer community," they'll add, right before the invoice triples.

Kuya, I've heard that line before. It's the exact same speech Grab gave right before my promo code stopped working.

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