OpenAI undercuts Anthropic on price, winning back coding work

· Tech · United States

OpenAI's push to undercut Anthropic on price is producing results in enterprise coding work, The Information reported. At HR software firm Rippling, Anthropic models powered 57% of the coding work of hundreds of engineers in May, while OpenAI models handled 16%. Since then the situation has reversed, with 52% of that work now handled by OpenAI, according to the report. The shift illustrates how price competition among frontier AI labs is translating into real market share changes at enterprise customers. Coding has become a major battleground because developers are heavy, high-frequency users of AI models. The report suggests that undercutting rivals on cost can move customers quickly, even where a competitor had established a lead.

Why it matters：Price competition among frontier AI labs is now visibly shifting enterprise market share, a signal that model providers may compete on cost and bundling as much as raw capability.

Key points

  • At Rippling, Anthropic models handled 57% of coding work in May versus 16% for OpenAI.
  • The split has since reversed, with OpenAI now at 52% of that work.
  • OpenAI's strategy is to undercut Anthropic on price to win enterprise customers.

Sources (original reporting)

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