alt Hacker NewsFor API usage, GPT-5.5 is 2x the price of GPT-5.4, ~4x the price of GPT-5.1, and ~10x the price of Kimi-2.6.
Unfortunately I think the lesson they took from Anthropic is that devs get really reliant and even addicted on coding agents, and they'll happily pay any amount for even small benefits.
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Price increases now aim to demonstrate market power for eventual IPO.
If they can show that people will pay a lot for somewhat better performance, it raises the value of any performance lead they can maintain.
If they demonstrate that and high switching costs, their franchise is worth scary amounts of money.
Sometimes I wonder if innovation in the AI space has stalled and recent progress is just a product of increased compute. Competence is increasing exponentially[1] but I guess it doesn't rule it out completely. I would postulate that a radical architecture shift is needed for the singularity though
[1]https://arxiv.org/html/2503.14499v1 *Source is from March 2025 so make of it what you will.
Maybe that's true. But I think part of the issue is that for a lot of things developers want to do with them now— certainly for most of the things I want to do with them— they're either barely good enough, or not consistently good enough. And the value difference across that quality threshold is immense, even if the quality difference itself isn't.
> devs get really reliant and even addicted on coding agents
That's more about managers who hope AI will gradually replace stubborn and lazy devs. That will shift the balance to business ideas and connections out of technical side and investments.
Anyway, before singularity there going to be a huge change.
On top of that I noticed just right now after updating macos dekstop codex app, I got again by default set speed to 'fast' ('about 1.5x faster with increased plan usage'). They really want you to burn more tokens.
A fool and his money are soon parted
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I feel like devs generally spend someone else's money on tokens. Either their employers or OpenAIs when they use a codex subscription.
If I put on my schizo hat. Something they might be doing is increasing the losses on their monthly codex subscriptions, to show that the API has a higher margin than before (the codex account massively in the negative, but the API account now having huge margins).
I've never seen an OpenAI investor pitch deck. But my guess is that API margins is one of the big ones they try to sell people on since Sama talks about it on Twitter.
I would be interested in hearing the insider stuff. Like if this model is genuinely like twice as expensive to serve or something.