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Ai Pricing

All articles tagged with #ai pricing

Federal Suit Alleges McDonald’s AI Pricing Tool Violates Antitrust Laws
business-and-technology3 days ago

Federal Suit Alleges McDonald’s AI Pricing Tool Violates Antitrust Laws

A federal lawsuit filed in Chicago alleges that McDonald’s use of an AI-enhanced pricing tool violates antitrust laws by coordinating prices across independent franchises. The company denies the claims, stating that the tool provides optional recommendations and that franchisees retain final authority over menu pricing. The suit seeks class-action certification and damages, highlighting concerns over algorithmic price-fixing in the fast-food industry.

McDonald's Faces Class Action Over AI Pricing Tools
business3 days ago

McDonald's Faces Class Action Over AI Pricing Tools

A proposed class-action lawsuit in Chicago alleges that McDonald's uses artificial intelligence to coordinate menu prices across its U.S. franchise network, violating antitrust laws. The suit claims the company's pricing engine reduces competition among independently owned restaurants. McDonald's disputes the allegations, stating that franchisees retain final control over pricing and that the AI tool is merely a recommendation system. The case follows a Reuters investigation revealing that the pricing engine analyzes transaction data to suggest optimal prices, leading to significant price variations between nearby locations.

Same ride, different price: Consumer Reports flags AI-driven pricing in rideshares
technology1 month ago

Same ride, different price: Consumer Reports flags AI-driven pricing in rideshares

Consumer Reports found that two people requesting the same ride at the same time can be shown very different prices by Uber and Lyft, due to AI-based pricing. Some displayed prices are historical comparisons, not deals. Both companies say riders’ actual fare share is lower than CR’s findings. Maryland and Connecticut have enacted restrictions on surveillance pricing, while California, Pennsylvania, and New York are considering bans.

Anthropic cuts Claude Fable 5.1 pricing up to 45% for agentic tasks, cites stronger safeguards
ai1 month ago

Anthropic cuts Claude Fable 5.1 pricing up to 45% for agentic tasks, cites stronger safeguards

Anthropic announced Claude Fable 5.1 and Mythos 5.1, claiming better performance than Fable 5 and pricing reductions—about 25% typically and up to 45% for complex agentic work—thanks to cheaper pricing on cached data. Fable 5.1 adds more precise safeguards and is less likely to block basic biology questions, while Enterprise Frontier Safeguards store data on a client’s cloud servers and will roll out later this fall. Fable 5.1 can be used to identify software vulnerabilities, though some cybersecurity tasks will be redirected to Opus models; Mythos 5.1 maintains the same biology restrictions as the prior version. Availability: Claude Fable 5.1 on all platforms; Mythos 5.1 for Project Glasswing participants. Early testers praised coding performance, speed, and token efficiency.

DeepSeek Doubles AI API Prices with Peak/Off-Peak Tiers
technology1 month ago

DeepSeek Doubles AI API Prices with Peak/Off-Peak Tiers

DeepSeek is raising the price of its AI API with the launch of V4 Pro and V4 Flash, introducing peak and off-peak pricing starting Aug. 16: V4 Pro at $3.96 per 1M tokens at peak and $1.98 off-peak; V4 Flash at $1.32 peak and $0.66 off-peak. The hikes follow earlier promotional pricing, intended to allocate resources more reasonably, but DeepSeek remains cheaper than many rivals (Moonshot K3 at $15/1M; GPT-5.6 Sol at $30), though its Luna offering at $1.20/1M is even cheaper than V4 Flash at peak.

DeepSeek’s V4 Flash slashes coding costs and accelerates AI’s price race
technology2 months ago

DeepSeek’s V4 Flash slashes coding costs and accelerates AI’s price race

DeepSeek released V4 Flash, a powerful coding model that charges pennies per output—about 28 cents versus roughly $25 for OpenAI’s Opus 4.8—marking a rapid commoditization of AI models as a price war spreads among frontier labs and big tech. As models become cheaper and more capable, buyers will prioritize cost and efficiency over brand, potentially weakening pricing power for top labs and boosting the case for automated “intelligent routers” that pick the best model for each task. OpenAI says massive usage can sustain profitability despite thinner margins, while the broader trend shows both the US and China pushing for abundant AI, with profitability still to be proven.

OpenAI slashes prices on GPT‑5.6 models to boost value and adoption
technology2 months ago

OpenAI slashes prices on GPT‑5.6 models to boost value and adoption

OpenAI announced major price cuts for its GPT‑5.6 Luna and Terra models (plus a faster Sol mode), trimming Luna by 80% to $0.20 per million input tokens and $1.20 per million output tokens and reducing Terra by 20% to $2 per million input and $12 per million output, with Sol offering up to 2.5x speed for roughly double the price. The company says efficiency gains in models, inference, and routing drive the cuts, and the changes also apply to Codex and ChatGPT Work usage. Analysts view the move as part of intensifying frontier‑AI price competition and a shift toward more flexible pricing, signaling broader industry pressure and potential IPO considerations for OpenAI.

OpenAI slashes Terra and Luna prices to win over cost-conscious customers
technology2 months ago

OpenAI slashes Terra and Luna prices to win over cost-conscious customers

OpenAI cut prices for its GPT-5.6 trio’s Terra and Luna models—Terra down 20% to $2 per million input tokens and $12 per million output tokens, Luna down 80% to $0.20 input and $1.20 output tokens—while Sol’s pricing stays the same. The move comes as the company faces cost pressures and fierce competition from Chinese startups and rivals like Anthropic, Google, and Microsoft, and aims to spur adoption of newer, more cost-efficient AI models.

Meta posts a Q2 revenue beat but EPS miss shakes investors as data-center bets rise
business2 months ago

Meta posts a Q2 revenue beat but EPS miss shakes investors as data-center bets rise

Meta reported Q2 EPS of $6.18 on $60.8 billion in revenue (missed expectations of $7.14 EPS on $60.2B), and guided Q3 revenue to about $63.1 billion mid-point. Advertising revenue came in at $59.3 billion, just above estimates. The company raised its 2026 capital expenditure guidance to about $135–$145 billion and signaled spending of over $145 billion this year mainly for data-center expansion. In parallel, Meta and BlackRock unveiled a $14 billion, 1 GW Texas data-center project (BlackRock 80%, Meta 20%), with potential capacity leasing as a monetization path. Meta also introduced Muse Image, its proprietary image-generation model, and launched Spark 1.1 with aggressive pricing ($1.25 per million input tokens, $4.25 per million output tokens) to compete with OpenAI and Anthropic. The stock slid roughly 8% after the results.

Google rolls out a trio of cheaper Gemini AI 'flash' models for enterprise use
technology2 months ago

Google rolls out a trio of cheaper Gemini AI 'flash' models for enterprise use

Google unveiled three cheaper Gemini AI 'flash' models—Gemini 3.6 Flash, 3.5 Flash-Lite, and 3.5 Flash Cyber—aimed at cost-efficient enterprise workloads: 3.6 cuts output tokens by up to 17% with better coding/reasoning and multimodal abilities; Flash-Lite targets high-volume automation and document processing; Flash Cyber focuses on security and patching, available to governments and partners via the CodeMender platform. 3.5 Pro remains in testing and Gemini 4 is in pre-training, underscoring Google’s portfolio approach to AI pricing and workloads.

Meta dives into AI coding race with Muse Spark 1.1 and aggressive pricing
technology3 months ago

Meta dives into AI coding race with Muse Spark 1.1 and aggressive pricing

Meta rolled out Muse Spark 1.1, its best-performing model for agentic and coding tasks, with a public developer API after a private preview and pricing designed to attract high usage: $20 in free credits, then $1.25 per million input tokens and $4.25 per million output tokens. The move aims to competing with OpenAI and Anthropic, with initial API access limited to Meta properties while scaling, and Meta says a Muse Spark variant will remain open source even as it develops a more powerful model codenamed Watermelon; Muse Spark’s development follows Muse Image and signals a broader shift from open-source Llama toward paid access to proprietary AI models.

New Jersey Moves to End Personalized Grocery Pricing with New Law
policy3 months ago

New Jersey Moves to End Personalized Grocery Pricing with New Law

New Jersey approved the bipartisan Fair Price Protection Act to ban AI/algorithm-driven and surveillance-based pricing in grocery stores and to pause electronic shelf labels for at least a year, awaiting Governor Sherrill’s signature. The bill includes exemptions for loyalty programs and certain discounts and mirrors similar moves in Maryland and Connecticut, as lawmakers argue it protects consumers amid rising grocery costs while opponents worry about regulatory consequences and job impact.

OpenAI Signals Price Cuts in AI War With Anthropic
business4 months ago

OpenAI Signals Price Cuts in AI War With Anthropic

OpenAI is reportedly weighing price reductions for developers and enterprises to counter Anthropic’s expected cuts as both rush toward IPOs and operate without profits. The move comes amid pressure from a negative Q1 operating margin and a shift toward metered API pricing, while Anthropic’s Claude Code drives a rapid revenue rise and open‑source rivals push the pricing floor lower.