Competitive Pricing Dynamics in AI APIs

AI-generated “brain rot” videos are popping up all over the internet and getting a lot of attention. Currently gaining traction among younger users, these clips feature wild characters, like a shark wearing sneakers and a ballerina with a cappuccino for a head. One startup driving this trend is OpenArt, founded by two former Google employees in 2022. It touts around 3 million monthly active users. In other news, OpenAI astounded the tech industry for the second time this week by launching its newest flagship model, GPT-5, just days after releasing two new freely available models under an open source license. OpenAI CEO Sam Altman went so far as to call GPT-5 “the best model in the world.” That may be pride or hyperbole, as TechCrunch’s Maxwell Zeff reports that GPT-5 only slightly outperforms other leading AI models from Anthropic, Google DeepMind, and xAI on some key benchmarks, and slightly lags on others.

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