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Replit leans less on open-source AI as OpenAI and Anthropic cut prices

Cheaper closed models challenge the idea that open-source AI is always the budget option

by TechDefused Newsroom
The image displays a close-up view of computer code on a screen, showcasing a programming format typically used in software development. The code includes function definitions and method annotations, indicating an environment for coding. — Credit: Photo by Chris Ried / Unsplash cPhoto by Chris Ried / Unsplash
Photo by Chris Ried / Unsplash

Replit, the AI coding platform, is using less open-source AI than it was earlier this year because closed-source labs have cut their prices, its chief executive has said.

Amjad Masad said OpenAI and Anthropic have aggressively lowered prices for their smaller and faster models.

Closed-source models are rented from their makers, which keep the underlying technology private.

Open-source models, which anyone can download and run, have long been seen as the cheapest option for companies building AI products.

His comments challenge that view.

Replit, which lets users build apps by describing them in plain English, uses models from OpenAI, Anthropic and Google.

In August it launched a free tier running on OpenAI's GPT-5.6 Luna.

The cuts continued on Tuesday, when OpenAI and Anthropic released cheaper models within hours of each other.

OpenAI priced its new GPT-6 Sol and GPT-6 Luna models 50% below GPT-5.6's promotional rates for developers.

Anthropic said Claude Opus 5.5 costs about 40% less to run than Opus 5 because it uses fewer tokens, the units of text AI models process and charge by.

Observers question whether the cuts can last.

Some ask whether they reflect real efficiency gains or a grab for market share before stock market listings.

Anthropic is expected to float within weeks, while OpenAI has delayed its listing until next year.

Masad has warned that the labs can subsidise their own coding tools, pricing them below cost to compete with start-ups such as Replit.

The labs also face pressure from low-cost Chinese models.

by TechDefused Newsroom