Dossier
Terra model
Coverage of Terra model in the Nexus archive.
- AI prices are plunging. That feels bad, but something else is happening.
OpenAI slashed prices for its GPT-5.6 Luna and Terra models, but despite the price cuts, usage dramatically increased. This led to significant revenue gains, with Luna's revenue increasing about 34% and Terra's revenue rising about 45%. This pattern suggests an instance of Jevons Paradox, where making a resource cheaper encourages much higher consumption.