OpenAI's $200+ Response to Elon's Grok Price War

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September 24, 2025
Join 40,000 readers and get the full notes and summary: https://newsletter.aiwithkyle.com/subscribe Subscribe and turn on notifications to catch the next live stream: https://www.youtube.com/@iamkylebalmer?sub_confirmation=1 Want to become fast-track becoming an AI Trainer? Apply to join the next AI Workshop Kit cohort: https://newsletter.aiwithkyle.com/c/workshop-kit This video is from the ‘AI with Kyle News and Updates Live Stream’ First aired: 23 September 2025 Watch full edited live stream: https://youtu.be/pSI7d3Z24d0 —— More Useful Resources —— My other daily live show - 30-day building a business in public challenge: https://www.youtube.com/live/Z0Z_1Eg3HUk (day one) Free AI Entrepreneurship Playbooks: https://aiwithkyle.com/catalog Free Quiz: What AI business should you start? https://aiwithkyle.com/tools Free AI Training Business Planner: https://aiwithkyle.com/tools/workshop-builder Free 10-Week ‘Vibe Coding’ AI Summer Camp: https://aiwithkyle.com/courses/10-week-ai-summer-camp —— Contact —— Best is in YouTube comments. For business enquiries only: https://www.passionfroot.me/iamkylebalmer OpenAI is launching expensive premium compute offerings after Grok 4 Fast undercut their prices by 15x, becoming the cheapest AI model available. Instead of competing on price, Sam Altman is moving upmarket with compute-intensive features that will cost extra even for $200/month Pro subscribers. This strategy avoids the commodity pricing trap while leveraging OpenAI's new $100 million Nvidia deal announced the same day.