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In the World of AI: Week of 28 July 2026, OpenAI Cuts GPT-5.6 Prices by Up to 80%

2026-08-04

AI model prices fell sharply this week, Microsoft's Copilot passed 30 million paid seats while moving towards usage-based billing, and Google rolled out a batch of Gemini features in Workspace. Here is the week from 29 July to 4 August 2026, with one step for each story.

1. OpenAI cuts GPT-5.6 Luna and Terra prices

InfoWorld reported on 31 July that OpenAI cut API prices for two GPT-5.6 models, effective 30 July. Luna fell from $1.00 to $0.20 per million input tokens and from $6 to $1.20 per million output tokens, an 80% cut. Terra fell from $2.50 to $2.00 for input and from $15 to $12 for output, a 20% cut. The top Sol model kept its price, and OpenAI added a Fast mode for Sol. The models also consume fewer usage credits in ChatGPT Work and Codex, though the size of the reduction and the plan tiers covered were not given.

Why it matters: Automations that call these models, such as sorting enquiries or drafting replies, cost less to run if the software behind them passes the saving on. Subscription prices were not reported as changing.

This week: If you run an automation or pay a vendor for one, ask what model it uses and whether the cut flows through to you. Our explainer on the difference between automation and AI helps decide where a cheaper model matters.

2. Microsoft's Copilot passes 30 million paid seats

MarketBeat's summary of Microsoft's 29 July earnings call says Microsoft 365 Copilot "surpassed 30 million paid seats", with net new seats more than doubling from the previous quarter. It also says Microsoft has begun offering "usage-based billing alongside its per-seat licensing model" for Copilot offerings. Satya Nadella said Copilot revenue accelerated more than 60% sequentially after usage-based billing arrived, though the article does not say which Copilot product that figure covers. Named deployments were large, such as NHS England and HSBC.

Why it matters: The headline numbers describe very large organisations. The billing shift is the part a small business can feel, because a flat per-seat fee may be joined by charges that depend on use.

This week: Count how many Copilot or other AI seats you pay for and how many people used them in the past month. Our guide to auditing AI tool seats walks through it.

3. Google ships Gemini features across Workspace

Google's July Workspace feature drop, published 30 July, says features are rolling out to Workspace customers now. They include Gemini generating editable Slides decks from a description, AI presenters and voiceovers in Vids, Gemini summarising and replying to comment threads in Docs, and image and diagram creation in Docs from text prompts. The post says admins can choose whether Gemini app data is processed and stored in the EU or the US. It does not say which Workspace plans receive each feature. Google's 31 July weekly recap adds that Gmail will show a caution before you reply all to a thread where you were BCC'd.

Why it matters: These features arrive inside tools staff already use, so adoption can happen without anyone deciding to adopt. The Gmail warning is a small safeguard against accidentally revealing who else received a message.

This week: If you run Workspace, open the admin console, check the Gemini settings and the data region options, and tell staff what is switched on.

4. Microsoft responds on the Copilot for Word worm

The Register reported on 29 July on the Copilot for Word worm that researcher Håkon Måløy disclosed a day earlier. Microsoft confirmed the research and said it has addressed the reported findings, describing layered safeguards that block malicious instructions at multiple points. It urged customers to install updates, use layered security, treat content from unknown sources with caution and review AI-generated content before using or sharing it. The article notes Microsoft's statement does not show the issue is solved, and Måløy says no robust mitigation exists for the broader vulnerability class.

Why it matters: The vendor's own advice puts review of AI output in your hands, whatever the technical fixes.

This week: Decide who in your business may use Copilot for Word on documents that come from outside, and make a second pair of eyes standard for anything involving figures. Our guide to human review for AI output can serve as the checklist.

What to do this week

  • Ask automation vendors whether cheaper models mean a lower bill for you.
  • Count paid AI seats against people who used them last month.
  • Check Gemini settings and data region in the Workspace admin console.
  • Set a rule for who reviews Copilot-edited documents before they go out.

Sources

good questions, straight answers

Frequently asked questions

Will OpenAI's GPT-5.6 price cuts lower what I pay for ChatGPT?
The cuts apply to API pricing, which is what software built on OpenAI's models pays. InfoWorld reported that OpenAI also reduced how many usage credits Terra and Luna consume in ChatGPT Work and Codex, but did not say which plan tiers beyond enterprise benefit. Subscription prices were not reported as changing.
What does Microsoft's move to usage-based billing for Copilot mean?
On its 29 July 2026 earnings call Microsoft said it has begun offering usage-based billing alongside per-seat licensing for Copilot offerings. Costs for some customers may then vary with how much people use the tools, so it is worth tracking use per seat.
Can Google Workspace admins control where Gemini data is processed?
Google's July 2026 Workspace feature drop said admins can choose whether Gemini app data is processed and stored in the EU or the US. The post did not say which Workspace plans receive every feature, so check your admin console.

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