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Replit Shifts $100M+ AI Spend to OpenAI After 30% Price Cut

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5 sources tracking this story
OpenAI Anthropic ai-business

TL;DR

  • OpenAI offered Replit 30%+ off after Anthropic declined to extend its existing discount, establishing an aggressive pricing precedent for enterprise coding contracts.
  • Replit CEO Masad walked back his 'no longer working with Anthropic' claim within 24 hours; seven Claude models remain in the Replit catalog.
  • The default model switch routes most Replit users to OpenAI without active choice, concentrating revenue impact beyond what user-facing toggles suggest.

OpenAI gave Replit more than 30% off to win a contract worth over $100M a year, The Information reported, after Anthropic refused to extend Replit's prior discount without a higher spending commitment.

Replit's chief executive and co-founder Amjad Masad told the audience at TechCrunch Disrupt in San Francisco on 16 October that Replit is no longer working with Anthropic. 'It was a decision based on both cost, partnership, and performance,' he said. On performance he was blunt: 'I think ChatGPT is better now.'

The split is less clean than the headline. A person familiar with the deal told TechCrunch the Anthropic partnership is still in place, and Replit's own docs still list seven Claude models. OpenAI is now the default model provider for Replit Agent; customers who want Claude have to pick it.

The Information paired the Replit shift with figures from Rippling, where OpenAI's share of coding work grew from 16% in May to 52%, while Anthropic's dropped from 57% to 18%. The piece runs under the headline 'Anthropic's Margin is OpenAI's Opportunity.'

Masad's own line for the switch was softer than 'no longer working with': 'OpenAI is now our preferred partner for powering Replit Agent, based on performance, economics, and the strength of our partnership.'

What others are reporting

Coverage cluster as of 2h after publish

  1. TechCrunch Read →

    Reports insider pushback: Replit sources disputed Masad's breakup claim, and the company had been actively promoting Claude just weeks before the announcement.

    I think ChatGPT is better now... It was a decision based on both cost, partnership, and performance.
  2. mean.ceo Read →

    Adds Vercel spend-share data showing Anthropic dropping from 63.7% to 43.9% in one month; also flags EU data residency as an emerging competitive variable in coding platforms.

  3. Tech Insider Read →

    Tracks Masad's 24-hour walkback from 'no longer working with Anthropic' to 'model agnostic,' exposing the gap between exec claims and Replit's own engineering documentation.

    Replit remains model agnostic… our users can choose Anthropic's Claude or other supported models.
  4. Beri Read →

    Identifies a contractual loophole: OpenAI was already a listed subprocessor, so the default switch triggered no enterprise DPA notification, exposing a gap in buyer privacy assumptions.

    OpenAI is now our preferred partner for powering Replit Agent.

Originally reported by theinformation.com

Read the original article →

Original headline: The Information: Replit Shifts Most AI Spend From Anthropic to OpenAI in $100M+/Year Deal