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Replit shifted AI spending after OpenAI discount, report says

The reported contract exceeds US$100 million annually, while Replit says its choice also reflected model performance and partnership considerations.

By Mei Ling Tan

Computer monitor displaying code in a software development workspace
Photo: TNW (Financial Times)

An OpenAI discount exceeding 30% prompted Replit to redirect most of its AI spending away from Anthropic, The Information reported. The shift took place in recent months, with pricing among the factors behind the coding company's decision.

A person familiar with the agreement told The Information that the annual contract value exceeds US$100 million. Replit had intended to remain with Anthropic, but the company required a larger spending commitment to continue an earlier discount, according to the report. TNW said it had not independently confirmed the figures.

Replit chief executive Amjad Masad also cited performance and partnership considerations, TechCrunch reported. Speaking at TechCrunch Disrupt, he said OpenAI's models achieved better results on Replit's benchmarks. He later told TechCrunch that Replit users could still select Anthropic's Claude or other models the platform supports.

The Information also reported changes at Rippling. Chief executive Parker Conrad said OpenAI models accounted for 52% of the HR software company's coding work, compared with 16% in May. Over that period, Anthropic's portion declined to 18% from 57%.

DataCamp chief executive Jonathan Cornelissen separately told The Information that OpenAI's pricing had reduced his costs by 80% to 90%.

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