This is exactly what I find frustrating. I get comfortable with the latest model X. Then a new sparkly model Y launches. I am like, I don't need your new fangled Y, that consumes more tokens. My needs are small and i am happy with the older X.
But then X starts to degrade. At first subtly, and then drastically. So then I am forced to upgrade to Y.
What I do not understand is:
> is this a sneaky way for companies to push users up the chain?
> Or is this a genuine fault in model design/resource allocation?
I suppose it is both. Basically all frontier models are inference-time compute bound thanks to reasoning. And actual reasoning traces are locked behind closed doors at all American labs. So whenever they want to push a new model and need to give it hardware, it would make sense to cut into the reasoning budgets of older models. Users will not be able to see that directly, it will only become apparent on high-end, difficult tasks - exactly the kind of tasks where the provider wants you to use the new model anyway, so they can further improve it.