alt Hacker NewsMy take is that Anthropic and OpenAI simply are NOT competing on price. 2 big players are often not enough to create tension on price.
Chinese models and open model providers are, indeed, competing on price, and the difference shows.
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How are Anthropic and OpenAI going to compete on price when they're both already deeply unprofitable?
Chinese models are dropping in price thanks to ridiculous levels of state subsidy where companies are forced into aggressive price wars to survive and grab market share. I am guessing this will also blow up sometime next year or in 2029 at the maximum.
Btw, some Chinese corporates have already seen this and increased their price. Zhipu AI & Tencent for example. Alibaba, Baidu, and Tencent also announced multiple price increases for their AI services.
1 player is enough to create tension on price when "don't buy it at all" is a comptetative option. By most accounts, Anthropic and OpenAI both lose to "just don't buy" when they try charging at cost.