alt Hacker NewsOminous for the industry and investors that token price is becoming the main battleground. Could be Anthropic's rationale for IPOing this year.
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It would be weird if consumers were completely price insensitive.
This is literally the plan, open weight models are something like 60% of token spend, and it will get worse. many companies now have model gateways where you can slot in cheaper models via cli for cheaper. we've been using glm 5.x and it's pretty close to SOTA frontier models.
it's also why there have been so many calls for regulation and slowdowns.
Great for the consumer.
I remember when bandwidth was super expensive and now it’s dirt cheap.
?! this model launch was around 10% of the dev day and the other time was spent on Dots and things other than models.
Pretty standard business to identify and compete on every axis (cost, speed, intelligence, etc). Often, nobody will be able to maximize every axis so you end up with a polyhedron derived from the axes where there’s a niche for everyone.
DeepSeek understands that. Grok understands it. Every other AI company thinks they need to be the best at everything all the time and it’s weird.
Another piece of evidence on the pile that the sudden panic and desire to "slow down" is because they're hitting the plateau on capability
Which, honestly, is fine. A lot of juice to squeeze in efficiency and even if models got zero more capable, making the capability that is already here cheaper is a huge win for everyone (except Nvidia)