Comment by ekidd

> For small models (which are probably distilled from their big ones) you can serve them economically all the time and not hemorrhage money.

For smaller models, you're competing with DeepSeek V4 Flash. (Which I think is a 284B A13B?) Subjectively, this feels about as smart as Sonnet 4.5, give or take. And it costs $0.09/$0.18 on Open Router, compared to $1/$5 for the latest Claude Haiku. See https://openrouter.ai/deepseek/deepseek-v4-flash#providers The developer antirez of Redis fame uses this as a local coding model.

DeepSeek did some extremely clever research on hybrid attention to get the prices that low, reducing per-user context cache sizes dramatically.

So, no, when it comes to low-price models, the US models probably can't sustain their current margins there, either.