Comment by jeffnash
3 hours ago
Hasn't it always been the premise that intelligence would get cheaper? To me, on the enterprise side, it seems like firms are finally getting the memo that, whether you are locked into the Ant/OAI ecosystem or not, you don't need the smartest, most expensive model to do every single task. This is a good thing for overall adoption. Whether that trickles down into regular user behavior, especially with subscription pricing, remains to be seen; even though I intellectually know I don't need Sol for a simple refactor, I am sometimes hesitant to choose Luna/Terra, as it's hard to accept using something positioned, even implicitly, as 'worse'. Remembering that the smaller models tend to be faster is what usually pushes me over the edge.
Anthropic in particular is much more compute-constrained than OpenAI and SpaceXAI and has relied on partnerships to provide inference. This reality factors into their pricing and usage limits (they started 'adjusting' the 5-hour limits during peak hours, and it certainly wasn't an upward adjustment). Accordingly, this is presumably what Anthropic wants, given they develop and release the lower-end models, suggest users use them in various nudges within their product, position the bigger/more expensive models as "For the most complex tasks" in their UIs, and so on.
> whether you are locked into the Ant/OAI ecosystem or not
I think the problem (for Ant/OAI) is that there is no sensible lockin or moat. LLMs are essentially interchangeable and stuff like a harness doesn't offer enough value on its own for someone to be locked into using one of them.
Now with the onslaught of the Chinese models that offer almost the same quality for much less money they have a very serious problem on how to proceed. Investors now might be looking through rose tinted glasses but their patience has its limits.
Agreed 100% for the consumer case: an empty chatbox is just about the least sticky surface I could ever imagine. I saw a mobile interstitial ad for Kimi recently whose hook was basically "Tired of paying for expensive ChatGPT? Download the Kimi app, it's the same thing but cheaper". I myself bounce between token subscriptions like no one's business and use Pi/OMP for maximum model flexibility when coding (and it's a few env variables or lines of (TO|YA)ML|JSON to switch providers in Codex, Grok Build, CC). I even self-host and try to use OpenWebUI + CLIProxyAPI when I can for all my chats.
Enterprise is a whole different ballgame IMO with countless technical, compliance, and employee adoption considerations that add friction to switching. It's also where both Anthropic and (as of last week) OpenAI get the bulk of their revenue, and, incidentally, the venue where US Government regulations on Chinese models would have the most impact.