Comment by gizmodo59
3 hours ago
It’s not direct token to token pricing and everyone misses it. The cost is how much tokens to complete something multiplied by token pricing. I can have a model at .0001 per million tokens but it’s so inefficient that it takes 10B tokens to complete a task means it’s expensive.
I am not designing rockets. Most of my work is bog standard hobbyist stuff: compilers, vms, sandboxes, system tools of various kinds, SSGs, markup languages, plain text ledgers etc. Even Gemma/Qwen running locally can manage this.
Frankly, I have no idea what people do with Opus/Fable etc. I don't think anything I do needs something that charges $50/M for output tokens.
Can confirm. I have been using DeepSeek since forever and it's so good I was able to write a compiler and native desktop applications with it. I use it as a coding assistant in my IDE so the results end up at the same quality I would write by hand.
I recently started a job that only uses Claude models. Opus and Sonnet are so slow you have no choice but to do multiple tasks in parallel. You create a git worktree, set off an agent to do something, another worktree, set out an agent - then play video games for 20 minutes until they complete the task (poorly).
You can't really do "guide coding" like you can with DeepSeek-style flash models because Claude is too slow.
I think the idea with slow frontier models is to end up with "software factories", where you just write tickets and send them to a harness that delegates work to agents/subagents. Your job is to prompt and review (and eventually just prompt).
Mathematically and assuming token prices/efficiency remains constant, the collective US AI industry needs to increase token usage by 15x before 2030 (3.5 years from now) to satisfy investors. With companies already implementing token limits, the only place from here is for frontier models to replace staff entirely to expand budgets for tokens. The only way to do that is to demonstrate the efficacy of software factories and headless agentic workflows.
Objectively, I have set up a software factory and I do see the utility of it, though I did it with DeepSeek and prices are 1% that of frontier models - which doesn't bode well for investors looking for an eventual return.
Heck, my old M1 MBP 32gb running Qwen 3.6 35b a3b sipping 10w when generating tokens is good enough for a lot of my guide-coding work - it's just a bit slow so I use DeepSeek instead. When hardware prices come down, I honestly wouldn't see a need to subscribe to any service, I'd just grow my own tokens at home.
I use Claude Sonnet and ChatGPT via the web UI. I often use Claude to come up with specs for my ideas. This is becoming less and less useful. DS4/MS13/MiMo are almost there for these use cases as well.
I dogfood everything I produce, and the models are good at collaborating with me on a spec and then turning it into code.
If Sonnet/ChatGPT suddenly became unavailable due to Anthropic/OpenAI suddenly not being able to subsidize the freemium/loss-leader experience, I probably would not miss them. Google/BraveAI already give you the AI experience during search (when you are looking for stuff to buy, or something particular). Claude/ChatGPT still have a minor edge in this use case for me right now.