Comment by cronin101
19 hours ago
Not trying to discredit the premise but I do wonder how much this is from vertical scaling of model intelligence in weights vs the sheer amount of capital being thrown at training and horizontal scaling of agent swarms etc.
Anecdotally it seems like the majority of continued uplift comes from models doing more and exploring more of the search space, and we are getting better at giving them embarrassingly parallel problems to Hoover up with infinite token spend.
Counterarguments to that premise:
1. Intelligence per dollar spent/token output seems to be increasing rapidly. Opus 4 was $15/75 per million input/output tokens when released. Opus 5.5, which is significantly better, is $4/15. Sure it cost more money upfront to train Opus 5.5, or the bigger model (Fable 5.5) which tuned it, but once it is reached, there are massive diffusive effects.
2. The capital equation is still favoring more spend. Anthropic's revenue is growing rapidly and they are profitable on inference. Huge upfront spend for realized gains later on is standard for R&D. As long as serving the models is profitable and generates more value than the energy/compute consumed
3. The search space is too large to assume that improvement in AI assisted research is just models dumbly trying every combination until something works. For every additional bit searched, the space doubles, so even a trivially small combinatorial exploration incurs prohibitively large costs. Intelligent searching which continuously prunes that space along dimensions of effectiveness is not a trivial skill and is among the emergent accoutrements of these smarter models.
> 2. The capital equation is still favoring more spend. Anthropic's revenue is growing rapidly and they are profitable on inference. Huge upfront spend for realized gains later on is standard for R&D. As long as serving the models is profitable and generates more value than the energy/compute consumed
But they are essentially fighting for smaller and smaller part of the pie. The better open models are the less you need frontier models, so the frontier AI companies are essentially fighting for market that will shrink the better AI is.
Sure there is inertia and the usual corporate enterprise nonsense of "we only buy stuff from other big companies regardless the cost" that keeps the licenses going but we're quickly getting into point where you don't need any of the frontier models to do majority of the tasks
I don't fully get this line of argument. I am a massive advocate for open source... everything basically, but especially in ML. And open models are making incredible strides. But I'm not sure that models getting good enough for most tasks, making the absolute frontier models (Astra/Fable class) unnecessary for most people, puts the frontier labs in a fundamentally disadvantaged position.
I mainly think this because frontier labs already try to compete at this tier. For example, 6.1 Sol has identical pricing to Kimi K3.1, but with a lower price per task due to Kimi's verbosity. It seems to score roughly the same on most benchmarks, with some (like Artificial Analysis) putting 6.1 Sol significantly higher. If you need to step down, 6.1 Terra is also cheaper than K3.1 or K3 and performs well relative to their benchmarks. Opus 5.5 and much of Anthropic's recent push seems to confirm this as a major area of focus as well.
I still use a lot of open models and harnesses, but I don't know if cost competitiveness (at least not with the current crop of open models) will ultimately drive a huge chunk of average users away.
Things could change, but fundamentally, large labs aren't precluded from training more cost effective models if there is significant demand for them, which is what we're seeing now.
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> The better open models are the less you need frontier models
True in theory, but in practice hardware availability and cost will keep open source impractical for years to come.
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Don't you mean the opposite, that intelligence per dollar is increasing?
yeah I reversed it when revising my phrasing
> Intelligence per dollar spent/token output seems to be increasing rapidly.
I would argue this is more due to market economics than actual inherent cost. Opus 4 was when the open models started catching up. The R1 bootstrapping chain of thought paper via RL paper was released a couple of months before Opus came out and the open models started to significantly catch up after that. The duopoly was effectively broken and they lost their price setting power.
What is the unit of measure for “intelligence per dollar”, and how do you measure it? Without a concrete definition, that first assertion is not even wrong.
I would also like to point out that “profitable on inference” is similarly meaningless, because it’s based on a figure that arbitrarily discards whatever bits of their operating costs they need to to get to the claim that they’re profitable on inference. Potentially including ones that can’t be ignored because they’re every bit as much a part of COGS as the actual inference is.
>What is the unit of measure for “intelligence per dollar”, and how do you measure it?
It's going to depend on the task (and this is prone to cheating), but you can get a decent idea by looking at task benchmarks and the cost of completing them.
I was inclined to agree but Anthropic's latest S-1 statement only includes a paper loss due to their value going up. They're objectively making money now, the only question is can they keep it up and can they grow enough to be able to pay the bills they've signed up for in future?
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The article's author didn't have direct access to Anthropic's infrastructure, but she references a report from colleagues who did (https://metr.org/blog/2026-11-05-anthropic-ai-rd-acceleratio...), where they say:
> Anthropic has made roughly two years of historical progress over the last year [...] We are confident that the acceleration was not due to an acceleration in the scaling of training compute.
Note that Anthropic has essentially heavily censored this report, and the authors themselves say "the public has to rely on METR’s judgment much more than would be ideal".
I grok that you're not trying to discredit anything, or anything like that but what are you trying to do, if I may ask?
What information are you trying to either ask for or share with us?
The original article is pretty clear, agent swarms and token spend are AI automating AI, and the RSP attribution condition specifically excludes your capital thrown at training concern?
I guess my point is that the scaling is coming from capital explosion and it isn’t guaranteed that this will continue scaling as it did (the impending hardware and infrastructure crunch basically guarantees this). The article is pretty strongly projecting this trend to continue but hasn’t acknowledged this factor.
> the impending hardware and infrastructure crunch basically guarantees this
I'm not sure I follow. Are you saying a hardware shortage is going to restrict AI development? Because it seems to me like it would just push us towards an even greater focus on efficiency, which is still pushing the Pareto Frontier.
> the scaling is coming from capital explosion and it isn’t guaranteed that this will continue scaling
Not at all. Have you tried local AI lately? Qwen 3.8 is legitimately much better than SoTA from 1 year ago (Opus 4.1). You can run it on a consumer GPU.
Qwen Next Flash runs on a DGX spark well and is as good as some things you need datacenter class GPU's to run even today.
Check out Artificial Analysis if you haven't. Sometimes you don't realize how fast these things are moving, but to compare things from a year ago to today is just wild.
They aren't just getting better, they're getting more efficient by many orders of magnitude.
https://artificialanalysis.ai/#intelligence
This does rather remind me of how in the 80s we had a big boom in AI research, fueled in part by the development of new & expensive tools that everyone just had to have. And then it dissipated just as quickly when the companies who were pouring money into it started expecting to see a return on their investment.
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I don't think it'll continue on linearly, but it will likely continue.
We're getting the Claude efficiency talks at work. We're looking at all sort of optimizations, including local models and graphify, to reduce spend. There are people dedicating their nights and weekends to dropping token consumption and cache rebuilding. A few of these will likely catch on and be brought into common use. That will relieve at least a bit of the pressure, and enable some of the scaling to continue.
[flagged]
> what are you trying to do
the same thing you are:
> if I may ask?
asking.