> And Claude is more expensive than ever, efficiency gains and all
This is not true for any LLM and not just Claude.
> I don’t think it’s a matter of efficiency at current pricing but increased pricing.
I don't know what this means - efficiency determines price.
> It would be a lot more sane if the use cases became more advanced and less people used them, because building enormous data centers to house NVIDIA hardware so that people can chat their way to a recipe for chocolate cake is societal insanity.
Do you think same thing could have been said during the internet boom? "It would be more sane if the use cases become more advanced and less people used them, because building enormous data centers to house INTEL hardware so that people can use AOL is societal insanity".
Weird how Sonnet 3.7 cost the same (when released) as Sonnet 4.5. That is with all those efficiency gains you speak about. 4.5 is even more expensive on bigger prompts.
Efficiency doesn’t determine price, companies does. Efficiencies tend to give more returns, not lower prices.
Internet scaled very well, AI hasn’t so far. You can have millions of users on a single machine doing their business, you need a lot of square footage for millions of users working with LLM’s. It’s not even in the same ballpark.
Did we build many single company data centers the scale of manhattan before AI?
> Weird how Sonnet 3.7 cost the same (when released) as Sonnet 4.5
Then I think we agree that while the cost remained the same, the performance dramatically increased.
FWIW Sonnet 3.7 costs 2.5x as much as GPT-5 while also being slightly worse.
Well with a 30x increase in efficiency and far from 30x more performance that would be a price increase in this context, the efficiencies clearly doesn’t trickle down to customers.
As for OpenAI I don’t think anyone is working on the API side of things since GPT-5 has had months of extreme latency issues.