This is where open source models are important. The latest deepseek v4 pro model is 2-5x cheaper than Claude Sonnet 4.6. Cursor's Compose 2.5 that was just recently released is 6x cheaper than Sonnet. The state of the art models are going to get better and more expensive and smaller models are going to get cheaper. There will be a point where the intelligence of both the cheap and state of the art models are indistin…
The current AI pricing was always going to go away
21–30 of 100 posts
Re: The current AI pricing was always going to go away
#22Re: The current AI pricing was always going to go away
#23I wonder how much of Uber blowing their AI budget and MSFT pulling their claude code licenses can be attributed to "tokenmaxxing". When Meta announced token leaderboards and other followed, I could see this being the logical conclusion. That whole trend is so dumb because it leads to this. Company announces they will measure developer performance by how many tokens they burn and constantly talks about how the best de…
1. I'm doing it wrong. Apparently I'm supposed to give it a vague paragraph about what the business does, and I can run off and sip margaritas and wake up to a fully fleshed business
2. They don't know what they're doing, and they're sending the LLM off on a wild goose chase that it does a reasonable job of working it's way out of, so they consider it success despite the waste.
Re: The current AI pricing was always going to go away
#24I wonder how much of Uber blowing their AI budget and MSFT pulling their claude code licenses can be attributed to "tokenmaxxing". When Meta announced token leaderboards and other followed, I could see this being the logical conclusion. That whole trend is so dumb because it leads to this. Company announces they will measure developer performance by how many tokens they burn and constantly talks about how the best de…
Re: The current AI pricing was always going to go away
#25Re: The current AI pricing was always going to go away
#26This is where open source models are important. The latest deepseek v4 pro model is 2-5x cheaper than Claude Sonnet 4.6. Cursor's Compose 2.5 that was just recently released is 6x cheaper than Sonnet. The state of the art models are going to get better and more expensive and smaller models are going to get cheaper. There will be a point where the intelligence of both the cheap and state of the art models are indistin…
Deepseek V4 Flash is far cheaper still, and a better model to compare to Sonnet 4.6. I'm finding it a reliable workhorse.
Re: The current AI pricing was always going to go away
#27What is the OP talking about. $/unit intelligence is going down rapidly. You can achieve what would have been considered miracles in 2022 with < $10.
Re: The current AI pricing was always going to go away
#28Re: The current AI pricing was always going to go away
#29It's hard to take this piece seriously if he's citing _Ed Zitron's_ math, and equally hard to make the blanket statement that flat-rate plans = "the current AI pricing". But yes, those pricing models were pretty silly and unsustainable.
Claiming that there's some small subset of their services (like inference per token) that's "profitable" doesn't mean anything when it relies on everything else that company is still paying for. If you could make money from it at current prices - why aren't they?
Otherwise it's just "how much they're willing to subsidize".
Re: The current AI pricing was always going to go away
#30Insofar as I can tell, inference is on a certain path toward becoming "free". The models are now extremely powerful on high-end consumer hardware, and the efficiency trend seems likely to continue. Here is a recent non-rigorous benchmark I ran against a bunch of models. Qwen3.6 35B A3B fine-tuned with opus data runs plenty fast on my local machine and produce outstanding results - easily in the top 5, comparable to G…