Live data from Hacker News

OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

developers.openai.com

61–70 of 352 posts

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#61

The fact that AI models can be so easily distilled and replicated is such a stroke of luck. 10 or 15 years ago if one had asked me to envision a future where a private company invents artificial intelligence, I'd have thought for sure they'd have a massive moat, be very difficult to catch, and it would create an almost instant monopoly. Rather, it seems that selling intelligence might end up as a race to the bottom.…

Where is the actual evidence of distillation? I keep seeing this repeated ad nauseam but I must have somehow missed the evidence.

Distillation a pretty well documented technique that actually pre-dates LLMs https://arxiv.org/pdf/1503.02531

Here is a project that guides you through it if you want to prove to yourself that it works https://github.com/arcee-ai/DistillKit

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#62
post #50

Earlier quoted context omitted.

This is funny because the stock Market has been ahistorically high. My portfolio went up over 20 percent in the last 12 months. A major correction would be a bummer but we were never entitled to these abnormal gains in the first place.

It’s not as bad as dot.com of course since all purely AI companies are private and the ones on the market have pretty decent cash flow outside of AI. But the stock market pattern is not that dissimilar, the largest increases are usually just before the crash.

[deleted]

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#63

The fact that AI models can be so easily distilled and replicated is such a stroke of luck. 10 or 15 years ago if one had asked me to envision a future where a private company invents artificial intelligence, I'd have thought for sure they'd have a massive moat, be very difficult to catch, and it would create an almost instant monopoly. Rather, it seems that selling intelligence might end up as a race to the bottom.…

Even before LLMs, ML folks were already aware that you can use a model to teach another model. I doubt this is something AI companies put at the top of their investor materials, but it's been nice to see it play out. That said, there are other moat factors like, a US company needing to use a US AI provider, sticky customers due to corporate onboarding friction, and others. Not nothing, but not as large a moat as some…

Yes, but 10 or 15 years ago, I would have thought that there'd be more to it than just a slight modification on the ideas behind a CNN to get this level of AI.

There were somewhat good reasons to think it needed more than just this data-driven ML approach.

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#65

The fact that AI models can be so easily distilled and replicated is such a stroke of luck. 10 or 15 years ago if one had asked me to envision a future where a private company invents artificial intelligence, I'd have thought for sure they'd have a massive moat, be very difficult to catch, and it would create an almost instant monopoly. Rather, it seems that selling intelligence might end up as a race to the bottom.…

Altman specifically has said in an interview that I listened to once that he envisions AI being as cheap as electricity.

Yeah, he sure does lie about a variety of things! He doesn't have the name Scam Altman for nothing.

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#66

The fact that AI models can be so easily distilled and replicated is such a stroke of luck. 10 or 15 years ago if one had asked me to envision a future where a private company invents artificial intelligence, I'd have thought for sure they'd have a massive moat, be very difficult to catch, and it would create an almost instant monopoly. Rather, it seems that selling intelligence might end up as a race to the bottom.…

Where is the actual evidence of distillation? I keep seeing this repeated ad nauseam but I must have somehow missed the evidence.

Here's an example: https://github.com/microsoft/Build25-LAB329

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#67

Using codex every day, in spite of which, I hope some day providers will just start naming their offerings small/medium/large, a bit like we eventually started doing in software testing. Trying to remember what Sol is or why it's better than the other thing is more cognitive effort than I can muster at this point. And that's a sure sign of commoditisation in itself

I think model naming has been atrocious in general, in part because newer "lite" models surpass the capabilities of previous "pro" models (case-in-point: Gemini Flash which now surpasses the capabilities of the latest Gemini Pro, with a newer Flash Lite vying somewhat unsuccessfully for the old Flash price/positioning), but gpt 5.6's Sol/Terra/Luna split is really not bad at all - probably easier to understand than S…

Yes but with gemini specifically they said that pro was still in training. And the comparison isn't really atrocious unless Gemini 3.5 Pro is worse than Gemini 3.5 flash

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#68
post #32

Earlier quoted context omitted.

What about companies purchasing enterprise contracts? Most contracts are minimum 12 months. At a minimum, to secure enteprise requirements like zero-data retention, you'll need to lock into a single provider. These price reductions are mostly targeted towards self-serve customers on individual or small team plans, where individual choice matters and the friction of changing models/providers is low.

if you've got an enterprise contract, doesn't that include pricing? a temporary discount on the base API rate probably isn't super relevant to that.

Exactly my and top commenter's point. "Temporary price reduction" and "production workloads" are two different worlds.

I'm against the idea that "there's really no point in locking in model choice for anything more than a month or two these days". At a minimum, enterprises are going to lock in a provider for a year due to enterprise contracts, which restricts their model choices. You sign for Anthropic, but now OpenAI models are "better". Or, you signed for AWS Bedrock: Oh no, you don't have access to deepseek-v4 because they're behind.

Re: OpenAI: GPT 5.6 Sol price reduction (until at least Nov 21)

#69

The fact that AI models can be so easily distilled and replicated is such a stroke of luck. 10 or 15 years ago if one had asked me to envision a future where a private company invents artificial intelligence, I'd have thought for sure they'd have a massive moat, be very difficult to catch, and it would create an almost instant monopoly. Rather, it seems that selling intelligence might end up as a race to the bottom.…

Altman specifically has said in an interview that I listened to once that he envisions AI being as cheap as electricity.

Lol, of course what he left out is this will happen by inflating the cost of electricity rather than driving down the cost of AI.
Post reply on HN