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Opus 5 is considered the most intelligent model[0], while it's half the price of Fable 5[1], and Anthropic is still positioning Fable 5 as the most capable mode

Opus 5 is considered the most intelligent model[0], while it's half the price of Fable 5[1], and Anthropic is still positioning Fable 5 as the most capable model[2]. Is it because maybe Anthropic engineered Opus 5 to work well on benchmarks and didn't do the same thing to Fable 5, or is there another reason? [0]: https://artificialanalysis.ai/#intelligence https://artificialanalysis.ai/#intelligence [1]: https://platform.claude.com/docs/en/about-claude/pricing https://platform.claude.com/docs/en/about-claude/pricing [2]: https://platform.claude.com/docs/en/about-claude/models/overview https://platform.claude.com/docs/en/about-claude/models/over...

dgellow 2mo ago
That’s what I understand looking at what has been released, but it’s not really clear. The pricing is lower than I expected, I’m wondering what their margin is
- hangrybear666 2mo ago
  By margin you mean how much money they're losing on each request to stay ahead of the curve while investments are still flowing?
  - anuramat 2mo ago
    you think they're doing inference at a loss even with the API prices?
    - hangrybear666 2mo ago
      It just doesn't make sense to me that Opus 5 costs the exact same as Opus 4.8, my bet is that they simply subsidize Opus 5 more comparatively so it still looks as if they are making significant progress to keep investment dollars flowing, further inflating the bubble. I might be completely wrong but I trust nothing their CEO says, he's a habitual doom troll and will say whatever makes marketing sense.
      - anuramat 2mo ago
        could it be that the leading AI lab is decent at making LLMs?
  - Aeolos 2mo ago
    I don't know, the CEO of Anthropic has openly said that each model by itself is profitable, they just reinvest everything into training more and more expensive models.
  - dgellow 2mo ago
    I mean, yeah, either positive or negative margin, both are something i want to know
pietz 2mo ago
Benchmarks have gotten great, but they're still a proxy for the real world. The 3 GPT 5.6 models are also further apart in reality than the numbers suggest. That said, I'm still mighty impressed how good Luna is for the price. Highly underrated model. I have been trying to build something that captures the behavioral element of different models, but it's kinda tough.

dgellow 2mo ago

That’s what I understand looking at what has been released, but it’s not really clear. The pricing is lower than I expected, I’m wondering what their margin is

hangrybear666 2mo ago
By margin you mean how much money they're losing on each request to stay ahead of the curve while investments are still flowing?
- anuramat 2mo ago
  you think they're doing inference at a loss even with the API prices?
  - hangrybear666 2mo ago
    It just doesn't make sense to me that Opus 5 costs the exact same as Opus 4.8, my bet is that they simply subsidize Opus 5 more comparatively so it still looks as if they are making significant progress to keep investment dollars flowing, further inflating the bubble. I might be completely wrong but I trust nothing their CEO says, he's a habitual doom troll and will say whatever makes marketing sense.
    - anuramat 2mo ago
      could it be that the leading AI lab is decent at making LLMs?
- Aeolos 2mo ago
  I don't know, the CEO of Anthropic has openly said that each model by itself is profitable, they just reinvest everything into training more and more expensive models.
- dgellow 2mo ago
  I mean, yeah, either positive or negative margin, both are something i want to know

pietz 2mo ago

Benchmarks have gotten great, but they're still a proxy for the real world. The 3 GPT 5.6 models are also further apart in reality than the numbers suggest. That said, I'm still mighty impressed how good Luna is for the price. Highly underrated model. I have been trying to build something that captures the behavioral element of different models, but it's kinda tough.