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It shouldn't be surprising OpenAI does have the most compute out of all the major labs. The only reason why Anthropic models are expensive is they are the most

It shouldn't be surprising OpenAI does have the most compute out of all the major labs. The only reason why Anthropic models are expensive is they are the most in demand models in the world and Anthropic is fighting for compute. The only way to you limit demand for your model is increasing API pricing this is also why Anthropic probably has great margin and probably is profitable compared to OpenAI.

scrlk 2mo ago
Not just compute for OAI, GPT-5.6 is more token efficient across the board vs the Anthropic equivalents: https://artificialanalysis.ai/models?intelligence-index-token-use=intelligence-vs-output-tokens-per-task&cost=intelligence-vs-cost-per-task&total-cost=intelligence-vs-total-cost#token-use https://artificialanalysis.ai/models?intelligence-index-toke... No wonder why Tibo can afford to hit the reset button liberally.
charcircuit 2mo ago
I also suspect there is a price fixing agreement between all of the inference providers for Claude (such as Amazon, Anthropic, Microsoft, etc).
- wmf 2mo ago
  "Price fixing" isn't the correct term here but yes, it's very common to have the same price across different retailers/resellers.
  - charcircuit 2mo ago
    There is a difference between the market discovering a price and a bunch of retailers/resellers entering an agreement to sell at a specific price.
- vikramkr 2mo ago
  I doubt there's any sort of criminal behavior there - the model is anthropic's up and anthropic probably charges a very expensive license fee that's the same for all of them, and their cogs on compute aren't going to be wildly different, so the main drivers of the cost are roughly the same and they're all offering customers the same end product so the prices would likely also be similar in the end
  - charcircuit 2mo ago
    Do you really think there is nothing someone could do to make it a fraction of a percentage cheaper to serve like having access to cheaper electricity or a more mature cloud management software. Even saving a fraction of a penny on the prices can make a different due to how much volume people are paying for.
  - weird-eye-issue 2mo ago
    Requiring the exact same product to be set at a specific price across providers would not be criminal behavior, lol
    - krzyk 2mo ago
      It is breaking competition. Would you like all products everywhere be priced like their producers want?
      - weird-eye-issue 2mo ago
        You seem terribly confused. Manufacturers are almost always able to set prices. That is not anti-competitive because it does not imply they are colluding with their competition...
        charcircuit 2mo ago
        A fixed price does not let stores compete with each other. Blocking competition is anticompetitive.
        krzyk 2mo ago
        No manufacturers might suggest prices, they can't set them, not in any sensible country. If they do, they do it secretly and when governments find about that they are going to receive a big fine, together with shops that colluded with them. https://en.wikipedia.org/wiki/Price_fixing https://en.wikipedia.org/wiki/Price_fixing
      - vikramkr 2mo ago

scrlk 2mo ago

Not just compute for OAI, GPT-5.6 is more token efficient across the board vs the Anthropic equivalents: https://artificialanalysis.ai/models?intelligence-index-token-use=intelligence-vs-output-tokens-per-task&cost=intelligence-vs-cost-per-task&total-cost=intelligence-vs-total-cost#token-use https://artificialanalysis.ai/models?intelligence-index-toke... No wonder why Tibo can afford to hit the reset button liberally.

charcircuit 2mo ago

I also suspect there is a price fixing agreement between all of the inference providers for Claude (such as Amazon, Anthropic, Microsoft, etc).

wmf 2mo ago
"Price fixing" isn't the correct term here but yes, it's very common to have the same price across different retailers/resellers.
- charcircuit 2mo ago
  There is a difference between the market discovering a price and a bunch of retailers/resellers entering an agreement to sell at a specific price.
vikramkr 2mo ago
I doubt there's any sort of criminal behavior there - the model is anthropic's up and anthropic probably charges a very expensive license fee that's the same for all of them, and their cogs on compute aren't going to be wildly different, so the main drivers of the cost are roughly the same and they're all offering customers the same end product so the prices would likely also be similar in the end
- charcircuit 2mo ago
  Do you really think there is nothing someone could do to make it a fraction of a percentage cheaper to serve like having access to cheaper electricity or a more mature cloud management software. Even saving a fraction of a penny on the prices can make a different due to how much volume people are paying for.
- weird-eye-issue 2mo ago
  Requiring the exact same product to be set at a specific price across providers would not be criminal behavior, lol
  - krzyk 2mo ago
    It is breaking competition. Would you like all products everywhere be priced like their producers want?
    - weird-eye-issue 2mo ago
      You seem terribly confused. Manufacturers are almost always able to set prices. That is not anti-competitive because it does not imply they are colluding with their competition...
      - charcircuit 2mo ago
        A fixed price does not let stores compete with each other. Blocking competition is anticompetitive.
      - krzyk 2mo ago
        No manufacturers might suggest prices, they can't set them, not in any sensible country. If they do, they do it secretly and when governments find about that they are going to receive a big fine, together with shops that colluded with them. https://en.wikipedia.org/wiki/Price_fixing https://en.wikipedia.org/wiki/Price_fixing
    - vikramkr 2mo ago