I don't see how anyone can be using Claude with prices like this, it's pretty incredible what the OpenAI team is doing, w.r.t model quality and pricing.
Prices per 1M tokens Claude Opus 5.5 Claude Opus 5
Cache reads $0.20 $0.50
Input tokens $4 $5
Output tokens $20 $25
Cache writes $5 $6.25
GPT would charge more if they could. Both companies need way way more revenue. GPT simply made a calculation that they can earn more money by charging less than their competitors.
Any business would charge more if they could. Jevon's paradox would mean that they can make more money by charging less because demand is going to keep growing.
Ya, are LLM's not a great example of Jevon's paradox? I don't think Jevon's needs all else being equal. The paradox being that we should be able to use things less because they are more efficient, when instead they get used more.
Surely, a large part of the increase of the demand in LLMs is in their intelligence, but to hit the demand models needed to be made more efficient, and labs found that more efficient models, still demanded more usage.
pookieinc · · focus · HN ↗
Input
Output
Price reduction
GPT‑6 Sol vs. GPT‑5.6 Sol
$4 → $2
$20 → $10
50% cheaper
GPT‑6 Luna vs. GPT‑5.6 Luna
$0.20 → $0.10
$1.20 → $0.50
50% cheaper
bitmasher9 · · focus · HN ↗
wyre · · focus · HN ↗
atq2119 · · focus · HN ↗
wyre · · focus · HN ↗
Surely, a large part of the increase of the demand in LLMs is in their intelligence, but to hit the demand models needed to be made more efficient, and labs found that more efficient models, still demanded more usage.