Why is it a problem that the Chinese labs are just distilling down Anthropic’s models? Aren’t Anthropic’s models not just distilling down other people’s work?
Feels like Anthropic crying do as I say not as I do.
It ain't gonna happen. At work I have a dropdown menu in vscode with a dozen models to use interchangeably. They're all essentially commodities and will compete on price and squash almost all profit margin.
That's not their business model. They won't win on price, but they won't compete on price. Their business model is making the current state of the art.
If I'm a business and I need something done today, and bc Anthropic has the best model, there's a 99.9 chance it will be completed successfully for $1000. And using Deepseek there's a 70% chance it will, for $10 - you or me will go for the $10. Big businesses don't. Bc 1000 per task is nothing to them.
Except businesses are going the opposite direction here. The lack of stickiness makes the “premium” argument hard to play. Oracle won because swapping databases is a giant PITA. Swapping models requires almost no effort for most uses. And because of that enterprises are all building model marketplaces where providers have to compete on price performance.
Most folks I know can choose from any of the big labs or open weight models and they get billed internally for tokens against their budget. There’s little incentive to no switch to the lower cost closers.
This setup is a nightmare scenario for the big labs trying to execute the traditional enterprise sales plays. Those only work if your product is sticky and AI models are one of the least sticky things in the history of tech.
cmiles8 · · focus · HN ↗
Feels like Anthropic crying do as I say not as I do.
jorblumesea · · focus · HN ↗
it's not complex. there's hundreds of billions of investor dollars counting on vendor lock in and walled gardens
2OEH8eoCRo0 · · focus · HN ↗
dpweb · · focus · HN ↗
If I'm a business and I need something done today, and bc Anthropic has the best model, there's a 99.9 chance it will be completed successfully for $1000. And using Deepseek there's a 70% chance it will, for $10 - you or me will go for the $10. Big businesses don't. Bc 1000 per task is nothing to them.
cmiles8 · · focus · HN ↗
Most folks I know can choose from any of the big labs or open weight models and they get billed internally for tokens against their budget. There’s little incentive to no switch to the lower cost closers.
This setup is a nightmare scenario for the big labs trying to execute the traditional enterprise sales plays. Those only work if your product is sticky and AI models are one of the least sticky things in the history of tech.