Anthropic is basically fucked now. Nobody in their right mind will pay for Opus 4.8 when Kimi is a fraction of the price and performs closer to Fable. So, the whole idea of keeping Fable exclusive is now dead in the water. But I think the very fact they felt the need to do it tells us something as well. Before, they're just release every model as a regular upgrade for all users, but with Fable they wanted to only make it available on pay to play basis. To me this suggests that either it costs a fuck ton of money to run cause it's inefficient as fuck even compared to their current models, or they're starting to hit the ceiling of what they can do with the architecture and not expecting to put out anything significantly better in the near future. Either way, Kimi just pulled the rug from under them here.
the funniest thing to me is that anthropic (and all the other US ai) are already running at unprofitable rates so they can capture market share and Chinese companies keep forcing them to lower their prices
Yeah, the whole business model is falling apart. They can't monopolize the market, they don't have a better product, and their input costs are 3x of those than companies in China. It's a complete disaster. They got high on their own supply chasing their technological singularity while Chinese companies pragmatically took the slow and steady approach without burning through insane amounts of capital.
lol get rekt, they immediately have to lower prices
Anthropic is basically fucked now. Nobody in their right mind will pay for Opus 4.8 when Kimi is a fraction of the price and performs closer to Fable. So, the whole idea of keeping Fable exclusive is now dead in the water. But I think the very fact they felt the need to do it tells us something as well. Before, they're just release every model as a regular upgrade for all users, but with Fable they wanted to only make it available on pay to play basis. To me this suggests that either it costs a fuck ton of money to run cause it's inefficient as fuck even compared to their current models, or they're starting to hit the ceiling of what they can do with the architecture and not expecting to put out anything significantly better in the near future. Either way, Kimi just pulled the rug from under them here.
the funniest thing to me is that anthropic (and all the other US ai) are already running at unprofitable rates so they can capture market share and Chinese companies keep forcing them to lower their prices
Yeah, the whole business model is falling apart. They can't monopolize the market, they don't have a better product, and their input costs are 3x of those than companies in China. It's a complete disaster. They got high on their own supply chasing their technological singularity while Chinese companies pragmatically took the slow and steady approach without burning through insane amounts of capital.