> Technology costs do decrease. However, demand always migrates to the newest, most powerful models.
> People do not:
> Choose GPT-3.5 because it is cheap.
> Select a lower-tier Claude model on purpose.
People definitely can, and do, both things for many workloads. Coding is an obvious exception, but oftentimes a cheaper model is good enough. And businesses that had to spend $5/MTok on a frontier model last year can probably get similar performance and spend $0.50/MTok or less today.
talos|2 months ago
> Technology costs do decrease. However, demand always migrates to the newest, most powerful models.
> People do not:
> Choose GPT-3.5 because it is cheap.
> Select a lower-tier Claude model on purpose.
People definitely can, and do, both things for many workloads. Coding is an obvious exception, but oftentimes a cheaper model is good enough. And businesses that had to spend $5/MTok on a frontier model last year can probably get similar performance and spend $0.50/MTok or less today.