> If OpenAI or Anthropic could squeeze the same output out of smaller GPUs and servers they'd be doing it for themselves.
First, they do this; that's why they release models at different price points. It's also why GPT-5 tries auto-routing requests to the most cost-effective model.
Second, be careful about considering the incentives of these companies. They all act as if they're in an existential race to deliver 'the' best model; the winner-take-all model justifies their collective trillion dollar-ish valuation. In that race, delivering 97% of the performance at 10% of the cost is a distraction.
First, they do this; that's why they release models at different price points. It's also why GPT-5 tries auto-routing requests to the most cost-effective model.
Second, be careful about considering the incentives of these companies. They all act as if they're in an existential race to deliver 'the' best model; the winner-take-all model justifies their collective trillion dollar-ish valuation. In that race, delivering 97% of the performance at 10% of the cost is a distraction.