alt Hacker NewsIt means that the companies have to be highly cost-competitive, they can't win market share and then raise margins. If (as is the case today) astra is bad value for money compared to opus-5-5, then I'm switching, and if (as is the case today) for lots of stuff gemini can do the low hanging fruit, I'm switching. And all of this is happening before my company has really put any boundaries on our spend, in the future I'm going to be on a budget and that's really going to impact my decisions.
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PinkaDunka • today at 1:36 PM
But according to Anthropic they are getting the healthy margin right now. If they raise margin it would be “even better”, not just “finally making any money”
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Depends if the vibe changes, right now people are switching based on capability and not cost (unless it's entirely unreasonable like release Fable).
If we start to see the main switching factor be cost or a plateau in capability then I would be worried.