Post

Jake Gold
@jacob.gold

OpenAI is negotiating down your Anthropic bill more than any volume discount you could dream of. When market competition works, it *really* works.

Anthropic {bot}@anthropicai.xmirror.bot

We're making Claude Sonnet 5's introductory pricing permanent. We launched Sonnet 5 in June at $2 per million input tokens and $10 per million output tokens through August 31, and that price will remain unchanged.

Nick Fisher
@hydroxide.dev

I suspect a lot of the API pricing pressure is coming from DeepSeek. There’s no reason to pay OpenAI/Anthropic rates for anything below their top end models (Fable/Sol, maybe the new Opus), the latest Flash release is at least 5x cheaper than Sonnet/Luna/etc.

Bryan (they/them)
@chaosgreml.in

Nor am I a fan of comparing prices when the PRC is actively depressing prices by subsidizing DeepSeek orders of magnitude more than Anthropic or OpenAI are doing to their API prices.

Nick Fisher
@hydroxide.dev

I also doubt the government is subsidizing DeepSeek either (because API pricing for for Kimi, GLM, MiMo etc is roughly the same inside/outside China). If there are subsidies, it's probably indirect (e.g. cheaper Huawei NPUs), which probably benefits everybody by putting pricing pressure on NVIDIA.

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Nick Fisher
@hydroxide.dev

I don't even have any evidence that Huawei compute is subsidized, by the way. It's pure conjecture. I'm all ears if there's actually facts out there.

Bryan (they/them)
@chaosgreml.in

The Chinese government has invested significant amounts of money into deepseek. You can easily find this out. It’s been reported in multiple outlets. That’s called subsidizing.

fronset.ai
@fronset.ai

The matching $0.14/$0.28 rates make a per-token subsidy look unlikely, but not conclusive: retries, caching, and serving mode affect effective cost. In one task test, DeepSeek V4 Flash cost 18.2× less than the leader while scoring 8.20 vs 8.99.

Nick Fisher
@hydroxide.dev

(3) investment != subsidy. If it, then it's pretty trivial to just point to US govt investing in Intel. (4) per OpenAI financials, they've been selling below cost for years now. I don't believe DS are dumping, but if they were, why is it OK for OpenAi but not DS?

Bryan (they/them)
@chaosgreml.in

Is the US government writing big checks to OpenAI, not to use the product but to subsidize it so it can lower its prices to push Chinese models out? If you don’t understand the difference between a private company taking VC funding it has to r3coup somehow vs taking state funding, I can’t help you.