People are up in arms about this change but I think the knee-jerk reaction here is missing the bigger picture. API pricing is probably going down as a move to be more competitive in the enterprise space.
The ppl paying the actual bills have all been exploring crappier models to reduce costs and I think that has been strongly communicated to OpenAI.
Edit: People who think this is death for OpenAI need to look at Anthropic’s revenue. It has flatlined. Stingy decision makers are a bigger risk to these companies than stingy consumers.
Yes, Astra will have its API price halved while the $200 plan subscribers will have the same usage as before.
That's not enough.
There were rumors of a model called "Astra Minor".
I expect they will release this today.
If it performs slightly better than Astra and, considering the subscription cut, is 1/4th the price, it could be competitive with Opus 5.5.
Opus 5.5 appears to be around 1/3rd the price of Astra with a subscription.
Opus 5.5 runs circles around Astra.
How are the investors happy with this though?
Will they even get their money back in 50 years at this point?
Genuine question, who has done the math on:
* how much investment they have gotten
* how much they need to make each year to give it back in X, Y years?
* how much they are currently making?
Is the end game one gigant megaAIcorp that you can't say no to? The chinese models seem to preclude that.
Have we collectively decided this a big game of investment-chicken, but of course we are smart enough to get out of it just before it crashes down?
"have all been exploring crappier models" - lol
You seem to be an employee of OpenAI, no?
Some things are just obvious.
Thanks for (not) confirming.