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The End of Moore's Law for AI? Gemini Flash Offers a Warning

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113 points sethkim | 1 comments | 03 Jul 25 17:34 UTC | HN request time: 0.202s | source
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sharkjacobs ◴[03 Jul 25 18:23 UTC] No.44457845[source]▶
> This is the first time a major provider has backtracked on the price of an established model

Arguably that was Haiku 3.5 in October 2024.

I think the same hypothesis could apply though, that you price your model expecting a certain average input size, and then adjust price up to accommodate the reality that people use that cheapest model when they want to throw as much as they can into the context.

replies(2): >>44457906 #>>44458673 #
1. ryao ◴[03 Jul 25 20:00 UTC] No.44458673[source]▶
I had the same thought about haiku 3.5. They claimed it was due to the model being more capable, which basically means that they raised the price because they could.

Then there is Poe with its pricing games. Prices at Poe have been going up over time since they were extremely aggressive to gain market share presumably under the assumption that there would be reduced pricing in the future and the reduced pricing for LLMs did not materialize.