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They don't have enough compute for all their customers.

OpenAI bet on more compute early on which prompted people to say they're going to go bankrupt and collapse. But now it seems like it's a major strategic advantage. They're 2x'ing usage limits on Codex plans to steal CC customers and it seems to be working.

It seems like 90% of Claude's recent problems are strictly lack of compute related.

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I bet that's the real reason why they're not releasing Mythos ;)
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It worked. Although I have a Claude Code subscription, I got the ChatGPT Pro plan, and 5.4 xHigh at 1.5x speed was better than 4.6 with adaptive thinking disabled. I was working all day, about 8 hours, and did not run into any limits. 5.4 surprised me many times by doing things I usually would not do myself, because I am lazy, so yeah, I am sticking with 5.4 for now until all the Claude drama is over.
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Is that why Anthropic recently gave out free credits for use in off-hours? Possibly an attempt to more evenly distribute their compute load throughout the day?
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That was the carrot, but it was followed immediately by the stick (5 hour session limits were halved during peak hours)
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i suspect they get cheap off peak electricity and compute is cheaper at those times
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That's not really how datacenter power works. It's usually a bulk buy with a 95th percentile usage.
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I think it's a lot simpler than that. At peak, gpus are all running hot. During low volume, they aren't.
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> Is that why Anthropic recently gave out free credits for use in off-hours?

That was the carrot for the stick. The limits and the issues were never officially recognized or communicated. Neither have been the "off-hours credits". You would only know about them if you logged in to your dashboard. When is the last time you logged in there?

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Its a hard game to play anyway.

Anthropics revenue is increasing very fast.

OpenAI though made crazy claims after all its responsible for the memory prices.

In parallel anthropic announced partnership with google and broadcom for gigawatts of TPU chips while also announcing their own 50 Billion invest in compute.

OpenAI always believed in compute though and i'm pretty sure plenty of people want to see what models 10x or 100x or 1000x can do.

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Hard for me to reconcile the idea that they don't have enough compute with the idea that they are also losing money to subsidies.
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they clearly arent losing money, i dont understand why people think this is true
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People think it's true because it is true, and OpenAI has told us themselves.

They (very optimistically) say they'll be profitable in 2030.

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They're saying Anthropic doesn't have enough compute, not OpenAI. They said OpenAI specifically invested early in compute at a loss.
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They are loosing money because the model training costs billions.
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Model inference compute over model lifetime is ~10x of model training compute now for major providers. Expected to climb as demand for AI inference rises.
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For sure and growth also costs money for buying DCs etc.
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They are constantly training and getting rid of older models, they are losing money
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Which part of "over model lifetime" did you not understand?
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That's not a sufficient condition for profitability if both inference and scaling costs continue to increase over time.
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Honestly, I personally would rather a time-out than the quality of my response noticably downgrading. I think what I found especially distrustful is the responses from employees claiming that no degredation has occured.

An honest response of "Our compute is busy, use X model?" would be far better than silent downgrading.

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Are they convinced that claiming they have technical issues while continuing to adjust their internal levers to choose which customers to serve is holistically the best path?
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Prepare for the prices to go up!
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You state your hypnosis quite confidently. Can you tell me how taking down authentication many times is related to GPU capacity?
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Usually they're hemorrhaging performance while training.

From that it's pretty likely they were training mythos for the last few weeks, and then distilling it to opus 4.7

Pure speculation of course, but would also explain the sudden performance gains for mythos - and why they're not releasing it to the general public (because it's the undistilled version which is too expensive to run)

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Mythos is speculated to have 10 trillion parameters. Almost certainly they were training it for months.
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What I want to know is why my bedrock-backed Claude gets dumber along with commercial users. Surely they're not touching the bedrock model itself. Only thing I can think of is that updates to the harness are the main cause of performance degradation.
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If we learned anything from the code leak is that they essentially do not know what is in the blackbox of the code for that 500k line mass. So that's plausible.
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Not to mention their recent integration of Persona ID verification - that was the last straw for me.
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> This coming right after a noticeable downgrade just makes me think Opus 4.7 is going to be the same Opus i was experiencing a few months ago rather than actual performance boost.

If they are indeed doing this, I wonder how long they can keep it up?

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