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It’s certainly #2. They have shown over dozens of decisions they move very quickly, break stuff, then have to both figure out what broke and how to explain it.
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It’s definitely a cost / resource saving strategy on their end.
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It's very weird that they frame caching as "latency reduction" when it comes to a cloud service. I mean, yes, technically it reduces latency, but more importantly it reduces cost. Sometimes it's more than 80% of the total cost.

I'm sure most companies and customers will consider compromising quality for 80% cost reduction. If they just be honest they'll be fine.

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The same company that claims they have models that are too "dangerous" to release btw.
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what's even more amazing is it took them two weeks to fix what must have been a pretty obvious bug, especially given who they are and what they are selling.
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they just vibecoded a fix and didnt think about the tradeoff they were making and their always yes-man of a model just went with it
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