Of course they'd charge more if they could... Of course they're pricing to outcompete their competitor...
replyThey also have postponed their IPO. So they don't have to be profitable that soon. Anthropic on the other hand plans to do the IPO this fall.
replyHN discovers competition leads to lower prices
replyThey're cutting prices because they want to cannabalize the market for people using models like deepseek via API as well as people paying for anthropic subs.
replyWhen they cut prices on luna the first time around they took (literally) millions of users from anthropic.
Any business would charge more if they could. Jevon's paradox would mean that they can make more money by charging less because demand is going to keep growing.
replyFWIW, what you're describing is a simple demand curve, not Jevons paradox.
replyThe "paradox" is when an increase in efficiency which would decrease the use of a resource all else equal, instead indirectly causes more use.
Ya, are LLM's not a great example of Jevon's paradox? I don't think Jevon's needs all else being equal. The paradox being that we should be able to use things less because they are more efficient, when instead they get used more.
replySurely, a large part of the increase of the demand in LLMs is in their intelligence, but to hit the demand models needed to be made more efficient, and labs found that more efficient models, still demanded more usage.