Anish Acharya

So it had this sort of interesting product characteristic that a bunch of companies built around, a bunch of companion companies in particular.

So I think there are these idiosyncratic reasons we choose the open models for product quality.

But in most cases, I think companies are thinking about maximizing the sort of direction of ambition and their ability to fulfill it versus taking cost out.

And closed is still a bit advantaged there.

Now, the nice thing about closed is they too have been cutting their costs, right?

So granted, Close is more expensive than Open in many cases, but the cost of actually a token on GPT-4.0 has gone down 100x since the model was released.

I don't think so, because I think what we keep seeing is as the models get better, downstream players' ability to take those capabilities, productize them, and raise prices has outstripped the raising costs, right?

So the incremental cost increase potentially, and in many cases not a cost increase, but it's not a cost decrease, is so far outweighed by what the new capability unlocks

like the coding agents, right?

What you can do with coding agents, Cloud Code came out last February, is dramatically better.

Is anybody here saying, well, I should go back and use Sonnet 3.7 because it's cheaper?

Or I should use something other than Opus 4.5 or Codex 5.2?

Nobody is saying that because the capability is so much more powerful.

It really sparks your imagination in the other direction.

What more can we do rather than how do we make the existing thing cheaper?

Okay, so this is actually a fun topic, which is that the fact that these products have costs are a very good thing.

But what it means is Jason's going to have to figure out his business model early.

So this field of dreams investing where a company builds a free product and they're like, someday we'll figure out a business model.

That's not viable.

It's like, no, you have costs today the way that every small business in the history of small businesses has had pre-software.