00:00Interesting timing on the release of this. What do we need to know here?
00:04Yeah, so Anthropic, what they're doing here, and we've been seeing this increasingly lately,
00:09they're releasing a model that they're saying is very capable, but it's also more cost efficient.
00:14We've been seeing as more and more companies are using AI from companies such as Anthropic,
00:20OpenAI, Google, they are realizing, wait, this can cost a lot of money. And some companies have
00:27even imposed limits on how much they're allowing people to do work. So this is an attempt,
00:31as you noted before, the IPO to say, hey, we can be a little more cost conscious with our technology.
00:38Compared to the prior generation Opus 5, they're saying 40% cheaper. Pricing is $4 per million
00:44input tokens, $20 per million output tokens. Explain why the economics of that matters
00:50when a generation of models release like this. Sure. So when you're talking about tokens,
00:57in and out, you're talking about things that you're putting into a model like a prompt versus
01:02what the model is generating. And these costs, they may be lower, they may be different. I think
01:09it really also is important to keep in mind that it depends on what kind of tasks you're doing.
01:14Some tasks are going to be more computationally heavy than others. So results may vary depending on
01:20who the user is and what they're doing with it. It's not as simple as just looking at a chart
01:24to figure
01:25out, oh, this will cost me this much less or this much more.
01:28Rachel, I want to go back to the timing of this. How normal is it for Anthropic to release different
01:34generations of Claude with some cadence? The backdrop is obviously, in the last two weeks,
01:40the essay from Anthropic CEO Dario Amodei about pacing the frontier. But they've just released a
01:46new model, which there's an emphasis of performance on.
01:50Sure. So I mean, there's, as you noted, there's a few things going on there. They've got the IPO
01:55looming, like in the very near future, as we and others have reported. Dario Amodei also said that,
02:02hey, we should pace the release of the most cutting edge AI. What they're doing here is releasing a model
02:10that is not comparable to their most capable publicly available models right now. So it seems to fit in with
02:15those kinds of things. Both the IPO wanting to show investors, hey, we're still doing really
02:21important work here. And we're thinking about our customers, but also with pacing, how quickly
02:27they're releasing most cutting edge things.
