Post

OpenAI is negotiating down your Anthropic bill more than any volume discount you could dream of. When market competition works, it *really* works.

This isn’t market competition. Two providers does not a market make

I suspect a lot of the API pricing pressure is coming from DeepSeek. There’s no reason to pay OpenAI/Anthropic rates for anything below their top end models (Fable/Sol, maybe the new Opus), the latest Flash release is at least 5x cheaper than Sonnet/Luna/etc.

Sure there is. I’m not a fan of the PRC having access to every single thing I type into a harness.

Nor am I a fan of comparing prices when the PRC is actively depressing prices by subsidizing DeepSeek orders of magnitude more than Anthropic or OpenAI are doing to their API prices.

I also doubt the government is subsidizing DeepSeek either (because API pricing for for Kimi, GLM, MiMo etc is roughly the same inside/outside China). If there are subsidies, it's probably indirect (e.g. cheaper Huawei NPUs), which probably benefits everybody by putting pricing pressure on NVIDIA.