Cheap AI threatens Anthropic and OpenAI valuations ahead of IPO
Rising AI costs are squeezing margins. The high subscription prices for advanced models threaten to undermine future IPOs for Anthropic and OpenAI. According to Artificial Analysis, running a comparable workload on Claude costs $4811 versus $1071 on the Chinese model DeepSeek.
To cut costs, companies are shifting to a hybrid approach. They use cheap open-source models for baseline tasks and only engage Claude for complex cases.
Anthropic acknowledges the pricing pressure. In a report, the company noted that US developers are only a few months ahead of their Chinese counterparts, but Beijing is gaining ground globally due to the lower cost of solutions.
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