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Anthropic’s best AI model struggles to attract users as cheaper tools thrive

Anthropic’s best AI model struggles to attract users as cheaper tools thrive A few interesting numbers in this FT story gathered from "people with knowledge of the matter": Anthropic's "annualized revenue" for July is up to $65bn - it was $47bn in May, and I collected more historic numbers here . Anthropic expect Q3 to be profitable according to the same model they used to declare Q2 profitable.…

We haven't written up this one. Simon Willison has the full story — the link below goes straight to it.

Read the original at simonwillison.net →

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Why this blog exists

Originally published on Loop & Retry — field notes on building LLM agents that survive production. Most writing about LLM agents is either a demo that works once on stage or a thread promising the…

  • Loop & Retry blog fills gap between demos and tech singularity claims
  • Author focuses on realistic agent deployment with unexpected issues
  • Posts demonstrate failing version and subsequent fixes with measured data

Model Cascade: making LLM classification cheaper

Many LLM workloads are classification tasks. This can get expensive, and I believe it is going to become more and more important, especially with the proliferation of software factories.

  • Model Cascade uses a cheap proxy model and an expensive oracle model
  • BARGAIN paper shows up to 86% cost reduction on various datasets

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