Amazon engineers are reportedly distilling Anthropic models to cut costs before new token-based pricing kicks in
Amazon is reducing the size of its AI models to save money before a new pricing system kicks in. This system will charge based on the number of tokens processed, which could increase costs.
What happened
Amazon engineers are taking existing AI models from Anthropic and shrinking them to make them more affordable. This is happening because Amazon will soon start paying for AI usage based on the number of tokens processed, which could greatly increase costs. They're also looking into alternative AI providers like OpenAI.
Why it matters
As a business owner, you may be affected by Amazon's changes to its AI pricing. If you use Amazon's AI services, you could see your costs increase. You may want to review your current contracts and consider alternative AI providers to mitigate potential cost hikes.
The takeaway
Review your current contracts with Amazon and consider alternative AI providers to prepare for potential cost increases.
Our plain-English take, written from public reporting for operational business owners. Always read the original for full context.
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