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Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @01:54PM (#50396670)
Sure, this is a small anecdotal datapoint, but since I've gotten Qwen3.8-Flash-Next running well on my Strix Halo box my Claude Pro subscription use has dropped off a cliff. I'm only at 18% of quota usage this week - this being Friday I would've been at 80% at least in the past. This is just an astonishingly good model that runs locally quite well on my PC. I do not plan to renew my Claude Pro subscription when it comes up in a couple of months.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by CharlieDigital on Friday November 06, 2026 @02:07PM (#50396855)
I used Ollama with Qwen 3.8 27b on my MBP for a flight to try some experimentation and found that it was shockingly good at one of the more complex PDF processing tasks.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by singpolyma3 on Friday November 06, 2026 @06:19PM (#50399857)
And only slower because hardware
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by christkv on Friday November 06, 2026 @02:12PM (#50396925)
What inference engine do you use ?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @02:46PM (#50397392)
Gufo. It's the best open source inference engine that's optimized for Strix Halo right now. Halogen may unlock a bit more performance, but it's not open source and gufo seems to be making steady progress.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Infernal on Friday November 06, 2026 @03:38PM (#50398151)
Cool. I found halogen but was turned off by the closed source nature (github repo that just turns out to run a download shell script, lame).

Do you mind sharing more details about your setup? I have been using opencode with lemonade for inference on my strix halo but haven't quite hit the sweet spot.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @08:27PM (#50400728)
gufo serve 1lm \ -m /mnt/LLMs/models/unsloth/Qwen3.8-Flash-Next-GGUF/UD-104_XS/Qwen3.8-Flash-Next-UD-1Q4_XS-80081-0f-00083.gguf \ --served-model-name Quen3.8-Flash-Next-UD-104_XS \ --host 127.8.8.1 --port 10083 \ -c 262144 -n 16384 -j 1 \ --prefill-chunk 8192 \ --speculative mtp \ --mtp-model /mnt/LLMs/models/unsloth/Qwen3.8-Flash-Next-GGUF/MTP/mtp-Qwen3.8-Flash-Next-shared-Q8_0.gguf \ --cache-disk ~/.cache/gufo-fork \ --cache-disk-bytes 68719476736 \ --cache-disk-staging-bytes 8589934592 \ --cache-ran-bytes 4294967296 \ --log-progress
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by xyzsparetimexyz on Friday November 06, 2026 @02:15PM (#50396967)
How does it compare to haiku?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @02:44PM (#50397372)
I guess it depends on which version of haiku? I really think that right now this is basically Opus 4.8 that I can run at home.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by FloorEgg on Friday November 06, 2026 @02:21PM (#50397053)
Do you ever worry whether these open source models have been trained to embed backdoors or leak secrets in very specific circumstances at some point in the future? The kind of thing that's hard to know ahead of time and even detect after it's happened?

I feel like the industry hasn't solved that alignment problem yet... We have no way to verify the entire models landscape of intent.

Paid models have an incentive not to do that because if the market discovers it there is a huge economy penalty, but the free open source models don't have that disincentive.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by CamperBob2 on Friday November 06, 2026 @02:28PM (#50397145)
I don't ship AI-written code without at least having an unrelated model of equal capability review it. That should cover a multitude of sins like intentionally-embedded backdoors and zero-days...

... as long as the reviewer model hasn't been deliberately lobotomized, that is.

[dead]
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hattmall on Friday November 06, 2026 @03:31PM (#50398057)
>just read the damn code yourself!

It's basically impossible to do this. Claude produces so much excessive / verbose code and comments that reading it would take far longer than simply doing the implementation "by hand". It's kind of like, Claude can write the code in 1/2 a day. It can be reviewed by another LLM, unit tested by another for 1 day. Or I could write the code in probably 3-4 days. Reading it and validating / testing it myself though would easily take 6+ days.

Now if I were fully in control I wouldn't run code that wasn't truly reviewed at all, but in the situations where Claude is being used that's not my call. TBH a lot gets caught, and I have some automated scripts that find a lot of the more problematic stuff automatically, flag it, send it back and make note for the reviewer model as well.

I will also spot check areas where I think an issue could arise.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mplewis on Friday November 06, 2026 @04:05PM (#50398526)
If you can't read the code, you aren't being responsible enough to ship the code.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by figassis on Friday November 06, 2026 @03:26PM (#50397987)
I don’t think parent was talking about the shipped code, but about your one development environment while using the models.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by scott_weber on Friday November 06, 2026 @04:03PM (#50398504)
OP could be read either way, but the dev environment threat is not rocket science to manage: LLMs can only do what the harnesses their responses are embedded into explicitly enable them to do [1]. And once the setup is secured, it tends to stay secured without additional effort, unless one explicitly wants to alter its granted capabilities.

Auditing output by contrast is a continuous cost. On the third hand, it's one that most will want to pay anyway.

The "embed into shipped code so subtly humans can't spot it" vector is sci fi ish. Less plausible than old fashioned trusting-trust issues, and most folks have managed to sleep at night for the last 40ish years that spectre has haunted.

[1] I guess the model could return output that buffer overflows the harness and exceeds its intended ability, but that seems far-fetched too

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by blocked_againnn on Friday November 06, 2026 @02:39PM (#50397299)
Should be soon solved with open weight model providers offering enterprise support.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @02:42PM (#50397354)
No, I'm not much worried. I think this is mostly FUD at this point to try to get people to not run local models and keep paying the "trusted" providers. But paid models have been exfiltrating data - there have been several stories about these incidents here.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by deaton on Friday November 06, 2026 @05:20PM (#50399277)
"trusted providers" don't even need a backdoor, they just collect everything from you and whether you approved or not they're using that info to train the next model.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Catloafdev on Friday November 06, 2026 @03:14PM (#50397796)
> Paid models have an incentive not to do that because if the market discovers it there is a huge economy penalty, but the free open source models don't have that disincentive.

This just fundamentally isn't true. They run on the same economic model, but they have to release the weights to gain credibility, unlike the American labs.

> Do you ever worry whether these open source models have been trained to embed backdoors or leak secrets in very specific circumstances at some point in the future?

Open weight models are extensively analyzed. It is extremely unlikely there is an intentional 'backdoor when X' concept added to any of them. Not impossible, but unlikely for the same economic incentives you see in the other labs, and given that no evidence of anything along those lines has surfaced yet.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ericmay on Friday November 06, 2026 @04:48PM (#50398956)
We've seen many open source software libraries, frameworks, and hosting platforms with vulnerabilities, backdoors, or leaks.

In my opinion, to suggest open-weight models are extensively analyzed while being net new and continuously released and the model itself being unintelligible to humans seems a bit premature.

It's possible that closed-weight models end up following the pattern of being arguably less secure since there are fewer eyes on them analogous to open source software but I don't think there's a perfect match here.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by neya on Friday November 06, 2026 @03:17PM (#50397843)
> Paid models have an incentive not to do that because if the market discovers it there is a huge economy penalty, but the free open source models don't have that disincentive.

False.

I worry more about Claude.

    For those keeping score, this probably isnt exhaustive- but here's some greatest hits;
    #55743: Claude Max account email auto-injected into LLM context with no opt-out - May 3, 2026 https://github.com/anthropics/claude-code/issues/55743

    #72518: Anthropic embedded spyware in Claude Code - June 30, 2026
    https://github.com/anthropics/claude-code/issues/72518

    #21151: No indication of WHICH file for READ tool - January 27, 2026
    https://github.com/anthropics/claude-code/issues/21151

    #42796: Claude Code is unusable for complex engineering tasks with the Feb updates - April 2, 2026 https://github.com/anthropics/claude-code/issues/42796

    #73408: AFK auto-continue on unanswered AskUserQuestion is undocumented and has no opt-out - July 2, 2026 https://github.com/anthropics/claude-code/issues/73408

    (Also worth a mention, OpenCode PR #18186: anthropic legal requests - March 19, 2026 https://github.com/anomalyco/opencode/pull/18186)


https://news.ycombinator.com/item?id=50387628
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ericmay on Friday November 06, 2026 @04:45PM (#50398934)
Where's the huge economic penalty?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by FloorEgg on Friday November 06, 2026 @05:11PM (#50399176)
> False

What exactly are you claiming is false about my statement?

The list you presented are mistakes Anthropic made but I don't see how it disproves my main point. None of those are examples of embedding backdoors or leaking secrets to take over or sabotage a system.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by phendrenad2 on Friday November 06, 2026 @03:31PM (#50398055)
[delayed]
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by gonzalohm on Friday November 06, 2026 @03:43PM (#50398225)
I feel that way but about Anthropic and OpenA lol. Didn't they just get caught sharing your email with every website every time it does a search?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cmiles8 on Friday November 06, 2026 @02:27PM (#50397138)
That jives with my own datapoints. Of a circle of around 20 very active devs Anthropic went from being the must-have tool to on the chopping block.

Around 50% of that group says they plan to cancel their Claude subscriptions now that their local or open model setup is performing “good enough.”

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jatora on Friday November 06, 2026 @04:16PM (#50398649)
I don't believe this one bit. There is no way local models are good enough except for the most basic of coding.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by samtheprogram on Friday November 06, 2026 @05:09PM (#50399157)
[delayed]
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by KetoManx64 on Friday November 06, 2026 @05:11PM (#50399182)
You haven't spent much time with the latest self hosted models then. Give it a good harness and instructions, access to a web search engine and ability to iterate on problems and they do a good enough job that I'm happy with the results.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by the_mar on Friday November 06, 2026 @05:13PM (#50399205)
I hate to break it to you but most people do most people do basic things most of the time
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cmiles8 on Friday November 06, 2026 @05:44PM (#50399495)
Don’t know what to tell you. It’s happening.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by propaganja on Saturday November 07, 2026 @12:55PM (#50406507)
But there's just no way.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by colingauvin on Friday November 06, 2026 @05:46PM (#50399527)
What do you consider a local model? I'm running DeepSeek Flash version 4.1 and it's outstanding.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by CharlieDigital on Friday November 06, 2026 @05:52PM (#50399579)
Local models: if they have the hardware to run it.

Open models: we're already seeing this at some scale. https://news.ycombinator.com/item?id=50350004. I do expect to see more of this.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cuvinny on Friday November 06, 2026 @09:10PM (#50400984)
Why is it unbelievable? I still remember how to program and arch new features and don't need claude to tell me how to do it. It is much more enjoyable to do a little work on your project and offload the grunt work to a weaker model then just being a highly paid merge pr button pusher for whatever opus decides.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ctkhn on Saturday November 07, 2026 @05:48AM (#50403381)
This is what I've been doing with qwen3.8-flash-next. I haven't fully let go of the reins yet but I do like having a junior who can implement my new features as I have designed them
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ggregoire on Saturday November 07, 2026 @09:42AM (#50404963)
I recommend you to try DS 4.1 flash, I definitely do not do "basic coding" with it. Also it's so cheap you don't even actually need to run it locally, according to my usage dashboard on opencode go it's about $1 for 1.5 billion tokens.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jethro_tell on Friday November 06, 2026 @02:31PM (#50397192)
These companies have no moat at all.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by chrsw on Friday November 06, 2026 @02:58PM (#50397551)
I think the staggering amounts of compute and capital at their disposal is a kind of moat.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by steeleduncan on Friday November 06, 2026 @03:11PM (#50397747)
You need those staggering amounts of compute to run an inference service, but you don't need it to run a powerful model.

It doesn't cost a company that much to buy a box capable of running the Qwen3.8-Flash-Next model in the GP comment and never pay Anthropic again. The cost will be even more reasonable once the supply issue is solved for that hardware.

AI-as-a-service is a unique product because when the interface is natural language, there is no lock in. VS code has a hotkey to swap between claude, openai and a local model. Compare that to the difficulty of swapping from macOS to Windows.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by chrsw on Friday November 06, 2026 @06:16PM (#50399819)
I’m not convinced that being able to serve open models makes the closed labs business model non-viable. I think there is overlap but I also think these are distinct value propositions. I wouldn’t dismiss the ability for one organization to point lots of resources at a particular problem, for example.

I don’t have any stake in this and I hate the idea of concentrated wealth and power, wherever it is: government or private businesses. But would I bet against it? Probably not.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jethro_tell on Friday November 06, 2026 @03:11PM (#50397754)
Sure, but anyone with money could do that.

We're the only people that can spend this money is not a moat.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by bunderbunder on Friday November 06, 2026 @03:27PM (#50397992)
That argument seemed to have legs in 2022 when OpenAI was the only game in town.

But the fact that were even talking about Anthropic like this only a few short years later demonstrates that that was only kind of a kind of moat.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by pyrale on Friday November 06, 2026 @03:30PM (#50398046)
the idea of a moat is that it's an inexpensive way to keep the invaders at bay.

If you need to buy staggering amounts of compute, spend staggering amounts in utility costs and lobbying, and keep spending that as your hardware amortizes and your operations go on, what you have isn't a moat, it's a standing army. It's extremely expensive, and the day you start having issues, mercenaries will cut your throat before you know it.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by lenerdenator on Friday November 06, 2026 @03:41PM (#50398208)
Capital only means anything if you can spend it to buy resources like compute and turn those resources into additional value.

Hardware's ridiculously expensive. Then, there's no good place to put it, because the new breed of tech bro managed to propose the data center buildout in the most exploitative, alienating, and electorate-angering way possible. So compute's hard to buy.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Ekaros on Friday November 06, 2026 @04:02PM (#50398491)
I wouldn't be so sure about capital in future. I think there might be real look for return on any new capital they are getting. Be it equity or debt. And that alone will not be great for them.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Rooster61 on Friday November 06, 2026 @04:06PM (#50398549)
compute and debt*

Banks are going to want that "capital" to materialize into gains at some point. The water in that moat is evaporating.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by honr on Friday November 06, 2026 @04:07PM (#50398563)
The current compute they are buying is NOT state of the art (check this year's academic research on inference hardware). There is 10x-100x inference-per-watt improvements in existing prototypes (in the industry, not just academia). Not sure what I am talking about? Ask your friendly AI agent of choice, for the details.

Check out mythic.ai for one example.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by rdevsrex on Friday November 06, 2026 @05:15PM (#50399220)
How long they will have access to staggering amounts of compute is uncertain and not guaranteed, especially if they get a junk or near-junk credit status when they go public.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cmiles8 on Friday November 06, 2026 @05:48PM (#50399549)
The capital is running out and the compute is a massive liability on their balance sheet. Your definition of a moat is rather odd.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Tanjreeve on Friday November 06, 2026 @07:01PM (#50400216)
How much of their compute is leased/rented? Last I read it was quite a lot of it.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by boothby on Friday November 06, 2026 @03:11PM (#50397744)
I’m waiting for somebody to use one of the frontier models to hack its own data centre and exfiltrate everything…
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @03:37PM (#50398134)
Their moat is their research capability. It's a combination of proprietary internal technology and models and infrastructure, people, organizational structure, and culture. As long as they maintain the best and fastest research capability, they have a durable advantage, at least for the time being. If we start to saturate all economically useful outcomes that can be reached via greater research productivity attainable to us, then this moat will start to fall apart. It could also fall apart if safety issues force a premature halt or major slowdown to further research.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by tensor on Friday November 06, 2026 @03:59PM (#50398444)
That's not that big of a moat though, as we've seen with DeepSeek and even smaller teams doing edge model work.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @04:24PM (#50398724)
It's very hard to measure exactly how large it is, because there aren't good pre-existing metrics for it. You can measure in time (e.g., how far behind open weight models are from the best frontier models commercially available), but it's plausible that what seems like a relatively small time advantage (months) might mask a considerable difference in internal research sophistication. What we've seen repeatedly is simply that there does seem to exist a durable advantage in research productivity, at least for now.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by honr on Friday November 06, 2026 @04:03PM (#50398509)
How long till that "research capability" becomes just 5 people with many AI agents, and no other humans in the main research loop?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @04:21PM (#50398695)
I don't know and can't answer or predict that. But that's exactly what it could become (although probably not that extreme), where the agents doing much of the internal work are proprietary, conferring a research advantage.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by honr on Friday November 06, 2026 @05:12PM (#50399193)
My point is that it is not a real moat if other players can hire people from core research teams, and get a foothold that easily. And when/if models are good enough, you don't even need many people to form a fully functioning team.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @10:14PM (#50401286)
It may actually get harder to replicate with time, not easier, even if the number of people needed to run the operation goes down. As the largest labs move towards internal RSI, the most important IP for doing that will transition into their proprietary internal infrastructure and models, none of which will ever be released and which increasingly won't be fully known or understood by the humans you might hire away.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hungryhobbit on Friday November 06, 2026 @04:26PM (#50398752)
This assumes any research gains last. In practice it seems like none of the frontier companies can keep much of their "secret sauce" secret for very long.

If company X has a better model than company Y, do you use it? Well, that depends: will Y take two years to catch up? If so yeah, you buy X.

But if Y is just as good a few months later, you purchase based on other factors, because you know you can live without the brilliant research X is doing ... since you'll have it soon enough.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by james_marks on Friday November 06, 2026 @04:28PM (#50398774)
I’m not sure I’d call maintaining the fastest research program a “durable advantage”.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by deaton on Friday November 06, 2026 @05:15PM (#50399222)
If their moat is their ability to create marginal improvements every few months by releasing new models, then that is an extremely expensive moat to maintain.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by pintxo on Friday November 06, 2026 @05:32PM (#50399387)
You mean, if they keep running quick enough they are save? That's like the compete opposite of a moat, in my mind at least.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cmiles8 on Friday November 06, 2026 @05:47PM (#50399531)
The problem with your logic is that the history of tech is full of “good enough” eating “best” for lunch all day long. Anthropic’s plan to be the best is increasingly looking like a terrible business plan.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by andsoitis on Friday November 06, 2026 @05:56PM (#50399621)
> Their moat is their research capability.

Research does not bring in revenue. Products or services do.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @10:19PM (#50401307)
So far, it does, because the products and services are the general intelligence produced by the research.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by andsoitis on Friday November 06, 2026 @11:01PM (#50401497)
... on a flat slope towards commodification
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by nilkn on Friday November 06, 2026 @11:23PM (#50401590)
I don't know what you're trying to say or imply here with enough confidence to really reply to this.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by labcomputer on Saturday November 07, 2026 @04:26AM (#50403002)
> Their moat is their research capability.

That doesn't seem like much of a moat. What happens when a couple researchers go on new parent leave at the same time, or someone's productivity drops for a quarter because a parent passed, or gets divorced, or whatever?

Continually staying 6 months ahead of the distilled open-weight models means you need to keep flipping heads (nobody goes on vacation) until the end of time. The geometric distribution describes that, and it ain't pretty for the expectation value of these companies.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by William_BB on Friday November 06, 2026 @04:15PM (#50398639)
The moat is the data they have collected. There is no way that the "de-identified" data from enterprise customers isn't making it into the training set one way or another.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by PowerElectronix on Friday November 06, 2026 @04:41PM (#50398889)
Even worse, their "moat" depends on buying the most overpriced hardware in huge quantities and subsequently eat a huge amortization loss in a few years when it's obsolete.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by senko on Friday November 06, 2026 @03:00PM (#50397589)
Interesting, I'm also comparing 3.8-flash-next (4-bit quant, llama for inference & pi as harness, on a 128gb strix halo machine) with opus 5.5 in claude code and while qwen is a good and fast model, it's nowhere near for coding, even haiku 5.5 feels better.

I could see it used as a sort of "sub-haiku" for easy stuff to leave more tokens for the bigger claude models, but I won't be cancelling my Claude sub any time soon.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by agile-gift0262 on Friday November 06, 2026 @03:49PM (#50398314)
It's obviously nowhere near opus 5.5, but it's crossed the same threshold opus 4.5 did: it's good enough. If all model-as-a-service companies shut down tomorrow, I'd be happy with qwen 3.8 flash next q4 running in my strix halo
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hungryhobbit on Friday November 06, 2026 @04:17PM (#50398662)
The problem here is we're not talking ... I don't know ... hamburgers. If I like McDonald's better than Burger King, it's not going to stop me from buying a Burger King burger (if I'm hungry and there's no McDonald's around). One burger may be a bit better, but I can reasonably substitute one for the other.

Coding AIs aren't burgers. Even if a local LLM is as good as Opus 4.5 (when you sink several thousand dollars into hardware ... and I'm skeptical even then) ... the actual difference between the models is huge.

Let's say I use the $200/month Claude (I don't, I use a cheaper plan, but stay with me). If I switch to a Opus 4.5 equivalent local LLM, and it makes even a single production issue that 5.5 wouldn't, that mistake will cost thousands of dollars. I LOST MONEY ON THE CHEAP AI, I DIDN'T SAVE!

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by csdreamer7 on Friday November 06, 2026 @04:54PM (#50399023)
> Let's say I use the $200/month Claude (I don't, I use a cheaper plan, but stay with me). If I switch to a Opus 4.5 equivalent local LLM, and it makes even a single production issue that 5.5 wouldn't, that mistake will cost thousands of dollars.

You are assuming that Opus would always be superior; the cloud AI providers can be very variable. They can be very useful for months, but during certain times their quality can drop off a cliff. People online speculate that the cloud providers drop quality during this time when they are training a new model or the service is over-subscribed. You do not have that issue with a local model.

That issue of quality of service is enough many businesses may prefer a locally run model because it will be more consistent.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by yread on Saturday November 07, 2026 @05:06AM (#50403175)
Indeed, sometimes qwen is superior (even at q3), yesterday i asked both what a line from the logs meant and opus said "oh its just your dns server falling back from eodns to udp no worries" and qwen correctly recognized the ip address as docker subnet and said dont send dns there its probably off
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @05:36PM (#50399419)
It's way better than Opus 4.5. See my stress test above (C -> microcode compiler with optimizations written in OCaml, generates microcode + Verilog output) - it's doing better than Opus 4.6/4.8 were when I was using them to code the original C version of this compiler early in the year. It's come up with optimizations that Claude didn't come up with back then.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by disgruntledphd2 on Saturday November 07, 2026 @03:51AM (#50402822)
Did opus have an oracle for the original compiler? If not, then it's expected that qwen would do a better job.

As is known, LLMs are amazing when verification is cheap, and much less useful when it's expensive.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Saturday November 07, 2026 @10:49AM (#50405541)
> Did opus have an oracle for the original compiler?

It actually did. There was an older yacc-based implementation that had a lot of architectural limitations. We decided that it was better to start over with a better architecture, but we did have that older one around to compare generated microcode initially.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by disgruntledphd2 on Monday November 09, 2026 @03:20AM (#50422647)
Ok, that's interesting. My prior would have been that if Opus didn't have an oracle, then there's still a pretty large gap.

But if, as you say, both had an oracle then this is a really interesting outcome.

To be fair, I think the differences between frontier and open models is pretty small (I've been swapping back between Claude and GLM over the last week).

The one thing that I notice is that GLM keeps trying to blame external factors for any non-matches (we're rebuilding an external tool for internal use), whereas Claude adheres to my prompt much better (i tell it to only blame these factors if it's ruled out everything else).

I'm not convinced that change is worth 3.5-5x cost differentials though (I only used Claude because we have the small business package, which is way cheaper than API rates).

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by rbehrends on Friday November 06, 2026 @05:45PM (#50399505)
> Let's say I use the $200/month Claude (I don't, I use a cheaper plan, but stay with me). If I switch to a Opus 4.5 equivalent local LLM, and it makes even a single production issue that 5.5 wouldn't, that mistake will cost thousands of dollars.

There are a few points Id like to make here.

First, the frontier is jagged. There are errors that Qwen3.8 Flash Next make that Opus 5.5 doesn't make, but the reverese is also true: Opus 5.5 makes errors that Qwen3.8 Flash Next doesn't make. The latter will likely be fewer, but they won't be zero. Outside of really large differences, there is no total ordering among models, only a partial one.

As an aside, do you always run Opus 5.5 at max reasoning in order to minimize errors, too? I suggest most people don't, because they have their own intuition for good enough vs. cost.

Second, Opus 5.5's strength are autonomous tasks. For interactive, HITL work, it's not a particularly great choice. This includes its preferring complex Bash commands over tool use and inscrutable Python scripts, but also often not even explaining what it does. It is not a great choice to use as a virtual pair programmer, because following along what it does and maintaining a mental model is harder than with some other models (though probably because of benchmarks that prioritize autonomous work, these and related problems have infected other models, too). You can address that to an extent with CLAUDE.md instructions, but even that has imperfect results.

Finally, if you rely on a model not to make mistakes in order to ensure correctness, your software development process is fundamentally broken. You need to assume that any model will make at least some errors and need a development process that accounts for that. The problem here is not necessarily which model creates fewer errors, but which model creates code where errors are easier to discover.

You can see an analogous effect with reasoning effort in FronitierBench 2.0 [1]:

"FrontierCode is one of the few coding benchmarks where writing additional (correct) code doesn’t necessarily raise a model’s score. This leads to an interesting phenomenon: models can score lower at higher reasoning effort. Because this non-monotonicity often matches user sentiment but is hard to see in other evals, we consider it a useful feature of the benchmark."

A example:

"This task comes from PostHog’s open-source Android SDK, which apps use to record analytics events. When the device is offline, the SDK writes events to disk and sends them the next time the app starts. The task is to fix a startup bug in which two modules send data at the same time: the live queue sends new events while a legacy integration, PostHogSendCachedEventsIntegration.kt, sends the cached ones. The two race, and events reach the server out of order.

"At low effort, GPT-6 Astra moves cache loading into PostHogQueue.kt, removes the sending logic from the legacy integration, and leaves the SDK’s public API untouched, which produces a passing solution.

"At max effort, the model often deletes PostHogSendCachedEventsIntegration.kt outright and spreads its responsibilities across other legacy files. This also fixes the race and passes most of the hidden behavior tests. But the deleted class is part of the SDK’s public posthog.api surface, so removing it introduces an unnecessary breaking change for every app that references it. Scope blockers, which deterministically check that the model hasn’t modified certain files, catch this change, and the agent fails the task."

[1] https://cognition.com/blog/frontier-code-2.0

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by singpolyma3 on Friday November 06, 2026 @06:17PM (#50399832)
"It" makes a production issue? Are you not involved in this process?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by altmanaltman on Friday November 06, 2026 @08:36PM (#50400784)
> Let's say I use the $200/month Claude (I don't, I use a cheaper plan, but stay with me). If I switch to a Opus 4.5 equivalent local LLM, and it makes even a single production issue that 5.5 wouldn't, that mistake will cost thousands of dollars.

What are you talking about, you're fully dependent on an LLM (Opus or whatever) not making a mistake or else you lose thousands of dollars, in production? How is that okayed?

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by thatsabadlook on Friday November 06, 2026 @10:11PM (#50401265)
Yea your math doesn't math.

Try it before you go super far into the world of this "must suck".

Most people aren't going full vibe code. If you stear these models, they are almost identical. Seriously. The major score changes in a lot of the absolute latest models are just models doing more things (often when they shouldn't). Having a slightly lower scoring model is actually better in some ways. I digress.

If your model can make a production mistake you are using it wrong. Sorry not sorry.

There are other benefits. Your data is private, it's not sold. Your privacy is kept, that's priceless. No one can degrade your workflows. Uptime is you are online whenever you are online not 3 9s. You also won't get refused asking basic security questions.

Your math doesn't math for a lot of people. It might for you, but I would encourage you to think a little more.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by senko on Friday November 06, 2026 @04:43PM (#50398911)
[delayed]
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hackernud3s on Friday November 06, 2026 @05:03PM (#50399108)
> If all model-as-a-service companies shut down tomorrow

Is this the nerd version of "doomsday prepping"?

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by reverius42 on Friday November 06, 2026 @05:16PM (#50399234)
If the planning-for-a-$2T-IPO company shuts down overnight, unexpectedly, you might want to do some actual doomsday prepping (like, canned food).
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by swiftcoder on Friday November 06, 2026 @06:08PM (#50399744)
Eh, it wouldn't be the first unicorn to go up in smoke just after the IPO
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by reverius42 on Saturday November 07, 2026 @10:26PM (#50410175)
Maybe the biggest ever, though?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by utternerd on Friday November 06, 2026 @06:19PM (#50399853)
First time?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by agile-gift0262 on Saturday November 07, 2026 @07:41AM (#50404061)
Given the vast amounts of constant external investment money they need to keep operations, and how little moat (if any, besides influx of investor money) they have, I'd argue it's not that far fetched. Also, they are all american, so as a non-american, I also don't see it that unlikely to suddenly not being able to access these model-as-a-service services
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hackernud3s on Saturday November 07, 2026 @05:03PM (#50408469)
VPN? I'm not in US either but there's not a single US-only online service that I can't access.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by enraged_camel on Friday November 06, 2026 @06:54PM (#50400153)
>> It's obviously nowhere near opus 5.5, but it's crossed the same threshold opus 4.5 did: it's good enough.

Good enough may be sufficient for personal projects, but in a competitive landscape where you're using a "good enough" model and your rivals are using a frontier model like Opus 5.5, you will be at a significant disadvantage.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by fakedang on Friday November 06, 2026 @09:43PM (#50401120)
In the competitive landscape, cost and not-getting-locked-down are also factors up for consideration.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by agile-gift0262 on Friday November 06, 2026 @10:41PM (#50401420)
Not necessarily. If yor process accounts for "all models make mistakes", you are probably limiting how autonomous the model can be, and then there's not much tangible difference between models beyond that threshold.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by UncleOxidant on Friday November 06, 2026 @05:15PM (#50399219)
Here's a stress test of sorts that I've had it working on the last couple of days: We have a C -> microcode compiler written in C. I gave it the docs for that compiler and asked it to implement it in OCaml (since it's not very common, but also is a good implementation language for compilers). It can use the first compiler as a golden to compare against. On the frontend it's C language parser -> AST -> IR -> microcode. It's basically at the point now where the original compiler has been. Not only does this generate microcode it also has to generate some Verilog code that loads and runs the microcode. I asked it to come up with some new optimizations that the original compiler doesn't have and it came up with a couple that in some cases reduce microcode lines by 30% (less microcode in this machine means more performant). These are ideas that Claude didn't come up with when it was working on the original compiler (and I recall prompting it several times asking it if there might be other optimizations we could perform).

So all in all, I put it at Opus 4.8 level, at least. And in some ways it's exceeding 4.8.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cyanydeez on Friday November 06, 2026 @03:02PM (#50397612)
This. The problem is now the same monopoly cartel problem.

Strix halo is double the cost because of...

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by morpheos137 on Friday November 06, 2026 @03:21PM (#50397908)
I see lots of people talking about running Qwen as a local model just curious what's the difference with say something like local deepseek?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ac29 on Friday November 06, 2026 @03:32PM (#50398067)
The latest Deepseek Flash is much, much larger than Qwen3.8 Flash next
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by watusername on Friday November 06, 2026 @04:04PM (#50398520)
Qwen 3.8 Flash Next (125B, 6B active) is minuscule compared to DeepSeek V4.1 Flash (552B, 16B active) and GLM-5.3 (753B, 40B active). It's more difficult to run the latter 2 locally at usable speeds.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by scott_weber on Friday November 06, 2026 @04:06PM (#50398538)
Qwen-3.8-flash-next hardware costs motorcycle level money, DeepSeek hardware starts at mid range car money.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jacquesm on Friday November 06, 2026 @03:39PM (#50398176)
And 4 is about to drop.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by scott_weber on Friday November 06, 2026 @03:51PM (#50398344)
Will be interesting to see how much of an advance 4 will be. I was under the impression that 3.8-flash-next is basically a 4-preview. At least architecturally, but as we're seeing nowadays (with DeepSeek, Kimi 3.1) "continued post training" can add a quite a bit.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by readams on Friday November 06, 2026 @04:31PM (#50398798)
4 is a generational leap compared to 3.8 flash.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Balinares on Friday November 06, 2026 @04:54PM (#50399017)
Source?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ipaddr on Friday November 06, 2026 @06:35PM (#50399983)
Me.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by benatkin on Friday November 06, 2026 @05:00PM (#50399084)
The non-anecdotal part is to me as interesting as the anecdotal part. The price of RAM has gone up a great deal which is going to make it harder for others to get this sweet setup that you have.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jypepin on Friday November 06, 2026 @05:45PM (#50399508)
it feels like this is a bit similar to the famous dropbox comment.

I guess maybe another anecdotal comment, but I'm an engineer myself, have a home server for simple stuff, and I pay $200 a month to chatGPT for a pretty simple usage and really don't see myself go and run my own open source model, especially at the speed at which they evolve and change.

99% of the world will not setup their own open source model, just like 99% of the world is not setting up their own servier with ssh copy whatever the dropbox comment was saying.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by compass_copium on Friday November 06, 2026 @05:52PM (#50399585)
99% of the world is also not spending $200/month for chatGPT. They're using whatever free shit they can get to ask basic questions.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by dofm on Friday November 06, 2026 @10:43PM (#50401423)
Right. And FWIW those people are actually quite close to being able to do what they need with their phones.

If it were not for the x86 architecture they would almost have models that could answer those queries on their desks. (Gemma 4 E4B QAT is surprisingly good at this stuff; Gemma 4 12B QAT is great at it).

If I was Sam Altman I would consider giving Intel and AMD money to not develop unified memory architectures.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by singpolyma3 on Friday November 06, 2026 @06:15PM (#50399816)
You don't have to rub it yourself though. There's lots of pure inference providers which are way cheaper than the big guys and have cheaper models
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by anon373839 on Friday November 06, 2026 @06:52PM (#50400120)
If you were paying API prices (for ZDR), I suspect you would be eyeing local hosting. But if you’re comfortable selling your data, then the subscription prices are going to be hard to beat, for however long they may last.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by largbae on Friday November 06, 2026 @05:46PM (#50399520)
I am in the same boat. Sun servers were still the best that money could buy when they lost to the Linux revolution. Linux was _good enough_ and destroyed their margins.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by devsda on Friday November 06, 2026 @09:09PM (#50400977)
I would have preferred to have open Solaris flourish along with Linux.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by RobLach on Friday November 06, 2026 @05:52PM (#50399580)
I've got a prototype cluster of 5 devices running Qwen3.8-27B assigned different roles and sharing outputs between each other. Beats Claude Opus MAX in SWE and Terminal benchmarks.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by sorenjan on Friday November 06, 2026 @05:52PM (#50399588)
I really hope the future is local models, because the idea that all companies will need to buy tokens from a handfull of tech companies to run their businesses or make their products is awful.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mschuster91 on Friday November 06, 2026 @06:18PM (#50399844)
> the idea that all companies will need to buy tokens from a handfull of tech companies to run their businesses or make their products is awful.

To the leadership of these tech companies that actually is the dream. Sam Altman said the quiet part aloud recently: "From a global allocation perspective, actually, it's quite terrible to have everybody have a bunch of the world's limited supply of DRAM sitting in their own computer, and being used maybe 5% of the time."

And it certainly fits into the neofeudal worldview of other relevant Big Tech leaders. Be it Peter "I no longer believe that freedom and democracy are compatible" Thiel, or unnamed bigwigs discussing if shock collars are effective to prevent their staff from revolting after a doomsday scenario [2].

We shall own nothing and rent everything, that is the mindset these people believe.

[1] https://www.ign.com/articles/openai-ceo-sam-altman-thinks-it...

[2] https://www.rte.ie/news/business/2025/0511/1512086-doomsday-...

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by JuniperMesos on Friday November 06, 2026 @07:23PM (#50400358)
Altman was simply making an accurate observation about DRAM, in the context of a conversation about DRAM shortages and precisely why it is difficult for DRAM manufacturers to respond to the market price incentive to increase DRAM production. Even if you think it is bad that DRAM is currently expensive, as I do, that doesn't change the underlying fact about the world that Altman's comment reflects.

Thiel's comment is also pro-individual-ownership - in context he was talking about the danger that in a mass democracy the people as a whole would vote to have the government restrict the freedom and confiscate the property of successful people (particularly prescient in light of the recent California attempt at a billionaire wealth tax). RAM being expensive is better than RAM being rationed by a democratically-elected government so no one person has too much, as judged by the voting masses.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by matkoniecz on Friday November 06, 2026 @07:48PM (#50400515)
> Altman was simply making an accurate observation about DRAM

no, he was lying by omission

"it's quite terrible" only if you ignore all the problems with plans they promote and measure it only in metrics Altman wants to measure, as they support his plans

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hocusPokeUs on Friday November 06, 2026 @07:52PM (#50400538)
Successful people are not successful without keeping unsuccessful people from success; inflation since Millennials were born is almost 300% and taxes have been slashed; takes 800k/yr now to have the buying power of $200k in the 1980s

Thiel has benefited from wealth being wielded by rich media owners to convince the masses decades long trends in deflation of buying power through inflation of costs are good for them

With such a system giving him a boost he was successful before Millennials and GenZ were adults or even born

Altman came along during ZIRP; being successful when the government is intentionally printing money is not really success

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mschuster91 on Friday November 06, 2026 @09:09PM (#50400976)
> Altman was simply making an accurate observation about DRAM

Which might be true, I'm willing to accept that, but it does not change the fact his message was incredibly tone deaf.

Cost of living in general is through the roof for years now, many people haven't had the financial ability to meaningfully upgrade their computers for just about the same timeframe - first Bitcoin drove CPU prices through the roof, then GPU prices, once that died down due to ASICs there were a few fads that "mined" RAM, HDD and SSD, and in parallel to the latter Covid hit, disrupting supply chains. After Covid was somewhat over, the Russians invaded Ukraine, then we got the various MENA conflicts after Oct 7th, and now the Iran war is wrecking everything - and ever since AI entered the picture somewhat three years ago, first GPUs and now everything else has exploded in price. Entry level smartphones have all but disappeared. And don't forget our existing computers got less and less useful because first Microsoft pushed the garbage called Windows 11 onto everyone it could and second, everyone and their dog went for Electron resource hog apps.

For Altman to now say "your unused RAM could be of much better use in our servers" is like a giant fat fucking middle finger, telling us to sacrifice even more of our needs just for the opportunity of him and his fellow rich bastard friends to make more money, all while he and his fellow rich bastard friends are executing the setup of a financial crisis that will make 2007 look fucking tame.

> Thiel's comment is also pro-individual-ownership - in context he was talking about the danger that in a mass democracy the people as a whole would vote to have the government restrict the freedom and confiscate the property of successful people (particularly prescient in light of the recent California attempt at a billionaire wealth tax).

Oh for fucks sake. Taxes aren't theft, they provide for the environment that makes these rich fucks able to earn money in the first place. Thiel is worth 38 billion dollars. Even if you'd tax the guy 50% of his wealth, he'd still have more than one single human and their descendants can ever feasibly gamble away.

> RAM being expensive is better than RAM being rationed by a democratically-elected government so no one person has too much, as judged by the voting masses.

At least in a rationed system that allocates supply fairly, ordinary people wouldn't have to run with barely working hardware because they can't afford to buy something new and modern for once as all the new stuff is hoarded by the rich like a LotR dragon hoards his gold pile.

And as evidenced by this week's elections - the people are fed up beyond belief. Either we the people get some relief, the sooner the better, or the situation may indeed devolve into open riots.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by matkoniecz on Saturday November 07, 2026 @02:11AM (#50402349)
> At least in a rationed system that allocates supply fairly

if you assume crazy fairy land that is not going to happen, then you can assume cheap and plentiful RAM for better results

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by savanaly on Friday November 06, 2026 @07:48PM (#50400514)
How is that saying the quiet part out loud?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by cowlevel on Saturday November 07, 2026 @12:41AM (#50401973)
He literally said we'll own nothing and be happy
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by matkoniecz on Saturday November 07, 2026 @02:11AM (#50402357)
he said nothing about being happy
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mschuster91 on Saturday November 07, 2026 @01:40PM (#50406850)
Easy: it's an open secret (the quiet part) that the rich fucks want us to rent everything and us own nothing. Real estate was the first to go unaffordable without taking up debt. Then came cars. Then phones. And now it's computers. Hell I've seen kitchen appliances for rent.

And now this mf'er (or to be more precise, alleged sf'er [1]) goes on the record to say it's bad if we the people have RAM.

Fuck him, fuck everything he stands for.

[1] https://www.theguardian.com/technology/2026/oct/20/judge-dis...

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jasomill on Saturday November 07, 2026 @02:11PM (#50407129)
Maybe so, but unless you imagine a vast conspiracy of rich fucks pulling the strings of hardware vendors and/or governments worldwide, the former will still want to sell to a larger market even if some of their largest customers would prefer otherwise.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mschuster91 on Saturday November 07, 2026 @02:16PM (#50407165)
> the former will still want to sell to a larger market even if some of their largest customers would prefer otherwise.

Oh hell no. The hardware vendors want to make as much money as possible, with Micron going as far as to fully exit the consumer market entirely so they can suck as much money out of the AI market as possible.

How that one can fly by antitrust enforcement is beyond me.

[1] https://investors.micron.com/news/press-release/2025/Micron-...

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by throw10920 on Friday November 06, 2026 @10:18PM (#50401300)
> the idea that all companies will need to buy tokens from a handfull of tech companies to run their businesses or make their products

Did you somehow become incapable of doing things without models? Most of us have not.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by gymbeaux on Friday November 06, 2026 @11:44PM (#50401694)
Imagine if only KB Home and D.R. Horton had access to power tools while all the other homebuilders big and small had to use hand saws and screwdrivers. Would they be incapable of building houses without power tools? No. Will they be relatively screwed as companies? Yes.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by throw10920 on Saturday November 07, 2026 @02:01AM (#50402313)
You're changing the goalposts.

The above comment said:

> need to buy tokens from a handfull of tech companies to run their businesses or make their products

That's clearly indicating necessity.

That would indeed be concerning if it was the case, but it's not.

So now the case is just "you can pay more money to do things faster".

And guess what? That's been the case for centuries if not millennia. Nothing special or concerning at all.

And so your analogy is misleading. You're trying to imply that only a tiny number (2-3?) of companies make the tools, and nobody else does. You either pay those companies, or you don't get them.

That's just false. There are hundreds of companies that will sell you tokens - just not for frontier models. The correct analogy is how Samsung, Google, and Apple make the best phones in the world, so you can buy from one of them - or you can buy a still-good but not bleeding-edge phone from another vendor. And everyone is fine with that.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by gymbeaux on Sunday November 08, 2026 @08:39PM (#50419896)
>You're trying to imply that only a tiny number (2-3?) of companies make the tools, and nobody else does. You either pay those companies, or you don't get them.

Correct. I have to pay Anthropic to use Claude models. Open-weight models are significantly worse than frontier cloud models. Their cell phone-equivalent would call your boss when you try to call your spouse, randomly delete photos you took with it, fail to send text messages half the time, power off when it still has 50% battery.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by throw10920 on Sunday November 08, 2026 @10:30PM (#50420698)
> Their cell phone-equivalent would call your boss when you try to call your spouse, randomly delete photos you took with it, fail to send text messages half the time, power off when it still has 50% battery.

Still incorrect.

Models are always stochastic. They always have a chance of failure. That includes the most expensive frontier models.

You're making an invalid comparison to cellphones by claiming that there are cellphones that spontaneously and regularly do those things (which is wrong) vs flagship phones that don't (which is extremely wrong).

Either that, or you're claiming that the difference between frontier models and open models is the difference between actual flagship phones and these hypothetical ultra-buggy phones. Which is also wrong, because of the above fact that frontier models and open models are both stochastic, and because on many public benchmarks (e.g. Artificial Analysis) the gaps between the best frontier models and the best open models are far smaller than your analogy claims.

The fact is that, while frontier models are better than open models, you can still do a lot of work with open models. You're in no way "screwed" like you're trying to imply either with the incorrect phone analogy or the incorrect power tools analogy above.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by devin on Friday November 06, 2026 @11:47PM (#50401707)
This is exactly what I'm seeing all over the place. I'd like to say it's not true for me, but I'd probably be lying a little bit to say so. It is causing some atrophy in my skillset. One could argue that I'm gaining something different through LLM usage like "getting good at asking the model questions" or something, but it doesn't frankly feel like a skill which is all that useful on a going forward basis.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by npc99 on Saturday November 07, 2026 @02:20PM (#50407193)
Would be incredibly inefficient and non-competitive to operate without LLMs. It would be an exaggeration to say they are as necessary as the internet or electricity, but it feels kind of close. Can't operate a software business without them.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by beloch on Saturday November 07, 2026 @12:30AM (#50401921)
I've been ripped (on this site) for making this prediction. While the frontier (i.e. The toughest problems) will always push the limits of available computing power, what typical people do with AI won't always be on the frontier, nor will what appears on the frontier necessarily be lucrative. The frontier used to be playing Chess and Atari. These were challenging, but they didn't make a lot of money. Now a phone can do these things.

You're an example of this process. You used to require a frontier model running on a data centre. Algorithms improved and, perhaps, your hardware as well, but your requirements didn't go up. Now you can do what you need to do with local hardware. You're one AI user who might not need to send money to Anthropic going forward unless you find a new frontier application that interests you.

This is why I'm a little bearish when it comes to the valuation of the AI giants. Yes, there are some extremely lucrative things on the frontier right now but, in the future, people may shift a lot of what they're doing now to local hardware while new things on the frontier may not produce the kind of profits that will pay back trillions in debt. AI companies have bet big on themselves being able to constantly and perpetually find new applications, and also that those new applications will make money.

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by shepherdjerred on Saturday November 07, 2026 @12:44AM (#50401984)
> but your requirements didn't go up.

I am definitely building more and more ambitious projects as models improve. Both personally and at work

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by beloch on Saturday November 07, 2026 @12:49AM (#50402007)
I suppose I should have said they just didn't go up faster than the capabilities of local models are improving. I suspect local model/hardware capability will scale up faster than most people's needs when it comes to coding. That's a problem for Sam Altman.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by shepherdjerred on Saturday November 07, 2026 @01:12PM (#50406673)
Open weight/local models are important but they do not compete with frontier models like Fable/Astra. They aren’t even close.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by hermitShell on Saturday November 07, 2026 @10:42AM (#50405469)
I agree with you that if the trends of 2025-2026 continue into 2027-2028 for open weight models and local inference, 120b param open models will be more than good enough for 80% of today's use cases. If so how can you justify OpenAI and Anthropic and the AI buildout?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by mostertoaster on Saturday November 07, 2026 @01:37AM (#50402199)
I think we will see good enough local models, excellent cloud models, and then simpler focused models embedded on silicon running on every small device.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Sankozi on Saturday November 07, 2026 @02:21AM (#50402406)
Why only a handfull? There can be (maybe already are) hundreds of LLM API providers.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ilovecake1984 on Saturday November 07, 2026 @04:58AM (#50403142)
There’s no way to make that economic.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by Sankozi on Saturday November 07, 2026 @07:23AM (#50403939)
There are already 80 providers on Openrouter.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by unrented7977 on Saturday November 07, 2026 @09:39AM (#50404941)
And that isn't sustainable. The market will collapse into a small number of players, in exactly the same way that literally every other market has.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ishouldnotbutk8 on Saturday November 07, 2026 @09:56AM (#50405085)
Are you sure you're not mixing up companies training their own frontier-ish models with companies providing hosted LLM API? For a close comparison, VPS hosting provider market did not collapse to a small number of players - few companies dominate the market (AWS, GCP), but there are thousands (or tens of thousands) of medium and small players available.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by jasomill on Saturday November 07, 2026 @02:06PM (#50407083)
I find it hard to believe that at least a robust hybrid model won't be. There's just too much money to be made selling hardware at relatively high margins to customers with limited market power to keep hardware vendors out of consumer and small business markets indefinitely.
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by thatsabadlook on Friday November 06, 2026 @10:04PM (#50401238)
There's basically no point in paying for these subscriptions anymore. Sure they are marginally better at some things. But they are also marginally worse at others and the implications suck. I stopped all my subscriptions and keep like 20 bucks in open router just in case. Never need it, but it's there...
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by bradnation2 on Friday November 06, 2026 @10:18PM (#50401301)
Curious how much ram you need to run this at acceptable performance
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by kreyenborgi on Saturday November 07, 2026 @03:50AM (#50402816)
How much does such a box cost?
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by yread on Saturday November 07, 2026 @05:20AM (#50403231)
About 4000 eur
Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by notenchange on Saturday November 07, 2026 @04:22AM (#50402980)
I’m migrating that way as well, but I’m still struggling in creating a nicely tuned harness to achieve what I really want:

Opus for planning and the very difficult parts, Qwen for the mundane ones. It still involves a lot of manual model switching (but opencode and Pi make that relatively easy).

Re:Anthropic IPO Valuation Talks Drop to $1.3T as Major Inve... by ravenstine on Saturday November 07, 2026 @06:49PM (#50409159)
Same for me and OpenAI. My bill went from hundreds to exactly zero thanks to local models. Its not nearly as fast as frontier models, but good enough that I don't care. Plus it's good to know the rug won't get pulled from underneath me.