Consider why Hollywood movies use $100k lenses, rather than $500 lenses. Are the lenses really 200x better? Probably not, but there are cases where that extra 5% better is worth an extra $99.5k. There will be things Fable 5.2 can do reliably that Opus 5.5 can't; and there will be people willing to pay for that.

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It's simply useful and within budget.

You too can sell stuff for $100k. Just make something useful to someone who can throw around $100k.

You think a $100K lens is crazy? Wait until you hear what people are paying for enterprise software.

I'm not convinced of your logic.

Modern studio pictures that get nominated for best picture or best cinematography cost around $80 million on average. If you look at highest grossing films the budgets are closer to $175 million on average – even taking into account the $20 million budget of Demon Slayer: Infinity Castle.

Isn't it more that when you're spending that kind of money that $100k for the "best" thing becomes kind of like "insurance" where you don't want to be the one who doesn't use "the best" when "the best" costs about 0.1% of the picture's budget?

Additionally a studio can buy the $100,000 lens once and use it on many films. But it's not like you can reuse Fable 5.2 in the same way.

The point is that the extreme high end of performance has asymptotic cost which is not an undesirable tradeoff for extreme use cases.

the concept of diminishing returns exists in every thing. headphones, coffee, cars etc. anything that can be pretty continuous in terms of quality will have this

Almost no variant of the same product that costs 100x than another is actually 100x better than the other variant. Whether the increase in cost is worth the increase in value depends on the application/use case. Most often the higher priced tier is not worth it for most use users, but most often there are still some use cases where it's desired. This applies to almost anything you can buy: food, wine, clocks, cars, planes, bikes, ski, clothes, furniture, phones, appartments, insurance, service, anything. Surely also LLMs.

I think those öensrs are mostly rented. For a $100M film few thousand a day is nothing. Those lenses also come with a camera. If you want to use same camera and lens in a desert in Tunis and snow storm in Norway and get same quality of image without constantly changing broken equipment, you are going to either pay thousands for a good equipment or millions for delayed timetables for broken equipment. In that sense, it is not only 200 times better, it is your only option. So yes, sometimes the price is worth it.

Furthermore, you make one lense and rent it out, apparently some Panavision lenses made in 60’s are still in use. It doesn’t churn constantly electricity and GPU-chips sucking in more and more resources like these things do.and at the same time, it is quite hard to find the exact cases where the markup is justified, unlike with those lenses. Maybe in cybersecurity etc. but even there some Chinese model can be almost equally good or even better.

Those lenses save money in budgets and make money in getting people into theatre or streaming services to watch films creating profits way beyond their cost. I think in terms of economics that is productivity increase justifying the cost. We are still waiting for that productivity increase come from the AI industry.

They have it at maxed out reasoning. Go into the dropdown and select high or medium, which are what people actually use. It's a decent bump while both being faster and costing less (per task).

The worst thing about AA is defaulting to the highest reasoning value for everything.