[elisbce]

Chinese frontier models don't need to catch up in every category. They just need to win in coding and that's exactly where they are going. The gap went from 12+ months to 1-2 months with the latest release of GLM 5.2 and coding is a task that you don't need heroic efforts to find rare and long-tail training data, you can just outsmart your competitor by optimizing algorithms and training recipes. This is something they can do at scale with the money and talent pool.

[Octoth0rpe]

> They just need to win in coding and that's exactly where they are going.

They don't even need to 'win' in the sense of maxing the benchmark. They can be 20% worse/50% cheaper and many of us (and our managers who approve our token budgets) will be in.

Deepseek is 30x cheaper for input/75x cheaper for output than sonnet on openrouter, and it's not a whole lot worse for many things.

[bijowo1676]

Anthropic/OpenAI's valuations are built on assumption of capturing most of the market and having the pricing power to jack up prices for tokens.

It is enough to kneecap their pricing power to trigger the valuation reset by an order of magnitude and humble them a bit.

Plus there are always infrastructure and hardware providers who want to keep their share of profits and will squeeze Anthropic's margins to deflate their valuation (nvidia, aws, RAM manufacturers, etc)