Anthropic launches cheaper Claude Sonnet 5 model, as tech searches for AI savings

Anthropic is betting that artificial intelligence's future belongs not to the most powerful models, but to the most efficient ones, unveiling a cheaper version of Claude Sonnet that signals a dramatic shift in how tech companies are chasing AI profitability. The move comes as the industry grapples with unsustainable spending on training and deploying increasingly massive AI systems, and it suggests that the race for computational dominance may be giving way to a harder competition over who can deliver capable AI at a price customers will actually pay. If the strategy works, it could reshape which AI companies survive the current shakeout—and upend investor expectations about the path to artificial intelligence becoming a practical business.

Yahoo Finance·2h ago