Gavin Baker argues frontier-model price cuts reflect share loss to open-weight models and are good for AI infrastructure demand
Gavin Baker asks whether frontier models are cutting prices because they are losing share to open-weight models, and says that, given positive elasticity, those cuts are good for AI infra demand. He argues an open-weight token uses roughly the same compute as a frontier token, that less model-layer revenue does not mean less infra spend, and that an Anthropic and OpenAI duopoly is the worst outcome for infra demand.