Claude 3.5 Haiku Launch: Pricing Controversy and Innovations

Claude 3.5 Haiku impressively outperforms previous models but faces backlash over unexpected pricing increases.

### Recent Developments in AI: Claude 3.5 Haiku, OpenAI's Compute Challenges, and Innovations in Robotics
* 📰 Claude 3.5 Haiku has been released amidst controversy, with claims that it **outperforms previous models**, except for the new Claude 3.5 Sonet, while being **significantly more affordable**.
* 💰 However, the pricing for Claude 3.5 Haiku has shocked many, set at **$1 per million input tokens** and **$5 for output tokens**, which is a **substantial increase from previous rates**.
* 📈 Anthropic defends the price hike by highlighting the model's **enhanced intelligence**, stating it **surpassed its previous flagship** during testing, but this move has not been well received by the community.
* 🤖 OpenAI has been facing delays in product launches due to compute limitations, with CEO Sam Altman indicating a **need for more resources** and hinting at plans to **build their own data centers**.
* 🧺 Physical Intelligence has unveiled a new robot capable of performing household tasks like **laundry and dishwashing**, powered by their **Pi Pi0 model** aimed at developing **artificial physical intelligence**.
* 🎮 In a groundbreaking move for gaming, Etched and Deckart AI have collaborated to create a **playable Minecraft game entirely generated by diffusion models**, showcasing the **future of content creation**.
* 💡 During a recent Reddit AMA, OpenAI's leadership discussed various topics, including plans to **reduce API costs** and the anticipated introduction of **multimodal capabilities** in their models.
* 🌐 Meanwhile, Meta is advancing robotics by integrating **touch-sensing capabilities**, allowing robots to interact with their environment **more naturally**, which is **essential for tasks requiring delicate handling**.

We have a ton of news from the last few days. Let's go over it all. First, Claude 3.5 Haiku is now here and not without some drama. Now, if you remember, there was an announcement a few weeks ago about Claude 3.5 Sonet new, and as part of that announcement, we got computer control, and we had this announcement that Claude 3.5 Haiku was coming, and now it's here. So, according to Anthropic, Claude 3.5 Haiku surpasses all previous Claude models except the new 3.5 Sonet on coding and a genetic task while being significantly more affordable, a fraction of the cost. Here are the S-bench verified scores, and I want to share something with you. I'm actually going to be interviewing the team behind S-bench, so stay tuned for that. But looking back here, here we go: Cloud 3.5 Sonic new, Cloud 3.5 Haiku beating even Cloud 3.5 old. You get a 200k context window and a 50% discount.

with the Batch's API, and here's where the drama lies: the price is actually a lot more expensive than people were expecting. I got Chat GPT's search feature to tell me exactly what was going on with the pricing. The model is priced at a dollar per million input tokens, $5 per million output tokens. A significant increase from the previous rates of 25 cents and $1.25, respectively. Seven times more expensive than GPT-4 mini and much more costly than Gemini 1.5 Flash. Anthropic justifies the hike by citing the model's enhanced intelligence and performance, stating that during final testing, it surpassed even its previous flagship model. Now, a lot of people called them out for this, and then not only that, on Halloween, they put out a blog post, The Case for Targeted Regulation. I'm not going to go too deep into that; if you want me to do a deep dive on this, let me know in the comments. But for now, just know it was not well received. So, between the model's price and then what a lot of

people are calling their aim for regulatory capture. This entire announcement was just not well received. Thanks to the sponsor of this video, Vulture. Reap the benefits of the world's largest independent cloud provider when you bring your GPU workloads over to Vulture. They have the latest Nvidia GPUs spanning 32 locations across six continents. Vulture delivers industry-leading price to performance and serious accessibility and reliability. Vulture's global fully composable cloud infrastructure moves your applications closer to your users and frees you from vendor lock-in, allowing you to bring your own networking and database solution ions. And if you need to scale beyond just a single cluster, Vulture's Kubernetes engine allows you to take full control over your deployment, offering up a 100% free control plane. So if you're tired of waiting for GPUs from other providers, make sure to use Vulture. You can deploy at any scale immediately, and they have H100s, L4s, and more available right now. And you can get a fraction of a card or fully dedicated.

bare metal systems, which give you full control over your hardware and your throughput. They also have one-click installation of all the applications you might need for advanced machine learning workloads, allowing you to get up and running in minutes, not hours. So, experience the Vulture difference. Don't get bogged down by severe wait times or limited locations. Try it free today with a $300 credit for your first 30 days when you visit GetVulture.com/Burman and make sure to use code Burman300 at checkout to get that credit. Thanks again to Vulture for sponsoring this video. Next, we finally know why OpenAI has been delaying their newest products, and the reason? 'Cause they don't have enough compute. Maybe Microsoft is not giving them enough. Maybe they shouldn't depend entirely on Microsoft. We're not really sure exactly what's going on, but Sam Altman made it clear compute is the bottleneck. And now it makes sense why he wanted to spend $7 trillion trying to build out his own data centers. Why it has been rumored that OpenAI is going

to create their own chips, a lot of different things need to happen to open up the compute necessary to actually get these next-generation models in our hands. Next, we have a new robot. Physical Intelligence has released a new robot, and check this robot out. It is made to do your laundry and your dishes and everything in between. So, we've seen demos like this in the past, but this just looks incredibly impressive. Check out this robot folding laundry really well, very smooth motions, everything looks really good. And what it actually is, is the model itself, the model that is being used to power the robot. They're not actually selling the robot, as far as I can tell. In their blog post, they say, Over the past eight months, we've developed a general-purpose robot foundation model that we call Pi Pi0. We believe this is the first step toward a long-term goal of developing artificial physical intelligence so that users can simply ask robots to perform any task they want, just like they can ask large language models and chatbot assistants. So, the website has a bunch of examples.

videos where you can check out how capable this robot and really the underlying model is. And next, in a huge step towards the future of video games, another huge step, we have Oasis, the company Etched, partnered with Deckart AI to create a Minecraft game entirely using diffusion models. So essentially, there's no underlying code, no underlying logic, no game engine, nothing, and it is fully playable right now. Here's an example of what it looks like. Look how cool this is. Obviously, the resolution is very small, but still, it just shows you another glimpse into the future of what content and video games are going to look like. Next, Sam Altman and the OpenAI team, the leadership, did an AMA on Reddit, and Chubby put together a bunch of the highlights, so let's take a look at some of them. So first, are you planning to reduce the API cost of advanced voice? We've been reducing the cost of our APIs for 2 years now, and so it seems like they're going to continue to do that. Then somebody asked about inference cost specifically in regards to 01 and Chain.

of Thought reasoning and so how fast does open AI see inference cost reducing. We expect inference costs to keep going down. If you see the trend over the last year, it's come down like 10x. And my favorite, what do I always say, bullish on agents. What's the next breakthrough in GPT line of product, and what's the expected timeline. Sam Alman, we will have better and better models, but I think the thing that will feel like the next giant breakthrough will be agents. Somebody asked why 01 doesn't support image input, and here we go. The chief product officer says we focus on getting it out to the world first, first waiting to make it fully featured. Image input is coming in 01. That's great news. And in general, the O series of models will be getting things like multimodality, tool use, etc., in the coming months. They are going to be so powerful once they get all of the features that we've become used to with the other Frontier models. Somebody asked what's one thing you wish Chachi.

BT can do but can't yet. I'd love for it to understand my personal information better and take actions on my behalf. If you've watched this Channel at all, that is my dream. I want AI agents to be able to actually accomplish things on my behalf based on my personal information. That is why I also say Apple and Google are incredibly well positioned to still win the AI race, because they own the hardware in our pockets and they also really own all of our private data between Gmail, Google Docs, iCloud, everything. So definitely check out the full AMA on Reddit. I'll drop the link in the description below. Next, chat GPT search came out. I already made a full video of it, but it seems really cool and it is a competitor to perplexity. You search, it can scrape the internet, and it displays the results based on real-time information. It really is a huge step forward for chat GPT. Now I use perplexity all the time. I'm also going to be using chat GPT all the time. I'll let you know which one I like best next.

Meta is releasing touch robots that can actually sense touch and feel. It's pretty amazing. And so, Meta is giving the ability to robots to actually feel, and this is important. In fact, having all five senses as embodied AI, a robot, is really important for understanding and being able to navigate the world around you. It allows robots to be able to grab things more accurately, to apply the right amount of pressure based on whatever they're touching. For example, if a robot is petting a dog, you don't want it to use its full force. So, how would it actually know? It could obviously predict what the right force is, but if it actually had the feedback of touch, it would be able to do so so much more accurately. So, really cool. Good job, Meta. Next, there was a model that was topping the text-to-image leaderboards, which was called Red Panda. And now we know what it was. It is a company called Recraft, and they released a new text-to-image model. Here are some of these examples, and they really look absolutely

incredible. Here's a breaking bag cake, an alien taking a selfie. Here's another one. As I always say, more competition, better. Let's get more text-to-image models, text-to-video models, large language models. I can't get enough of them. Congrats to recraft. All right, next. Here's a story that blew me away and I think went under the radar. It turns out 25% of the code being written by Google Engineers now is written by AI. That is a huge increase in productivity of the engineering organization that is Google. Sundar Pichai, the CEO of Google, said it in an earnings call. More than 25% of all new code at Google is now generated by AI. Now, a Google engineer actually clarified what that means. Now, yes, AI is writing a lot of code, but it's not writing end-to-end code yet. What he said it's actually doing is more like tab completion. So, you start and you can architect a piece of code and it will help you complete that code. Now, that is still amazing and increases productivity.

greatly, but it's not quite end-to-end code generation by AI. Again, I still see the future of code being completely AI-generated, and what this just means is that a single engineer will just be that much more efficient and that much more productive. Next, in a minor update, Chat GPT now lets you search through your chat history. So, if you have thousands of different chats with Chat GPT, now it's easy to find the one you're looking for. Now, what I think might actually be cool is being able to chat with your chat history, but maybe that's getting too meta. So, a nice little quality-of-life update there. So, that's it for today. If you enjoyed this video, please consider giving a like and subscribe, and I'll see you in the next one.

AI News: Claude 3.5 Haiku, AI Minecraft, OpenAI AMA, Google Reveals AI Writing Tons of Code

Artificial Intelligence (AI), Open Source, Generative Art, AI Art, Futurism, ChatGPT, Large Language Models (LLM), Machine Learning, Technology, Coding, Tutorials, AI News, and more

** Exclusive Pinecone Partner **

Matthew Berman

5 Haiku has been released, claiming to surpass all previous models except the new 3.

5 Sonet, while being significantly more affordable.

The model's pricing has increased dramatically, causing backlash, and Anthropic justifies the hike by highlighting the model's enhanced intelligence and performance.

The announcement, coupled with a controversial blog post on targeted regulation, has received negative feedback from the public.

Vulture's Bare Metal Systems and OpenAI's Compute Bottleneck

Vulture offers bare metal systems for full control over hardware and quick application installation, with a $300 credit for the first 30 days.

OpenAI's product delays are attributed to a lack of compute, leading to plans for building their own data centers and chips.

Physical Intelligence has released a robot with a general-purpose foundation model, aiming to develop artificial physical intelligence for task execution.

A Minecraft game has been created entirely using diffusion models, with no underlying code or game engine, and it is fully playable now.

OpenAI's leadership, including Sam Altman, held a Reddit AMA, discussing plans to reduce API costs and the expected timeline for image input in the 01 model.

The O series of models is set to gain multimodality and tool use features in the coming months, aiming to become more powerful.

AI agents are expected to better understand personal information and take actions on behalf of users, with Apple and Google well-positioned to lead in the AI race due to their control of hardware and private data.

Chat GPT's new search feature offers real-time information and competes with Perplexity, while Meta's touch robots aim to replicate the five senses for better navigation and task execution.

Recraft's new text-to-image model, Red Panda, is topping the leaderboards with impressive results.

AI's Impact on Google Engineering and Chat GPT Updates

AI is now responsible for over 25% of the code written by Google Engineers, significantly increasing productivity.

The AI's role is more like tab completion, helping to architect and complete code rather than generating it end-to-end.

Chat GPT has introduced a feature to search through chat history, making it easier for users to find previous conversations.