Latest / AI Fire Daily / #651 Neil: Claude Haiku 5.5 Built My OS but Struggled With Games
Transcript
- 0:00We usually think of massive data centers when
- 0:02we talk about advanced AI. We picture these billion
- 0:05dollar supercomputers crunching impossible numbers.
- 0:08Yeah, totally. But Claude Haiku 5 .5 is out here
- 0:11building entire operating systems. It's wild.
- 0:14Right? It's coding 3D video games entirely from
- 0:16scratch. And it did all of this using just 1
- 0:20% of a standard $200 API limit. Wow. Opus level
- 0:24ambitions? Coffee budget prices. Well, welcome
- 0:27to the deep dive. I'm really glad you're joining
- 0:29us today. We have a genuinely fascinating mission
- 0:32ahead of us. We really do. We're looking at raw
- 0:34tests, benchmarks, and complex project files.
- 0:37Basically, we're testing if Anthropic is deliberately
- 0:40crashing the market price of artificial intelligence.
- 0:42Yeah, so we'll explore the raw performance benchmarks
- 0:45first. Then we test its ability to build a fully
- 0:48functional browser -based operating system. After
- 0:51that, we'll push its limits with raw C++ game
- 0:54development. Which gets messy. Oh, very messy.
- 0:57And we'll see what happens when it pairs up with
- 0:59real professional tools like Godot. Finally,
- 1:01we break down the actual token math behind the
- 1:03curtain. So let's start with the fundamental
- 1:05promise of this model. Claude Heikoop 5 .5 is
- 1:09officially Anthropic's smallest model. Right.
- 1:12It's designed to be their most affordable, you
- 1:13know, entry level option. But the benchmark jumps
- 1:16here are, frankly, they're staggering. Let's
- 1:18look closely at the computer use benchmark. Yeah,
- 1:20which basically tests how well an AI clicks around
- 1:23a digital screen. Exactly. And it scored an impressive
- 1:2572 .4%. Wait, really? Yeah. That's up from just
- 1:2915 .7 % for the previous Haiku 4 .5 model. That
- 1:33is a massive generational leap for a budget tier
- 1:35model. It really is. And on frontier code 1 .1,
- 1:39it hit 46 .4%. Now, that is a benchmark measuring
- 1:42advanced coding capabilities, right? Exactly.
- 1:45And it actually beat GPT -6 Luna. Oh, wow. Yeah.
- 1:49Luna only scored 42 .4%. I mean, Sonnet 5 .5
- 1:53still leads the computer use benchmark at 83
- 1:55.9%, but Haiku 5 .5 is getting surprisingly competitive
- 1:59in some very complex areas. Well, the cost efficiency
- 2:01is the real story we need to unpack here. Yeah.
- 2:04Anthropic introduced this new reasoning effort
- 2:06scale for these models. You essentially choose
- 2:09how hard the AI thinks before it answers. So
- 2:12at low effort, Haiku 5 .5 scores around 42 %
- 2:16on computer use. Right. But that climbs past
- 2:1862 % when you shift to high effort. And it reaches
- 2:21roughly 72 % at the absolute max effort setting.
- 2:25OK, but higher effort means you're paying slightly
- 2:27more for each individual attempt, doesn't it?
- 2:30You are. But it hits that max effort for just
- 2:32$0 .60 per attempt. $0 .60. Exactly. That's nothing.
- 2:35Sonnet 5 .5 needs a significantly higher budget
- 2:38to reach its maximum reliability. So if you run
- 2:40thousands of automated tasks, that price difference
- 2:43adds up quickly. The real world knowledge tasks
- 2:46tell a very similar story. Like, let's look at
- 2:48GDPVal. Right, which is a test measuring complex
- 2:53economic reasoning. On that test, Haiku 5 .5
- 2:55starts around 1130 ELO with low effort. And ELO
- 3:00is simply a relative skill rating system. Right.
- 3:04But it climbs to an impressive 1620 ELO at max
- 3:07effort. Which is huge. It is. That gets much
- 3:10closer to the premium Sonnet 5 .5 model, which
- 3:13scores around $18 .40. And Haiku reaches that
- 3:16$1 ,620 score for roughly $0 .80 per task. Sonnet
- 3:205 .5 costs considerably more to reach its highest
- 3:23potential score. So, wait. If it's so cheap,
- 3:27why wouldn't I just use the premium model anyway?
- 3:29You know, just to be totally safe. Because if
- 3:31you're running massive batches of automated tasks,
- 3:34Sonnet will absolutely bankrupt you. Ah, I see.
- 3:37Haiku gives you premium reliability on a coffee
- 3:40budget, but only if you shift it into that high
- 3:42effort gear. I mean, it feels exactly like shifting
- 3:45gears in a manual car. Yeah, totally. You pay
- 3:48just a few pennies more for gas. That lets the
- 3:50AI engine rev higher and, you know, think longer
- 3:53about the problem. But you're still undercutting
- 3:56the luxury premium models entirely. That's a
- 3:58great analogy. You get way more RPMs without
- 4:01buying a whole new engine. So why is the max
- 4:03effort cost scaling the secret weapon here? Well,
- 4:06allocating extra compute specifically for reasoning
- 4:09effectively prevents the model from hallucinating.
- 4:12Right. It gives the AI time to double check its
- 4:15own internal logic. It essentially buys you premium
- 4:18reliability and bridges that gap between budget
- 4:21and flagship. So it thinks longer to avoid making
- 4:24cheap, rushed mistakes. Exactly. It's paying
- 4:27for patients. But you know, benchmarks are really
- 4:29just static numbers on a page. Yeah. They only
- 4:32tell you so much. We really need to see what
- 4:34happens in a truly complex project. Because it's
- 4:37one thing to ace a static coding benchmark, but
- 4:39real -world software development is deeply interconnected
- 4:43and messy. Right. We need to force it to build
- 4:46from a single, massive prompt. So the source
- 4:49tested this by asking it to build Nova OS. Which
- 4:53is a fully functional browser -based operating
- 4:55system. Yeah. And this wasn't just a static visual
- 4:58mock -up of a user interface. No. It had to code
- 5:01a functional backend to actually support the
- 5:03visuals. It built a complete Windows -style desktop
- 5:06environment from scratch. It had a working taskbar.
- 5:09It had a fully functional start menu. It even
- 5:12displayed the current date and time correctly.
- 5:14Yeah. You could drag, resize, minimize, and maximize
- 5:18multiple application windows simultaneously.
- 5:21It built a file manager for organizing virtual
- 5:23folders and a notes app. with fully adjustable
- 5:26font sizes. It built a simulated terminal for
- 5:29navigating directory structures. It even built
- 5:31a paint application for saving virtual drawings.
- 5:34The crazy part is the interconnected logic between
- 5:37these apps. Yeah, this blew my mind. Right. The
- 5:40file manager actually saves the notes you type
- 5:42in the notes app. Which means the AI had to hold
- 5:45multiple independent programs in its head simultaneously.
- 5:49The prompt also required a realistic mail inbox
- 5:52with sample messages. It had to display pop -up
- 5:55notifications for new incoming messages. And
- 5:58it included highly interactive playable games.
- 6:00Oh, the games. It built a GTA -inspired driving
- 6:04game right on the desktop. You had controllable
- 6:07vehicles, moving traffic, and active police cars.
- 6:10Though, hilariously, the player got completely
- 6:12trapped inside the car. Oh, yeah. A transparent
- 6:15map accidentally covered the entire screen. Right.
- 6:18Apparently, NovaOS wanted you to live in the
- 6:20car permanently. Just forever driving. It also
- 6:23built a surprisingly fun retro space arcade game.
- 6:26That space shooter had really decent visual effects
- 6:29when taking damage. But my absolute favorite
- 6:31part of the whole build is the mood engine. Yes,
- 6:34the mood engine is amazing. It continuously monitors
- 6:37your keyboard activity, mouse movement, and idle
- 6:40time. It converts your physical user activity
- 6:42into an energy value between zero and one. Then
- 6:45it makes the desktop wallpaper dynamically react
- 6:47to changes in that energy. I mean, just imagine
- 6:51an AI generating an entire working OS with a
- 6:54mood tracker in one go. That is genuinely mind
- 6:57-blowing. It's truly incredible. But, you know,
- 7:00it wasn't a totally flawless victory. No. It
- 7:02hit a massive wall during the development process.
- 7:05Right. It threw a critical output limit error
- 7:08during the process. The paint application suddenly
- 7:11showed a storage full error. The entire session
- 7:14stopped dead in its tracks. The response had
- 7:17completely exceeded the API's standard output
- 7:20limit. And usually when an AI session crashes
- 7:23like that, you lose everything. It just breaks
- 7:25the continuity of the code entirely. Exactly.
- 7:28This is where the recovery prompt becomes incredibly
- 7:31important. They needed to recover as much completed
- 7:33work as mathematically possible. So the prompt
- 7:36told the AI to list all existing project files.
- 7:39It had to carefully identify completed, incomplete,
- 7:43and missing components. It had to run available
- 7:45build commands and validation checks. It needed
- 7:48to specifically identify errors preventing the
- 7:51application from starting. And it was explicitly
- 7:53told not to rewrite any working code unnecessarily.
- 7:57It had to resume precisely from the last verified
- 8:00working state. And remarkably, ClothiQ 5 .5 had
- 8:04saved absolutely everything. Really? Yeah. All
- 8:0736 complex source files were still there, perfectly
- 8:10intact. Wait, how did it manage to recover from
- 8:14the output limit crash without corrupting the
- 8:16code? Well, the recovery prompt forced the AI
- 8:19to inspect the project directory first. It had
- 8:22to methodically verify functionality before it
- 8:25was allowed to write another single line of code.
- 8:28So it essentially checked its own saved work
- 8:30before writing new code? Precisely. It demonstrated
- 8:34a highly methodical, self -healing approach to
- 8:38software development. NovaOS was deeply impressive
- 8:41for web development tasks. It was. But web frameworks
- 8:44handle a lot of the heavy lifting behind the
- 8:46scenes, right? Right. They provide a safety net
- 8:48for the AI to fall back on. The web games inside
- 8:51NovaOS had some obvious fatal flaws. So what
- 8:55happens if we strip away that web framework completely?
- 8:58Like, what if we ask it to build raw 3D physics
- 9:01from absolute scratch? Well, the source challenged
- 9:04it to build a 3D skateboarding game. And it had
- 9:06to use raw C++ code. without any game engine.
- 9:10No Unity. No Unreal Engine. No Godot to hold
- 9:13its hand. Just pure C++ and standard system libraries.
- 9:17They asked for a detailed skate park with roads,
- 9:20sidewalks, and ramps. They wanted a dynamic third
- 9:23-person camera that smoothly follows the player.
- 9:26It had to support complex movement mechanics
- 9:28using the W, A, S, and D keys. It needed to implement
- 9:32acceleration, braking, turning, and jumping physics.
- 9:36And surprisingly, it successfully coded all of
- 9:39that mathematical movement perfectly. Really?
- 9:42Yeah. It even coded functional kickflips using
- 9:45raw math. That's impressive. The game had moving
- 9:47cars, pedestrians, and a real -time speed display.
- 9:51It even had a clear interface showing the current
- 9:53trick score. It built a cinematic replay system
- 9:56using the Z key, too. It showed your completed
- 9:59tricks from a totally different camera angle.
- 10:02But there was a rather fatal flaw in the visual
- 10:06design. Right, it completely failed the visual
- 10:08physics test. The character animations were incredibly
- 10:12stiff and unnatural. It thinks human legs are
- 10:14made of wooden sticks. Yeah, especially when
- 10:17the skater was flying in midair. The physical
- 10:19logic just didn't translate visually at all.
- 10:21The writer looked totally rigid. So they tried
- 10:24to improve it with a specific reference image.
- 10:27They fed it a screenshot from Tony Hawk's Pro
- 10:29Skater 3 plus 4. Right, they wanted to improve
- 10:32the environment and the character proportions,
- 10:34but they explicitly wanted to keep the existing
- 10:36low -poly art style. They specifically asked
- 10:39it to make the skateboard move independently
- 10:41from the rider. The rider's legs needed to stay
- 10:43in natural bending positions. The prompt clearly
- 10:46said feet must separate from the board during
- 10:48tricks, but the visual upgrade was a complete
- 10:51and utter failure. It added some basic geometric
- 10:54skate park ramps, but the graphics looked terrible
- 10:57and looked like it was hastily built from basic
- 10:59geometric shapes. Haiku 5 .5 apparently only
- 11:02noticed the ramps in the reference image. It
- 11:05completely ignored the complex character posing
- 11:07and bodily proportions. So why could it code
- 11:10complex physics but fail so badly at updating
- 11:12graphics from a reference image? Because translating
- 11:14two -dimensional vision into three -dimensional
- 11:16spatial logic is incredibly difficult. Makes
- 11:19sense. It processes pixels as statistical patterns,
- 11:23not physical objects in simulated space. It remains
- 11:26a massive blind spot for budget -tier AI models.
- 11:29So it sees the shapes, but lacks the artistic
- 11:32translation skills. Exactly. It can calculate
- 11:35the math of a jump perfectly, but it cannot visualize
- 11:38how a human knee naturally bends during that
- 11:40jump. So since raw C++ was a visual disaster,
- 11:44they kind of pivoted their approach? Let's pair
- 11:46this cheap analytical brain with professional
- 11:49development tools. Right. We want to see if structural
- 11:52guardrails help the model succeed visually. They
- 11:55asked it to build a 3D backyard pool party game.
- 11:58It used Blender for generating assets and Godot
- 12:01for the gameplay logic. The prompt asked for
- 12:04a highly detailed backyard with a swimming pool.
- 12:07It wanted a colorful, vibrant game inspired by
- 12:10casual party games. It specifically asked for
- 12:13a casual Wii Sports style vibe, and the environment
- 12:16had amazing details built right in. It really
- 12:19did. It included beautifully animated water moving
- 12:21in the pool. It had poolside furniture, glowing
- 12:24string lights, and even a friendly jumping dog.
- 12:27A dog. Yeah. That's great. Yeah. The prompt demanded
- 12:31several selectable characters with totally unique
- 12:33appearances. It wanted smooth, responsive, and
- 12:36intuitive character movement. And the gameplay
- 12:39mechanics were surprisingly solid and genuinely
- 12:41fun this time. Oh, yeah. You used the space bar
- 12:43to carefully control your jump power. There was
- 12:46a timing -based meter with distinct yellow and
- 12:48green success zones. Right. And you used the
- 12:51A and D keys to physically steer midair. You
- 12:54used W and S to carefully adjust your spin midair.
- 12:57Practice mode was definitely the real standout
- 13:00feature here, though. Oh, absolutely. It provided
- 13:02highly specific, actionable feedback after every
- 13:06single dive into the pool. Right. It would calculate
- 13:08and say, you scored 58 out of 100. It would tell
- 13:11you that you landed exactly 1 .3 meters away
- 13:14from the target. It even told the user they jumped
- 13:16way too hard. You know, I have a vulnerable admission
- 13:19to make right now. Oh, yeah? If you're an indie
- 13:21developer listening, you probably know this struggle.
- 13:23I still wrestle with getting basic collision
- 13:26boxes to work in Godot myself. Oh, same. And
- 13:29this budget AI just whipped up a dynamic scoring
- 13:31system in seconds. It's genuinely wild to see
- 13:34that level of structural competence. The backyard
- 13:37felt alive and the gameplay was truly interactive.
- 13:41Which leads me to a really obvious question about
- 13:43these tests. Why was the Godot test so vastly
- 13:46superior to the C++ test? Well, game engines
- 13:49provide an established underlying mathematical
- 13:52framework and physics engine. Right. The AI understands
- 13:55those native rules instantly, rather than having
- 13:58to invent physics entirely from scratch. So engines
- 14:01give it the physics guardrails it desperately
- 14:03needs. Exactly. It leans on the engine's built
- 14:06-in rules incredibly effectively. It doesn't
- 14:09have to imagine how gravity works anymore. So
- 14:12it can build amazing things if you give it the
- 14:15right tools. Right. But how much did all this
- 14:18prompting and failing actually cost? Let's look
- 14:21closely at the bottom line on pricing. The API
- 14:24pricing breakdown is highly specific and honestly
- 14:27very surprising. It costs just 10 cents per million
- 14:31input tokens. Yep. And it costs 50 cents per
- 14:35million output tokens. That pricing structure
- 14:38makes it 90 % cheaper than Haiku 4 .5. Wow. But
- 14:42there is a massive catch you have to understand.
- 14:45Okay, what is it? Those prices only apply if
- 14:47your prompts are under 100k tokens. Anthropic
- 14:51says most requests easily fall within this specific
- 14:54limit. Right. Even cash reads are incredibly
- 14:57cheap under that specific threshold. And cash
- 15:00reads basically mean accessing previously saved
- 15:03conversation data. They cost just 1 cent per
- 15:06million tokens and cash writes cost about 12
- 15:09.5 cents. The model features a massive 1 million
- 15:13token context window. Which is how much text
- 15:16the AI can remember at one time. Right. It supports
- 15:19up to 128k output tokens per single request.
- 15:23And it currently has a knowledge cutoff of June
- 15:252026. But that 100k pricing tier threshold is
- 15:29the critical detail here. Absolutely. It completely
- 15:32changes the financial math of using this budget
- 15:34model. Yes. What happens if you exceed that 100k
- 15:37token limit during a long coding session? The
- 15:40price jumps dramatically across the board without
- 15:42warning. Oh, no. Yeah, it goes to 50 cents for
- 15:45input tokens and it skyrockets to two dollars
- 15:48and 50 cents for output tokens. So keep your
- 15:51project files small or the budget vanishes. Precisely.
- 15:54It completely erodes the budget advantage of
- 15:56the model. Cash reads jump to five cents. Cash
- 15:59writes jump to over 60 cents. Which brings us
- 16:02to the core takeaway from all these complex coding
- 16:05tests. Claude Haiku 5 .5 is clearly not just
- 16:09a cheap toy. No, it is a highly capable developer
- 16:12for complex software projects. But it requires
- 16:15a very specific approach from the human user.
- 16:18Right. You absolutely must use established frameworks
- 16:21like Godot for structural guardrails. And you
- 16:25must keep your context windows carefully managed
- 16:27to avoid bankruptcy. If you respect those boundaries,
- 16:31it forces us to completely rethink what budget
- 16:33AI actually means. It fundamentally changes the
- 16:37entire landscape of basic software development.
- 16:39It really makes you wonder about the premium
- 16:41models. Like, what exactly are those expensive
- 16:43models charging extra for right now? If Haiku
- 16:46provides this much reliability at the max effort
- 16:49setting, the premium tier might be overkill for
- 16:52everyday coding tasks. True. It really lowers
- 16:55the barrier to entry for indie developers everywhere.
- 16:58I want to leave you with a provocative thought
- 17:00today. Think about the economic implications
- 17:03of what we just discussed. The sheer scale of
- 17:06the industry disruption here. If a budget AI
- 17:09model from 2026 can build a playable 3D video
- 17:12game, complete with a dynamic scoring system,
- 17:15for less than the cost of a gumball, what happens
- 17:19to the value of basic software development over
- 17:21the next five years? That is a truly staggering
- 17:24question to ponder. The floor for technical skills
- 17:27is rising incredibly fast. We encourage you to
- 17:30test this out for yourself this week. Try pushing
- 17:32a budget AI model with a complex multi -step
- 17:35prompt. See those advanced reasoning capabilities
- 17:38with your own eyes. Push it to the max effort
- 17:40setting and just watch it work. Thanks for taking
- 17:43this deep dive with us today. We'll catch you
- 17:45on the next one.