IBM's CEO Says Open-Weight Models Are 90% as Good for a Fraction of the Price
OpenAI and Anthropic have cut prices by as much as eighty percent since June, IBM's CEO says open-weight models now deliver about ninety percent of the quality at a fraction of the token cost, and builders are already splitting work between a frontier planner and a local typist. Why prices fell is the first argument; the rest of the day covers hosted agents, reviewing code with a different model, and agents under stress.
Max Woolf's post on cheap LLMs lays out the dated price cuts, the cache-read arithmetic, and his case for why prices fell; it frames the whole lead.
The Register on IBM's Q3…
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