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Nansen CEO: Low-cost models are eroding the competitive edge of cutting-edge AI, impacting the business models of Anthropic and OpenAI
Svmuu News: Nansen CEO Alex Svanevik stated that open-weights models may pose greater competitive pressure on Anthropic and OpenAI in the future, as not all tasks require “150 IQ-level” state-of-the-art models. In many scenarios, models with capabilities around 115 IQ and but with costs approximately 90% lower, are “more than sufficient” and offer a clear cost-effectiveness advantage. While the AI industry has traditionally assumed that profits would come from state-of-the-art frontier models, this logic may face challenges—particularly if governments impose restrictions on or block access to such models, which could impact the revenue projections of relevant companies. Alex Svanevik further questions whether the business model of relying on high-end models for profit will remain viable once regulations begin to restrict the capabilities or deployment of frontier models—a core issue the industry will need to reassess.
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