Coding tasks are saturated. So why is everyone still paying for the most expensive model…
This is a AI post classified by AGK Intelligence as Frontier models (an opinion), kept by the AI Radar because it carries real work, not commentary.
Coding tasks are saturated. So why is everyone still paying for the most expensive model from Anthropic and OpenAI? a16z's Martin Casado has the answer. Casado, General Partner at a16z and investor in Cursor: 1. "I've automated 95% of my coding" may be true 2. "So I can use a cheaper model" doesn't follow 3. If two startups compete, neither picks the dumber model 4. In a competitive market you always pay 10x for the smartest one 5. So when spending slows, prices hold and usage spreads beyond code This is why the frontier labs keep their pricing power, even in a slowdown. Full breakdown he
Posted by Guillermo Flor (14k followers) 1 h ago · 0 likes · 72 views · view the original post on X. Kept by the AI Radar as Frontier models. Tools mentioned: theaiopportunities.com.
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