← All IntelClip / AI ToolsHidden Cost Volatility of Frontier Model Upgrades
From Notion's Token Town — Sarah Sachs, Notion · ≈5:32
“Are you growing 40% in that time period? Are you making 30 3x more revenue? No.”
“If you just auto upgrade your model and everything that you're doing, you're you're giving someone a bad deal.”
What’s in it
- Exposes how AI model upgrades quietly triple your token costs
- Shares a real Notion example of a 40% price jump on deprecation deadline
- Breaks down why blindly auto-upgrading AI models hurts margins
Clip transcript
durable and exciting and enlightening product for their customers. But that's not really how the market is today, right? I'm not going to name names here, but you guys have search engines. You can figure it out. Exhibit A. A reasoning model gets upgraded. Amazing. The per token pricing is the same. What's not to love, you try it out, it uses three times as many output tokens, right? Exhibit B. A model gets upgraded, but it has an entire new digit, right? Whatever demarcation system that model family likes, it's brand new. It's 40% more than its predecessor, which is being deprecated in the next four months. These are real scenarios that we face at notion. All of you are nodding because these are common pretty much monthly now. But here's the problem. Are you growing 40% in that time period? Are you making 30 3x more revenue? No. So, how do you navigate the system? If you just auto upgrade your model and everything that you're doing, you're you're giving someone a bad deal. Either your customers or your investors, depending on how you charge and where you get your money, neither are good.
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