BusinessThe Decoder· Jun 29, 2026
Amazon Distills Anthropic Models to Cut Costs Before Token Pricing Shift
Amazon engineers are creating smaller versions of Anthropic models for internal use to manage expenses. The change comes ahead of a shift next year from compute-hour billing to token-based pricing, which may increase costs. The company is also evaluating other providers such as OpenAI.
Key points
- →Engineers distilling Anthropic models into smaller internal versions
- →Token-based pricing starting next year could raise expenses
- →Alternatives including OpenAI under consideration
Mentioned
AmazonAnthropicOpenAI
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