Kobeissi Letter: Open-Source AI Erodes Proprietary Margins
The Kobeissi Letter reports open-source models like DeepSeek V4 Pro cost over 50 times less per token than Anthropic Fable 5, pressuring margins as CapEx surges.
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The Kobeissi Letter notes open-source AI undercuts proprietary margins. Anthropic’s Fable 5 costs more than 50 times per token than DeepSeek’s V4 Pro. Models from Alibaba, Moonshot AI and Nvidia also trade at fractions of leading prices. Ultramarine 1 Flash matches Fable 5 performance at 60x lower cost after $300k training. Proprietary firms face price pressure while capital spending climbs.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.