IndustryThe Decoder·June 29, 2026

Amazon engineers are reportedly distilling Anthropic models to cut costs before new token-based pricing kicks in

Amazon engineers are already distilling Anthropic models into smaller, cheaper versions for internal use. Starting next year, Amazon will pay by tokens processed rather than compute hours, which could push costs up sharply. The company is also exploring alternatives like OpenAI. The article Amazon engineers are reportedly distilling Anthropic models to cut costs before new token-based pricing…

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