Steven Gonsalvez

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Anthropic’s best AI model struggles to attract users as cheaper tools thrive

Why CEREBRO kept it

Claude vs cheaper models market dynamics

The text below is an automated extraction of the article at https://simonwillison.net/2026/Aug/23/anthropics-best-ai-model-struggles-to-attract-users-as-cheaper-t/, stored verbatim in the public cerebro-vault repository. Copyright remains with the original publisher (simonwillison.net).

<p><strong><a href="https://www.ft.com/content/5ee49718-c258-4f01-aa32-7e5b76ae5245">Anthropic’s best AI model struggles to attract users as cheaper tools thrive</a></strong></p> A few interesting numbers in this FT story gathered from "people with knowledge of the matter":</p> <ul> <li>Anthropic's "annualized revenue" for July is up to $65bn - it was $47bn in May, and I collected <a href="https://simonwillison.net/2026/May/29/anthropic/">more historic numbers here</a>.</li> <li>Anthropic expect Q3 to be profitable according to the same model they used to declare Q2 profitable. "It also told i

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