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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 kicks in appeared first on The Decoder.

Amazon engineers are reportedly distilling Anthropic models to cut costs before new token-based pricing kicks in
Primary source the-decoder.com ↗

Published June 29, 2026 · Category: AI Briefing

Overview

Amazon is moving quickly to keep pace with Google in the AI-powered voice assistant race. Lacking sufficiently advanced in-house AI models, the company is turning to OpenAI rival Anthropic for help.

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.

Details

The article Amazon engineers are reportedly distilling Anthropic models to cut costs before new token-based pricing kicks in appeared first on The Decoder.

Source

Originally published at the-decoder.com.

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