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I disagree. No one will want to use second rate models when the frontier models reach a specific level of capability. Enterprise will keep paying.

No one? When free means I get 95% of the capabilities of something very very expensive, you bet your bottom dollar many many people will choose free.

But its not free.

not every company can pay for the best engineers in the market, some can only afford to pay for cheaper engineers and it's fine

same with models.