Collaborate with us Welcome back! Amazon helped fund Anthropic, and now it's reportedly shopping for a cheaper model because Claude's bill is about to jump. California went the other way and put Claude in every state agency at half price. Cursor dropped an AI coding agent onto your iPhone, and a nine-person team made an animated feature for under $700,000. In today's Generative AI Newsletter: Amazon: Why is Amazon looking for a way off Claude?
Amazon can't afford Claude anymore Amazon helped fund Anthropic. Now after they were one of the reasons Fable got banned, Amazon is reportedly searching for a way to cut what it pays for Claude. The Information says Amazon is testing OpenAI's models and its own Nova models to cut costs before a renegotiated contract raises its bill next year. Claude runs Amazon's shopping assistant, its Kiro coding tool and its Quick work assistant, so a higher rate hits a lot of products at once.
Amazon denies anything is getting pricier, calling it "incorrect that changes from our expanded collaboration will increase our costs." The company that owns a slice of Anthropic, hosts its models and pays to use them is pricing the exit anyway. Anthropic's own backer is comparison shopping.
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ToneUp, an app that grows companies on data only we own. Start small at $1000 Up to 25% bonus shares 2.5x YoY revenue in 2024 to 2025 14M member community Own a piece of GenAI Works before the window closes today. Invest today Cursor catches up with Codex Cursor's new iPhone app turns your phone into a remote control for coding agents. You hand one a task, it does the work in the cloud, and it reports back when it's done.
It went into public beta this week on iPhone and iPad, on every paid plan. Two ways to run it: Fire off a cloud agent that works in its own virtual machine and comes back with a merge-ready pull request. Or take remote control of the agent already running on your desktop. You pick the model, describe the task out loud and merge the result from your lock screen.
The phone never runs the code. The agent builds it somewhere else. Congrats to Cursor for catching up with Codex on this. California made Claude its government AI Governor Gavin Newsom signed a deal putting Claude in every state agency at a 50% discount, available to some 230,000 workers, with the same half-price offer for every city and county.
It's the first AI tool cleared for all of California's agencies, handed out through a new state portal with free training included. Claude already runs inside the state's DMV and its Medicaid department. Anthropic is cutting its price in half to win its home state in the same week it's reportedly charging Amazon more. Anthropic is billing the company that funded it and handing its home state half off.
AI can make an animated movie for 90% less A world-class animated movie used to take hundreds of artists and years of work. Filmmakers now say AI can do the job for up to 90% less. That's the claim in a Bloomberg report this week, and there's already a film to point at. A nine-person team made a feature called "Where the Robots Grow" for about $8,000 a minute, when low-budget animation runs two to three times that.
The cost wall is what's breaking. A $150 million budget used to be a moat only Disney and a few others could cross. One industry study pegs 100,000 of America's 550,000 film and TV jobs as exposed to AI by the end of this year, with in-betweeners, 3D modelers and VFX artists first in line. The artists who used to make those films are already fighting it in their contracts.
Tool of the Day: SuperOrder Running a restaurant now means babysitting five delivery apps and a pile of bad reviews. SuperOrder builds AI agents to take that off your plate. You run all the operations through it. It works with what you’re already working with but simplifies it.
Try this yourself: Go to superorder.com and book a demo, the only way in, since there's no self-serve signup or free trial. Have the delivery agent reconcile a month of DoorDash, Uber Eats and Grubhub payouts into one view of fees and errors. Point the review agent at your live Google and Yelp reviews and watch it draft on-brand replies. Who it's for: restaurant owners and multi-location operators drowning in delivery admin.
Everything else you shouldn't miss X opened its data to AI agents : Its new hosted MCP lets Grok, Cursor or any agent pull live X posts with no install, then charges about half a cent for every post they read. Meta told engineers to limit Claude Code and Codex : It's worried rival model outputs could seep into Meta's own training data and break their terms of use. Meta showed off a non-invasive mind-reader : Its Brain2Qwerty v2 research turns brain activity into typed sentences at 61% word accuracy, using a head scanner instead of an implant. Anthropic flipped how it charges Amazon : From next year it bills Claude by the token instead of by compute hour, the switch The Information says could push Amazon's costs up.
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