AI startup Lindy has shifted its reliance from Claude to Deepseek, citing significant cost savings. CEO Flo Crivello stated that the move led to a dramatic reduction in expenses, with AI costs for the 25-person startup previously exceeding personnel costs. This decision reflects growing pressure on companies to reduce AI spending and seek more affordable alternatives.
Crivello told CNBC that the cost curve "crashed to the ground" after the switch, allowing the startup to save millions. He emphasized that the move was driven by the need for cost efficiency, stating, "It's a matter of survival for the business." While he expressed willingness to return to Claude if Anthropic adjusted its pricing, the current shift underscores the financial challenges facing AI startups.
The broader industry context highlights the increasing competition from cheaper Chinese models like GLM-5.2, which, according to a recent analysis by Snowflake's CTO, offer competitive performance at a lower cost. OpenAI CEO Sam Altman has also acknowledged that AI costs have become a "huge issue" for companies, particularly with the shift to agentic systems that consume more tokens.
Source: thedecoder
