Anthropic unveils advanced AI model with hybrid reasoning capabilities

Published 24/02/2025, 20:08
© Reuters.

Investing.com -- On Monday, Anthropic, backed by Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL), launched an advanced artificial intelligence (AI) model, aiming for a competitive edge in the generative AI industry. The model, known as Claude 3.7 Sonnet, is designed to provide faster responses and display its step-by-step reasoning process.

The launch comes amid intense competition in AI development, with U.S. tech firms and Chinese companies such as DeepSeek and Alibaba (NYSE:BABA) striving to innovate. Anthropic’s hybrid model combines multiple reasoning methods to solve complex problems more effectively.

The Claude 3.7 Sonnet model is Anthropic’s most advanced and will be accessible on all Claude plans, including Free, Pro, Team, and Enterprise. However, the "extended thinking mode" feature, which allows the model to self-reflect before answering, is only available on paid plans. This feature improves the model’s performance on tasks such as math, physics, instruction-following, coding, and many others, according to the company.

The San Francisco-based startup designed the hybrid reasoning model to focus more on real-world tasks and less on math and computer science problems, reflecting the actual use of large language models in businesses.

Alongside the advanced AI model, Anthropic is releasing a limited-release preview of Claude Code, an agentic coding tool. This AI-powered software application can autonomously perform coding-related tasks, enabling developers to delegate significant engineering work directly from their terminal.

Despite the advanced features, Anthropic stated that its pricing structure will remain the same as its previous models. Notably, Anthropic’s new model is cheaper than rival OpenAI’s o1 model, costing $3 per million input tokens and $15 per million output tokens, compared to OpenAI’s $15 and $60, respectively.

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