Anthropic execs urge companies not to cut AI spending despite rising costs

As AI costs rise, Anthropic executives are warning companies not to cut back on AI investments. On Sequoia Capital's podcast, Claude platform product lead Angela Jiang said some clients have started pausing AI use due to costs, but that's the wrong move.

Platform engineering lead Katelyn Lesse said focusing on costs is normal, but simply setting budget caps can stifle innovation. She suggests companies find smarter ways to use AI to reduce expenses instead of limiting usage.

With enterprise skepticism growing over AI returns, Anthropic is highlighting its models' cost efficiency. Meanwhile, OpenAI CEO Sam Altman is competing on price, saying his GPT-5.6 sol model costs half as much as Anthropic's Fable 5 for the same tasks.