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News of the day

1. Google unveils Gemini 3.7 Flash, an upgraded 'workhorse' model with enhanced coding, agentic, and document processing capabilities, at a competitive price. Read more

2. OpenAI showcases ultrafast mode for GPT-5.6 Sol, demonstrating significant speed improvements without compromising quality. Read more

3. US AI leaders OpenAI and Anthropic cut prices to compete with cheaper Chinese models, as businesses seek cost savings. Read more

4. Anthropic tests Claude Code for daily software maintenance, achieving a 46% merge rate for AI-generated pull requests. Read more

Our take

Hi Dotikers!

Google shipped Gemini 3.7 Flash just three weeks after 3.6. Meanwhile, 3.5 Pro is still nowhere to be found. At this pace it will land after 4.0 and nobody will bat an eye.

Behind the freewheeling version numbers, the figures are serious. DeepSWE v1.1 goes from 49.0% to 65.3%, FrontierCode 1.1 from 34.4% to 43.6%, WebDev Arena Elo from 1538 to 1588. And above all the price: 0.75 dollar per million input tokens, 3.75 for output, half of what 3.6 cost at launch twenty-one days ago.

This week's dominant narrative is one of falling behind. DeepMind reorganisation, a reduced role for Demis Hassabis, Sergey Brin back to shake up the teams, the flagship pushed back two months because it does not hold up on coding. All true, and largely beside the point for anyone actually deploying AI. The real battleground is not the prestige model that three people benchmark on X. It is the middle tier, the one running on loop inside pipelines, millions of calls a month. Google iterates there every three weeks and cuts its prices in half. That is not panic, that is a choice of battlefield.

The link with yesterday's story is hard to miss. Thrive Holdings raised 2 billion dollars at a 12 billion valuation to buy accounting firms and IT companies and push AI right through their operations. That business model only works if cost per task collapses. An agent processing 7,000 tax returns does not run on the most expensive model in the catalogue.

Two articles, one story seen from both ends. The practical takeaway: stop re-benchmarking the flagship every month, re-test your pipelines on the workhorse tier.

Alex.

How AI-Era Pricing Is Reshaping Finance Operations

Usage-based and hybrid pricing models are changing how B2B companies generate revenue — and creating new headaches for the finance teams behind them.

Tabs co-founder Rebecca Schwartz and PwC Partner Amit Dhir sat down to unpack exactly what that means in practice: how pricing model decisions ripple into revenue recognition, forecasting, and financial ops — and what it takes to scale without piling on manual work.

Watch the on-demand recording to get practical frameworks, real-world examples, and a clear path to operationalizing usage-based revenue — including a forward-looking take on how AI will reshape financial workflows. If your team is navigating pricing complexity heading into the back half of the year, this is worth an hour.

Meme of the day

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