Everyone keeps saying this, but I don't believe it's true. I think Luna is just an MLA or sparse architecture like all the flash variants and it's just cheap to run.

In any case, over the past few years, the only thing that has gotten more expensive is the hardware to run local models while API and Subs have gotten more affordable or feature rich while remaining same price.

They can compete because they have the compute to run the volume and if it's good on agentic work, people will be less incentivised to use other models for "Tasky-y" work.

It's literally increasing their market opportunity