Anthropic Launches Advanced AI Reasoning Model for Enhanced Speed

Anthropic launched an advanced AI model on Monday, designed to deliver faster responses or display its step-by-step reasoning process, as it seeks a competitive advantage in the generative artificial intelligence industry.

The introduction of Anthropic’s hybrid model—which integrates multiple reasoning approaches to tackle complex problems more effectively—comes amid intense competition in AI development, with U.S. technology firms competing against each other and Chinese companies such as DeepSeek and Alibaba.

The Amazon and Google-backed startup announced that its latest model, Claude 3.7 Sonnet, is its most advanced to date and will be available across all Claude plans, including Free, Pro, Team, and Enterprise. However, the “extended thinking mode” feature will be limited to paid plans.

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In extended thinking mode, the model “self-reflects before answering,” enhancing its performance in areas such as mathematics, physics, instruction-following, and coding, among others, according to Anthropic.

The San Francisco-based company further stated that the hybrid reasoning model is designed to prioritise “real-world” tasks rather than focusing heavily on mathematics and computer science, aligning with how businesses typically utilise large language models.

Additionally, Anthropic announced a limited-release preview of Claude Code, an AI-powered coding assistant that helps developers with coding tasks, enabling them to “delegate substantial engineering work directly from their terminal.”

While users will have the flexibility to control how much time and resources are allocated to answering a question, the company confirmed that its pricing structure will remain unchanged from previous models.

Anthropic’s latest model is also more cost-effective than OpenAI’s GPT-4o, with a pricing of $3 per million input tokens and $15 per million output tokens, compared to OpenAI’s $15 and $60, respectively.