Explainer

Why Claude, GPT & Gemini Keep Getting Worse

An AMD director logged 6,852 Claude Code sessions and measured a 67% drop in reasoning depth. Why Claude, GPT and Gemini quietly degrade, and what to do about it.

By Ricardo de Jong 8 min read 8:27 video

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A director at AMD got tired of arguing about a feeling, so she brought data. Stella Laurenzo logged 6,852 Claude Code sessions, 234,760 tool calls, and nearly 18,000 reasoning blocks, then filed a public report showing the model she relied on had quietly gotten worse. It was reading code far less before editing, rewriting whole files more often, and abandoning tasks at rates that used to sit at zero. Anthropic’s first move was to close her report and point at her settings.

That story is not a one-off. Every major lab, OpenAI, Anthropic, and Google, has faced the same accusation, and the script rarely changes. This article walks through why it keeps happening: the money behind it, the technical levers that cut quality, what each company has actually admitted, and what you can do so your own systems do not silently rot.

Are AI models actually getting worse?

Sometimes, yes, and it is documented. There are confirmed cases where a major model got measurably worse after launch, complete with company postmortems. There is also a large pile of complaints that turn out to be perception rather than measurable decline. Both are true at once, which is exactly why the topic is so confusing.

The reason the debate never settles is that real regressions and imagined ones produce the same symptom: your stuff stops working as well as it did. Without controlled tests you cannot separate “the model changed” from “I got used to it.” That ambiguity is also what lets companies wave away genuine problems as user error.

Underneath the noise, the same four-beat pattern repeats for nearly every model. It launches to praise, quietly degrades, gets denied, and then someone publishes the receipts.

  1. 01 Launch

    New model ships to glowing benchmarks and launch-day praise.

  2. 02 Degrade

    Weeks pass. Developers notice the same prompts getting worse.

  3. 03 Deny

    The company points at your settings, your prompts, your nostalgia.

  4. 04 Receipts

    Someone with data files a report the company cannot wave away.

↳ and then a new model launches, and the cycle starts over.

Fig. 1 The cycle behind almost every 'is it getting worse?' story. The receipts stage is the only one that reliably forces a fix, and it depends on someone outside the company doing the measuring.

What silent degradation feels like for developers

From a developer’s seat, degradation shows up with no error code and no changelog. You write a prompt on Monday that returns clean code. By Thursday the same prompt returns a skeleton full of TODO comments where the logic should be. A classification pipeline that held 94% accuracy drifts to 87%. Nothing in your code changed, so you spend hours wondering if the problem is you.

Monday
def parse(row):
    name, age = row.split(",")
    return {"name": name,
            "age": int(age)}
Clean, runnable code
Thursday
def parse(row):
    # TODO: split the row
    # TODO: handle the age
    pass
Same prompt, skeleton output
Same classification pipeline, two weeks apart
Mon
94%
Thu
87%
Fig. 2 The same prompt, two weeks apart, plus a metric quietly sliding underneath it. There is no alert for this. You notice it as a vibe first and a failed test later, if you have the test.

The disciplined response is to stop trusting the vibe and start measuring. Some teams run regression tests on a schedule, sending the same prompts and tracking output quality over time. One developer generates a poem at zero temperature every day just to see if the words shift. Most people, though, catch it the hard way: production breaks, and only then do they go looking.

Why would a company make its own model worse?

Almost never on purpose, and almost always because of cost. Serving these models is expensive, the price customers pay has collapsed, and margins are thin to negative. When revenue per query falls but the GPU bill stays huge, the pressure to serve cheaper responses becomes constant, and “cheaper” and “slightly worse” often look identical from the inside.

The numbers tell the story plainly. Estimates put the cost of a single GPT-4 query near 36 cents at launch, OpenAI’s annual inference spend has been reported in the billions, and at the same time the headline price of capable models has fallen roughly 200x in well under two years. You cannot drop prices that fast without changing how the model is served.

$0.36 Per GPT-4 query

Estimated cost to serve a single GPT-4 query at launch, before any optimization.

$8.4B OpenAI inference 2025

Reported spend just to run the models for a year, separate from training.

-94% Anthropic margin 2024

Gross margin reported underwater while the price war raced serving costs down.

~200x Price collapse

Drop from $30 to about $0.15 per million tokens for comparable performance in ~18 months.

Fig. 3 The squeeze in four numbers. Inference is costly, the bills are large, margins run thin, and the price has collapsed. Every line points toward serving each query for less.

So no one needs to decide to ship a worse product. They decide to ship a cheaper one, and quality becomes the variable that quietly gives.

How do quantization and routing quietly cut quality?

Through two levers that change what you get without changing the model’s name. The first is quantization, which compresses the model’s weights to lower numerical precision so it runs on less hardware. The second is routing, which sends your prompt to a different, cheaper model depending on how hard the system thinks it is. Neither shows up in the product label.

Quantization is usually safe in moderation. Running at FP8 precision costs almost nothing in quality, and Red Hat’s evaluations across hundreds of thousands of tests found near-full accuracy recovery. Push down to 4-bit and complex reasoning takes real hits, because a small precision error early in a chain of thought can cascade until the model is confidently wrong by the end.

Lever 1 · Quantization

Compress the weights to lower numerical precision. Cheaper to run, and at FP8 the quality loss is tiny. Push to 4-bit and complex reasoning starts to break.

Full precision
4-bit
Up to ~63% lower hardware cost
Lever 2 · Routing

One named model can hide several. A router reads each prompt and sends most of them to a cheaper model. Benchmarks barely move; subtle quality does.

Your prompt
Cheap model · most traffic Premium model · the rest
Route ~most queries cheap, keep ~95% of the score
Fig. 4 Two cost levers, invisible from the outside. Quantization trades precision for cheaper hardware; routing quietly sends most prompts to a smaller model. Benchmarks barely move, which is the problem.

Routing is the sneakier one. OpenAI has confirmed that GPT-5 uses a real-time router that picks between models based on the conversation, so selecting one name does not guarantee one model. Research like RouteLLM shows you can send most traffic to a cheaper model and still retain around 95% of the score on standard benchmarks. The catch is in that last phrase: benchmarks do not capture the prompt-sensitivity and formatting quirks developers actually feel.

What has each AI company actually admitted?

More than you might expect, because this is not all speculation. The strongest cases come with the companies’ own words. The table below lines up the confirmed incidents, the one Anthropic dragged its feet on, and the Google claim that remains unverified.

CompanyWhat users sawWhenCompany responseConfirmed?
OpenAIGPT-4 turned “lazy,” truncating code and refusing to finish functionsDec 2023Acknowledged publicly, shipped a fix about two months laterYes
OpenAIGPT-4o became unbearably sycophantic, validating bad ideasApr–May 2025Rolled back in days, published a detailed postmortemYes
AnthropicClaude output degraded for over a month; random characters injectedAug–Sep 2025Published a transparent postmortem on three infrastructure bugsYes
AnthropicClaude Code reasoning depth dropped sharply after an updateMar–Apr 2026Initially closed the report, later acknowledged a feature flawPartly
GoogleGemini’s hidden prompt reportedly read “EFFORT LEVEL: 0.50”2026No confirmationUnverified

The receipts are concrete. In December 2023, OpenAI acknowledged complaints that GPT-4 had gone lazy and later shipped a fix. In 2025 it rolled back a GPT-4o update and, in its sycophancy postmortem, blamed over-weighting short-term thumbs-up feedback. Anthropic’s postmortem on three recent issues is the most transparent of the bunch: a routing bug sent up to 16% of Claude traffic to the wrong server pool, and a separate bug injected stray Thai and Chinese characters into English replies. None of it was intentional.

Google sits at the other end of the openness scale. Users reported finding the line EFFORT LEVEL: 0.50 in Gemini’s hidden system prompt and said they reproduced it many times, but Google never confirmed it and reporting found no hard evidence that the product actually halves effort. Treat that one as a loud anecdote, not a proven fact.

Is it real degradation or shifting expectations?

Often it is the second one, and the cleanest example is the study that started the panic. In 2023, a Stanford and Berkeley paper appeared to show GPT-4’s accuracy at identifying prime numbers collapsing from 97.6% to 2.4% in a few months. It spread everywhere as proof the model had been gutted.

Then Princeton researchers Arvind Narayanan and Sayash Kapoor checked the work. As they explain in their rebuttal, the model had not gotten worse at math. It had simply flipped from guessing “prime” for everything to guessing “not prime” for everything, and since the test contained only primes, that flip swung the score from near-perfect to near-zero. Both versions were equally bad at the actual reasoning.

The viral stat (original July 2023 paper)
97.6% 2.4%
GPT-4 accuracy at "is this number prime?", March vs June
But look closer
March: always answered "prime"
June: always answered "not prime"

The test only contained prime numbers, so flipping its default guess swung the score from 98% to 2% without any change in real ability. Both versions were equally bad at reasoning. The benchmark broke, not the model.

Fig. 5 The viral stat, then the catch. A devastating-looking drop turned out to be a default guess flipping against a one-sided test. The benchmark broke, not the model.

Benchmarks do not rescue you here either. Frontier models cluster above 90% on the standard suites, so the differences fall inside the noise, while the things developers feel, prompt sensitivity, formatting drift, and subtle reasoning slips, live on dimensions those tests never measure. The honest position is that some decline is real, some is perception, and you usually cannot tell which without your own controlled tests.

How developers can defend against model drift

You defend against it the same way you defend against any flaky dependency: assume it will change and build guardrails. Four moves cover most of the risk, and they stack from cheap to involved. None of them require trusting a vendor’s roadmap.

01 Pin versions

Call dated snapshots, not rolling aliases, so the model under you stays put until you choose to move.

02 Build evals

Run expected behaviors in CI. If quality drops past a threshold, the pipeline fails before users see it.

03 Add fallbacks

Route across providers through a gateway so traffic shifts when one model degrades or goes down.

04 Run local

Open-weight models do not change after download. Above ~$20K/mo in API spend, self-hosting can pay off.

Fig. 6 Four defenses, cheapest first. Version pinning and evals cost the least and catch the most; fallbacks and local models are the heavier insurance for systems that cannot tolerate a quiet regression.

Pinning a dated snapshot buys stability until the provider deprecates it, which they eventually will. Evals are the real workhorse: tools like promptfoo let you define expected behavior and run it in CI, so quality drops fail the build before they reach users. Treat model output like any other untrusted external input. Add a gateway such as LiteLLM for multi-provider fallback, and for stable, high-volume workloads, weigh local open-weight models, which never change after you download them.

The real problem is opacity, not malice

Here is where it lands. There is no confirmed evidence that any company swaps in a weaker model under the same name as a deliberate strategy. What there is evidence of is messier and more ordinary: infrastructure bugs that run for weeks, cost-saving features that cut reasoning depth, routers that send your prompt somewhere cheaper without telling you, and products that change without a changelog.

The issue is not that these companies are evil. It is that they hold all the information and you hold none of it. They know which model answered, what precision it ran at, and whether your request got the premium path or the discount one. You get a response and a vibe.

They know
  • Which model actually answered
  • What precision it ran at
  • Premium path or discount path
  • When a feature cut its reasoning
You know None of that No error code, no changelog, no quality SLA.
Fig. 7 The asymmetry that makes degradation so hard to fight. Every fact about how your request was served sits on one side of this line, and it is not yours.

Cloud computing went through this exact growing phase. Uptime was a vague promise until customers demanded SLAs with financial penalties behind them. AI needs the same thing, not just latency guarantees but quality guarantees tied to measurable output. Until that arrives, treat every model API like the ground could shift under you at any moment, because it will.

For the full version of this story, the AMD report, the postmortems, and the receipts in about eight minutes, watch the explainer on YouTube.

Frequently asked questions

Are AI models actually getting worse?

Sometimes, yes. Several real cases are confirmed with company postmortems: GPT-4 turning lazy in 2023, a sycophantic GPT-4o in 2025, and Claude degraded by infrastructure bugs for over a month. But a lot of perceived decline is the novelty wearing off, not a measurable drop in ability.

Why would a company make its own AI model worse?

Almost never on purpose. The pressure is cost. Serving these models is expensive, prices have collapsed, and margins are thin, so providers lean on quantization and routing to serve cheaper responses. Bugs and cost-saving features then cut quality without anyone deciding to ship a worse product.

Is ChatGPT getting worse or am I imagining it?

It can be both. OpenAI confirmed GPT-4 became "lazy" in December 2023 and rolled back a too-sycophantic GPT-4o in 2025, so real regressions happen. But studies also show that some complaints reflect shifting expectations rather than capability loss, which is hard to tell apart without your own tests.

Did the Stanford study prove GPT-4 got worse at math?

Not really. The viral 2023 figure showed prime-number accuracy dropping from 97.6% to 2.4%, but Princeton researchers showed both versions were roughly equally bad. The model just flipped its default guess, and the test only contained primes, so the score swung without any real change in ability.

How can I stop my AI app from silently degrading?

Pin dated model snapshots instead of rolling aliases, build evals that run in CI and fail the pipeline when quality drops past a threshold, add multi-provider fallbacks through a gateway, and consider local open-weight models for stable workloads, since they never change after you download them.

Is the Gemini "EFFORT LEVEL: 0.50" leak real?

It is an unverified community claim. Users reported finding the instruction in Gemini’s hidden system prompt and said they reproduced it many times, but Google never confirmed it, and reporting found no hard evidence the product caps effort at half. Treat it as a reported anecdote, not a fact.

Sources

  1. The Register · Claude Code has become dumber, lazier, says AMD AI director · retrieved 2026-06-17
  2. Anthropic · A postmortem of three recent issues · retrieved 2026-06-17
  3. OpenAI · Expanding on what we missed with sycophancy · retrieved 2026-06-17
  4. The Decoder · OpenAI looks into complaints about "lazy" ChatGPT · retrieved 2026-06-17
  5. OpenAI · Introducing GPT-5 (real-time model router) · retrieved 2026-06-17
  6. Chen, Zaharia, Zou · How Is ChatGPT’s Behavior Changing over Time? (arXiv 2307.09009) · retrieved 2026-06-17
  7. Narayanan & Kapoor · Is GPT-4 getting worse over time? (AI Snake Oil) · retrieved 2026-06-17
  8. Red Hat / Neural Magic · We ran over half a million evaluations on quantized LLMs · retrieved 2026-06-17
  9. LMSYS · RouteLLM: routing between strong and cheap models · retrieved 2026-06-17
  10. Epoch AI · LLM inference prices have fallen rapidly · retrieved 2026-06-17
  11. PiunikaWeb · Gemini hidden "effort level" prompt claim · retrieved 2026-06-17
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Ricardo de Jong

Creator of Devsplainers

Ricardo de Jong makes Devsplainers, turning complex developer and AI topics into short animated videos and written companions. Each article is built from the same research and script behind the video. No hype, no jargon walls.

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