Low Latency Trading Insights

Low Latency Trading Insights

Forget herd behavior. Spontaneous Ai COLLUSION behavior. THAT is in our next market crash.

The element of malice added by Ai that scares me the most!

Henrique Bucher's avatar
Henrique Bucher
Oct 19, 2025
∙ Paid

What Claude Actually Is

Claude is an AI assistant created by Anthropic - basically a massive neural network trained on text that generates human-like responses. Statistical engine with billions of parameters. Learned patterns from enormous datasets. You type a question, it predicts the most probable sequence of words to respond with.

Current Claude family: Opus 4.1 (newest, most capable), Opus 4, and Sonnet 4. Different trade-offs between capability, speed, and cost. Not single models on one server - distributed across data centers, running on TPUs and GPUs with different configurations for different context window sizes (8K, 100K, up to 1M tokens).

Claude isn’t just software. It’s complex infrastructure with model weights loaded into memory across thousands of servers, routing systems deciding which instance handles your request, and sampling algorithms determining which words get selected. Any piece breaks, the same model weights produce garbage outputs.

The August 2025 Meltdown

Your AI assistant suddenly develops a liberal arts degree. Claude went from PhD-level responses to barely managing coherent sentences. Everyone noticed. Conspiracy theories started immediately - Anthropic secretly running cheaper models during peak hours, downgrading to 1.58-bit quantization, classic bait-and-switch.

They just screwed up. Three times. Simultaneously.

Context Window Disaster

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