Everything You Need to Know About Anthropic’s Claude 3.7 Sonnet

Good morning AI entrepreneurs & enthusiasts,

The new frontier in AI is reasoning models—and Anthropic just made a bold move with Claude 3.7 Sonnet, the world’s first-ever hybrid reasoning system.

After months of silence, Anthropic is making waves on the AI leaderboards. But with DeepSeek’s open-source surge and a unified GPT-5 looming, how long can they hold their lead?

In today’s AI news:

• Claude 3.7 Sonnet and its ‘hybrid reasoning’ approach
• Qwen’s latest open-source reasoning model
• AI agents developing their own communication protocol
• DeepEP launch for #OpenSourceWeek
• Top Tools & Quick News

Claude 3.7 Sonnet Hybrid Reasoning

News: Claude 3.7 Sonnet is a new Anthropic AI model that merges quick responses with deeper, step-by-step analysis. It launched with the same pricing as earlier Claude versions and is accessible via the Anthropic API, Amazon Bedrock, and Google Cloud's Vertex AI.

Details:

• Offers two modes: Standard (updated from Claude 3.5) and Extended Thinking for multi-step reasoning.
• Supports up to 128K tokens (beta), achieving 70.3% on SWE-bench Verified in Standard mode.
• Maintains previous pricing of $3 per million input tokens and $15 for output, including thinking tokens.
• Includes Claude Code for agentic coding, allowing automated debugging and refactoring.

Why it matters: As the first generally available hybrid reasoning model, Claude 3.7 Sonnet sets a higher bar for AI-driven problem solving. By blending rapid responses with deeper analysis, it expands the scope of applications that can benefit from AI. Its robust coding features and broad compatibility could accelerate innovation for developers. With strong performance and approachable pricing, Claude 3.7 Sonnet positions Anthropic as a serious contender in the evolving AI landscape.

Alibaba QwQ-Max-Preview Deep Reasoning

News: Alibaba’s Qwen team has launched QwQ-Max-Preview, a next-generation AI model for deep reasoning. Built on the foundation of Qwen2.5-Max, it brings enhanced capabilities in mathematics, coding, and agent-related workflows.

Details:

• Features a “Thinking (QwQ)” function for real-time, transparent reasoning.
• Plans to open-source QwQ-Max and Qwen2.5-Max under Apache 2.0, following prior releases like Qwen QwQ and QvQ.
• Smaller variants (e.g., QwQ-32B) enable on-device deployment for privacy-sensitive and low-latency use cases.
• Shows promising results on benchmarks like MATH-500 and AIME, improving on QwQ-32B-Preview’s strong performance.

Why it matters: By democratizing access to deep reasoning models, Alibaba could make these capabilities a standard feature rather than a premium add-on. The focus on smaller variants unlocks a wider range of privacy-centric applications and offline usage. Overall, QwQ-Max-Preview could accelerate innovation in AI reasoning across diverse domains, raising the bar for open-source collaboration.

AI Agents Sound-Based Protocol Emerges

News: Gibber Link, a groundbreaking sound-based protocol developed by Anton Pidkuiko and Boris Starkov at ElevenLabs Hackathon, is revolutionizing AI-to-AI communication. This innovation detects AI agents on phone calls and switches from human speech to direct data transmission using the open-source ggwave library.

Details:

• 90% reduction in compute costs, 80% shorter call durations.
• Enhanced clarity in noisy conditions
• Real-time transition between speech and data exchange
• Open-source code available on GitHub, enabling further community-driven improvements.

Why it matters: The rise of AI voice agents is set to reshape industries, with 90% of hospitals predicted to use AI agents by 2025. More efficient AI-to-AI communication could transform sectors that rely on AI-driven customer service and technical support. Protocols like Gibber Link signal a shift toward faster, more cost-effective AI collaboration in various applications. By openly sharing the source code, the developers encourage rapid adoption and innovation across the entire AI ecosystem.

DeepEP launch for #OpenSourceWeek

The news: DeepSeek has announced the release of DeepEP on day 2 of their #OpenSourceWeek event. DeepEP is the first open-source EP (Expert Parallelism) communication library designed for MoE (Mixture of Experts) model training and inference. This release follows the introduction of FlashMLA on day 1, described as a fast and efficient “translator” for language models.

The details:

• The #OpenSourceWeek initiative by DeepSeek is part of their larger effort to open-source portions of their online services’ code (TechCrunch article).
• This event, which began on February 24, 2025, involves the company releasing five code repositories over five days (Hacker News discussion).
• These repositories are described as “documented, deployed and battle-tested in production.”

Why it matters: DeepSeek’s #OpenSourceWeek signals a broader commitment to transparency and open-source principles by granting complete access to five core repositories. By fostering a collaborative environment for AI research, the company challenges traditional 'ivory tower' norms and may encourage major players like OpenAI to follow suit. Overall, democratizing advanced AI capabilities could reshape the competitive landscape, spurring new breakthroughs and a more inclusive innovation model.

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Quick News

• Luma AI has enhanced its Dream Machine tool, which now generates synchronized audio for videos.

• Perplexity AI has announced 'Comet,' a next-generation AI-powered browser featuring agentic search capabilities.

• Salesforce and Google have expanded their collaboration by integrating Google's Gemini AI models into Salesforce's Agentforce platform.

• Alibaba has committed 380 billion yuan ($52 billion) to artificial intelligence and cloud computing over the next three years.

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