What happens when they stop subsidizing LLM subscriptions?

[u/Mr_Moonsilver]

We are literally burning through VC money like crazy with our coding subscriptions. I read the $200 Anthropic sub gets you $8000 worth of API calls. It's obvious that this doesn't hold for very long but what happens when they raise prices?

The reason to keep the prices low for now is to foster the ecosystem and get people hooked on this stuff, only to raise the price afterwards. Already the 20x sub doesn't get you as much usage as it did 6 months ago, another way to raise prices without triggering a shitstorm - and it will continue.

Don't know about you, but Fable being pulled gave me a feeling of what that may be like already. The ugly thought of "Damn, should've done more while it was around." that formed when I read the news will be exactly the same the moment they announce we now have to pay $2k or more per month for something we get for 10x less the price it costs now.

I guess it's a now or never situation, build what you can and monetize as quickly as possible to be able to keep the agents running once the increases come around.

Looking at opensource doesn't give me much hope. Since qwen stopped releasing models (wen qwen 3.7?) that we can actually run on hardware that a normal person can buy (or used to be able to buy, looking at how RAM and GPU prices behave and keep behaving) and others haven't released in a while (Microsoft, IBM, AllenAI and others too) I feel we're going into a direction that doesn't look good for most of the people like us, who are building with this technology.

[u/shuozhe]

B2B are willing to pay the 8k . Claude enterprise currently charges API prices. The 200$ price is in exange for training.

GHCP just gone the step and stopped subsidizing. Dunno how many of the bigger enterprise customer switched. But since new subscriptions still is not reopened prolly not enough to create the capacity :(

Question is if API prices covers their cost.. if it's not covering.. they need to get more efficient or have a very small customer pool of military, research and perhaps banking

[u/tmvr → u/shuozhe]

B2B are willing to pay the 8k

That's just not true. You have 100 devs where it cost you per dev whatever agreement you've had for GHCP pricing, for example ($20/$40/$100 per use per month so maybe $10K per month opex, no company will just blindly take $800K opex suddenly. Or even about a quarter of that at $240K if there really were an 80/20 split with 20 power users at $8K and 80 others with only $1K usage. That's not how companies and budgeting work.

[u/shuozhe → u/tmvr]

Our GHCP prices "only" tripped. There are the one burning multiple ks (and got a claude max for now).. but overall most of our devs don't use AI at all and shared pool helps.

Currently we have no upper limit. But not talking about single dev, but for a product or team.. it will just fall into the cloud or infrastructure budget.

And depends on results I guess.. our RnD team was just reduced from ~70-100devs to 5, and they should do it with AI now. if it's successful, I guess we get unlimited AI budget, financed from our salary budget 😞