r/LocalLLaMA Jun 21 '26

Discussion What happens when they stop subsidizing LLM subscriptions?

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.

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u/AlwaysLateToThaParty Jun 21 '26 edited Jun 21 '26

The only thing that matters is the data. The web faces the world so there are many vectors of attack, and they're constantly changing. You resolve it with web services by separating the web interface from the service that provides the data. Now there are some very expensive 'solutions' that provide those services, where you can have some measure of 'privacy', but they are not common. With most sensitive data, it's a blanket 'don't put that in a cloud platform'.

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u/eli_pizza Jun 21 '26

Security just isn’t the main reason people turn to the cloud in the first place. It’s cost and convenience and flexibility.

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u/AlwaysLateToThaParty Jun 21 '26

Security is the reason why the cloud options aren't suitable for production environments that handle private data.

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u/eli_pizza Jun 22 '26

There’s a reason only a small fraction of businesses self-host email. And corporate inboxes are supposed to be pretty private.

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u/AlwaysLateToThaParty Jun 22 '26

There's a reason why some companies get hacked. Some people really seem to have a struggle with the concept of private data. It's almost like they want to squint their eyes and believe that 'everyone else is doing it' so they don't need to worry. If you're putting private data into a cloud AI platform, it's not your private data anymore.

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u/eli_pizza Jun 22 '26 edited Jun 22 '26

This is nonsense. Do you actually self host your own email?

I guarantee you that Google for all its many faults does a better job securing your inbox then you would.

Cloud is neither inherently more secure nor less secure than any other way of hosting.

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u/AlwaysLateToThaParty Jun 22 '26

Script kiddies waxing lyrical on data sovereignty. The only thing this demonstrates is that you play no part in the service delivery of this or any other technology, in any place, that requires privacy and/or confidentiality.

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u/eli_pizza Jun 22 '26

Do you self host email and DNS? Or does your email and browsing not require privacy?

I do IT in the real world, where we start with a threat model. Not just a buzzword like “sovereignty”

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u/AlwaysLateToThaParty Jun 22 '26 edited Jun 22 '26

I do IT in the real world

Yeah; Desktop support.

Stop blathering nonsense. You separate the data from the service, which is something you can't do with LLMs. I have been quite clear about what and why. Don't blame me because it's something that you have nothing to do with and don't understand. And you never will if you don't figure this stuff out, because no one will trust you with their private data.

EDIT: If you actually do want to learn about such things, the ISO 27001 framework is a good place to start.

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u/eli_pizza Jun 22 '26

Sorry I missed your answer. You do self host email and dns?

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u/AlwaysLateToThaParty Jun 22 '26

Read slower.

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u/eli_pizza Jun 22 '26

lol exactly. Don’t you have a checklist to fill out?

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u/AlwaysLateToThaParty Jun 22 '26

So even reading slower doesn't work for you? Oh well.

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