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Comment by bakugo

1 day ago

> Why is Anthropic offering such favorable pricing to subscribers? I dunno

I do, it's called vendor lock-in. The product they're trying to sell is not the $200 subscription, it's the entire Claude Code ecosystem.

For the average person, the words "AI" and "ChatGPT" are synonims. OpenAI's competitors have long conceded this loss, and for the most part, they're not even trying to compete, because it's clear to everyone that there is no clear path to monetization in this market - the average joe isn't going to pay for a $100/mo subscription to ask a chatbot to do their homework or write a chocolate cake recipe, so good luck making money there.

The programming market is an entirely different story, though. It's clear that corporations are willing to pay decent money to replace human programmers with a service that does their work in a fraction of the time (and even the programmers themselves are willing to pay independently to do less work, even if it will ultimately make them obsolete), and they don't care enough about quality for that to be an issue. So everyone is currently racing to capture this potentially profitable market, and Claude Code is Anthropic's take on this.

Simply selling the subscription on its own without any lock-in isn't the goal, because it's clearly not profitable, nor is it currently meant to be, it's a loss leader. The actual goal is to get people invested long-term in the Claude Code ecosystem as a whole, so that when the financial reality catches up to the hype and prices have to go up 5x to start making real money, those people feel compelled to keep paying, instead of seeking out cheaper alternatives, or simply giving up on the whole idea. This is why using the subscription as an API for other apps isn't allowed, why Claude Code is closed source, why it doesn't support third party OpenAI-compatible APIs, and why it reads a file called CLAUDE.md instead of something more generic.